#18 The Legal Profession This Week: Going Green​


By Dheepa​

Going Green - Law Firms and ESG

It seems that dispute resolution work has a high environmental cost, and many law firms are pledging to tackle this issue. Law.com reports that Mishcon de Reya, Freshfields Bruckhaus Deringer, Simmons & Simmons and Addleshaw Goddard have signed The Greener Litigation Pledge. The pledge is part of the wider Greener Litigation Project that aims “to reduce the carbon footprint of court disputes in line with the objective of restricting global warming to 1.5°C”. The pledge requires signatories to reduce the use of printed documents and business travel.

Law firms have always been quick to seize opportunities to provide legal advice in new areas and the increasing relevance of environment, social and governance regulations (ESG) is no exception. Earlier this year, Gibson Dunn & Crutcher announced its new ESG practice for clients, while according to Law.com other firms like Freshfields, Ashurst and Winston & Strawn have been building ESG practices for a longer period of time.

However, as the positive response to the Greener Litigation Project shows, law firms are increasingly placing an emphasis on the environmental impact of their own business practices. Clifford Chance launched an ESG taskforce to oversee the firm’s own sustainability efforts while Baker McKenzie hired its first chief sustainability officer. Some firms have set more ambitious targets, like Herbert Smith Freehills’ commitment to reduce carbon emissions to net zero by 2030 and CMS’s goal to become carbon neutral by 2025. In many ways the ambitious initiatives law firms have in place will also affect their bottom line - firms cannot expect to help clients with ESG compliance if their own business lacks commitment to the same cause (Law.com).

Premium members, read this section on TCLA's Mastering The City course for a detailed commercial insight into ESG and how it impacts law firm clients.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Mishcon de Reya has secured a successful settlement on behalf of its client Ocado. Ocado alleged that the former employees had stolen confidential information relating to the operation of its automated warehouses and online grocery technology it was providing to Marks & Spencer through their joint venture partnership. One of the former employees, Ocado co-founder John Faiman, later set up his own company and signed a similar online grocery partnership with Waitrose. Faiman and his company were represented in their counterclaims by Jones Day while Herbert Smith Freehills (HSF) represented the second ex-employee (The Lawyer).

Allen & Overy is advising Brookfield Business Partners on it’s £5bn acquisition of Modulaire Group. Modulaire Group is an international modular leasing service backed by TDR Capital. A&O is advising on the M&A and financing aspects of the transaction while Linklaters is acting for Modulaire on corporate, tax and antitrust matters. The Lawyer notes that the deal is reportedly one of the largest private equity deals in Europe so far this year.

Sidley Austin, HSF and Davis Polk & Wardwell (Davis Polk) are advising on the New York initial public offering of private members club Soho House. Sidley Austin is acting for Soho House and the issuer, while Davis Polk is advising the underwriters. Meanwhile, HSF is advising PrimaryBid on the offer to UK shareholders and employees. The Lawyer reports that “this is the first time that a US IPO has been extended into the UK for retail investors only without a UK listing”.