How in-house lawyers can drive ESG

How in-house lawyers can drive ESG

 

In our latest video, Adam Woodhall, Chief Executive for , shared his views on the role of in-house lawyers in driving environmental, social, and governance (ESG) policies. Woodhall explains that in-house lawyers occupy a unique position when it comes to the implementation of ESG. They ‘sit at the table’ and attend the right meetings, with the capacity to convince boards to take meaningful action on climate change and lobby against harmful action such as greenwashing.

‘They’re trusted business advisors,’ Woodhall claims, ‘so they can use that to champion Net Zero.’ As trusted business advisors, in-house lawyers are able to adopt a wide approach, share skills and knowledge, guide others across the business, embrace a collaborative spirit, consider moral as well as commercial obligations, and mitigate the risks caused by the prioritisation of short-term incentives. Simply put, in-house lawyers are in the perfect position to make a convincing case for sustainability.

But in-house lawyers face myriad challenges, particularly around implementation of environmental sustainability. One particular challenge is time scarcity, as Woodhall attests in the video: ‘How do [in-house lawyers] fit [sustainability] into the time that’s available when we’ve got the inbox from Hell?’ The immediate requirements of day-to-day operations and the need for continuity take precedent over ongoing and extended initiatives, the implementation of strategy, and other long-term demands.

The key for in-house lawyers is prioritisation, according to Woodhall. They need to free up time to work on ESG and sustainability. Woodhall says the in-house lawyers that are taking meaningful action on climate change are constantly ‘working on how to use their time most effectively’. Some of them have joined , for example, focusing on accountability and insights. The Champions Groups, in the interest of time, only take half-an-hour every two weeks.

Another route to freeing up time is effective delegation. That might mean allotting business-as-usual tasks to capable members of their team, or even investing in automation of menial tasks. According to Woodhall, effective delegation enables in-house lawyers to ‘bring [sustainability] front and centre so that [they] are driven by the general counsel and their team’.

Another way to free up time to focus on longer-term priorities, such as achieving Net Zero, is to increase team capacity. That might mean approaching management or the board. The board are instrumental to effecting change, as Kene Onyeka Allison, Vice President, , explains: ‘It comes from the Board. When they have the desire to change, it impacts everyone.’ In-house lawyers can make an optimistic case to the board, justifying their need for increased capacity and demonstrating why additional resources will benefit the business. They can clearly and positively show that meaningful ESG policies, among other things, improve brand image, and helps the business to prepare for compliance requirements, such as the Task Force on Climate-related Financial Disclosures (TCFD).

One of the benefits General Counsel can bring to their business is longer-term thinking. They are expected to look forward and focus on wider impacts of business decisions. A key challenge is applying the same logic to their work, freeing up time to prioritise long-term thinking and focusing on the implementation of sustainability. By doing that, in-house lawyers demonstrate the importance of meaningful climate action, show leadership by example, and help the business to take vital steps towards achieving Net Zero.

“It's not someone else's problem, it's not just for ESG specialists, it’s for all of us.â€

Neil Campbell, Managing Legal Counsel, NatWest

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About the author:

Adam Woodhall is the founder and CEO of Lawyers for Net Zero, the fast-growing non-profit supporting GCs and their teams to take climate and ESG leadership.  He is successful entrepreneur, expert on business and sustainability and widely published author.

The initiative now has over 100 in-house lawyers committed to net zero, with many high-profile ‘Champions' participating in Lawyers for Net Zero’s ‘Impact Accelerator’, including from organisations such as Vodafone, Standard Chartered Bank, Financial Times, E.ON, Nestle and Rolls Royce.