The Law Society has published new guidance and a practical checklist to help in-house lawyers respond to the growing legal and governance challenges posed by climate change. The guidance builds on the Law Society's 2023 climate change guidance for lawyers and is intended to help legal teams apply their professional duties in an in-house environment.
The publication reflects a wider shift in how climate change is viewed. What was once seen primarily as an environmental issue is increasingly regarded as a business risk with implications for compliance, governance, transactions, procurement, reporting and reputation. For in-house lawyers, climate change is becoming another issue that must be factored into risk management and decision-making across the organisation.
In this article, we cover the key guidance that legal teams need to know and where climate issues can create risk.
The Law Society reminds in-house lawyers that climate change engages the same core professional duties that apply in any area of legal practice, including the duties of care, competence, disclosure and warning. The expectation is not that lawyers become climate scientists, but that they are able to identify when climate-related issues may create legal risk and ensure those risks are properly considered.
The guidance highlights a range of areas where climate-related risks may arise, including regulatory compliance, contractual obligations, litigation exposure, business resilience and corporate reputation. Importantly, relevant regulation extends well beyond environmental law and increasingly encompasses sustainability reporting, supply chain due diligence and corporate disclosures.
One of the key themes running through the guidance is the importance of governance. In-house legal teams are encouraged to ensure that boards and senior leadership understand both the risks climate change may pose to the organisation and the impact the organisation's own activities may have on the wider environment and society.
The guidance notes that directors' duties under the Companies Act 2006 may require climate-related considerations to form part of board decision-making, particularly when considering the long-term success of the company. Robust governance structures, clear ownership of climate-related matters and regular reporting to the board can help organisations manage legal, commercial and reputational risks more effectively.
Rather than treating climate change as a standalone topic, the Law Society encourages in-house lawyers to integrate climate considerations into existing legal processes. This includes considering climate-related due diligence in transactions, reviewing contractual protections and obligations, supporting procurement teams with supplier assessments and horizon-scanning for emerging regulatory developments.
The guidance includes a useful checklist providing a practical framework for legal teams to assess their current position and identify areas for improvement. Suggested actions include reviewing policies and governance arrangements, incorporating climate clauses into standard documentation, ensuring appropriate reporting systems are in place and building climate awareness across the legal function.
The guidance also highlights the growing risks associated with greenwashing. Regulators are devoting increasing attention to sustainability claims and organisations face potential legal, regulatory and reputational consequences where environmental statements cannot be substantiated.
In-house lawyers are encouraged to work closely with marketing, communications and business development teams to ensure that public statements, reporting and promotional materials are accurate, evidence-based and appropriately evidenced. Effective internal controls around sustainability claims can help reduce the risk of regulatory scrutiny and stakeholder challenge.
The overarching message is that climate change is becoming a mainstream governance and legal issue rather than a niche environmental concern. In-house lawyers have an important role to play in helping organisations understand, assess and respond to climate-related risks and opportunities.
The guidance provides a useful reminder that climate considerations should be embedded within existing legal and governance frameworks, rather than dealt with in isolation. As regulatory requirements continue to develop and stakeholder expectations increase, organisations that take a proactive and structured approach are likely to be better placed to manage risk and demonstrate resilience in the years ahead.
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