The legal landscape is undergoing a major shift as climate change becomes a central concern. In April, the Law Society issued guidance on how climate change impacts solicitors and their clients. This guidance highlights the wide-ranging effects of climate-related risks on legal practice and emphasises the need for solicitors to broaden their scope of consideration. Adapting to this far-reaching guidance poses a significant challenge for solicitors, who can expect sector-specific guidance from the Law Society in the future.
The guidance is divided into two main parts, each addressing different aspects of climate change’s impact on legal practice.
Part A focuses on reducing the climate change impact of both law firms and their clients. Law firms are encouraged to assess their annual greenhouse gas (GHG) emissions and set targets to drive them down. The ultimate goal is achieving net-zero emissions by 2050 or even earlier. Larger law firms are required to report their GHG emissions under the UK Streamlined Energy and Carbon Reporting (SECR) regime. This reporting primarily covers Scope 1 and 2 emissions, with the only requirement for Scope 3 being the reporting of business travel fuel usage. Additionally, the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022, based on the Task Force on Climate-Related Financial Disclosures (TCFD), mandate businesses to assess and report on how climate change risks could affect their operations. To assist law firms in meeting these requirements and reaching net-zero goals, Landmark provides a dedicated sustainability team consisting of Net Zero and Climate Change consultants and environmental lawyers.
Part B of the guidance delves into the risks associated with climate change, both physical and transitional, and how solicitors should advise their clients on these risks. The guidance reaffirms well-established duties, including the duty of care, duty to warn, duty to disclose, and duty to uphold service and competence levels, within the context of climate change risks. Property lawyers, in particular, should be aware of the additional risks posed by climate change to properties. While solicitors should refrain from offering advice beyond their knowledge or qualification, they may need to engage in competent discussions with clients about climate-related legal issues. The guidance recognises the importance of education and knowledge in determining when climate change advice is necessary, considering various factors such as transaction type, property sector, and client. Conducting a climate change search is also recommended as it helps identify the nature and potential changes in physical and transitional risks associated with a property. Solicitors must exercise professional judgment when deciding whether to commission a climate change report for a specific property transaction.
Landmark understands the importance of choice for solicitors in addressing climate change risks. It offers a range of support services, including sustainability training, online webinars, regional Law Society events, and the Landmark Academy. The Academy provides highly informative content to help lawyers enhance their knowledge and competency regarding climate change. Furthermore, Landmark provides solicitors with a product set that allows them to decide whether to obtain a climate change search. This approach aligns with the guidance’s emphasis on choice and recognises the need for a broader perspective on climate change risks, beginning with education and knowledge.
In summary, the Law Society’s guidance on climate change has significant implications for solicitors. To meet the challenges posed by climate-related risks, solicitors must take steps to reduce GHG emissions and work towards achieving net-zero targets. They should also be aware of the additional risks climate change brings to properties and be prepared to advise clients accordingly. Landmark is dedicated to supporting solicitors throughout this journey, offering tailored solutions and fostering knowledge and competency in climate change matters. It all comes down to education, knowledge, and exercising professional judgment in advising clients on climate change matters.
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