The rise of ESG lawyers

Over the past decade, regulations, reporting requirements, and public expectations relating to environmental, social, and governance (ESG) have become more prevalent and more complex. Amidst this geopolitical and regulatory uncertainty, lawyers have the opportunity to lead while making a meaningful impact in their careers.

Canadian environmental, corporate, and employment lawyers share firsthand experiences on how lawyers are leading on ESG. Building the Case: How Lawyers are Leading on Sustainability: Insights and Inspiration from leading Lawyers Across North America aims to inspire a new generation of lawyers to build successful and rewarding careers in the field of sustainability.

Sustainability encompasses a wide range of issues, ranging from climate risk and adaptation, emergency management, emissions reduction, energy transition, and human rights. Effectively addressing these issues requires experience and awareness of environmental and human rights laws, standards, and reporting requirements.

According to a recent KPMG survey¹:

• 78% of Canadian CEOs identified regulatory and reporting obligations as the primary reason for prioritizing ESG
• Only 53% of Canadian CEOs believe their sustainability claims can withstand regulatory scrutiny

Lawyers play a critical role in this landscape. Navigating regulatory and reporting requirements is necessary to establish public trust and transparency over their sustainability initiatives. Lawyers work with their clients to identify the connections between responsible business practices and Canadian legal standards, which enables organizations to set priorities, operationalize existing standards, and anticipate future requirements.

In a chapter on Social Sustainability and Workplace Law, KPMG Law Partner Jillian Frank describes the role of lawyers in advancing human rights at work. She writes, “as social expectations and working conditions continue to change, lawyers have an opportunity to influence the future of social sustainability initiatives. Employment lawyers play an important role in defining the line between voluntary social responsibility and mandatory legal obligations and will influence how our laws need to adapt in the face of artificial intelligence, economic transition, flexible work arrangements, and contract-based work.”

In Building the Case, KPMG partners Conor and Jillian describe lessons learned from their legal careers to encourage lawyers to take a leading role in sustainability. Reflecting on their own careers, they encourage lawyers to:

1. Understand the complexity of sustainability issues: Sustainability extends beyond environmental laws to issues of equity, human rights, and social justice. Lawyers are expected to weigh competing interests of maintaining economic stability while meeting complex compliance and reporting requirements.
2. Navigate geopolitical challenges: Political polarization, economic uncertainty, and increasing social pressure for corporate transparency has resulted in a landscape that is rife with contention, particularly for organizations with strong ties to the fossil fuel sector. Lawyers should be aware of the broader political, social, and regulatory environment to navigate the constantly changing demands and expectations.
3. Engage in interdisciplinary collaboration: Successful sustainability lawyers are never working in a silo. Sustainability requires collaboration across various disciplines, including science, finance, politics, and law. Building networks and teams across these fields enhances lawyers’ understanding and the ability to integrate legal frameworks with sustainability objectives.
4. Empower future generations: Sustainability initiatives are not short term – change and progress happen over time. Sharing experiences, lessons learned, and outcomes enables the next generation of lawyers to continue to innovate and drive positive environmental and social change.
5. Commit to continuous learning: Social expectations, best practices, and regulations relating to sustainability and responsible business practices are constantly changing. Successful ESG lawyers commit to continuous learning, discussion, and thought leadership to understand the ever-changing landscape.

^{1. ESG Beyond compliance, KPMG in Canada, November 2024.}