Are ESG and DEI Still Major Concerns For Law Firms?

What do Blackrock, Citi, McDonalds, Target, Walmart, Meta, Microsoft, and Amazon all have in common apart from being enormous multinational businesses? The answer is that for some time now, they have all been cutting back on their commitment to ESG and or DEI. As a result, in 2025, one may be forgiven for wondering why the momentum seems to be slowing towards important goals such as net zero and workplace inclusion and equality. Taking this backdrop into account, what does all of this mean for law firms around the world? Are DEI and ESG still a major concern for them?

Are we really seeing a shift away from ESG / DEI?

In the first 100 days of President Trump’s presidency in, he has made his feelings towards Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI). For example, on 18^th March 2025, the Whitehouse announced, “President Donald J. Trump signed a memorandum removing radical “Diversity, Equity, and Inclusion” (DEI) from the Foreign Service”. And on Earth Day, the Whitehouse accused previous administrations of wasting “billions of taxpayer dollars on virtue signalling and ineffective grifts” with regard to their environmental policies.

Many corporations have followed suit, but not all of them are American. Indeed, it wasn’t long after Mr Trump assumed office that BP announced its intention to slash investment in clean, renewable energy and once again focus on extracting fossil fuels. It is not clear why and when this retreat occurred, but it may have something to do with the supposed ‘culture war’, which has slowly grown in strength against ‘woke’ corporates such as Disney and Anheuser-Busch. Some consumers have even turned against corporations that have taken a stance on matters such as gender identity, potentially causing those businesses to make an about-turn.

In the Supreme Court’s judgment in Women Scotland Ltd (Appellant) v The Scottish Ministers (Respondent) on 16^th April 2025, it was ruled that a ‘woman’ in the context of the Equality Act 2010 is based on biological sex, not what is contained on a person’s Gender Recognition Certificate (GRC). This decision, while it was not the intention of the court, is seen by some as further evidence that the tide is turning against the trans movement and potentially DEI.

What does all of this mean for law firms?

Law firms in the US are under pressure from the Equal Employment Opportunity Commission (EEOC), which is taking a new stance on DEI since Trump’s inauguration. In particular, the EEOC is targeting DEI programmes, which it views as unlawful. New guidance from the EEOC refers to unlawful DEI programmes as those that lead to discrimination by “limiting, segregating and classifying” workers or engaging in harassment or retaliation based on sex or race. As a result, law firms across the US are entering into settlement agreements in which they agree to curb their DEI programmes. So, is the same thing happening in the UK? The short answer, at the moment, is no. Law firms in the UK have invested heavily in ESG and DEI in recent years. The question now is whether they will play the long game and continue to do so or will they follow the example of some of the largest law firms in the world.

The Law Gazette recently contacted the top 25 law firms to get a feel for whether they will continue to ‘hold the line’ on DEI. All of the fourteen respondents confirmed their commitment to their DEI policies, with some stating that they were actively increasing their efforts. While fairly anecdotal, this survey suggests that despite changes within United States law firms, those in the UK are still continuing to push for diversity, equality and inclusion. A note of caution should be added here; however, not all of the law firms asked for responses, and some emphasised that they regularly review their policies. With that noted, there is no suggestion that, at present, UK law firms are following suit with their US peers.

Final words

While the decision of the Supreme Court and scepticism around net zero in the UK may be hardening the views of some against ESG and DEI, there is nothing to suggest that legal consumers would ever wish law firms here to roll-back back their efforts in these areas. When it comes to the environment, for example, while many people may be confused about the realities of climate science, given the wave of misinformation we all face, there is no doubt that everyone wants clean drinking water, rivers, and beaches. Likewise, many people have strong opinions on the Supreme Court’s decision but would never wish to personally be discriminated against. Simply by asking subtly different questions, we can elicit different answers. This is why it is best for law firms in the UK not jump to any conclusions about the value of their DEI and ESG programmes, regardless of the country’s political trajectory.

Albion Legal provides a range of added-value products and services, from bespoke employment disputes insurance cover to white-labelled HR software. To discuss any points in the above article or to find out how we can help your business, please phone 0113 2471 717 or email our team.