As law firms vie for greener credentials Bill Sneyd reports on the firms leading the way

Businesses are increasingly looking at reducing their carbon emissions. The reasons for this are as varied as the companies implementing the changes. Cost reduction will be part of the picture – especially as the recession bites – but so too will differentiation, reputation management and, increasingly, supply chain pressure. The key drivers for law firms to 'take on' climate change is a mix of commercial and moral imperative.

Collaborative action

Law firms of all sizes across England and Wales are demonstrating their commitment to help tackle climate change and go greener by joining the Legal Sector Alliance. By committing to act on six key principles, firms are able to publicly demonstrate their green credentials to clients and staff with access to tools and resources to help reduce their carbon footprint.

As part of the Managing Partners' Forum's sustainability committee carbon footprint report, approximately 50 firms published independently assessed/verified carbon footprints. Given that the Law Society, DLA Piper and Business in the Community (BITC) joined forces with lawyers from around the country in October 2007 to take a leading role in driving environmental sustainability in the legal sector, it was not surprising that two-thirds of respondents to the MPF Campaign were from law firms.

So why have law firms been faster to address the climate challenge than other professions? The answer can be found in both internal and external pressures that firms face.

Ethics and employee pressure

Looking at climate change as an issue of responsibility raises many ethical questions. Principally that those most responsible for the problem – developed nations – are not the same as those developing nations who will be most vulnerable to climate change's catastrophic impacts. Could it be the reason that lawyers with a heightened sense of justice feel more compelled to address their own impacts than employees in other professions?

Mark Dawkins, managing partner of Simmons & Simmons suggests that employee and stakeholder concern about climate change was a key driver in the firm's decision to achieve carbon neutral status in 2006.

"When I first became aware that this issue was surfacing, I started to talk to people about it. Two things struck me. First, how passionately some of our people feel about climate change: many of our employees already privately offset their carbon emissions. Second, how many people cared about what we did as a business. This level of interest made the decision to go carbon neutral much easier."

Client pressure and brand enhancement

Increasingly clients, conscious of their own environmental impact, are expressing preference for like-minded suppliers. This is particularly true when submitting for public sector tenders where environmental considerations are increasingly important.

The emergence of guidelines such as the Lord Mayor's Green Procurement Code, through which companies are publicly acknowledged for their efforts, applies pressure on companies to prove their green credentials.

Enhancing a firm's reputational integrity through publicly communicating a carbon reduction policy is also a way for a firm to set itself apart from the pack. This can lead to an improved standing with existing clients and, more importantly, help to leverage new channels of business. This is of particular significance to legal firms in the wake of the UK's commitment to an 80% reduction of its carbon emissions by 2050, which became law through the Climate Change Bill in November 2008. Businesses across all sectors will increasingly become subject to carbon reduction regulations and pressure to take voluntary action if not subject to direct legislation.

Establishing a carbon management strategy

One of the biggest challenges is measuring an organisation's carbon footprint. This is why it is paramount to select an established independent adviser who can set the parameters for measurement and help communicate this. Some of the challenges to be overcome include multi-site offices, different ways of measurement e.g. metric versus imperial data, language differences, engaging staff, different work practices and issues around who owns the footprint of travel between sites.

After assessing the organisation's emissions a 'business as usual' emissions growth forecast is established to take account for expanding business areas. The organisation should then decide on whether to set an absolute target for total emissions or a relative target calculated in terms of emission reduction per employee. Finally the costs of internal (e.g. operational changes) versus external reduction opportunities (i.e. offsetting) should be assessed and the most cost efficient reductions targeted.

Following this the organisation needs to communicate the strategy with the objective of reaching the reduction targets through engaging other sites, employees, revising the supply chain and communicating this to customers.

Reducing the carbon footprint

Organisations that have sought to reduce their carbon footprint include Keating Chambers which committed to reducing its footprint after members showed they were keen to do their most for the environment. Recognising the role that credible offsets could play in achieving more aggressive reduction targets, Keating Chambers achieved carbon neutral status through purchasing carbon credits in a diverse portfolio of offset projects including a New Zealand wind farm and a Chinese hydro power project.

Law firms have implemented initiatives including introducing video conferencing, upgrading IT systems to include more efficient monitors, replacing non-recyclable paper cups with china mugs across all European offices and reducing charger requirements for employees' mobile phones and BlackBerry PDAs.

Engaging other sites

Businesses can develop individual office action plans to engage staff across different sites on addressing the more tangible measures of carbon reduction. Some organisations have established 'green teams', 'green champions', and even 'green days' where employees are tasked with providing ideas and feedback.

Stacey Collins, health, safety and environment manager at Freshfields Bruckhaus Deringer, comments: "We have to acknowledge that carbon accounting has only been around for a few years and it will take time to develop a universally-accepted approach.

"An environmental policy which has been established for a multi-site company can only grow at the speed of the slowest office. Some coaching of offices, where climate change 'literacy' is not as high may be required in order to make firm-wide progress."

Engaging staff

To further engage with staff, law firms such as Freshfields have asked its employees to vote for the external emission reduction projects that the firm should invest in to gain carbon neutral status. Freshfields found that approximately half of the firm's 5,500 employees took part in the vote which ultimately led to the support of a Turkish windfarm, an Indian mini-hydro electricity project and a German methane capture project, collectively offsetting over 19,000 tonnes of company emissions in 2006-07.

Engaging clients

SJ Berwin has been working to reduce its environmental impact since 2001 and actively engages with clients to raise awareness that they too could be reducing their carbon footprint. Part of its programme involves working lunches for clients soon to be subject to the Carbon Reduction Commitment, and a 'going green in real estate' workshop for clients in the property sector.

The benefits

All organisations are under pressure to reduce their carbon footprint. A carbon management strategy needs to combine internal and external reduction targets as over time internal reductions will become harder to achieve. Offsetting is a cost-effective solution for meeting stretching targets which is particularly important given the UK's reduction target.

Law firms that reduce their carbon footprint to net zero achieve real cost savings within their operation, for example improved facilities management within an office and improved operational efficiencies as well as brand enhancement, and also the opportunity to engage staff and clients.

Bill Sneyd is director of advisory services at The Carbon Neutral Company.