ESG – Building an Alliance Between Inhouse And Private Practice

Our Senior Partner Clive Coleman chaired a panel session on ‘ESG – Building an Alliance Between Inhouse And Private Practice’ on 3 October at the London Law Expo 2024.

Clive brought his journalism and reputation risk management perspective to the panel while his panellists brought a wealth of experience from private practice and the corporate world. He was joined by Helen Bowdren, a partner in the ESG team at Dentons, Harry Borovick, General Counsel of Luminance, a company providing advanced AI for the processing of legal documents, and Heather Gagen, Head of the ESG and Impact Group, and Head of Dispute Resolution at Travers Smith.

With the ESG landscape increasingly populated by regulation and legislation, the panel considered some of the key considerations for CEOs, and General Counsel of big corporates and other organisations – and whether they now see ESG as a lead legal issue?

All agreed that mandatory disclosures, scrutiny of supply chains, greenwashing, and marketing materials and product labels that need to align with corporate sustainability statements have focussed minds on the regulatory, litigation and reputational risks presented by ESG. The size of the challenges means that GC’s and internal legal departments will often need and benefit from the alliance with specialist law firms.

Among a range of topics covered, Heather Gagen talked about the importance of looking at ESG disclosures with a litigation eye. She highlighted how company statements are the first to be played back if there is a contradiction between what a company says and what it does.

Referencing the Post Office scandal and MeToo movements Helen Bowdren considered some of the reputational risks around social and governance, and when ESG risks are generally evaluated – well in advance of a crisis or only when one blows up in the face of a company or organisation?

Harry Borovick spoke about his expectations of external private practice in raising and weighing ESG risk and supporting CEOs to manage these risks when they already have a heavy workload. He also considered whether external counsel can speak more freely than internal lawyers. Does the fact that they are not dependent on the company for their job and pension, enable them to scrutinise in a way that is sometimes difficult for internal legal teams?

There was general agreement that in addition to risk, ESG can enhance the credentials and reputation of any company or brand. It can improve efficiency, reduce waste, bolster recruitment and morale, provide a competitive advantage, help manage risk, and encourage investment. Not to mention that climate and social change means that it is now more than ever critically important for businesses and other organisations of all shapes and sizes to focus on existential questions of sustainability, as well as vital social and governance issues.

Read more about the event here.