Noises Off: Philip Rodney
In the first of a new series, we ask some of our most noted associates and contributors to offer a personal perspective and, who knows, maybe ruffle a few feathers in the process. Philip Rodney kicks-off.
In his 1994 worldwide hit, A Girl Like You, the God-like genius that is Edwyn Collins sings inter alia, “Too many protest singers; Not enough protest songs.” It’s an apposite observation about the loose connection between talk and action.
The inter-relationship between how lawyers project their environmental, social and governance (ESG) know-how and credentials, on the one hand, and the way in which they conduct their own businesses, on the other, resonates with Edwyn’s elegant couplet.
From a quick trawl of law firm websites, it would seem rare now for one not to tout an ESG-related service offering of some kind. However, examples of legal practices providing a transparent narrative of clear, quantifiable and ambitious targets that they have set for themselves, let alone are achieving, are few and far between. The general impression is that firms are far happier preaching than practicing. They prefer to lecture than lead.
At the outset, let me declare an interest. Once upon a time, I was a lawyer. Now I sit on the advisory board of ESGmark®, whose mission statement is to help organisations create a more sustainable future through advice, training, networking, and certification.
There is little doubt that each of the components of ESG will be of increasing importance to clients. While its ends are virtuous in themselves, they translate into good business sense.
According to McKinsey’s global survey, 83% of C-suite leaders and investment professionals say that they expect ESG programmes to contribute more shareholder value in five years’ time. So, this would appear to be an area of practice in which it’s worth making a longer-term investment.
When I was in practice, I thought what distinguished the exceptional lawyers - from the merely good ones - was the ability to give the best rather than the safest advice. In other words, it was the willingness to go beyond the textbook answer, put yourself in the client’s shoes and counsel them from that perspective. The same must be true of ESG practices. So having direct experience of living these values will give those operating in this area, not only credibility, but a head-start professionally.
While many law firms are promoting practices with such snappy tags as green litigation and green financing, few would appear to have put their money where their mouths are - leading by example and displaying their own commitments and achievements. The truth is that, for some, the only thing that is green about them, is their attempt at greenwashing their own brands.
“From a quick trawl of law firm websites, it would seem rare not to tout an ESG-related service offering of some kind. However, examples of a transparent narrative are few and far between. The general impression is that firms are far happier preaching than practicing. They prefer to lecture than lead.”
To illustrate this a recent survey of UK law firms carried out by ESGmark® found that among the firms surveyed:
- 95% had ESG related articles on their website.
- 90% had a dedicated CSR/ESG area on their website.
- 80% had an ESG related service offering.
- 70% had an environmental policy.
- 65% had a dedicated CSR/ESG report.
But only:
- 35% had published dedicated ESG targets for 2021 and beyond.
- 15% had defined quantitative goals as part of these targets.
It would seem the mantra of many firms is “Do as I say, not as I do” - ironic when values such as integrity and authenticity underpin ESG.
There are some notable exceptions. For example, magic circle firm Freshfields which committed to phasing out single-use plastics in all offices by the end of 2021, has undertaken to slash paper usage by 40% by 2025, reduce carbon from business travel by 30% by 2025 and to have every office powered by 100% renewable electricity by 2030.
While top 50 law firm, Freeths has created a team comprising representatives from their management board, HR department and senior lawyers, dedicated to ensuring their service offering is mirrored by their own ESG pledges.
But ESG practices for law firms can go much further than that. They can extend to adopting circular economy principles, concentrating on the responsibilities to their clients rather than their owners and redefining growth to to focus on long-term, firm-wide benefits.
For law firms to be in the vanguard of advising clients on ESG matters, they need both to look at themselves and be prepared to think more radically.
Before embarking on his solo career, Edwyn Collins led the Glasgow jangle-pop band Orange Juice. Perhaps we need to follow the advice contained in the title of their only UK Top 40 hit: Rip It Up (And Start Again).