Economic Needs Undermine the Viability of an Environmental Revolution?

What has just happened? 

Amidst the uncertainties of the pandemic, Covid-19 has been the catalyst for an unprecedented transformation in our relationship with the planet. With the cacophony of human life falling abruptly silent, many have begun to experience a closer connection to the natural world. As a result, potentially one of the most unexpected consequences of Covid-19 has been the revelation of a symbiotic relationship between human prosperity and the environment. Inextricable links have been identified between the natural world with all areas of human experience. Beyond environmentalism, sustainability has become imperative for national recovery in its entirety.  

What does this mean? 

Sustainability has been predominantly communicated by policymakers as inherently environmental in nature. Through the consistent emphasis on issues of climate change, resource deficiencies and biodiversity, the onus has been shifted away from socio-economic spheres. Yet recent developments in the ESG screening criteria have revealed the pertinent social dimensions and implications of sustainability. Drawing upon this, sustainability experts[1] have opened a dialogue surrounding the possibility for the Covid-19 recovery to be aligned with planetary needs.[2] 

Principally, the loss of natural habitats has been found to coincide with incidence of viruses.[3] Posing an essential economic dimension, businesses associated with deforestation and the subsequent decline of wildlife populations are likely to bear a financial burden, as the onus is placed upon these industries for the transmission of viruses from animals to humans.[4] Likewise, experts have identified concerning reciprocity between poor environmental quality and pollution, and prospects of coronavirus recovery.[5] Illuminated in a recent Harvard University Study, “long-term exposure to air pollution increases vulnerability to experiencing the most severe COVID-19 outcomes”.[6] Presenting a considerable social dynamic, sources of pollution are oftentimes located near low-income and minority communities,[7] rendering these groups at greater risk of illness. With the UK shifting from ‘crisis’ to ‘recovery mode’,[8] researchers stress the importance of air pollution regulations to protect human welfare, in particular, that of those with socio-economic vulnerability, both during and after the pandemic.  

Likewise, the negative correlation discovered between economic activity, air and water quality,[9] poses questions surrounding the appropriate mode for economic restoration. Certainly, action must be taken to repair economic damage resulting from months of stagnation. Yet the University of Oxford’s ‘Smith Institute’[10] has reported that a sustainable recovery would actually assist in rebuilding the economy. Identifying a strong alignment between the two supposed ‘competing’ objectives, the research provides that green projects stimulate greater jobs; deliver “higher short-term returns per dollar spent;”[11] and result in significant long- term savings.   

How does it impact the legal sector? 

Patently, the impacts of sustainable recovery upon the legal sector will manifest themselves largely within environmental practices. Nonetheless, it is apparent these impacts will reverberate, at times surreptitiously, far beyond this sphere. International investment lawyers in particular will feel the effects of the ESG initiative, an investment term synonymous to ‘sustainable investing’, which places social responsibility at the heart of decision-making processes. Likewise, conveyancing and property lawyers will be undoubtedly impacted by the infrastructural demands of a sustainable recovery, necessitating regulatory compliance. Further still, these same practices may be impacted divergently by initiatives to ‘make cities green’, requiring the implementation of planning that supports green spaces and the increased self-sufficiency of cities. 

Firms specialising in energy deals and regulation are also amongst the practices likely to see their professional terrain evolve, with a shift in business from coal, gas and oil, toward renewable energy outlets.[12] In turn, it is to be expected that changes such as these will impact the energy industry and their respective stock markets.[13] 

Ultimately, the Coronavirus pandemic has forced the UK government, and subsequently, industries and businesses, to reimagine and, in turn, redefine how they best serve their stakeholders. This challenge has not escaped the legal sector, which must in turn rethink its position in a new, post-Covid climate: with sustainable recovery at its core. As encapsulated by Van Heel, it is within this redefinition that lies the opportunity to transform the socio-economic playing-field: aligning economic imperative with urgent planetary needs.[14]

Written by Holly Crowder

Assessing Firms

#JonesDay #FreshfieldsBruckhausDeringer #IrwinMitchell #Allen&Overy #CliffordChance #Linklaters #PinsentMasons #Ashurst #Macfarlanes #White&Case #DLAPiper 

References:

[1] Solitaire Townsend, ’46 Sustainability Leaders (Who Are Also Women) Forbes (July 18th, 2018) <https://www.forbes.com/sites/solitairetownsend/2018/07/18/46-sustainability-leaders-who-are-also-women/#2127a4111104> Accessed 31st July 2020.

[2] Oliver Dudok van Heel ‘Business as Usual’ – Can COVID-19 recovery be aligned with planetary needs?’ Freshfields Bruckhaus Deringer (15th April 2020) <https://sustainability.freshfields.com/post/102g4u8/business-as-unusual-can-covid-19-recovery-be-aligned-with-planetary-needs> Accessed 1st August 2020. 

[3] Christine Johnson, Peta Hitchens, Pranav Pandit, Julie Rushmore, Tierra Smiley Evans, Christin Young, Megan Doyle, ‘Global Shifts in Mammalian Population Trends Reveal Key Predictors of Virus Spillover Risk’ (April 2020) The Royal Society Publishing <https://royalsocietypublishing.org/doi/10.1098/rspb.2019.2736> Accessed 30th July 2020. 

[4] Ibid

[5] Rachel Nethery, Benjamin Sabath, Francesca Dominici, ‘Exposure to Air Pollution and COVID-19 Morality in the United States’ Harvard University <https://projects.iq.harvard.edu/files/covid-pm/files/pm_and_covid_mortality.pdf> Accessed 31st July 2020. 

[6] Ibid

[7] Rachel Frazin, ‘Experts See Worrying Link Between Coronavirus, Pollution’ The Hill (12th April 2020) <https://thehill.com/policy/energy-environment/492314-experts-see-worrisome-link-between-coronavirus-pollution> Accessed 1st August 2020. 

[8] Oliver Dudok van Heel, ‘Does a Sustainable Recovery Align with the Economic Imperative? A Look at Recovery Packages Around the World’ Freshfields Bruckhaus Deringer (2nd July 2020) < https://sustainability.freshfields.com/post/102gaq8/does-a-sustainable-recovery-align-with-the-economic-imperative-a-look-at-recover> Accessed 31st July 2020. 

[9] Shadia Nasralla ‘Coronavirus could trigger biggest fall in carbon emissions since World War Two’ 3rd April 2020 <https://uk.reuters.com/article/uk-health-coronavirus-emissions/coronavirus-could-trigger-biggest-fall-in-carbon-emissions-since-world-war-two-idUKKBN21L0KC> Accessed 31st July 2020. 

[10] The Smith School of Enterprise and the Environment, University of Oxford <https://www.smithschool.ox.ac.uk/> Accessed 1st August 2020.  

[11] Nasralla (n 9).  

[12] Jones Day, ‘ENERGY’ <https://www.jonesday.com/en/practices/energy?tab=overview> Accessed 1st August 2020. 

[13] Damian Carrington, Jillian Ambrose, Matthew Taylor, ‘Will the Coronavirus Kill the Oil Industry and Help Save the Climate?’ The Guardian (1st April 2020) <https://www.theguardian.com/environment/2020/apr/01/the-fossil-fuel-industry-is-broken-will-a-cleaner-climate-be-the-result> Accessed 2nd August 2020.

[14] Van Heel (n 2).

Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.