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CSR & Sustainability Current State of the Legal Industry Report 2018

CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

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Page 1: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

CSR & Sustainability

Current State of the Legal Industry Report 2018

Page 2: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

Table of Contents

www.lfsnetwork.org 2

7 Firm Focus

8 Wishlist Projects

9 Effectiveness

10 Success Factors

11 Useful Tools

12 Outlook

1 Leading Sustainability Efforts

2 Importance to Stakeholders

3 RFPS & Sustainability

4 Positive Effects

5 Budgets

6 Challenges 13 Legal Industry Tackle

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.

Page 3: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

1. Leading Sustainability Efforts

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Q: Who leads your sustainability efforts?

82%

have sustainability

leadership

26%

7%

13%

17%

20%

15%

19%

13%

0%

5%

10%

15%

20%

25%

30%35%

equity ownership

leading efforts

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.

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q1: 54

Page 4: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

2. Importance to Stakeholders

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12%

29%24%

8%

16%

48%

54%57%

61%

61%

22%

13%10%

20%

16%10%

4% 6%4%8%

4% 4% 4% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Partners Associates Professional Staff Existing Clients New ClientsVery Important Somewhat Important Neutral Little Important Not Important

Q: How important do you think sustainability is to your

various stakeholder groups today?

Source: LFSN Sustainability Survey 2018.

Respondents N: 55 Q2: P:50, A:48, PS:49, EC:49, NC:49

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.

Page 5: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

3. RFPs and Sustainability

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Most2%

Many17%

Some29%

Few37%

None15%

Q: Does your firm receive RFPs or requests for information that

include asking for your firm’s sustainability policies or values?

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q3: 48

85%

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.

15%19%

Has Received Receives Majority of the Time Never Received

Page 6: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

4. Positive Effects

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22%

31%27%

59%

51%

74%

36% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No Don't Know

Source: LFSN Sustainability Survey 2018.

Respondents N: 55 Q4: RV:46, CA:45, CR:45, CE:44, RP:45, EM:47, RC45, PR:43

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.

A majority of firms have been less able to identify positive

effects on revenue, client attraction, and client retention.

22%59%

Employee Morale Cost Efficiencies Revenue

Page 7: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

www.lfsnetwork.org 7

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.

Increase8%

Neutral35%No Specific

Budget57%

5. Budgets

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q5: 49

Q: How does your sustainability budget compare with

last year’s budget?

0%

Budget Decrease

8%

Budget Increase

Page 8: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

6. Challenges

www.lfsnetwork.org 8

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.

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q6: 39

Q: What are your top 3 challenges in your sustainability program?

Please Rank.

54%

8%

15%

5%

5%

8%

5%

14%

23%

9%

17%

17%

14%

6%

41%

7%

10%

10%

7%

7%

17%

Employee Engagement

Leadership Buy-In

Resources

ROI, Tracking & Benchmarking

Communication & Awareness

Program Implementation

Program Structure &Organization

% of Total First Rank Responses

% of Total Second Rank Responses

% of Total Third Rank Responses

Employee Engagement, 36%

Leadership Buy-In, 12%

Resources, 12% ROI, Tracking & Benchmarking, 11%

Communication & Awareness, 10%

Program Implementation, 10%

Program Structure & Organization, 9%

Page 9: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

7. Firm Focus

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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.

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.

11%

15%

23%21%

10%12%

7%

0%

5%

10%

15%

20%

25%

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q7: 44

Q: What is your firm's focus in its sustainability program for 2018?

Page 10: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

8. Wishlist Projects

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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.

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q8: 24

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%

4%

8% 8% 8%

4% 4% 4% 4% 4% 4%

16%

5%

21%

11% 11%

5% 5% 5% 5% 5% 5% 5%

13%

19%

6% 6%

13%

6% 6%

13% 13%

6%

% of Total First Rank Responses % of Total Second Rank Responses % of Total Third Rank Responses

Page 11: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

9. Effectiveness

www.lfsnetwork.org 11

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%

Moderately Effective

29%

Not So Effective as We Would

Like17%

We Don't Measure

Effectiveness42%

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q9: 48

Q: How effective is your firm's sustainability program?

Page 12: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

10. Success Factors

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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.

80%Senior Executive

Support

65%Communication &

Engagement

43%Impact on

Revenue

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q10: 46

Q. What factors contribute the most to a successful sustainability program?

Page 13: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

11. Useful Tools

www.lfsnetwork.org 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.

13%Becoming

Certified

38%Benchmarking with a Scorecard

24%Carbon Footprinting

73%Best Practices

42%Finding Sustainable Vendors

56%Tracking Sustainability Information

11%UNSD

Goals

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q11: 45

Q. Which of these would be useful for your sustainability program?

Page 14: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

12. Outlook

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A majority of firms believe that the outlook for sustainability

in law firms is good in the near future. Less than 10%

believe the outlook is poor.

27%

37%

29%

6%

2%

Very Good Good Neutral Poor Very Poor

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q12: 48

Q. What do you think is the outlook for sustainability programs in

law firms over the next 2-3 years?

Page 15: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

13. Key Issues for Legal Sector

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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.

Some firms would like to see the legal industry address commercial

tenant issues and policy. Waste/Consumption62%

Carbon Footprint17%

Best Practices7%

Unsure7%

Policy3%

Commercial Tenant

3%

Paper61%

Travel17%

Source: LFSN Sustainability Survey 2018. Respondents N: 55 Q13: 29

Q. What sustainability issue do you think the legal industry

should tackle? Is your firm supportive of this issue?

Page 16: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

www.lfsnetwork.org 16

What we do. The LFSN is in part supported by the generosity of the

Leadership Council of Firms

LFSN members include many of the top US law firms committed to promoting

environmental sustainability and corporate social responsibility in the legal industry.

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.

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.

Dedicated to law firm sustainability

Committed to improvement

Devoted to knowledge-sharing

Page 17: CSR & Sustainability Current State of the Legal Industry ......Respondents N: 55 Q1: 54 2. Importance to Stakeholders 4 12% 29% 24% 8% 16% 48% 54% 57% 61% 61% 22% 13% 10% 20% 10% 16%

www.lfsnetwork.org 17

Contact Us

732.309.2946

[email protected]

www.www.lfsnetwork.org

206-499-6890

[email protected]

www.amityadvisory.com

The Law Firm Sustainability Network conducted an online survey from

May – July 2018. 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.

EcoAnalyze’ s employee engagement tools were used to conduct the

LFSN Survey.

Endnotes

Gayatri Joshi Pamela Cone