Highlights

• Singapore’s ESG legal services market is projected to grow 10% annually as well as to reach $500 million by 2033.
• Companies involved in carbon projects and international trade are spurring demand for sustainability legal advice.
• Law firms are bedevilled by problems, including gaps in technical ESG expertise, global competition, and cost pressures from clients.

Singapore law firms are seeing a sharp rise in demand for ESG advisory services as companies face stricter sustainability regulations domestically and abroad.

Businesses, especially those dealing in carbon projects and international trade, are increasingly turning to legal experts to help them stay compliant with evolving requirements.

According to Dentons Rodyk & Davidson LLP, many clients now seek guidance on issues such as carbon tax, emission reduction projects, and cross-border compliance. The firm noted that commercial sectors heavily involved in sustainability-linked activities are the most active in seeking legal support.

Read More: The Growing Need for ESG Companies, Sustainability, and Climate Solutions

A study by PwC Singapore projects that the market for sustainability legal services could expand by 10% annually, reaching up to $500 million by 2033.

This growth is being driven by policies such as the Singapore Green Plan 2030, the nation’s 2050 net-zero target, the Carbon Tax Act, and the Paris Agreement’s Article 6 on global carbon markets. These measures have created a wave of new compliance requirements that require specialised legal knowledge.

However, despite this promising outlook, the study highlights several challenges for law firms. There remain gaps in technical ESG expertise, as many lawyers lack formal training in sustainability-related areas.

Besides, law firms face strong competition from international players and must contend with client pressure to keep fees low, even as the complexity of ESG work increases.

To adapt, Dentons Rodyk has expanded its sustainability practice, pooling expertise from its corporate, finance, project, and dispute resolution teams, while also leveraging its global network.

Its work ranges from drafting contracts with carbon tax clauses to advising on green financing instruments and representing clients in litigation linked to sustainability disputes.

Also Read: ESG Consultants: Who They Are and Why They Matter

PwC’s report notes that the scope of sustainability-related legal services is wide, covering financing, infrastructure, technology, carbon markets, compliance reporting, and disputes. This includes structuring carbon offset projects, ensuring accurate sustainability disclosures, managing green bonds and loans, and addressing legal challenges such as greenwashing allegations or shareholder activism.

Looking ahead, PwC suggests that Singapore law firms investing in specialist ESG expertise and forming closer ties with professional service providers will be well-positioned to capture a larger share of this fast-growing sector.

By broadening their capabilities and building strong track records, firms can transcend traditional legal roles and play an important part in guiding businesses through the global sustainability transition.

Ends/

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Source: Singapore Business Review