Meaningful progress on sustainability does not depend on a single team, but an entire organisation. This requires collaboration, cooperation, transparency, and accountability, in which in-house counsel is well placed to play a leading role. Arguably the best route to achieving this is by publishing company-wide targets.
In this article, we explain why companies should publish ambitious targets, explore the role of in-house counsel in that process, and offer guidance to make the process easier.
Meaningful action on climate change demands accountability. Neil Dodds, General Counsel at , says in a recent ³ÉÈËÓ°Òô report: ‘Once you start publishing your journey in terms of where you are and where you want to be, you start holding yourself to account.’
is essential. In-house counsels should push companies to share their progress on climate change sustainability from the beginning of their journey. That might paint a rather skewed and perhaps unflattering picture, but that’s the perfect place to start. should allow room for growth, room for meaningful change.
The benefits of publishing sustainability targets are clear. It builds trust among stakeholders, improves ownership among teams, and leads to greater collaboration. In-house counsel need to ensure that the company is publishing targets that measure meaningful action, avoiding the temptation of or misrepresentation, which could lead to charges of greenwashing.
In-house counsel should encourage key performance indicators (KPIs) that reflect the latest standard boards on sustainability and ESG, ensure the KPIs are embedded into team and personal objectives, and preferably ask a third-party to confirm that the targets are meaningful and ambitious.
In-house counsel should encourage publishing of progress internally and externally, making the . They should publish not only current progress and future targets, but also share the next steps that will help companies meet such targets.
And, ideally, reports will be updated regularly, allowing an almost of progress and giving stakeholders the most up-to-date view of action taken on climate change.
In-house counsel can encourage their business to when it comes to sustainability. That does not mean setting unrealistic, unachievable targets, which only serves to disengage and demoralise employees across the organisation. Ambition is about and putting sensible resources and actions in place to meet such targets.
Sustainability and ESG targets need to be embedded at the heart of the company. They should be part of the organisational and legal team DNA, not simply a side project or an afterthought. Governance structures may need to be updated to ensure that sustainability is considered at every level, from the bottom to the top.
In-house counsel can push teams across the business to collaborate and cooperate, and provide forums for that interaction to take place. They can , share knowledge, and create an ecosystem that allows people from across the company to play a role in meaningful climate action. That ecosystem comes from engaging and empowering teams across the organisation, particularly working with and leading cross-functional teams.
Setting ambitious targets and making ambitious changes can open companies up to vulnerability. In-house counsel need to be aware of risks and plan ahead to mitigate them.
One potential . Sustainability targets are constantly changing and the ambitious targets of any company are likely to revolve around compliance. The regulatory landscape can shift and organisations need to follow suit. In-house counsel can help mitigate that risk by liaising with government and external organisations, keeping up with legal developments, and implementing internal changes in preparation of legislative changes.
Another core . Shifts in business strategy can create problems, such as misalignment due to poor communication, lack of team or individual buy-in, knowledge gaps, , and so on. In-house counsel can help the business mitigate many of those risks through encouraging clear communication, creating a sense of ownership, and practicing effective change management.
The risks reaffirm the need for accountability and transparency. The above transitional risks, for example, can be avoided through clear and open communication, the , and effective knowledge and information sharing.
Our practical guidance content provides a great starting pointing for legal counsel looking for practical resources on sustainable business. Legal counsel can use this content to advise their business on how to approach sustainability issues, set targets and measure impact, and as well as maximise opportunities and minimise risks.
These practice notes are popular with those looking how to set targets and reporting standards for their business:
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