Calls to action on ESG boost demand for legal expertise

Calls to action on ESG boost demand for legal expertise

Law firms are racing to catch up with the financial sector’s embrace of environmental, social and governance (ESG) investing as they see the potential for deals and regulations aimed at combating global warming to deliver billable hours.

Nearly all the global law firms now have ESG or sustainability practices and the past year has seen unprecedented activity. From big dollar M&A deals to contracting work, the legal sector has recognised the need for ESG action.

At law firm Ashurst, lawyers are working with clients to embed a host of environmental clauses into contracts. In projects with construction clients, for instance, an increasingly standard requirement for contractors includes mandating an energy performance certificate (EPC) of at least an “A” for buildings, to prove they are energy efficient.

Other clauses require parties to meet certain carbon emissions targets, which, if breached, require a remediation fee donated to a selected environmental charity, the firm says.

“Clients are increasingly focusing not only on their own net-zero commitments but how that interplays with the customers and suppliers,” say Anna-Marie Slot, global ESG and sustainability partner at Ashurst. “The work that we are doing with clients — building ESG clauses into their contracts so that they can deliver on net-zero