Environmental, Social, and Governance (ESG) issues have become central to how businesses operate today. Companies are increasingly implementing strategies to move towards NetZero, create fair and responsible working practices, and ensure proper governance to meet stakeholder expectations. Achieving these commitments requires a workforce that is aligned with ESG goals and equipped with the right skills.

Workforce considerations in ESG strategies

The people perspective encompasses the workforce considerations that impact all ESG strategies. As ESG issues continue to reshape the workplace, companies need to adapt to this dynamic environment. This includes understanding the developments companies are implementing and anticipating future changes for employees. Organisations need to create an inclusive culture, promote continuous learning, and develop policies that support sustainable practices. 

The 'S' in ESG refers to how organisations treat their employees, conduct business relationships, manage their supply chain, and interact with local communities. It goes beyond legal compliance to the adoption of ethical business standards. Research shows that companies that adopt ESG standards outperform their competitors financially over the long term. Conversely, unethical behaviour can lead to costly reputational damage, as the Covid-19 pandemic showed.

Measuring Social impact

Identifying areas to measure within the Social aspect of ESG can be challenging. Here are five key areas where HR can start the measurement process:

1. Diversity & Inclusion: Fostering a diverse and inclusive workplace is essential to promoting innovation and creativity. Organisations should measure the representation of different demographics in their workforce and track progress over time.
2. Workforce Engagement: Engaged employees are more productive and committed to their organisation's goals. Measuring employee engagement through surveys and feedback mechanisms can help identify areas for improvement.
3. Modern Slavery: Ensuring that the supply chain is free of modern slavery is a critical aspect of corporate social responsibility. Organisations should implement robust due diligence processes to identify and mitigate risks.
4. Executive Remuneration: Transparency in executive compensation is critical to maintaining stakeholder trust. Companies should disclose their remuneration policies and ensure that they are aligned with long-term performance.
5. Community & Social Value: Organisations should assess their impact on local communities and the social value they create. This may include contributions to the local economy, support for community initiatives, and efforts to address social inequalities.

CMS’s commitment to ESG

At CMS, our vision is to create sustainable and rewarding futures for our clients, people, and communities. We are committed to managing our environmental impact and striving for positive change. Our Responsible Business programme is underpinned by our commitment to the UN’s Sustainable Development Goals. 

We focus on areas where we can have the most impact, encouraging all staff, including those from outsourced partners, to engage in pro bono and volunteering activities. Fee earners can contribute up to 100 hours per year, which are included in performance metrics and bonus schemes, with adjustments for part-time workers. This commitment to the UN’s Global Goals ensures that our efforts are aligned with broader global initiatives aimed at creating a better world.

Our ESG strategy is built on three pillars:

1. Business Practices: We are committed to operating responsibly and contributing positively to society. As a law firm, upholding the highest professional standards and complying with relevant laws and regulations is paramount. We ensure that our business practices are ethical, transparent, and accountable, fostering trust among clients and stakeholders.
2. Environmental Impact: We aim to create sustainable and rewarding futures by managing our environmental footprint. Our vision encompasses reducing our impact on the environment and promoting sustainability. This includes initiatives such as reducing carbon emissions, enhancing energy efficiency, and adopting renewable energy sources.
3. Social Impact: Our Social Impact programme ensures we make a positive difference locally and globally. This includes pro bono work, charitable giving, and volunteering activities. We believe in empowering our employees to contribute to society and support causes that matter to them. Through these efforts, we aim to build stronger, more resilient communities.

ESG HR: Aligning human resources with environmental goals

In an era of critical environmental sustainability, organisations are recognising the need to integrate sustainable practices into their operations. ESG HR is a strategic approach that aligns human resources policies with environmental goals to create a sustainable and environmentally friendly workplace. CMS Cameron McKenna Nabarro Olswang exemplifies this commitment through its comprehensive HR initiatives.

Specifically, CMS was the first of only two law firms globally to announce and set a near-term Science-based target (SBT) to measure its carbon reduction progress. To be as thorough as possible and have the largest positive impact, we set a SBT focused on a 30% reduction of emissions by 2025 and a 50% reduction by 2030. We are in the process of setting a long-term Net Zero target, approved by the Science-based targets initiative (SBTi), and will be net zero by 2050 at the latest. 

In CMS’s office, care was taken to create a maximally functional and sustainable working environment with plenty of eco-friendly materials, energy-efficient solutions and natural vegetation. CMS’s new office in Varso Tower has become the first office fit-out in Poland to receive the WELL Certified at the Platinum level. With this, CMS joins a prestigious group of just four other law firms in the world that can boast an office compliant with the highest standards of employee and associate wellbeing. The aim of the project was to strengthen the building of an organisational culture as part of the ‘cultureplace’ concept, according to which numerous spaces dedicated to building relationships, collaborative working and meetings were created. The WELL Building Standard is the world's most prestigious and widely recognised system for certifying buildings and premises in terms of supporting the health and wellbeing of their occupants. Several other CMS offices have engaged with WELL this year with the ultimate goal to receive WELL certification as this is the cornerstone to sustainable office policies for employees and the environment to work within.

To bring our ambitions to life and encourage staff to get involved in local initiatives, every month we issue a Sustainability in Action newsletter to all staff focusing on a different environmental issue or global campaign. Our aim is to encourage everyone across the firm to learn, act and share.

In 2022 we introduced the CMS bees programme, which is part of the firm’s commitment to environmental protection and, specifically, biodiversity. Some bee species play a vital role in maintaining and promoting biodiversity, pollinating the food we need to survive and many of the trees and flowers that provide habitats for wildlife. Our CMS Bee programme continues to expand in the UK and internationally. We intend for all offices to be engaged in our bee programme with either active beehives or sponsored local programmes. 

Incorporating ESG principles into business operations is more than a response to the Covid-19 pandemic. Through a concerted effort, businesses can drive meaningful change and create lasting value for all stakeholders.  As the world grapples with environmental challenges, the role of ESG HR becomes increasingly vital. CMS Cameron McKenna Nabarro Olswang's proactive approach to integrating sustainability into its HR practices showcases the transformative potential of sustainable HR. By fostering a culture of environmental stewardship, the firm not only enhances its operational efficiency, but also contributes to a more sustainable future.