Danish pension fund AkademikerPension has announced that any law firms wanting to be considered for future property-related cases must submit environmental, social and governance (ESG) data on working conditions.

AkademikerPension's data requirements are based on the construction and real estate industry's common reporting tool, Real ESG's The Real Estate Reporting Framework, which several law firms have already adopted.

"As a responsible pension fund, we want to collaborate with skilled, ambitious and progressive law firms," AkademikerPension property manager, Søren Møller-Larsson, said.

"Therefore, we initially ask for data on, among other things, gender diversity, employee turnover and maternity leave conditions. We will then enter into a dialogue with our value chain on how we can best contribute to the development of the industry."

The news was welcomed by the Real ESG association, which is responsible for the framework and reporting tool, with Real ESG chairman of the board, Ali Simiab, suggesting that ESG data could become a "license to operate" for law firms that want to advise the leading players in the construction and real estate industry.

"Fortunately, it is my clear impression that the legal industry is ready to present concrete, transparent and comparable data. Because if you want to advise on ESG, you naturally also report yourself," Simiab said.

Djøf Advokat, which represents more than 2,900 employed lawyers and paralegals, also supported AkademikerPension's announcement, with chairman, Rasmus Thingholm, stating that the firm is "very excited" that the framework has been well received by a number of large and medium-sized law firms, who are now using the tool.

"However, we would like to see even more law firms use the tool, so I am pleased to see that such a significant player as AkademikerPension is now taking the lead and demanding the disclosure of ESG data. This is just the beginning," Thingholm said.

This also builds on the recent news that AkademikerPension had terminated its asset management contract with State Street Global Advisors (SSGA), due to responsible investment concerns.

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