Which law firms perform best in ESG?

Introduction  

ESG is a major topic right now, and for good reason. Various players are increasingly prioritising it. ESG refers to three factors that measure a company’s sustainability and societal impact, which determine a company’s financial performance. UK law firms have been found to be leading when judged by their ESG performance, and you may not be surprised by what drives this - client pressure! 

So if you are looking to pursue a commercial law career, this article will shed light on firms at ESG’s forefront, including HSF, Linklaters, and DLA Piper. This research should help determine where you should apply. Let’s explore what these law firms are doing. 

Linklaters: ESG On Top 

It is impossible to discuss pioneering ESG law firms without mentioning Linklaters. They have been top-tier legal advisors in Environment for 14 years, which is no small accomplishment. 

ESG in Asia 

What makes Linklaters stand out is their commitment to transparency and accountability. Their ESG efforts encompass five key areas: 

• Environmental impact 

• Work 

• People 

• Supply chain  

• Diversity & Inclusion (D&I)  

Linklaters’ ESG efforts can be illustrated by key statistics. They have targets to reduce carbon emissions by 50% by 2030, and have had tangible results, with a 46% reduction in GHG emissions between 2009/10 - 2019/20. They have a strong focus on DEI, and were named one of the FT Diversity Leaders for four years running. DEI contributions are taken into account for performance bonus purposes across Linklaters, illustrating the importance of DEI. Crucially, they have a dedicated ESG team that advises clients on ESG matters, and also try to follow their own ESG advice. 

The Linklaters ESG Open Day indicated the value of their ESG work. For example, it was mentioned that the funds practice works closely with biodiversity and human rights issues. Linklaters also recently came sixth in the 2023 UK Social Mobility Employer Index, demonstrating an authentic desire to improving employee diversity. Subsequently, the firm’s ESG strengths indicate it is a compelling choice for a career in ESG and law.  

HSF: ESG Leaders 

Herbert Smith Freehills (HSF) are also notable legal ESG players. They have an ESG practice led by Silke Goldberg, who has over 20 years of experience in energy. They have Chambers Band 1 rankings for Disputes and Oil & Gas within Energy & Natural Resources, as well as Band 1 globally for Environmental, Social & Governance Risk. 

HSF’s ESG clients 

My personal experiences indicate how important ESG is to the firm. In a conversation with a corporate ESG & Climate Change associate, it became apparent that the firm is focusing on repackaging work with sustainability at the core. At an HSF Asia Opportunities Event, this focus was proven further by the discussion of strong cross-jurisdictional energy work and shareholder activism in climate litigation. 

In general, from helping EDF Pulse Ventures with a high Series B raise to advising SFL on an €835M sustainability-linked credit facility, these deals highlight HSF's dedication to ESG. There is even an opportunity to do an ESG training seat. Their endeavour to inform clients of recent ESG news can be noted with their ESG Notes blog, a monthly ESG Newsletter, and hubs with insights on COP28 and climate disputes.  

In terms of DEI, by 2030, they aim for 40% women in top roles globally, This goal is already being realised, as the number of female partners in their London corporate team has quadrupled since 2017. Hence, if you want an enriching career in ESG within law, HSF may be the place to start. 

DLA Piper: A strategic ESG player 

DLA Piper is excelling in its ESG efforts. The firm topped Impactvise’s yearly ESG ranking with an impressive score of 91 out of 100, and recently won the ‘Innovation in ESG’ category for their ESG Due Diligence tool at the Law.com Legal Innovation Awards 2023. These awards are supported by their science-based targets to reduce emissions by 50% by 2030 and net zero by 2040. They have already cut carbon emissions by 41% across all scopes since 2019.  

As can be seen below, DLA Piper has a comprehensive sustainability strategy born from a recent double materiality assessment. There are five key focus areas: their people, clients, society, environment, and sound governance. This strategy includes working with clients to reach net zero and switching Europe to renewables. 

DLA Piper’s sustainability strategy 

The firm follows local and global initiatives and standards, including the ISO 14001, ISO 50001, the Carbon Trust’s Route to Net Zero Standard, the UN Global Compact, and Business Ambition for 1.5°C.  

This impressive ESG effort was reflected by Sarah Ellington in the firm’s Industrials sector. As her work is in defending clients accused of not adhering to ESG standards, her role illustrates the fluid and complex nature of ESG. It suggests the firm has a nuanced understanding of ESG, recognising the differing perspectives on its definition. 

DLA Piper's inclusion is also a great strength. This includes various employee networks and ambitious diversity targets, as can be seen below, such as the aim of at least 40% female partners by 2030. 

 DEI Status and Goals 

Overall, DLA Piper’s work in ESG is strengthened by clear sustainability and diversity strategies and is certainly a firm to watch for how it handles ESG in the future.  

Conclusion  

ESG is growing in the legal world, and I hope this article has given you a sense of which commercial law firms stand out. It must be noted that in addition to HSF, Linklaters, and DLA Piper, other law firms are also making significant ESG strides, such as Latham & Watkins, DWF, Burges Salmon, and Baker McKenzie. 

If you are struggling to discern which law firms perform well in ESG, look at their Chambers rankings and engage with them at events. Keep an open mind regarding where to apply, as you may bring a unique perspective to a firm that is not currently performing well in ESG. If you are feeling overwhelmed by this research, do not hesitate to reach out!