Responsible Business: How is Law Firm ESG Evolving?

Law firm ESG and people strategies play a role in how firms attract talent, win clients and define their legacy. For this year’s new responsible business report, Hayley Fothergill led a research team analysing how 150 leading UK and US firms communicate and implement responsible business initiatives across People, Planet and Governance. 

We sat down with Hayley to unpack the key findings, spotlight standout firms and explore what ‘good' looks like today. 

Watch the full interview with Hayley Fothergill below. 

The major trend we see this year is continued momentum among UK firms in making a strong visible commitment to responsible business. In our research, we track how firms are communicating their responsible business commitments and which initiatives are underpinning this. 

Among the UK top 100 firms, 65% increased their overall score in this year's assessment compared to last year. That means UK firms have remained steadfast in their commitment and are still confident in disclosing and expressing what they’ve been doing to support their environmental, people and governance strategies. 

Every firm approaches responsible business slightly differently. Each makes its own choices about which aspects and strategic areas to focus on, based on what makes sense for that firm—where it’s at, where it’s been historically and where it’s trying to go. 

The top ten highest scoring firms for environmental sustainability look quite different to the top ten for wellbeing. But we’re seeing more of the market converge around particular themes. 

Environmental sustainability is now central to most UK firm strategies. Nearly 80% of the UK top 50 firms have a net zero target in place. On the People side, there’s a lot more effort around improving social mobility. Of all the categories we look at in our People section, this is the one attaining the highest score overall. That’s driven by firms talking about recruitment strategies like apprenticeship schemes, outreach with schools in disadvantaged areas and paid work experience to improve access to the profession. 

It was no surprise what we saw in the results for the US market. We expected less communication and disclosure from firms on responsible business, and that absolutely played out. 

What was slightly surprising is that a small group of AmLaw 50 firms actually increased their score compared to last year. Within the US, different firms are still taking very different approaches, and a few are bucking the overall trend—which we weren’t expecting to see. 

Political pressures this year have been much more intense. Responsible business teams within firms have definitely felt more scrutiny—internally and externally. 

But commercially, everything we see in our wider research across Chambers and Partners shows how essential it is to maintain that commitment. It’s critical for satisfying key stakeholders. 

That’s especially true when it comes to attracting and retaining top talent. In our Leading Teams research last year, we surveyed around 10,000 associates across the US and UK. At least half felt that all aspects of responsible business—environmental sustainability, DEI, mental health and wellbeing, and pro bono—are important. 

When talent feels their firm is doing a good job in these areas, they’re more motivated, more likely to recommend their firm and less likely to leave. If you’re not meeting those expectations, they will look elsewhere. 

Similarly for clients, responsible business can be an essential criterion for pitches and RFPs. We’ve heard from firms who’ve lost work because they couldn’t meet client expectations in this area. So the commercial imperative remains really strong. 

A really encouraging sign is that responsible business is being elevated to board-level strategy. It’s not something that can just sit in a silo or be ignored. It’s seen as integral to the whole firm. 

In this year’s research, 64% of UK top 50 firms talked about having a responsible business board or ESG steering committee in place—and those bodies report into the overall board. That’s important because responsible business teams need senior leadership to understand and support it as a strategic imperative. 

They then have a direct line of communication and can educate board members on why it matters—whether that’s net zero targets or climate science. In law firms, if you have support from the top and the tone is set, things actually happen and there’s momentum. 

Our highest scoring firm this year was Taylor Wessing. They’ve always scored highly in the People category, and this year they’ve built on that with an even wider range of activity focused on building an inclusive culture. 

They’ve also started to talk more about their environmental work that was happening behind the scenes. Congratulations to them. 

The rest of the top five highest-scoring firms—in no particular order—are Clyde & Co, DWF, Pinsent Masons and Simmons & Simmons. I’d point to those firms as examples of what good looks like. 

If you look at how they’re communicating their responsible business strategies, it’s clear that it’s part of the overall firm strategy. It’s not just branding or marketing. They’re showing how it’s woven into the firm’s fabric, with proper on-the-ground initiatives and data to show impact. 

Responsible business is one way to think about your legacy as a law firm leader. What kind of firm do you want to lead? What impact do you want to have on your people, your community and the planet? 

I’d encourage leaders to reflect on how their firm has performed in this year’s research. Spot the gaps and ask: “Where might we need more investment? Where could we be doing more? Where do our responsible business teams need support and prioritisation to really make initiatives happen?” 

Use it as a reflection point on what changes you want to see in the world—and how you can work toward those by implementing responsible business strategies at your firm. 

Download the report by Chambers and Lamp House Strategy to get powerful insights and inspiration for law firm ESG and people strategies.