Legal Services Industry ESG Thematic Report, 2023

Environment, Social, and Governance (ESG) in Legal Services Industry

Sustainable investments have become key trends in the recent times, where the corporations, governments, and consumers are striving to make a change in an impactful manner.

The global legal services industry can be accessed by many other industries, from litigations to resolving legal disputes through alternative methods and drafting, mining of contracts as well as for implementing due diligence. All these have been possible through advancement in technology, thanks to digitalization. Also, the integration of Machine Learning and Artificial Intelligence (AI) into conventional legal services has made the whole process more efficient.

The demand for efficiency has led to the integration of technologies into the global market, focusing on the due diligence, promoting the UNSDG (United Nations Sustainable Development Goals).

ESG Trends

The global legal services industry by integrating technologies like AI and similar technologies such as contract life cycle management software, helps in reducing the dependence on logistics, reducing the carbon footprint from the emissions caused by the logistics, helping reduce the UNSDG goal of climate action (SDG 13).

Due to these technologies, disputes can be resolved efficiently thereby reducing the risk of damaging the governance goodwill of the clients in the market. This has a positive impact on the governance aspect of ESG across various industries.

One of the key players of the industry, provides services in alternate dispute resolution services, which not just reduces costs, but also creates privacy for the corporate consumers while dealing with the litigation, reducing the corporate governance goodwill damage.

A key company of the legal services industry also provides services in the corporate governance aspect, where advisory on compliance of the legal frameworks of different jurisdictions is provided along with corporate governance framework, which involves the three hierarchies of management, thereby achieving the UNSDG goal of Institutions For Peace And Justice (SDG 16).

However, the risks of using technologies in the market can adversely impact the governance aspect in the industry itself. The software used by the firms in the legal services industry for providing services for drafting contract is sourced from third party, where the risks pertaining to data such as data breaching can cause significant damage, not only in financial terms, but in the governance aspect, the companies of global market along with the clients.

Key leaders of the industry pertaining to the data protection have made relevant policies to mitigate the risk of data breach, by giving the consumers more control over the data, thereby improving in the governance aspect of ESG.

Growth of the Legal Services Market

The global legal services market is economically valued at USD 901.8 billion as of 2021 and is forecasted to expand with a CAGR (compound annual growth rate) of 5.3% from 2022 to 2030. The increasing demand for resolving disputes amongst the corporates is one of the key factors that drive the global legal services market, where guidance on the governance aspect of ESG is mostly focused, promoting the SDG 16 of UNSDG. The usage of technology for mitigating legal risks and resolving a dispute amicably also promotes the goal of institutions for peace and justice of UNSDG, while challenges related to data protection and privacy are still being worked on.

Key Companies in this theme

    • Baker & McKenzie

    • Clifford Chance LLP

    • Deloitte

    • DLA Piper

    • Ernst & Young (E&Y)

Scope of the Legal Services Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Aspects of the Legal Services Industry ESG Thematic Report

    • Offers a global perspective of global market and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.