Bridging the sustainability gap in law firms

A recent study by Greenarc has revealed significant challenges faced by UK law firms in achieving their sustainability goals, despite a widespread recognition of their importance. The survey of 100 employees within the legal sector highlights a troubling gap between environmental aspirations and actionable strategies. While sustainability is increasingly critical in business and society, law firms remain hindered by competing priorities, knowledge gaps, and limited confidence among sustainability leaders.

Sustainability Goals: Aspirations vs. Confidence

The Greenarc study found that 66 percent of law firm employees believe their firms have clear sustainability goals. However, only 38 percent of sustainability leaders feel confident in their ability to achieve these objectives. This confidence gap is concerning and highlights the need for robust training and knowledge-sharing within firms.

Although 78 percent of law firms have appointed sustainability champions, many lack the necessary expertise and support to implement meaningful initiatives. Without adequate training or access to best practices, these roles risk becoming symbolic rather than transformative. To address this, law firms must embed sustainability into their core strategies and provide leaders with the tools to succeed.

Competing Priorities: Sustainability Takes a Back Seat

In the fast-paced legal sector, sustainability competes with numerous priorities—and often loses. The study revealed that sustainability ranks as a priority for just 51 percent of UK law firms, falling behind cybersecurity (92 percent), cost management (81 percent), and digital transformation (68 percent).

This reflects the growing focus on digital transformation and cybersecurity as firms adapt to remote working and increasing IT threats. Cost pressures and operational demands further sideline sustainability, as do other initiatives such as employee well-being and equality, diversity, and inclusion (EDI).

However, neglecting sustainability could soon become a competitive disadvantage. Clients and employees are increasingly demanding environmentally conscious practices, and failing to deliver could lead to reputational risks and lost business opportunities.

Scope 4 Emissions: A Missed Opportunity

A key finding of the study was the limited focus on Scope 4 emissions—greenhouse gas emissions linked to the matters law firms advise on. While 77 percent of respondents recognised their importance, only 18 percent actively prioritise them, with 10 percent admitting unfamiliarity with the concept altogether.

For instance, firms advising on energy-intensive projects or industries indirectly contribute to substantial emissions. Addressing Scope 4 emissions could help align business practices with net-zero goals and demonstrate environmental leadership. As Jonathan Simms, Partner at Clarion, notes, “ESG activities and Net-Zero plans are increasingly expected by employees and clients alike.”

Knowledge Gaps and Financial Pressures

A lack of expertise emerged as a recurring theme. While 40 percent of respondents cited cost pressures as a barrier to sustainability progress, the study suggests that knowledge deficits are an equally significant factor. Many firms lack the strategic frameworks or understanding needed to integrate sustainability into their operations.

Chris Bingham, Chairman of Greenarc, points out that external support can help law firms identify impactful initiatives while balancing sustainability with financial viability. By investing in training programs and seeking expert guidance, firms can make significant progress without overstretching resources.

Financial pressures, including rising costs such as a 1.2 percent National Insurance hike, have undoubtedly strained budgets. However, sustainable practices often yield long-term savings. For instance, switching to clean energy, reducing office waste, or adopting energy-efficient technologies can lower operational costs while enhancing reputation among eco-conscious clients.

Regulatory and Client Pressures

The pressure to prioritise sustainability extends beyond internal challenges. Clients are increasingly factoring environmental, social, and governance (ESG) credentials into their choice of legal advisors. Thomson Reuters recently reported that client demand plays a key role in shaping ESG strategies at UK law firms.

At the same time, regulatory scrutiny is intensifying. The Financial Conduct Authority (FCA) has introduced anti-greenwashing regulations, requiring firms to substantiate sustainability claims. Firms must ensure their initiatives are genuine and transparent to avoid legal repercussions and reputational damage.

Bridging the Aspiration-Action Gap

The Greenarc study underscores the urgency for law firms to move from sustainability aspirations to tangible action. 

To bridge this gap, firms should consider the following steps:

• Embed Sustainability into Core Strategies: Sustainability must be integrated into business strategy, with measurable objectives and leadership accountability.
• Prioritise Scope 4 Emissions: Firms should assess their indirect environmental impact and incorporate Scope 4 emissions into decision-making.
• Empower Sustainability Leaders: Sustainability champions need adequate support, resources, and training to drive meaningful change.
• Address Knowledge Gaps: Regular training, workshops, and cross-sector collaboration can equip employees with the skills to navigate environmental challenges.
• Balance Competing Priorities: Firms must find innovative ways to align sustainability with other critical business needs, such as cybersecurity and cost management.
• Leverage Regulatory Frameworks: Compliance with ESG standards and anti-greenwashing regulations can enhance credibility and mitigate risks.
• Communicate Transparently: Firms should publish updates on sustainability goals and progress to build trust with clients and employees.

Conclusion

The path to sustainability in the UK legal sector is not without challenges. However, by adopting a proactive, informed, and collaborative approach, law firms can transform sustainability from an abstract ideal into a practical reality. With growing client and regulatory pressures, firms that act decisively now will not only secure their place in a changing world but also position themselves as leaders in a more sustainable future.

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