SINGAPORE - Rajah & Tann, Allen & Gledhill and WongPartnership formed the troika of leading firms in the field of environmental, social and governance (ESG) law, which was added to this year’s Best Law Firms survey.
The addition recognises the work of law firms in helping clients with rising ESG compliance requirements here and abroad. ESG is a framework to measure an organisation’s business practices and performance with regard to sustainability issues.
Its importance led Rajah & Tann to launch a sustainability practice group in January 2021 to help streamline resources and knowledge sharing across the firm’s practice groups advising clients on their ESG concerns.
“This collaborative approach is part of Rajah & Tann’s DNA and puts us in a good place to provide a high standard of service to clients,” said the firm’s managing partner, Mr Patrick Ang, at the time of the launch. He noted that sustainability had become an important area of focus for many businesses amid a growing web of ESG regulations and considerations.
To get up to speed and also be able to walk the talk, the firm hired an external consultant to work with it on its own sustainability and decarbonisation efforts. It also signed up with LowCarbonSG, a capability-building programme, supported by the National Environment Agency and Enterprise Singapore, to learn how to transition and track its progress to being net zero.
It has also published various thought leadership pieces to drive the conversation on ESG, on topics such as managing greenwashing risks and sustainable finance in South-east Asia.
Allen & Gledhill has also been active in the ESG arena. For instance, it was involved in project financing for green energy and green buildings. It also gave advice on the set-up of carbon markets for carbon management, and advised clients on sustainability-related matters such as complying with regulations in Singapore and across South-east Asia.
By signing up, I accept SPH Media's Terms & Conditions and Privacy Policy as amended from time to time.
“ESG in today’s business environment has become a yardstick in how governments, consumers, investors and other stakeholders determine a company’s value creation in the long term,” said Ms Elsa Chen, partner and co-head of Allen & Gledhill’s ESG & public policy practice.
“This arises as they recognise the severe impact that climate change, degradation of biodiversity, social and other issues can cause to the stability of economic and financial systems, and the critical role that companies play in combating environmental and social issues.”
She noted that Asia has been identified as a key battleground in the war against climate change, given that the region emits about half of global greenhouse gas emissions, and accounts for around 60 per cent of the world’s population.
According to some studies, the market size for green businesses in Asia is expected to reach US$4 trillion (S$5.3 trillion) to US$5 trillion across various sectors including transport, power generation, and carbon management by 2030.
Given Singapore’s role as a leading financial centre and legal hub in the region, it could take the lead in adopting and implementing regulations to drive sustainable development, and provide leadership on sustainability in areas such as finance, climate disclosures and green claims, Ms Chen said.
Allen & Gledhill advised on approximately $10 billion of green or sustainability-linked financial instruments in 2023, and about $39 billion of such instruments from 2020 to 2023.
“We expect this figure to continue growing in the future and see a great amount of potential for Singapore to continue developing itself as a green finance hub, as well as a sustainability hub for the region,” said Ms Chen, adding that the firm is committed to its own ESG journey.
WongPartnership chairman and managing partner Ng Wai King said navigating the complexities of ESG regulations and standards can be daunting for many organisations.
“We have a multidisciplinary team that advises clients on a wide variety of ESG-related matters,” he said. These range from investments in renewable energy projects, sustainable infrastructure and carbon credits, to directors’ duties in considering ESG issues and greenwashing risks.
The firm also advised on a proposed joint venture connected to Climate Impact X, a Singapore-based global carbon credit marketplace and exchange jointly established by DBS Bank, the Singapore Exchange, Standard Chartered and Temasek in 2021.
Mr Ng added: “We are incredibly excited to be recognised as one of the top law firms for our expertise in ESG. This recognition reflects our commitment to excellence and our ongoing efforts to adapt to the changing needs of our clients. As the ESG landscape continues to evolve, we remain dedicated to staying ahead of the curve and continually enhancing our knowledge and skills to provide our clients with the best possible support.”