In our latest 60-second interview, GSK’s Assistant General Counsel Corporate, Anthony Kenny, talks to The Lawyer about why taking climate action is so important, how in-house counsel are ideally positioned to influence and what the new initiative ‘Lawyers for Net Zero’ is doing to help.
Why do you personally feel it is important to get involved in driving Net Zero?
I think the scientific evidence is increasingly clear. We all need to take much more drastic action, more urgently to tackle climate change. Furthermore, it’s an important feature of broader ESG (environmental, social and governance) compliance risks, which corporates are increasingly being held to account for. To advise my business appropriately I have to understand these issues.
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How have you been involved?
I’m pleased that GSK has set out its plans to achieve Net Zero and be Nature Positive by 2030. I’ve been able to help GSK become a sponsor of the COP26 climate conference later this year. And I’ve also been lucky enough to be involved in a project to create a wind and solar farm that will mean one of our large manufacturing plants is self-sufficient and indeed in a position to contribute to the national grid.
How do you see this agenda developing?
I’m seeing an increasing shift from talking about the importance of ESG, Net Zero and climate change to now talking about the metrics and the evidence to track actual achievements. There’s lots of discussion of how to do this, with many different models and organisations offering ways to demonstrate evidence. We could wait for a more universal standard, which is needed, but really, we all just need to get on with it. The key is to choose a process which is good enough and get going.
Why do in-house counsel have an important role in delivering climate action?
Three reasons come to mind; firstly I think corporates are expected to report on their achievements. Some will be formally required to report, but even those that are not, the expectations of investors, customers and employees, particularly of the younger generations, is requiring increasing transparency. Lawyers therefore can help interpret the reporting requirements and shape the content of the external communications. This is critical as it will help avoid inaccurate reporting and accusations of greenwashing.
Secondly, ESG and climate change are often put in the top three threats to business value. As in-house lawyers have an important role to manage business risks, they should be advising the board on short and long term risks. Finally, we have quite a unique view, as, of all the functions, we are lucky to look across the whole business. Therefore we are in a good position to use that knowledge to help influence thoughts on Net Zero.
What do you see as ‘legitimate’ Net Zero?
Looking forward, there’s going to be much more understanding of the disruptive change that is required. We all need to significantly reduce emissions. For example we need to reduce carbon footprints of our travel, from how we personally engage with conferences; Covid has taught us we don’t always need to fly, to the rapid transition of the company fleet to being electric or hydrogen powered vehicles.
How do you think organisations can avoid accusations of ‘greenwash’?
I think understanding the real challenge of the necessarily radical reduction of emissions and making all of the hard choices required. This will affect virtually all businesses, and for some, like oil and gas, it requires an acceptance that the very foundation of their business is going to have to change. Also, there’s increasingly going to be an understanding that carbon offset programs, which whilst they’re better than nothing, are not solving the problem. The real challenge is the dramatic change required to our businesses and lives going forward.
How is ‘Lawyers for Net Zero’ helping in-house counsel?
I joined the pilot of their ‘Net Zero Action Principles’ in April, and there are a number of ways that it’s already helping. One immediate benefit is that it’s creating a community of like-minded people coming together to share information and experiences, because we’re all on different points on the journey. The more we help each other, the more powerful it will be. Going forward, we are already creating a central knowledge hub and ‘source of truth’, to help others understand the challenges on how to influence the business and implement Net Zero legitimately.
I’m looking forward to helping GSK, and through Lawyers for Net Zero helping others achieve Net Zero and help deliver a sustainable future for all.
WEBINAR: Anthony Kenny is appearing, along with five other Net Zero Action Principles pilot participants, on a London Climate Action Week webinar on June 29th, as part of Lawyers for Net Zero launch month. For more info: http://bit.ly/esela29Jun