Driving Sustainable Change in Law Firms: Why Integrating the SDGs Matters
How law firms can leverage the UN SDGs to enhance practices and client engagement.
6 min read
Law firms may not be the first institutions that come to mind when thinking of sustainability. Yet, they are increasingly urged to play a role in advancing responsible practices. Clients, particularly corporate ones, now place sustainability demands on their legal service providers as both reputation and economic benefits are at stake. For today’s lawyers, integrating sustainability into their strategy can boost resilience, client loyalty, and provide a competitive edge.
Why sustainability matters for law firms
Corporate clients are prioritising sustainability when choosing their legal advisors. Many General Counsel now seek diverse and sustainable teams. And some even refuse to work with firms that lack diversity. Law firms aligning with client sustainability values are more likely to build strong, long-term relationships. Additionally they will enhance internal performance, and strengthen their brand.
The advantages are clear:
- Client loyalty and growth: Sustainability-focused clients are more likely to choose firms that share their values. This leads to better retention rates and higher client satisfaction.
- Future resilience: Sustainable practices help firms adapt to market changes and new regulations.
- Reputation and talent: Firms leading in sustainability attract top talent and clients. This boosts their reputation and operational strength.
The SDGs offer a strong framework for firms to harness these benefits, supporting growth and adding value to clients and society.
The UN SDGs as a framework
The SDGs provide a holistic framework encompassing economic, social, and environmental goals. These are increasingly relevant to law firms. While sustainability often brings to mind environmental practices, law firms can support sustainability, particularly through social responsibility and ethics.
Key SDGs relevant to law firms include:
- SDG 5 (Gender Equality): Promoting equal opportunities in leadership can increase diversity and improve financial performance. Research indicates that firms with more diverse teams show up to 15% higher financial returns
- SDG 8 (Decent Work and Economic Growth): Ensuring fair working conditions and pay supports employee retention which can lead to stronger client relationships.
- SDG 16 (Peace, Justice, and Strong Institutions): Supporting principles of law and ethical practices aligns with law firms’ missions, strengthening trust with both clients and the community. This approach also enhances the firm’s brand image.
Law firms can improve their own practices and support clients’ sustainability by embracing these SDGs
Practical steps for integrating the SDGs
Integrating the SDGs may seem ambitious, but focused steps can make a significant impact. Here’s how:
- Assess key Environmental, Social, and Governance (ESG) issues: Use tools like the Materiality Matrix to identify top ESG issues. For law firms and other professional services, these often include gender equality, employee engagement, and ethical practices.
- Use a value chain approach: Examine your value chain for areas to improve. Partner with sustainable suppliers and make ethical consumption choices.
- Develop targeted initiatives: Launch initiatives like a Gender Progress Program. This can address workplace barriers and increase women’s representation at senior levels, aligning with SDG 5.
- Embed change into firm culture: Promote flexible working, mental health, and work-life balance. This supports employee engagement and aligns with SDG 3 (Good Health and Well-being).
- Report and maintain transparency: Clients expect clear reporting on sustainability. Detailed reports prevent “greenwashing” and build credibility. Ensure that reports are accessible to clients and stakeholders to show genuine commitment.
Case Example: Gender equality and economic value A standout example of sustainable progress is promoting gender diversity. To increase gender diversity, firms could adopt Mansfield Rules. These require candidate pools to include a set percentage of diverse candidates. Such guidelines help firms recruit and promote a wider range of individuals, meeting client expectations and showing social responsibility. In Switzerland, over 50% of law graduates are women, but few reach partnership, highlighting a clear gap to address.
Addressing environmental impact and remote working
Law firms may not be major carbon emitters, but a shift towards remote work offers a significant opportunity to reduce emissions. The COVID-19 pandemic demonstrated the effectiveness of remote working. By allowing ongoing flexibility, firms can reduce commuting emissions and support employee wellbeing, aligning with SDG 8 and SDG 12 (Responsible Consumption).
Beyond environmental benefits, remote work also supports gender equality, as it helps balance work and family responsibilities, especially for women. However, the pandemic also exposed caregiving inequalities. To address this, firms can offer flexible hours, part-time work, and subsidised childcare, supporting SDG 5.
Overcoming challenges and ensuring stakeholder buy-in
One of the biggest challenges in advancing sustainability is gaining buy-in from stakeholders, including partners and senior leaders. Some may hesitate to support the SDGs without clear financial benefits.
To encourage buy-in, consider these approaches:
- Present a business case: Demonstrating tangible benefits can reassure stakeholders of the value of sustainability. This includes client retention, brand differentiation, and operational efficiency. The cost of lawyer employee attrition is significant, with research estimating between $200,000 and $500,000. This encompasses recruitment, onboarding, lost productivity, client relationship impacts, and potential harm to firm reputation.
- Communicate transparently: Share regular updates to demonstrate progress and make employees feel involved.
- Start small: Begin with achievable steps, such as energy savings, diversity measures, or sustainable vendor partnerships. These set the stage for more ambitious sustainability goals.
Conclusion: Embracing Sustainability in Legal Services
Sustainability is no longer a trend; it’s a business essential. Law firms are in a unique position to model sustainable practices, both internally and in client engagements. Integrating the SDGs provides a structured path to fostering positive change, attracting clients, and building long-term resilience.
In a rapidly evolving business landscape, firms that align with the SDGs can lead by example, fostering a sustainable future for the legal sector and beyond.
References:
DiversityLab (2024) Mansfield Certification. Available from: https://www.diversitylab.com/what-we-do/mansfield-certification
Hart Shepherd, L. (2020) New Acritas report shows how the pandemic has changed the future of legal work. Available from: https://www.thomsonreuters.com/en-us/posts/legal/future-working-practices-report-2020-acritas/
Hart Shepherd, L. & Leach, L. (2020) Transforming Women’s Leadership in the Law Global Report 2020: How to improve gender diversity at senior levels within law firms. Available from: https://www.thomsonreuters.com/en-us/posts/legal/twll-global-report-2020/
Hunt, V., Layton, D. & Prince, S. (2015) Diversity Matters. Available from: https://www.mckinsey.com/~/media/mckinsey/business functions/people and organizational performance/our insights/why diversity matters/diversity matters.pdf
Lashitew, A. A. (2021) Corporate uptake of the Sustainable Development Goals: Mere greenwashing or an advent of institutional change? Journal of International Business Policy, 4 (1): 184-200.
Sustainability Accounting Standards Board (SASB) (2024) Materiality Finder: Professional & Commercial Services. Available from: https://www.sasb.org/standards/materiality-finder/find/?industry[]=SV-PS
The NALP Foundation (2017) Update on Associate Attrition
Travail.Suisse (2021) „Barometer Gute Arbeit“. Available from: https://www.travailsuisse.ch/de/media/1724/download