CSR & Sustainability Current State of the Legal Industry Report 2018
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1 CSR & Sustainability Current State of the Legal Industry Report 2018
2 Table of Contents 7 Firm Focus CSR & Sustainability Current State of the Legal Industry Report 2018 This report explores to what extent law firms believe corporate social responsibility & sustainability to be important and its effects on both the bottom line and engagement. The report identifies challenges law firms face as well as factors for success in furthering CSR & sustainability program efforts. 1 Leading Sustainability Efforts 2 Importance to Stakeholders 3 RFPS & Sustainability 4 Positive Effects 8 Wishlist Projects 9 Effectiveness 10 Success Factors 11 Useful Tools 5 Budgets 12 Outlook 6 Challenges 13 Legal Industry Tackle 2
3 1. Leading Sustainability Efforts 82 % have sustainability leadership 35 % equity ownership leading efforts 30% 25% 20% 15% 26% Q: Who leads your sustainability efforts? 20% 19% 17% 15% 13% 13% 5% 7% Most firms have leadership guiding their sustainability programs by equity owners, committees, or senior administrators. Sustainability leaders roles vary, but generally, leaders are providing direction, developing initiatives, measuring and managing programs. Depending on leadership background, focus also varies, from facilities and operations to external client facing initiatives and broader corporate citizenship. 0% Source: LFSN Sustainability Survey Respondents N: 55 Q1:
4 2. Importance to Stakeholders The majority of firms said sustainability is important to partners, associates, and new and existing clients. Less than 20% believed that sustainability was of little to no importance in each stakeholder group. Some firms commented that they have other stakeholders that consider sustainability very important, specifically vendors, Millennials and new recruits. 100% 90% 80% 70% 60% 50% 40% 30% Q: How important do you think sustainability is to your various stakeholder groups today? 4% 4% 4% 2% 8% 4% 4% 6% 13% 16% 20% 22% 54% 57% 61% 61% 48% Source: LFSN Sustainability Survey Respondents N: 55 Q2: P:50, A:48, PS:49, EC:49, NC:49 20% 29% 24% 12% 8% 16% 0% Partners Associates Professional Staff Existing Clients New Clients Very Important Somewhat Important Neutral Little Important Not Important 4
5 3. RFPs and Sustainability Q: Does your firm receive RFPs or requests for information that include asking for your firm s sustainability policies or values? Most 2% The vast majority of firms report receiving RFPs or Requests for Information on sustainability policies or values at some point in time. There are some firms who receive these requests frequently and others that have not received any such requests. Possible factors include clients public status, CSR and sustainability goals, and respondents awareness of firm s RFP pipeline. None 15% Many 17% 85% 19% 15% Has Received Receives Majority of the Time Never Received Few 37% Some 29% Source: LFSN Sustainability Survey Respondents N: 55 Q3:
6 4. Positive Effects 100% 90% 80% Q: Has any part of your sustainability program had a positive effect on your firm? 74% A majority of firms have seen the positive effects of their sustainability program on the morale of employees, cost efficiencies and firm reputation. 70% 60% 50% 59% 51% A majority of firms have been less able to identify positive effects on revenue, client attraction, and client retention. 40% 30% 20% 22% 31% 27% 36% 37% 74% 59% 22% 0% Employee Morale Cost Efficiencies Revenue Yes No Don't Know Source: LFSN Sustainability Survey Respondents N: 55 Q4: RV:46, CA:45, CR:45, CE:44, RP:45, EM:47, RC45, PR:43 6
7 5. Budgets Q: How does your sustainability budget compare with last year s budget? A small percentage of firms are seeing a budget increase for their sustainability programs. A majority of firms do not have a specific budget for sustainability programs. There were no reported decreases in sustainability budgets. Increase 8% 8% 0% No Specific Budget 57% Neutral 35% Budget Increase Budget Decrease Source: LFSN Sustainability Survey Respondents N: 55 Q5:
8 6. Challenges The most cited challenge was overall employee engagement, including, compliance, awareness, apathy, and keeping momentum. Part of the broader engagement scope, firms also struggled with leadership buy-in. The next most cited challenge was allocating resources, whether budget, staffing or time. Many also struggled with developing a framework around their sustainability program, including how to implement initiatives as well as metrics and business justification. Q: What are your top 3 challenges in your sustainability program? Please Rank. Employee Engagement 14% 41% 8% Leadership Buy-In 7% 23% 15% Resources 9% 5% ROI, Tracking & Benchmarking 17% 54% Leadership Buy-In, 12% Employee Engagement, 36% Resources, 12% ROI, Tracking & Benchmarking, 11% Communication & Awareness, Program Implementation, Program Structure & Organization, 9% Communication & Awareness Program Implementation Program Structure & Organization 5% 7% 8% 7% 5% 6% 14% 17% 17% % of Total First Rank Responses % of Total Second Rank Responses % of Total Third Rank Responses Source: LFSN Sustainability Survey Respondents N: 55 Q6:
9 7. Firm Focus Q: What is your firm's focus in its sustainability program for 2018? 25% The most cited focus for 2018 was employee engagement, in line with the most cited challenge. Firms were focusing on program recruiting, program ideas, and communications. 20% 15% Firms looked to reduce environmental impact through addressing new buildouts, reducing carbon footprint and technology innovations. Firms are also looking at social impact, in addition to, or to integrate with environmental sustainability initiatives. 5% 0% 11% 15% 23% 21% 12% 7% Source: LFSN Sustainability Survey Respondents N: 55 Q7:
10 8. Wishlist Projects Q. What are your top 3 projects that you would like to implement in your firm if budget were not an issue? Please rank. 21% 21% 21% 19% The vast majority of firms cited waste/consumption projects as wishlist items, with paper and energy being the most mentioned. Notable wishlist items included gardens, reporting/tracking as well as volunteerism. 16% 13% 13% 13% 13% 11% 11% 8% 8% 8% 5% 4% 6% 6% 6% 6% 6% 5% 5% 5% 5% 5% 5% 5% 4% 4% 4% 4% 4% 4% % of Total First Rank Responses % of Total Second Rank Responses % of Total Third Rank Responses Source: LFSN Sustainability Survey Respondents N: 55 Q8:
11 9. Effectiveness Q: How effective is your firm's sustainability program? Almost half of firms believe that their sustainability program is effective, although nearly the same number of firms report that they do not measure the effectiveness of their program. Very Effective 12% We Don't Measure Effectiveness 42% Moderately Effective 29% Not So Effective as We Would Like 17% Source: LFSN Sustainability Survey Respondents N: 55 Q9:
12 10. Success Factors Most firms identified senior executive support as one of the most important factors to a successful program. Many firms also cited this as one of the top 3 challenges. Q. What factors contribute the most to a successful sustainability program? 80% Senior Executive Support 65% Communication & Engagement 43% Impact on Revenue Source: LFSN Sustainability Survey Respondents N: 55 Q10:
13 11. Useful Tools Q. Which of these would be useful for your sustainability program? Becoming Certified 13% The vast majority of firms believe that the sharing of best practices in the industry would be useful. More than half would find it useful to track sustainability information. Benchmarking with a Scorecard Best Practices 38% 73% Carbon Footprinting 24% Finding Sustainable Vendors 42% UNSD Goals 11% Tracking Sustainability Information 56% Source: LFSN Sustainability Survey Respondents N: 55 Q11:
14 12. Outlook A majority of firms believe that the outlook for sustainability in law firms is good in the near future. Less than believe the outlook is poor. Q. What do you think is the outlook for sustainability programs in law firms over the next 2-3 years? 37% 27% 29% 6% 2% Very Good Good Neutral Poor Very Poor Source: LFSN Sustainability Survey Respondents N: 55 Q12:
15 13. Key Issues for Legal Sector Q. What sustainability issue do you think the legal industry should tackle? Is your firm supportive of this issue? A majority of firms believes the legal industry should tackle waste and consumption. More than half that cited consumption believe that paper consumption should be a focus. Carbon Footprint 17% Best Practices 7% Some firms would like to see the legal industry address commercial tenant issues and policy. Paper 61% Travel 17% Waste/Consumption 62% Unsure 7% Policy 3% Commercial Tenant 3% Source: LFSN Sustainability Survey Respondents N: 55 Q13:
16 What we do. The LFSN is in part supported by the generosity of the Leadership Council of Firms Dedicated to law firm sustainability LFSN members include many of the top US law firms committed to promoting environmental sustainability and corporate social responsibility in the legal industry. Committed to improvement ALISS is an online self-assessment tool used by firms to measure key aspects of sustainability and to identify specific areas of strength and opportunities for improvement. Devoted to knowledge-sharing LFSN fosters knowledge sharing and collaboration through webinars, roundtables and resources, including on-demand learning and case studies that explore a wide-range of sustainability topics. 16
17 Contact Us Endnotes The Law Firm Sustainability Network conducted an online survey from May July Fifty-three US-based law firms responded. A majority of law firms respondents are from leading US or global law firms with 250-1,000+ attorneys. Questions and categories are listed in the order that they were presented in the survey, excluding Challenges question, in which categories are listed by highest to lowest percentage cited mentions. The LFSN CSR & Sustainability Current State of the Legal Industry 2018 Survey was conducted in collaboration with Pamela Cone, a graduate student in Corporate Social Responsibility and Founder and CEO of Amity Advisory. Gayatri Joshi gjoshi@ecoanalyze.com Pamela Cone pamelacone@amityadvisory.com EcoAnalyze s employee engagement tools were used to conduct the LFSN Survey. 17
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