Why inaction on climate action is bad news for law firms
Some of the world’s largest law firms have been publicly called out for exacerbating the climate crisis in a damning report by the Law Students for Climate Accountability.
The campaign group’s Law Firm Climate Change Scorecard, which ranks the 100 leading global firms annually according to their fossil fuels work, found that more than a third (38%) had actually increased it over the last five years. These included A&O Shearman, Clifford Chance, Freshfields and Linklaters – four of the five Magic Circle firms.
Each firm was graded according to its performance, with the above all receiving an F. Just 14 firms were given an A grade, although that number is double the previous year.
The report also claims that London firms alone were responsible for almost £45 billion in fossil fuel transactions in 2024, and that between 2020 and 2024, a group of 100 law firms facilitated more than £1.5 trillion whilst also earning more than £26 million in lobbying instructions.
“This is a moment of truth for the legal industry,” Aiden Bassett, of LSCA, told The Global Legal Post. “The business case for clean energy has never been stronger, and the moral courage of major firms has never been so in question.”
Disappointingly, it is doubtful whether the latter will shame offending firms into action, but the reputational damage resulting from reports such as this one may well have the desired effect.
Short-term gain v long-term pain
Aside from the obvious reason that it’s the right thing to do for the planet, there is a sound business case for committing to more climate-friendly practices.
Bad PR is generally bad for business. When it comes to recruitment and retention, for example, law firms are likely to find it difficult if they continue to be part of the problem and not the solution. Competitive salaries alone are no longer enough to guarantee the top talent, with many environmentally conscious candidates wanting an employer whose values align with their own. Research by Obelisk Support found that nearly three-quarters of junior lawyers would not work for a firm that did not, even if they were offered more money. Further, 86% planned to use their role to effect positive societal change.
Clients are increasingly likely to instruct firms committed to climate action, not just for themselves but to demonstrate to stakeholders such as their investors and clients that they take the issue seriously.
Law firm leaders who continue to ignore the issue may enjoy short-term gains, but in the longer-term they are likely to find that as the fossil fuel-related work declines, so too will the number of prospective clients willing to do business with a firm that has a shoddy record on sustainability.
Doing the right thing
As legal PR experts, we know that not everything is black and white, but owning your mistakes – as long as you’re committed to correcting them – can go a long way.
Firms that failed to make the grade on the LSCA’s scorecard should look at the reasons why and what steps they can take to rectify that before communicating their plan clearly and with a genuine apology to interested parties. Rather than looking like you’ve got something to hide or worse, pretending to be something you’re not, honesty is the best policy when it comes to rebuilding trust and confidence.
Fail to do better, however, and it won’t just be your business that pays the price.
As James Dyke, a professor of Earth systems science at Exeter University, told The Times: “Lawyers and law firms must act on the abundant evidence that shows how their work with fossil fuel interests is facilitating this harm. Future liabilities are enormous given the potential for catastrophic climate change.”
