The rising concern about climate change and the increasing prominence of wider Environmental, Social, and Governance issues (ESGs) have become major themes in business. The focus on sustainability is a major theme in both the private and public sectors around the world. In his 2022 Annual Letter for CEOs, Larry Fink, Blackrock CEO, captured the mood. predicting: “The next 1,000 unicorns won’t be search engines or social media companies, they’ll be sustainable, scalable innovators – startups that help the world decarbonize and make the energy transition affordable for all consumers.”
ESG is becoming a more important business imperative. This has led to a sharp increase in demand for environmental attorneys. ESG has been an integral part of corporate culture for many years. However, until recently, social and environmental issues were limited to the practice areas of law firms that specialize in environmental groups. Today, however, we see an increase in ESG-related legal issues across many practice areas, including M&A, litigation and regulatory.
A “whole of government” approach
With President Biden regularly emphasizing the importance of climate and ESG issues, federal agencies are taking a “whole of government” approach. The Securities and Exchange Commission (SEC) established a Climate and ESG Task Force in March 2021, which has focused both on issuers’ disclosures about ESG and climate matters and on compliance programs for registered investment advisers marketing ESG funds. The SEC is considering new rulemaking in this area, with the aim of ensuring consistency and comparability in public company disclosures and facilitating investment managers’ ability to evaluate potential ESG investments. Gary Gensler, SEC Chair, spoke in July 2021. The benefits were advocatedHe stated that he had instructed the SEC staff members to develop a mandatory rule for climate risk disclosure.
The Environmental Protection Agency (EPA), has created an interagency taskforce on hydrofluorocarbons, (HFCs), Noting that “global phasedown of HFCs is expected to avoid up to 0.5 °C of global warming by 2100.” The taskforce seeks to combat the illegal trade, production, use or sale of HFCs, and is taking measures to support the transition to HFC alternatives, reclamation, and recycling. The Department of Justice’s Environment and Natural Resources Division has brought Clean Air Act cases regarding the use of flares to remove volatile organic compounds, toxics and others from waste gases. This is part of its efforts to address climate change.
Increasing public demand and awareness
Although the regulatory developments are of paramount importance to attorneys, it’s also important to point out the growing support for ESG principles by the wider public. This is evident in the extraordinary rise in investor interest in ESG-focused products. Morningstar data shows that ESG funds received more than $54 billion in the first three quarters 2021 than in all of 2020. The 2020 flow of $51billion, which was more than double the 2019 total, was itself a record. The media is increasingly focusing on environmental justice issues, which helps to raise public awareness. This wider trend in public mood is something corporations must consider when preparing their business strategies or anticipating potential risks.
Ideal conditions for environmental lawyers
Clients and law firms require environmental lawyers who can navigate the constantly changing maze of environmental laws. There has been a surge in demand for environmental lawyers at all levels, from junior environmental associates up to senior environmental partners. Clients and firms seek lawyers who not only understand the Clean Air Act in particular but can also advise on a wide range of Environmental, Social, or Corporate Governance issues.
Environmental lawyers are uniquely placed to grow their practices in today’s market. The opportunities to grow are endless with more environmental issues to pitch to clients. Law firms with environmental lawyers are in high demand. This allows them to make impressive lateral transfers to larger firms or higher-ranking environmental practices.
Lateral Link has extensive experience placing environmental lawyers across the top practices in the industry. Even if you don’t want to move immediately, we are happy to provide advice on your individual situation. Amy is available to answer any questions you may have.
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Amy K. Savage works as a Principal for Lateral Link. Her special focus is on environmental hiring. She has placed environmental lawyers at all levels, from junior associates to practice groups chairs and high-ranking government officials.
Lateral Link is one of the top-rated international legal recruiting firms. Lateral Link is a network of over 14 offices worldwide that specializes in placing lawyers in the most prestigious and well-respected law firms and companies around the globe. Lateral Link is managed by ex-practicing attorneys from top law schools and has a history of hiring lawyers to make lateral leaps. Click Here to find out more about us.