Trainee Talks: The Rising Importance of ESG in Legal Practice
Environmental, Social and Governance considerations (ESG), are now a central part of legal and commercial decision-making. Once seen as a mainly reputational issue, ESG has become increasingly connected to regulation, risk management and corporate strategy.
At TSP, ESG is a key priority. It was a central focus of our TSP 2030 collaboration day, where the whole firm worked together to create an action plan for where we want to be by 2030.
Why ESG matters in modern legal practice
ESG encompasses three key ideas: environmental factors, such as carbon footprint, biodiversity, pollution etc., social factors, such as working conditions, diversity, human rights, and governance, which includes board composition, shareholder rights, anti-bribery measures etc.
Clients may need advice on ESG compliance as legislation mandates its consideration. For instance, the Companies Act 2006 requires directors to consider the impact of their operations on the community and environment, while the Modern Slavery Act 2015 mandates supply chain transparency to combat slavery and human trafficking.
The Law Society has also published guidance on the impact of climate change on solicitors, highlighting how climate risk can affect legal advice, professional duties and the solicitor-client relationship. For example, the Law Society explains that, as per the SRA principles, solicitors have a duty to maintain public trust and confidence which coincides with the consideration of climate risks or impact when assessing client instructions, especially as climate change becomes more significant.
What trainee solicitors should know
1. ESG Is a legal risk issue, not just a branding exercise
Businesses increasingly rely on ESG claims when communicating with investors, customers, regulators and employees. If those claims are inaccurate, exaggerated or unsupported, they can create regulatory, contractual, reputational or litigation risk.
‘Greenwashing’ is a growing concern and occurs when an organisation gives a misleading impression of the environmental or sustainability credentials of its products, services or operations. For lawyers, this raises issues around evidence, substantiation and clarity. Trainees may be asked to assess whether sustainability claims are backed by reliable data, whether the wording is too broad, and whether disclaimers are needed.
2. ESG is relevant across different practice areas
As trainees, we regularly work across different practice areas and rotate departments every six months, so ESG considerations are likely to arise in each seat. For example, in corporate and commercial, ESG may feature in due diligence, investment decisions, warranties and board governance. In conveyancing, it can arise through energy performance, building safety, sustainability clauses and environmental obligations. In employment law, it may relate to diversity, inclusion, workplace culture, whistleblowing and modern slavery. In disputes, ESG can be relevant to shareholder claims, supply chain disputes and misleading statements. Trainees should therefore treat ESG as a cross-practice issue, rather than a standalone topic.
3. Good advice requires commercial awareness
Clients rarely seek ESG advice in isolation; they want to know how legal obligations affect their commercial objectives, stakeholder relationships and long-term strategy. For trainees, this means thinking beyond the black-letter law. When researching or drafting notes, it is useful to consider the client’s sector, regulatory exposure, public profile, supply chain and investor expectations.
How trainees can build ESG awareness
Trainees do not need to be ESG specialists. However, we can develop familiarity with key concepts such as climate-related financial disclosure, sustainability reporting, greenwashing, supply chain due diligence, net zero transition plans and governance oversight.
Practical habits can make a real difference. When carrying out due diligence, we should consider whether ESG-related risks have been properly identified. When preparing research, we should explain not only what the law says, but why the issue matters commercially.
Conclusion
ESG is transforming the legal profession. For trainee solicitors, the key is not simply to know what ESG stands for, but to understand how it affects clients in practice. A trainee who can identify ESG risks, ask sensible questions and connect legal issues to commercial consequences will play a vital role in a changing legal market.