In the intricate tapestry of legal innovation, the influence of LegalTech on Environmental, Social, and Governance (ESG) dynamics stands as a testament to the transformative power of technology. Let’s explore the impact of LegalTech across various facets of ESG:
Governance Precision
Analyzing the governance landscape, a substantial improvement in corporate governance standards can be seen with the advent of legal and compliance technologies. This surge is directly attributed to the seamless integration of solutions, not only in e-governance from the regulators but also in ensuring efficient board meetings, regulatory compliance, and a new era of transparent governance practices for the organizations being regulated.
Inclusive Legal Access
Delving into the realm of social impact, a notable increase in accessibility to legal services has been observed recently. LegalTech emerges as a driving force. Dismantling the barriers and extending legal resources to marginalized communities, LegalTech has been fostering a more inclusive legal ecosystem.
Environmental Sustainability
Turning our attention to environmental aspects, usage of LegalTech provides a clear evidence of reduction in paper consumption within legal processes. The professional industry is one of the heaviest paper consumers in the. As per a Sectoral Performance Report on Paper & Pulp by CENTRAL PULP & PAPER RESEARCH INSTITUTE (2018), approx. 36% of the total paper produced in writing grade, i.e., used in offices. Shifting to Paperless Technology helps the professional industry, which heavily uses this supply for submissions, readings, discussions, and record-keeping – to reduce this wastage and move to an online system of working.
Let’s assume on a highly conservative basis, only in district court of India there are approx. 42.4 million pending cases in India and if we are to assume a file for each case has 200 pages – that is a loss of 848,000 trees (21200 tCO2e loss per annum) at a very minimum estimate without counting the contracts, submissions, and duplicate record keeping. LegalTech is helping in a significant counter to this problem with digital legal workflows, underscoring its role in creating a paperless and environmentally sustainable industry.
A Human Touch
The professional industry is deemed to be immensely intensive with little value for work-life balance. The industry is ridden with depression and personal distress due to this high-stress environment and unreasonable working hours. In the domain of human experience, LegalTech transcends traditional boundaries. The adoption of LegalTech is associated with a profound shift in work-life balance. As per report compiled by Statista, which further derived inferences from statistics reported by Bloomberg Law (2022), about 32% Legal professionals leveraging technology experience a reduction in average time to finish tasks. This in turn can be an indicator for the potential of LegalTech in improvement in work-life harmony, fostering an environment where technology not only enhances professional efficiency but also contributes to the well-being of legal practitioners.
Conclusion: Data Paves the Path Forward
As we conclude this brief outlook, it is safe to say the impact of LegalTech on ESG is not just anecdotal; it’s based on harsh realities in which the industry operates in. The data paints a clear picture of LegalTech’s role in transforming governance practices, fostering social inclusivity, promoting environmental sustainability, and contributing to a better work-life balance. Without doubt, the journey forward is illuminated by LegalTech, guiding the legal industry towards a future where technology and humanity walk hand in hand.
