2024-01-15 09:32:46
A few weeks ago COP28 concluded. Everyone will have drawn their own conclusions about the media conference and diversity of opinions is practically guaranteed. The intrinsic complexity of so many diverse actors reaching concrete and fully binding agreements means that opinions and assessments differ and that we see the full spectrum of positions: from considering the summit as a success to criticizing it for lack of concrete progress.
Be that as it may, the purpose of these lines is not to evaluate the summit or criticize the agreements, or even to summarize what happened there. We will focus, instead, on a question that we receive repeatedly at the firm: are we lawyers really interested in these ESG issues? How does COP affect me?
We receive this question almost daily from companies of all types, regardless of their size and sector of activity. But it is also formulated very frequently by lawyers, regardless of whether they work in an office or company.
In general, all companies are beginning to see in what areas and to what extent they may be affected by the issues. environmental, social and corporate governance, whether due to information or reporting obligations, due diligence, existing internal procedures, value chain analysis, etc. However, we see the lawyers as somewhat more lost and we dedicate this exercise to them.
We will agree that the question is legitimate, since it is logical to think that lawyers should focus on their traditional legal knowledge and training (commercial, administrative, civil law…), which is what is ultimately demanded of them and guarantees them work today. in day.
We think, however, that we should change the focus to how a lawyer’s performance will be measured in the not so long term. This exercise is key, since the lawyer is ceasing to be a legal expert, as we are usually considered, to be a business partner (business partner, if we want to give ourselves more importance). We encourage you to read the extensive literature that exists in this regard and that deals with such interesting issues as the border between human and computer work or data processing and analysis or the composition of companies’ legal teams (perhaps half are not lawyers). . In short, this approach is the relevant one for us because being a business partner entails the obligation to create business measurable (or value) for the company.
And here comes the famous COP and the well-worn ESG if we reflect on the highlights of the event in Dubai. For example, the agreement to “move away” from fossil fuels in a progressive but safe way, the objective of tripling the production capacity of renewable energy or the desire to double energy efficiency and significantly accelerate the reduction of methane emissions, among others.
These elements have in common that they present immense opportunities to create value in companies. A lawyer will think that problems will come to him in the form of environmental litigation or regulatory consultation, for example. On the other hand, another will see a golden opportunity to understand in depth the reason for these agreements and, consequently, anticipate regulatory developments and transform more efficiently into that business partner that the world requires of its lawyers. But that inevitably involves the COP, the ESG and accepting that sustainability is changing the reality we have lived until now.
Let’s take advantage of the flood of information (the volume of data generated daily is measured in zettabytes) to educate ourselves: read books and opinion articles, participate in training courses and forums and, if it is too tedious or time-consuming, Let’s take advantage of the advantages and comfort of the online world. But let’s take advantage, because tomorrow’s lawyers will need to know ESG.
As Victor Hugo said, “the future has many names. For the weak it is the unattainable. For the fearful, the unknown. For the brave it is opportunity.”
Joaquín Hervadacompetition partner and co-head of ESG at DLA Piper Spain.
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