#194 Clyde & Co’s Carbon Verification Journey

Oct 15, 2024

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Sustainability is an area that affects all businesses, no matter the sector. We are all currently contributing to the climate crisis, from travel and hospitality to manufacturing to those working in an office or from home.

You may be surprised to hear that the legal sector is currently one of the leaders in championing sustainability, not just in enforcing new environmental legislation, but also leading by example in the race to net zero.

One such stand out leader is today’s guest – Clyde & Co, a global law firm that have made great strides in their sustainability journey.

In this episode, Mel is joined by Paddy Linighan, Chief Sustainability Officer at Clyde & Co, to discuss their ambitious net zero targets, sustainability initiatives and their journey towards ISO 14064 Carbon Verification.

You’ll learn

What is Paddy Linighan’s role as CSO?
Who are Clyde & Co?
What are their net zero targets according to their responsible Business report?
What sustainability initiatives have Clyde & Co introduced?
Why get ISO 14064 verified?
What were the challenges with obtaining ISO 14064 verification?
What are the benefits of obtaining ISO 14064 Verification?

Resources

In this episode, we talk about:

[00:25] Episode Summary – We welcome today’s guest, Paddy Linighan, Chief Sustainability Officer at Clyde & Co, to dive into their responsible business report, discuss their net zero ambitions and journey towards ISO 14064 Carbon Verification.

[01:40] Introduction to Paddy: Paddy has 30 years experience in the legal sector, and was formerly the Chief Operating Officer for Clyde & Co before transitioning to the role of Chief Sustainability Officer. Paddy is also a Director at the Legal Sustainability Alliance, which is an association committed to supporting the legal sector to measure and manage their carbon emissions to achieve net zero.

One lesser-known fact is that Paddy was a Latin and ballroom dancer!

[02:30] Who are Clyde & Co? – They are a global law firm with 500 partners, 2700 lawyers and 3216 legal professionals across the world and operating out of 70 offices. They set out to help organisations successfully navigate risk and maximise the opportunity in the sectors that underpin global trade, namely insurance, aviation, marine construction, energy, trade and natural resources.

They offer a comprehensive range of contentious and non-contentious legal services and commercially minded legal advice to businesses operating across the world in seamless fashion.

Clyde & Co are committed to operating in a responsible way by progressing a diverse and inclusive workforce that reflects the communities and the clients it serves, and provides an environment in which hopefully everyone can realise their potential. They use their legal and professional skills to support communities through pro bono work, volunteering charitable partnerships, and minimisation of environmental impact through the pursuit of sustainability standards.

[04:25] What are some of the Net Zero targets highlighted in Clyde & Co’s responsible business report?

Near term target: Reduce their scope 1 and scope 2 emissions by 80% by 2030 and scope 3 emissions by 50% by 2030.
Long term target: Have a 90% reduction in emissions by 2038
Focused on decarbonizing their operations across the globe.

[06:25] What are some of the sustainability initiatives that Clyde & Co have started? All their initiatives can be broadly groups into 3 categories, but ultimately they seek to decarbonize their operations, address resource consumption and offset emissions where possible.

They found that 95% of their emissions reside in their scope 3, which is due to their supply chain. A few of their initiatives include rationalizing their supply chain to reduce the impact of purchasing goods and services.

They are also supporting their supply chain to measure and reduce their own emissions. Clyde & Co have also incorporated their sustainability requirements into their Procurement Process and Due Diligence Process.

One challenging area for a professional services business like Clydo & Co is sustainable business travel. They have adopted a global note on sustainable travel, which trickles down into regional travel policies. Working with travel management companies, they will implement those new policies, in addition to improving the quality of travel data collection and prioritisation of sustainability over cost.

Clyde & Co are also making the move to switch direct and in-direct consumption of fossil fuels to renewable energy in the heating and cooling of their buildings.

As of summer 2023, all UK offices were on 100% renewable energy! They aim to roll this out on a global scale, but understand that there are significant challenges with doing so.

[09:30] How did Clyde & Co celebrate Earth Day? They introduced climate change awareness training on Earth Day. It wasn’t mandatory in any way, and included the rolling out of several blogs and videos which were produced by AXA Climate School in Paris.

They ran these through Earth Day (April 22nd) to World Environment Day (5th June). Covering topics such as:

Financial disclosures
Plastic pollution
Saving water
Beekeeping
Composting

This led to a campaign called ‘Zero as One’ which helped to create of a network of sustainable champions across their organisation, who help to further raise awareness and where there may be regional issues with reducing resource consumption and energy use.

This campaign has continued and is beginning to facilitate a structured, bespoke training programme for all Clyde & Co staff which covers climate awareness to climate competency. It will encourage people to think ‘How can I, as an individual, make a difference?’

[15:30] The Clyde & Co Community Forest – A 6.2 hectare plot of land is shared with 2 other community groups, and is not only being used for reforestation but also biodiversity, focusing on red squirrels in particular.

Getting this project set up included:

Gauging the appetite of colleagues: They offered increased level of refforestation for every response they had to their annual ‘Have your Say’ survey. For every response received, they would add 2 square metres of forest. So, 5000 people would give them a hectare.
It was a knowledge gathering exercise and experience of what a carbon offset project would look like.

They know that they’ll never be able to 100% decarbonise their operations, but they hope to get it down to 10% remaining emissions which can be offset with more projects like the community forest.

[19:35] What does Paddy think of the sustainability reporting regulatory requirements affecting the legal sector? Not only do lawyers have a key part to play in supporting and advising clients in relation to how they navigate towards a low carbon economy, but they are also a part of many businesses supply chain – meaning they would be included in scope 3 emissions for others.

Putting in the work at their end enables them to proactively help and assist clients with their emissions reduction and reporting.

The drive in this sector is mostly due to client demand.

[21:10] The increase in sustainability targets in North American companies: Paddy highlights that a recent report issued by Climate Impact Partners found that 79% of North American companies now have climate targets, which is up 6% on Asian companies and just shy of European companies.

61% of those North American companies report under ISO 14064.

[23:00] What were the drivers behind Clyde & Co getting ISO 14064 verified?:

High Transparency: They wanted to ensure that any disclosed information was reliable and that they’d had third-party verification to back that up, making them much more comfortable putting that information out into the public.

Financial Benefits: Sustainability and greenhouse gas emission reduction was a part of their main KPI’s to tackle, the main reason being to save money through not only the reduction in energy use but also reduced interest rates as a result of their sustainability efforts.

[25:20] What were the main challenges in obtaining ISO 14064 verification?: Clyde & Co are a large organisation, so gathering and quantifying the necessary emissions information was like getting blood from a stone!

Nearly 65 – 70 sites only have a small team of 5 people, and getting data from each can be time consuming.

Also, the quality of data can vary a great degree with that many sites, especially on a global scale as you need to consider the conversion factors when collating all the data into something verifiable.

[26:50] What impact has ISO 14064 verification had on Clyde & Co’s sustainability credentials?: Very simply, it validates Clyde & Co’s claims.

With the third-party assessment, it shows that they are actually doing what they say they’re doing, and not simply paying lip service.

[27:45] What were the main benefits of getting ISO 14064 verified?:

Helping to secure financial benefits: ISO 14064 verification is proof enough for banks to issue discounts on interest rates

Ease of process: The audit process introduced for ISO 14064 can be repeated as needed. As a result of getting verified, Clyde & Co found the exercise a good stress test for existing auditing procedures, and found a way to simplify them further.

Credibility: Third-party verification adds a level of credibility which is lacking from internal calculation alone.

[29:00] Paddy’s top tip for anyone considering ISO 14064 verification: Do not let perfection get in the way of progress.

They found that people can become a bit defensive in audits, trying to avoid errors being picked up, however, audits are meant to be constructive. They are opportunities to pick up on areas for improvement.

[30:40] Paddy’s book recommendation: The Ministry for the Future by Kim Stanley Robinson

[32:10] Paddy’s favourite quote: The greatest threat to our planet, is the belief that someone else will save it – Robert Swan OBE

If you would like to learn more about Clyde & Co, and their sustainability initiatives, visit their website.

To find out more about verification visit www.carbonologyhub.com

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