Why law firms hold the key to practical ESG progress

Environmental, social, and governance (ESG) principles are reshaping the business landscape.

For law firms, this is not just about interpreting regulations, it’s about enabling clients to act. Firms that integrate ESG into their advisory services can help clients implement tangible steps toward sustainability and compliance with emerging standards.

We work alongside law firms to provide ESG reporting expertise, assurance support, and practical guidance to ensure legal advice translates into measurable action.

Why ESG advisory matters

Regulatory expectations are accelerating. Climate-related disclosures under the Task Force on Climate-related Financial Disclosures (TCFD) are mandatory for large companies and we have the UK Sustainability Reporting Standards in the pipeline. Soon, businesses will need to report on sustainability risks and opportunities.

These frameworks demand more than policy statements; they require measurable action.  

Law firms are uniquely positioned to help clients turn ESG commitments into enforceable obligations and operational change. This is where they can lead, by using their expertise to embed ESG into governance, contracts and risk management.

The role law firms can play

Law firms hold the tools to make ESG real for clients. They can:

• Embed climate clauses in contracts: Include obligations for suppliers to measure and report emissions, commit to renewable energy sourcing, and achieve specific carbon reduction targets. Some firms are already drafting clauses that require counterparties to align with the Paris Agreement or provide annual sustainability disclosures.  
• Support net-zero transition plans: Help clients formalise net-zero goals by drafting governance frameworks that link climate commitments to fiduciary duties. This includes setting timelines, defining accountability at board level, and integrating ESG KPIs into executive remuneration.  
• Enable compliance through structure: While accountants and ESG specialists handle reporting, law firms can ensure contracts, governance documents, and risk frameworks provide the data and accountability needed for standards like IFRS S1 and S2.  
• Mitigate litigation risk: Prepare clients for ESG-related disputes, from greenwashing claims to shareholder actions, by embedding clear obligations and audit rights in agreements.

How firms can build ESG advisory services

Developing an ESG offering starts with understanding what matters most to clients and building a service that feels relevant and commercially viable.

Here are four practical steps:  

1. Listen to clients first  
ESG priorities vary widely. Begin by engaging clients in conversations about their sustainability goals, regulatory pressures, and operational challenges. This insight ensures your advice addresses real needs rather than generic compliance.  

2. Work with intermediaries and complementary specialists 
Law firms rarely have all the technical expertise in-house. Partner with ESG consultants, accountants, and sustainability professionals to deliver a rounded solution. This collaborative approach ensures legal advice is integrated with practical implementation, making ESG achievable for clients.  

3. Create joined-up offerings with other professional services firms  

ESG touches governance, finance, operations, and reporting. By working alongside accountants, tax advisors, and consultants, law firms can position themselves as part of a holistic solution, helping clients navigate complexity without juggling multiple providers.  

4. Make ESG economically viable for clients  

ESG should not feel like a cost burden. Frame it as a commercial opportunity: clauses that reduce energy use can lower costs, governance frameworks can unlock green finance, and strong ESG credentials can improve procurement scores. Position ESG as a driver of growth and resilience, not just compliance.

A pragmatic approach for smaller practices

Smaller firms can still lead ESG conversations without building full-scale advisory teams. The key is agility. This might include: 

• Forming partnerships with ESG specialists to deliver combined legal and sustainability solutions.  
• Starting with high-impact actions, such as simply bringing the conversation to clients in your usual activities with them – think webinars/seminars, how you can embed ESG thinking in existing client work, before moving onto introducing climate clauses in contracts and advising on governance updates.  
• Joining networks like the Legal Sustainability Alliance to access resources and share best practices.

This approach allows smaller firms to remain competitive and add value without overextending resources.

The impact of ESG advisory

Law firms that embrace ESG advisory don’t just interpret rules, they help clients act. By embedding sustainability into contracts, governance, and compliance frameworks, firms enable businesses to meet obligations and deliver measurable change. The result? Stronger client relationships, new revenue streams, and a reputation for leadership in a sustainability-driven economy.

By integrating ESG into legal services, building partnerships, educating internally and externally, and leveraging advisory support, firms can drive practical change that benefits clients and the planet.

Find out how we can support your law firm in delivering practical ESG advisory that drives measurable results. Contact us today to discuss your clients’ ESG needs.