The legal profession stands at a critical intersection of business and climate action, wielding far more influence over decarbonisation than many realize. As Humzah Khan, programme manager at The Chancery Lane Project, points out, lawyers are essentially the “back-end developers” of business operations, creating frameworks that can either accelerate or hinder climate progress.
Major corporations are already taking note. Companies like Vodafone and NatWest are pioneering the integration of climate clauses into their contracts, transforming voluntary environmental commitments into legally binding obligations. This shift represents a fundamental change in how businesses approach sustainability – moving from aspiration to action through legal frameworks.
The evolution of these climate clauses follows a strategic progression. Organizations typically start with ‘light green’ clauses – introductory provisions that begin the sustainability conversation. As comfort and commitment grow, they advance to ‘dark green’ clauses that incorporate more stringent, enforceable decarbonisation measures.
However, a significant knowledge gap exists within the legal community. Many lawyers remain unaware of how their work impacts climate outcomes or lack understanding of crucial concepts like scope 3 emissions and carbon budgets. This gap presents both a challenge and an opportunity for the legal profession to evolve.
The business case is compelling. While implementing climate clauses may incur initial costs, the alternative – inaction – carries far greater risks. From supply chain disruptions due to extreme weather events to potential legal liability and reputational damage, the cost of delay far outweighs the investment in climate-conscious legal frameworks.
For law departments and firms looking to lead in this space, the path forward requires strong collaboration between legal, leadership, and sustainability teams. Success depends not just on technical legal expertise, but on understanding the broader context of climate risks and opportunities.
Read more: Legal Futures
