Environmental, Social, and Governance (ESG) considerations have become integral to the corporate world, influencing decision-making, risk management, and regulatory compliance. ESG issues have transformed from being paraphernal issues for law firms to becoming central pillars of their strategic operations, client advisory services, and overall risk management frameworks.
Legal professionals must inform themselves on ESG considerations and their intersections with the law. Five years ago, McKinsey reported that C-suite executives and investment professionals believe that ESG programs create long-term value. Since, there has been a massive surge in demand for guidance on ESG compliance from law firms and legal professionals. Notably a 2024 Wolters Kluwer’s report indicates that 61 percent of legal professionals working in law firms see an increased demand for ESG expertise. Despite this demand, the report indicates that 24 percent of law firms said that they are not very prepared or not at all prepared for this demand.
This demand stems from a wide range of factors. Some examples include the increasing complexity of regulatory frameworks, growing stakeholder expectations for transparency and accountability, and the rising prevalence of ESG related litigation. Legal professionals are now expected to act as strategic advisors who can integrate ESG considerations into broader corporate strategies, helping clients navigate this rapidly evolving landscape while driving value creation. This shift highlights the importance of equipping legal teams with the expertise needed to address the challenges and opportunities posed by ESG.
As such, ESG will be essential for the next generation of lawyers. As an incoming law student of the class of 2028, I feel a responsibility to use this platform to provide readers with insights into what is poised to become a necessity to the legal profession in the years ahead. I will discuss how legal professionals leading firms can equip their firms on the ESG requirements of their clients. Furthermore, I will explore how to acquire ESG knowledge and demonstrate its neccesity for incoming legal professionals to achieve success in their industry.
There is widespread agreement that complying with ESG laws and regulations helps companies prevent legal penalties and expensive litigation, uphold a solid reputation, and showcase their dedication to responsible governance on a larger scale. Accordingly, they are turning to their legal counsel for guidance. Top legal executives can prepare themselves for this by proactively engaging with the evolving legal landscape ESG issues. First, legal executives should invest in ongoing education and training to stay current with new ESG regulations and frameworks in their practice areas. As ESG laws are becoming more comprehensive and multifaceted, including climate change disclosure and human rights protections, understanding these regulations is crucial for mitigating risks and advising clients effectively. By keeping up with the latest legal updates and attending relevant conferences, they can build the expertise needed to guide their firms through complex ESG matters.
Second, top legal executives should foster a culture of ESG awareness within their firms. This includes developing in-house training programs, creating dedicated ESG teams, and collaborating with other departments to integrate ESG principles into corporate strategies. By doing so, legal executives ensure that their firms are prepared to handle the growing demand for ESG related legal services while enhancing their ability to provide valuable, compliant advice to clients.
Finally, legal executives should engage with external stakeholders, such as regulatory bodies and industry groups, to better understand the shifting ESG landscape and ensure their firm’s strategies align with evolving standards. By taking a proactive role in shaping their firm’s ESG practices, legal executives can position their organizations as leaders in responsible and sustainable business practices.
As previously noted, both current and future law students have a distinct opportunity to advance their understanding of ESG. With ESG being a essential to the future of legal practice, gaining expertise in ESG will allow students to stay ahead in a rapidly changing legal landscape. The lack of preparedness within law firms on knowledge of ESG, as highlighted earlier, presents a unique opportunity for law students to develop the skills and knowledge that will make them more competitive and better equipped for future legal careers.
First, law students should seek out courses and certifications focused on ESG principles. Law schools are beginning to incorporate ESG topics into their curriculum, and students should take advantage of these offerings. Understanding the legal implications of ESG, including climate change laws, corporate governance, and social justice issues, will be crucial for future legal practice.
Additionally, law students should network with professional in ESG fields, such as corporate governance or environmental law. Professionals in these fields are most equipped with knowledge on ESG principals and can provide valuable insights into the future of ESG in relation to every area of law. Keeping up to date with how ESG applies to the legal profession will be hugely valuable to future lawyers and will present themselves as an asset to potential employers. As ESG becomes increasingly central to the legal profession, law students who equip themselves with this knowledge will be better prepared to meet the needs of future employers and clients.
In conclusion, the growing demand for knowledge in ESG principals is reshaping the legal landscape, presenting the necessity of this kind of knowledge. Particularly, ESG considerations will be essential to both current and upcoming legal professionals. As presented by current studies, the legal profession is underprepared for ESG requirements presented by clients. Whether for the success of your current firm, or the advancement of your future career, current and future legal professionals must prioritize ESG literacy into their repertoire. As the corporate world increasingly values responsible governance, legal professionals who proactively engage with ESG principles will be better equipped to advise clients, mitigate risks, and capitalize on emerging opportunities. For incoming law students, gaining expertise in ESG not only sets them apart in a competitive job market but also prepares them to be key contributors to the future of law.
Please use this as your sign to continually educate yourself of ESG principals in your geographic location and practice area as it will benefit your career, firm, and opportunities.
