The sustainability mindset and its impact on the legal sector - By Harrison Jowett

The sustainability mindset and its impact on the legal sector Harrison Jowett, University of Leicester

The rise in sustainable, environmentally conscious, and zero-waste firms[1] represents a significant trend in consumer values that has been building since the initial stages of recycling and the conception of corporate responsibility. However, as this growing attitude to green consumerism seeps from retail and into almost every sector of the economy, law firms will be forced to amend their practice – and advice, accordingly.

Even in my lifetime, the attitude to waste has changed significantly. Packaging now displays directions on how it can be recycled and there has been a rise in low-packaging campaigns – Kenco’s advert where customers were shown balancing coffee granules in-hand springs immediately to mind.[2] Ostensibly, this seems to encourage consumers to act in a more responsible manner, and this is a large motivation. But the sustainability mindset also has vast business benefits.[3] If consumers are more aware of their waste, for example, then they are surely likely to shop more conscientiously. This is a trend that has been picked up by other firms[4] and investment in the production of low-waste packaging, production, retail and transport methods has grown hugely.[5] Even in the service sector, paperless offices (despite their questionable real impact on the environment) have grown in popularity in the last decade.

For lawyers, this is a fertile ground for business opportunities across almost every sector. For existing clients there will likely be a rise in re-negotiation of contracts in the supply chain as they shift to more sustainable production methods. Alternatively, a rise in restructuring, mergers and acquisitions will likely come to fruition, albeit in a post-Covid environment,[6] as firms set themselves up for the new normal and collaborate with new image-conscious partners. This applies to firms like BP who are currently seeking to re-frame their entire business model for a greener initiative.[7]

There will also be scope to acquire new clients. As sustainable firms grow, there will be an increased demand for employment contracts and commercial property as well as structured finance for investment and negotiating supply-chain contracts. Moreover, the firms that cannot survive will also need legal support as they terminate employees and sell their assets. In short, it will cause a spike in business operations which law firms can undoubtedly capitalise upon.

However, law firms must be vigilant not to be out-run by their clients. Sustainable clients are increasingly conscious of their associations and will likely avoid firms such as Slaughter and May because of their associations with the oil and gas industry.[8] This will damage the reputations of firms quicker than it will their revenues; but the long-term development of this trend suggests that firms who act now will likely benefit from it in the future. This solidifies the focus on agility in the current legal market as firms compete in this ‘decade of disruption’. In addition, it is not only firms output that must reflect the sustainability mindset – but also their advice. The ability to tailor legal support to the business needs of clients is arguably the most desirable legal skill.[9] Firms who recognise a changing commercial landscape and give current, valuable advice will benefit from clients who value ethics more in line with profits.

Therefore, it is clear that the structure of industry is changing. This environmental revolution, like the technological landslide of the last decade, will have deep and lasting effects on every area of business and will have resulting effects on a legal industry that must be prepared.

[1] Cotton, B., 25 sustainable UK companies that are out to save the planet (Business Leader, 2019) <https://www.businessleader.co.uk/25-sustainable-uk-companies-that-are-out-to-save-the-planet/66208/> accessed 06/2020 [2] Masters, K., Kenco eco refill ad (YouTube, 2013) <https://www.youtube.com/watch?v=2_kgd5Z9rgw> accessed 06/2020 [3] Young, K., The Rise of Green Consumerism: What do Brands Need to Know? (GlobalWebIndex, 2020) <https://blog.globalwebindex.com/chart-of-the-week/green-consumerism/> accessed 06/2020 [4] Bennett, M., Why more than half of UK businesses are planning to increase spend on sustainability, (Telegraph, 2020) <https://www.telegraph.co.uk/business/ready-and-enabled/sustainability/increasing-spend/> accessed 06/2019 [5] Flood, C., Europeans make record investments in sustainable funds (FT, 2020) https://www.ft.com/content/c2952357-c28b-4662-a393-c6586640404f> accessed 06/2020 [6] Vince, G., After the Covid-19 crisis, will we get a greener world? (Guardian, 2020) <https://www.theguardian.com/environment/2020/may/17/after-the-covid-19-crisis-will-we-get-a-greener-world> accessed 06/2020; Popov, J., The green road to post-crisis recovery (FT, 2020) <https://www.ft.com/content/16d84fbc-74fe-11ea-90ce-5fb6c07a27f2> access 06/2020 [7] Anon, Even the oil giants now foresee the end of the gasoline age (Guardian, 2020) <https://www.theguardian.com/business/2020/jun/21/even-oil-giants-now-foresee-end-of-gasoline-age-shell-bp-profitability-pandemic> accessed 06/2020 [8] Mawardi, A., Extinction rebellion: what went down at the protest outside Slaughter and May (Legal Cheek, 2020), <https://www.legalcheek.com/2020/02/extinction-rebellion-what-went-down-at-the-protest-outside-slaughter-and-may/> accessed 06/2020 [9] Adaramola, O., Why is commercial awareness very important in the legal sector (TSL, 2020), <https://thestudentlawyer.com/2020/03/16/why-is-commercial-awareness-very-important-in-the-legal-sector/> accessed 06/2020