Written by Jennifer Taranto, VP of Sustainability, STO Building Group
Environmental, social, and governance (ESG) concerns in the built environment are receiving more attention. Customers are increasingly thinking about a company’s values rather than just the services it offers, from its waste management and carbon footprint to its relationships with stakeholders and communities to its internal policies, procedures, and decision-making processes.
Given their proficiency in corporate governance, risk management, and regulatory compliance, the legal sector is taking advantage of their exceptional chance to set the standard for tackling ESG issues. And their real estate holdings are bringing those ideals to the fore.
ADDITION BY SUBTRACTION—THE SUSTAINABLE LAW OFFICE
Forty percent of global greenhouse gas emissions come from the real estate industry. This means that even small actions to reduce waste and energy use can make a difference. These steps also help businesses meet their carbon reduction goals. For example, businesses can:
- pursue certifications, such as LEED or BREEAM, to set targets and standards
- Firms can sign “green” leases to align their landlords’ interests with their own. This helps both parties work together to meet sustainability goals in the built environment.
- purchase green power that is certified and verified by an independent third party
- encourage their employees to adopt sustainable commuting practices, such as biking or taking public transportation
O’Melveny Myers, Menlo Park, CA
Numerous law firms have already implemented these sustainability practices. Clifford Chance LLP, for example, has set ambitious environmental goals. Its short-term, science-based target is to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 80% by 2030, using FY20 as the baseline. The firm also aims to cut Scope 3 emissions by 47% over the same period.
Clifford Chance continues to focus on sustainability, wellness, and operational efficiency across all its global offices. These efforts reflect its long-term commitment to environmental responsibility.
In recognition of its progress, EcoVadis, a leading corporate sustainability ratings agency, awarded Clifford Chance a Gold Medal in FY23. This ranking places the firm among the top 5% of companies evaluated by EcoVadis, and in the top 2% of firms within the legal and accounting sectors.
Learn more about the award here.
Structure Tone New York is part of the services industry and is actively pursuing sustainability goals. The firm is aiming for Fitwel Three Stars and LEED and WELL Platinum certifications for its new office at Two Manhattan West. It is also working with regional suppliers through its global sustainable procurement program to ensure compliance with the company’s minimum standards. You can check if these requirements are met at: Clifford Chance Supplier Standards.
“Sustainability is central to our decision-making,” says Grace McLaughlin Rainey, Director of Operations, Americas, at Clifford Chance. “Understanding our environmental and social impact matters—not only for our firm and people, but also for our clients and suppliers. We’ve reviewed every stage of our office design and fit-out to ensure we stay aligned with our responsible business commitments.”
THE SOCIAL NETWORK
Another area where law firms can make an impact is the “social” component of ESG—including not only focusing on but also improving diversity, equity, and inclusion (DEI) across the industry. How does that translate to the workplace?
- Identifying physical spaces for various styles, from more informal, communal areas to focus rooms and workstations.
- Accommodating flexible or hybrid employees with hoteling or desk reservation systems.
- Promoting socially and environmentally conscious commitments throughout the office, including the focus areas of employee resource groups, sustainable office features, and mass transit accessibility
As an illustration, consider the award-winning company O’Melveny Myers LLC, which has over 30 ERGs in addition to a notably high proportion of diverse staff members in executive positions across the company on its partner admissions, policy, and compensation committees. Through shortened schedules, remote work, or sabbaticals, the company openly offers parents flexible work arrangements and support. Training on implicit bias, bystander intervention, and antiracism reflects their comprehension of and commitment to raising awareness of DEI concerns. Through pro bono work, they further reaffirm their commitments. Visit https://cloud.3dissue.net/16951/17014/17128/58821/index.html to learn about how they combat systematic racial inequities like police misconduct and voter suppression.
O’Melveny Myers LLC is an award-winning firm with a strong commitment to diversity, equity, and inclusion. The company has over 30 employee resource groups (ERGs) and a notably high percentage of diverse leaders. These individuals serve on key committees, including partner admissions, policy, and compensation.
The firm supports parents by offering flexible work options such as shortened schedules, remote work, and sabbaticals. It also provides training on implicit bias, bystander intervention, and antiracism. These efforts reflect a deep understanding of DEI issues and a commitment to continuous awareness.
Through pro bono work, the firm further strengthens its stance. To see how it addresses systemic racial issues like police misconduct and voter suppression, visit this link.
SETTING A PRECEDENT
Law firms are well-positioned to demonstrate strong governance in real estate, given their expertise. For example, they can set and share clear rules about social and environmental standards. Doing so communicates the firm’s values and provides a framework for their decisions and actions.
We have a long-standing relationship with Allen & Overy LLP, and they are setting a strong example. The firm has clear policies to address social and environmental issues. These include a modern slavery and human trafficking statement, as well as an environmental policy with specific goals to reduce its carbon footprint and promote sustainability. Allen & Overy also has an energy management policy and has committed to using 100% renewable electricity in its UK offices by 2025.
These examples are not to say pushing the ESG envelope is easy. Challenges remain, particularly in real estate portfolios where implementing sustainable building practices, retrofitting existing buildings, and finding suitable locations that align with ESG values and meet the needs of the firm can be complex and costly.
Law firms acknowledge the significance of addressing ESG in the physical environment despite these obstacles. We are witnessing an increasing number of law firms among our clients across many sectors take on these obligations, thereby reducing their environmental effect, promoting social equity, and ensuring that their real estate is maintained in a transparent and ethical manner. Law firms will remain at the forefront of ESG as it continues to be a priority for corporations worldwide.
