Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Limited knowledge of climate-related issues within organizations, inhibiting risk identification.
• Focus on near-term risks without adequate attention to longer-term risks.
• Difficulty in quantifying climate-related risks.
• Reluctance to disclose details of resilience testing due to commercially sensitive information and risks of publishing forward-looking information.
• Developing the data and capabilities needed to model and report CR information.

Mitigation Strategies

• Establishing cross-functional teams to identify gaps and create roadmaps.
• Assessing exposure to transitional, litigation, reputational, and physical climate risks and opportunities.
• Conducting scenario analysis and resilience testing.
• Identifying and setting climate-related targets and metrics.
• Embedding climate-related issues in decision-making processes.
• Improving communication on climate-related issues to enhance reputation and investor attractiveness.
• Adding to standard disclaimers about forward-looking information.
• Explaining non-compliance where data or methodology is insufficiently reliable.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Unexpected material increases in energy costs
• Interruptions to supply chains or distribution networks
• Sea level rises
• Water shortages

Transition Risks

• Regulatory changes
• Changes in customer preferences

Opportunities

• Using cleaner energy
• More sustainable products and practices
• Investing in new energy-efficient technologies and processes

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Reporting and Disclosures
• Supply Chain and Human Rights
• Disputes and Investigations
• Sustainable Finance
• Delivering a Sustainable Future
• ESG-Driven Transactions

Environmental Achievements

• First law firm in the world to set a long-term decarbonisation target, validated by the SBTi and aligned to their new Corporate Net-Zero Standard; target a 90% absolute reduction of emissions by 2040. Near-term target is to reduce absolute Scope 1, 2 and 3 Greenhouse Gas emissions by 50% by 2030 (from 2018). Achieved a 17% reduction in 2019.

Social Achievements

• Law Springboard programme supported over 270 undergraduates, with 50% securing legal work experience. CoRe programme saw 40 volunteers supporting 11 charities, resulting in over 1,250 volunteer hours and an estimated £90,000+ leveraged in support.
• Dedicated Inclusion & Diversity strategy with ambitious targets for women and minority ethnic backgrounds in equity partner promotions.

Governance Achievements

• Advised numerous FTSE 100 and 350 listed clients on designing, modernising, and embedding governance arrangements to address climate change and other ESG issues.

Climate Goals & Targets

Environmental Challenges

• Increasing expectations from shareholders and stakeholders with less tolerance for governance shortcomings, leading to an increase in shareholder activism.
• Overlapping and sometimes conflicting reporting requirements across multiple jurisdictions.
• Increased scrutiny of businesses' sustainability communications and actions, leading to potential 'greenwashing' litigation.
• Emerging focus on corporate accountability in respect of supply chains.

Mitigation Strategies

• Advising clients on navigating climate-related disclosures and reporting requirements (TCFD, TNFD, ISSB).
• Helping clients ensure their approach to assurance is aligned with best practice.
• Supporting clients on preparing for emerging developments in supply chain and human rights due diligence and transparency.
• Introducing 'green clauses' into contracts to incentivize responsible business behavior across the supply chain.

Supply Chain Management

Responsible Procurement

• Green clauses in contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, TNFD, ISSB