The theme of this year’s report is ‘New Paths’, which acknowledges disappointments but also the “inspiring capacity of humans to regather their hope, refocus their vision and uncover new paths to achieve sustainability progress”.

The 2023 report focuses on four new spotlight features that collect the observations from fourteen industry leaders to provide insight into the body’s priority issues of Indigenous Reconciliation, climate action, modern slavery, and the UN Sustainable Development Goals.

Indigenous Reconciliation

According to the report, the recent referendum's failure to recognise First Nations People and provide them a Voice to Parliament in the Constitution has intensified the call for law firms to actively re-engage in their reconciliation efforts.

While a constitutionally enshrined voice is out of reach for now, law firms much consider this principle in their own governance practices, general manager – Reconciliation Action Plan (RAP) program Peter Morris said in the report.

“The legal community has an important role to play in ensuring Australians understand the structural barriers that have been embedded within the justice system that perpetuate disadvantage in First Nations communities across Australia. PIAC’s ‘Towards Truth’ project has produced a resource for policymakers and researchers to understand the ongoing impact of Australian law and institutions on the lives of Aboriginal and Torres Strait Islander people,” he said.

“Law firms can contribute to progress in historical acceptance by reflecting on their own past and present engagement with First Nations stakeholders and by ensuring Australians understand the need for structural and systemic justice reform.”

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AusLSA director and head of corporate social responsibility at Gilbert + Tobin Eloise Schnierer added that Australia still has extensive work to do with the First Nations community.

“This year's outcome is a reminder of the long road ahead in Australia’s journey towards meaningful reckoning and reconciliation with First Nations peoples,” she said.

“It's imperative that, as law firms and as an industry, we recommit to developing trust with First Nations communities and building the understanding of our fellow Australians."

Urgent Climate Action Required

The IPCC's alarming reports this year underscore the urgent need for climate action, according to the report.

The report notes that while significant progress has been made, the recent global stocktake on climate action identifies that Australia must better prepare for the impacts already locked in, while at the same time accelerate the systems transformations needed to transition to net zero.

"The climate crisis is accelerating, and our collective response is more critical than ever," Ms Schnierer added.

"Despite law firms purchasing an increasing proportion of renewable energy, and the near doubling of member purchases of carbon offsets over the last five years, this year’s increase in gross greenhouse gas emissions gives us reason to pause and consider higher ambition and greater emphasis on emissions reduction strategies aligned with climate science."

There are a number of drivers for climate action within a law firm environment, according to Norton Rose Fulbright head of social impact and sustainability Bronwyn Winley, including client expectations, attracting and retaining young talent and government targets – and said that while there are challenges that come with new regulation, it is more pressing than ever.

“As climate action targets move from a nice-to-do to a clear stakeholder expectation, the need for clear and defined reporting regulations has become more pressing. At the time of writing the Australian Government was in the process of consulting on mandatory climate disclosure reporting in 2024. This would be a standardised. internationally aligned framework for disclosing climate related financial risks and opportunities and drive a consistency in reporting in Australia,” she said in the report.

“For law firms as well as many other organisations who have good intent to take action on climate change but limited capacity to deal with the alphabet soup of current reporting options, this regulation would be welcome progress. It will enable them to focus targeted resources on material matters, create a clear narrative internally and externally on their actions and clearly align their actions with those of their key stakeholders - their people, clients and communities.”

Modern Slavery

Law firms are enhancing their efforts to understand and mitigate the risks of modern slavery in their supply chains. According to the report, it is currently estimated that around 50 million people worldwide are living in modern slavery, of which 22 million are trapped in forced marriage while 28 million live in some form of forced labour.

Brendan Bateman AusLSA co-chair and partner at Clayton Utz said that "the AusLSA Modern Slavery Co-Lab initiative is our members commitment to help each other gather the information and take meaningful action to identifying, remediate and mitigate modern slavery practices.

"Collaborative efforts amplify impact, drive systemic change, and contribute significantly to eradicating modern slavery in Australia and beyond,” he said.

In terms of what firms can practically be doing in this space, Clayton Utz national risk manager Mylinh Letran said that collaboration was important – as well as education.

“It is essential that our people understand the concept of modern slavery. Employee training and awareness on recognising and responding to modem slavery are imperative to tackle this issue. At a minimum, law firms should implement mandatory training programs for employees involved in the firm’s supply chains and operations.

“These programs should cover recognising indicators of forced labour, human trafficking, debt bondage, or child labour in the supply chain. Training should be accessible to all employees, clients, and suppliers, with content regularly updated to reflect evolving risks and regulations. It should be delivered through various mediums for broader participation. Regular evaluations ensure the training remains effective,” she said.

“Firms can also raise awareness by supporting organisations aiding survivors of slavery. Clayton Utz recently hosted a national event in partnership with the Sisters of Charity Foundation, who have a Modem Slavery Transitional Housing Program in partnership with the Salvation Army Safe House.”

The Sustainable Development Goals

Further, the report notes that worsening of global conditions has set back progress of the seventeen Sustainable Development Goals (SDGs) and their 2030 targets with contributions by the private sector being both positive and negative.

Established in 2015, with a target year of 2030, the United Nations SDGs are a set of 17 global objectives developed in response to pressing global challenges facing humanity, including issues such as poverty, climate change, inequality, environmental degradation and health and wellbeing. The goals were formulated through a collaborative process and are designed to engage and encourage multiple stakeholder groups, including government, civil society and business to work together towards a more sustainable and equitable future.

AusLSA director and pro bono, community and environment at Lander & Rogers partner Joanna Renkin added that “the SDGs provide a valuable framework for law firms to assess our impact across environmental, social, and governance goals (ESG) and to transparently account for and communicate our sustainability efforts in alignment with global objectives.”

“Those in the legal sector advancing the SDG's are also seizing the opportunity to foster strategic business partnerships, build collaborative efforts and effectively contribute to national and international sustainability agendas,” she said.