Paul Watchman - Big Law and the big greenwash | S1 E23

Paul Watchman is a leading figure and recognised legal authority in areas connected with ESG (environmental, social and governance). Through a long association with the UN, he closely scrutinises law firms and their developing ESG practices.

We talk about the widespread greenwashing by Big Law, how large law firms really see their ESG practices as recruitment tools and use it for glossy promotional material, but in large part fail to walk the  walk on diversity, wellbeing, sustainability and transparency.

Show notes:

​[2:05] Paul shares his background as a lawyer in Glasgow acting for the homeless and victims of domestic violence, before he turned to academia and eventually became a partner at Magic Circle firm Freshfields.

[5:45] Paul says the levels of greenwashing he has found in scrutinising Big Law firms is substantial, having reviewed the ESG practices claimed by 55 international law firms.

[7:06] As a Big Law insider of many decades, Paul is well-equipped to judge what large law firms are promoting about their ESG credentials and what is actually true.  What he found was exaggeration of the scale and depth of ESG practices.

[9:58] ESG specialism takes a commitment to learning, plus practical experience. The true number of ESG legal specialists is significantly smaller than what is claimed collectively by law firms. Genuine specialists would be known by the long-time practitioners in the area.

[12:11] Paul expands on law firms using their ESG practices as a recruitment tool while their own records on diversity and wellbeing are dismal.

[15:11] According to Paul, one of the biggest drivers of unhealthy culture in large law firms  is the billable hour model which reduces lawyers to resources and puts young lawyers under tremendous pressure.

[16:40] The billable hour model also mitigates against the specialism needed for ESG lawyers to develop due to the investment in learning required which short-termism does not allow for.

[19:39] Paul identifies specialist niche legal practices as one of the reasons for optimism in the development of authentic ESG legal practices. Niche practices can also choose clients who are aligned with their own values, which Big Law is not prepared to do.

[23:43] Another point of pressure ought to come from general counsels and in-house legal counsels holding law firms accountable for diversity and inclusion in their workforce, including by demanding audits.

[27:34] In Paul's direct experience, large law firms are extremely reluctant to provide statistics on diversity gender at the top of the tree in their structures, which is equity partnership.

[30:03] We discuss how the real problem with Big Law and the ESG greenwash and hypocrisy is a fundamental lack of transparency.

[35:31] I ask Paul for advice to young up and coming ESG lawyers and his extremely insightful message is to be courageous, be focussed, be imaginative and be mindful of how ESG is  changing structures and public expectations, such as by applying public law standards to multinational corporations.

For more, please visit the episode page at the New Earth lawyer website.