New Sources of Value: Evaluating Law Firms on ESG, Pro Bono Work, and Innovation
In honor of Pro Bono Month, let’s explore why GCs are increasingly concerned with social initiatives as an evaluation strategy — and how the industry is responding.
October is recognized as Pro Bono Month, a time when the legal community unites to provide much-needed services to those who might not otherwise have access to legal representation. And what better way to celebrate the legal industry’s commitment to social justice and impact than to explore their growing efforts to work and partner on this and complementary social initiatives (link ESG, diversity, innovation, etc.)?
Happy Pro Bono Month! Celebrating the Rise in Pro Bono Legal Work
Corporate legal departments are increasingly urging their outside counsel to contribute to community efforts by offering pro bono legal services, such as assisting individuals in processing asylum or immigration claims.
Simultaneously, in-house counsel are prioritizing outside firms that align with their mission to support local economies by providing legal aid to small businesses and entrepreneurs. For example, some in-house teams seek law firms that engage in pro bono efforts around healthcare access, such as helping individuals apply for healthcare benefits or disability claims.
The result is a trending increase year over year in pro bono services. According to The American Lawyer’s 2024 Pro Bono Scorecard, firms dedicated 5.15 million hours to pro bono work in 2023, a 2.8% increase from the previous year.
GCs will highlight their intentions for pro bono partnership with vendors in a variety of ways: on RFP, incentives, billing guidelines or engagement terms.
And pro bono work isn’t the only social initiative GCs are becoming increasingly concerned with — other firms have joined forces with local environmental advocacy groups, for example, to provide free legal services to communities facing environmental degradation to help in policy and planning discussions.
Happy Pro Bono Month! Celebrating the Rise in Pro Bono Legal Work
Corporate legal departments are increasingly urging their outside counsel to contribute to community efforts by offering pro bono legal services, such as assisting individuals in processing asylum or immigration claims.
Simultaneously, in-house counsel are prioritizing outside firms that align with their mission to support local economies by providing legal aid to small businesses and entrepreneurs. For example, some in-house teams seek law firms that engage in pro bono efforts around healthcare access, such as helping individuals apply for healthcare benefits or disability claims.
The result is a trending increase year over year in pro bono services. According to The American Lawyer’s 2024 Pro Bono Scorecard, firms dedicated 5.15 million hours to pro bono work in 2023, a 2.8% increase from the previous year.
GCs will highlight their intentions for pro bono partnership with vendors in a variety of ways: on RFP, incentives, billing guidelines or engagement terms.
And pro bono work isn’t the only social initiative GCs are becoming increasingly concerned with — other firms have joined forces with local environmental advocacy groups, for example, to provide free legal services to communities facing environmental degradation to help in policy and planning discussions.
ESG Commitments: Environmental initiatives and Disclosures
While DEI continues to be an important measure, new innovation standards indicate that pro bono work is just one aspect of a broader shift in how legal departments evaluate their law firm partners. In Europe, particularly, clients are demanding much more transparency and disclosure around environmental efforts, such as firms’ commitments to sustainability, carbon footprint reduction, and achieving net zero emissions.
A significant driver of this shift is the EU Corporate Sustainability Reporting Directive. Regarded as the most comprehensive sustainability reporting standard globally, in-scope companies are required to report on how sustainability issues influence their performance, position, and development, as well as their own impact on the environment and society. For law firms, this means clients are not just asking for, but requiring, detailed disclosures about environmental initiatives such as efforts toward net zero emissions, energy efficiency, and reducing carbon footprints.
Law firms are now expected to disclose their efforts towards things like achieving net zero emissions, reducing carbon footprints, and promoting energy efficiency. Clients are seeking partners who not only provide legal expertise but also demonstrate tangible commitments to sustainability, such as advising on climate-related regulations or reducing internal energy consumption.
Most major firms in Europe, as well as U.S. firms with a significant European presence, have already established programs to embrace and report on these initiatives. It is important to note that U.S. firms handling substantial inbound work for European clients may need to implement similar programs swiftly to meet client expectations and stay competitive.
As clients prioritize sustainable investments and ethical business practices, law firms must adapt to meet these transparency demands, making ESG performance a key factor in maintaining competitive partnerships.
Achieving Legal Excellence with Forward-Looking Innovation
As legal departments increasingly evaluate law firms on more than just their legal prowess, there’s also a growing focus on their commitment to innovation. This shift highlights the importance of forward-looking strategies that leverage new technologies and creative solutions to enhance service delivery and improve overall efficiency.
For example, AI has quickly become highly relevant in the legal industry. It has evolved from a novelty into a practical tool, and lawyers are often integrating into their workflows to deliver higher-quality legal work.
Clients are seeking firms that offer innovative tools and insights to navigate complex legal landscapes, streamline operations, and improve decision-making. By embracing the right technology, such as AI, firms can address emerging challenges and optimize their practices, ensuring they remain competitive.
Innovation also extends beyond technology itself; it encompasses a willingness to adapt and rethink traditional approaches to legal services. Firms that embrace new ideas and methodologies are better positioned to meet the evolving needs of their clients, fostering a culture of continuous improvement.
By investing in forward-looking innovations, law firms not only elevate their social responsibility but also become strategic partners to legal departments seeking long-term, values-driven collaborations.
Moving Beyond the Billable Hour: Driving Success and Positive Social Impact
Law firms that want to succeed in today’s market must go beyond delivering traditional services and focus on innovation, collaboration, and alignment with client values. General counsels are increasingly looking for firms that offer more than just legal expertise.
By prioritizing initiatives like pro bono efforts, ESG, DEI, and innovation, firms demonstrate their commitment to equity and social justice — values increasingly aligned with their clients’ missions. It’s not just about the number of hours logged, but also the impact of the work, whether it’s addressing underserved communities or tackling systemic social issues.
How can we all do our part to help?
Here are some key steps to fostering stronger, more innovative partnerships with your outside counsel:
- Build strategic partnerships: Align with firms that share your company’s values to avoid restarting with each engagement and ensure smoother collaboration.
- Go beyond legal services: Evaluate firms on their contributions to DEI, pro bono work, and charitable efforts, not just legal expertise.
- Navigate regulatory changes: Seek firms that offer actionable insights on regulatory shifts like the potential overturn of Chevron, rather than generic alerts.
- Drive DEI initiatives: Foster partnerships where both law firms and legal departments collaborate to amplify DEI efforts.
- Maximize value: Ensure your partnership delivers more by working together to drive innovation and social impact.
- Leverage privileged positions: Encourage firms to use their influence to support broader ESG goals and community initiatives.
Pro Bono Month serves as a reminder of the legal profession’s duty to give back, but it also highlights the growing expectation for law firms to step up in new ways — and the services now available to help them do so.
Mitratech’s panel sourcing and selection, for example, helps you evaluate firm partnerships through the lens of:
- Peer-driven recommendations: Access a network of vetted firms based on feedback and performance data from other legal departments.
- Alignment with values: Identify firms that align with your organization’s values in areas such as ESG, pro bono work, and DEI initiatives.
- Innovation & expertise: Find firms that offer innovative solutions and insights for navigating regulatory challenges and delivering value beyond traditional legal services.
- Data-driven decisions: Leverage data and peer reviews to make strategic, informed decisions on outside counsel that will best support your business and social impact goals.
Are you ready to find the ideal law firm partner that aligns with your values and legal needs? Get in touch to see how Mitratech’s AdvanceLaw platform can help you find your perfect fit.
Our focus? On your success.
Schedule a demo, or learn more about Mitratech’s products, services, and commitment.
