The importance of sustainability in the legal sector

Written by Gregor Urquhart, Senior Energy Engineer & ESOS Lead Assessor, Boxfish

The topic of sustainability is familiar to us all, with climate change referred to as a “crisis” for much of the past three decades. However, it is only in the more recent years that it has started being treated like one, particularly following the 2022 legal challenges to the UK’s Net Zero plan. The increasing focus on sustainability will undoubtedly affect all sectors of the UK economy as businesses recognise the need to balance economic growth with environmental and social responsibility. The legal sector is not exempt from the global call for sustainable practices and would indeed benefit from adopting those which address some of the main concerns and priorities highlighted in this survey.

The most prevalent challenge, expressed by 50% of surveyed firms in The Future of the Legal Workforce report, is the struggle to retain and attract top talent. A well-integrated sustainability policy, robust employee well-being programmes, hybrid working arrangements and public transport incentives can form compelling “carrots” to prospective employees, whilst also providing much-appreciated benefits to existing staff and strengthening workplace culture. By creating a work environment that prioritises both professional and personal fulfilment, law firms can position themselves as employers of choice in a competitive market, especially appealing to younger generations drawn to organisations aligning with their values.

Statistically, the second largest challenge facing the sector is economic instability, with 41% of surveyed firms citing this amongst their three greatest challenges for the year ahead. Sustainable practices can provide a strategic buffer against such uncertainties: improved energy efficiency, net-zero strategies and investments in renewable energy sources can all insulate law firms from the adverse effects of energy supply and price volatility.

Moreover, with wholesale energy prices forecast to remain over double their pre-2022 rates, the return on investment for sustainability initiatives and projects has never been better. Perhaps the silver lining of the energy crisis is to cement the sustainability sector’s tagline that “good sustainability policy is good business policy”. Of course, this holds true for overall profitability – identified by 60% of firms as one of their key priorities for the year ahead – as energy efficiency initiatives, waste reduction, and responsible resource management contribute not only to environmental conservation but also result in direct improvements to the bottom line and in turn make firms less susceptible to market fluctuations and economic downturns.

Combined, culture and profitability are major contributors to perhaps the most valuable asset of all; the reputation of the firm. Indeed, 37% of firms rank strengthening their brand and reputation amongst their top three goals for the coming year. Perhaps then, the most salient question is how best to incorporate sustainability into the roster of other criteria which influence a legal firm’s reputation.

One answer is that rather than thinking about sustainability as a standalone policy typically encompassing energy, waste and emissions, firms should see sustainability more as the foundation upon which other policy is written. Rather than conflicting policies between, say, procurement (lowest cost) and sustainability (lowest environmental impact), would it not be better for procurement policy to be built upon pre-existing sustainability criteria? And would this perhaps align with a firm’s existing professional ethics? Enabling such an approach may require substantial shifts in current ways of working for many firms but, moving early and being ahead of the curve is likely to reap the greatest rewards. This is particularly true considering the importance of the alignment of policy with a long-term net-zero strategy, which all firms will require to decarbonise their operations by 2050 (or 2045 in Scotland). If policy is the “who” and “how”, the net-zero strategy must address the “what” and “when” of the energy transition.

Whether that transition comes in the near future for the more ambitious firm or closer to the backstop for others, it is certain that the importance of sustainability is only increasing with each passing year and as such the greatest benefits are more likely to be realised by those who take the initiative. From talent retention and economic stability to profitability and brand reputation, adopting sustainable practices is shifting from a moral choice to a strategic necessity which can bring long-term benefits and help firms position themselves as industry leaders. In what is an evolving landscape, firms may benefit from seeking guidance to support them in their sustainability journey, however, if there is one message to convey, it is this: get started and get started with a genuine, quantifiable plan, much as the UK government has recently learned.

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