From the Society’s sponsor Landmark:
In our latest report: Reflections and predictions for sustainability in the property sector in 2025, Landmark’s Sustainability Director Chris Loaring explores the law firm’s perspective on greenwashing risks, integrating ESG policies effectively, and technology’s role in supporting ESG due diligence.
With near-term net zero targets just five years away, and global scrutiny intensifying over corporate environmental, social, and governance (ESG) investments, greenwashing is an ever-present risk.
Greenwashing on the rise?
According to The EY 2024 Institutional Investor Survey1, which polled 350 investment decision-makers across the world, 85% of investors believe that greenwashing is a bigger problem now than five years ago. Consequently, greenwashing litigation has naturally become a growing area of practice for commercial real estate lawyers.
Greenwashing risk has certainly become a prominent area of focus for the law firms we speak to. Not only are they advising clients with strategies for addressing potential greenwashing head on, but they’re also helping to identify risks early – not only in terms of a client’s own operations, but also their broader supply chain.
Embrace the value of ESG
EY’s research also found that 88% of investors have increased their use of ESG information, which correlates with the emergence of mandatory ESG reporting rules. However, an alarming 92% of investors are worried that ESG initiatives adversely affect short-term corporate performance.
This tallies with anecdotal reports of so-called ‘ESG fatigue’ – both within the property industry and beyond. However, we must try to move beyond this type of short-termism mindset and embrace the long-term value that is inevitably derived from integrating ESG and sustainable initiatives into business-as-usual activities.
Sustainable supply chains
One area that can certainly benefit from ESG screening is supply chain due diligence. With sustainable supply chains an increasingly hot topic, particularly through the lens of the Corporate Sustainability Due Diligence Directive (CSDDD), law firms are working hard to ensure their own ESG policies are in order, as a vital element of the supply chain themselves.
Law firms are on a journey that involves assessing their own ESG initiatives and determining how best to report on those, what policies to have in place, and what developments they need to address. Even with the great strides being made, there is always more that can be done with ESG. It’s a constantly evolving space and because it continues to evolve, law firms will continue to evolve with it.
The role of technology
Key to that evolutionary process is blending cutting-edge technologies, such as AI and machine-learning, with traditional human initiative. One such technology is our RiskHorizon ESG screening tool, which standardises risk management, saves time, and empowers better investment decisions., which standardises risk management, saves time, and empowers better investment decisions.
With an ongoing uptick in ESG due diligence work, law firms that capitalise on new technologies like RiskHorizon are likely to reap the rewards. Our AI-driven solution aggregates over 100 of the world’s most credible datasets, enabling lawyers to quickly understand ESG risks and frame due diligence questions. It is just one example of how technology can assist the industry’s sustainability ambitions.
Read our report
We believe that peer collaboration is essential to achieve sustainability targets. That’s why Landmark spoke to a panel of leading industry sustainability experts from Latham & Watkins, Taylor Wimpey, Savills, OSB Group, and our own Sustainability division to discuss the direction of travel for sustainability in the property market in 2025.
Read our report now: Reflections and Predictions for Sustainability in the Property Sector in 2025.
Sources:
1 https://www.ey.com/en_gl/insights/climate-change-sustainability-services/institutional-investor-survey