Law firms and corporate legal department are increasingly providing specialized ESG-related training for lawyers, as a significant majority report a rise in demand for legal expertise, yet less than half feel prepared to meet this demand, according to a new survey released by professional services and information solutions provider Wolters Kluwer.
For the report, the 2024 Future Ready Lawyer Survey, Wolters Kluwer’s Legal and Regulatory division conducted quantitative interviews with more than 700 lawyers in law firms and corporate legal departments across the U.S. and Europe, examining the impact of client expectations, technology and market trends on the legal profession.
The survey found that more than two-thirds of respondents (68%) reported seeing an increase in demand for ESG-oriented legal expertise. The increase was particularly notably felt in legal departments, reported by 77% of respondents, while also being reported by 61% of law firm respondents.
Notably, the survey results mark a significant increase in reports of an increase in ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. demand compared to prior years, with only 43% of lawyers in the 2023 survey reporting seeing increasing demand, and 50% in 2022.
The most prevalent driver of growing demand for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. expertise reported by lawyers in the survey was increased regulatory demands and compliance complexity, cited by 50% of respondents, followed by challenges related to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data quality and access, at 42%. Additionally, 40% of respondents reported that demand is being driven by a preference by employees for companies with higher ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. standards.
While noting growing demand for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. services, however, the survey also found that respondents were not confident in their organization’s ability to meet these needs, with only 41% of legal departments and 29% of law firms reporting feeling very prepared to address the demand for ESG-related legal expertise. Additionally, nearly a third (29%) of law firms, and 12% of legal departments said that they are not very prepared or not at all prepared to meet ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. demands.
The most common solution found by the survey to address the preparedness gap was upskilling of lawyers, with slightly over half of respondents (51%) reporting that they are providing ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. training to existing legal staff. Legal departments appear to be ahead on this metric, with 56% reporting providing ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. training, compared with 45% of law firms.
Additionally, many respondents that they have established dedicated ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. departments focused solely on ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. matters, including 41% of legal departments and 42% of law firms. Other measures reported by respondents included developing internal policies and guidelines for ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. compliance, and working with external experts or consultants to meet ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. responsibilities.
Commenting on the survey’s findings, Kamila Kurkowska, President and Founder of the Women in Law Foundation, said:
“In-house legal departments are certainly leaders in the legal industry when it comes to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.. In a sense, they influence law firms, their suppliers, to also incorporate ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. into their policies.”
Click here to access the report.