Climate Litigation Marked by Global Expansion and Strategic Filings
A new category of "transition risk" has emerged involving cases filed against corporate directors over management of climate risks.
June 26, 2024 at 01:13 PM
4 minute read
At least 230 new climate-related lawsuits were filed globally in 2023, highlighting a trend toward strategic litigation that holds companies and governments accountable for climate action.
Joana Setzer and Catherine Higham, co-authors of the report Global Trends in Climate Change Litigation, released by the London School of Economics' Grantham Research Institute Wednesday, noted several key features in corporate climate litigation that included:
- A new category of "transition risk," including cases filed against corporate directors and officers over their management of climate risks. (In early 2024, shareholders of Polish energy giant Enea received shareholder approval to sue former management over a coal investment);
- A growth in the number of cases concerning "climate-washing" with 47 new cases filed in 2023, bringing the total to more than 140. More than 70% of completed cases were decided in favor of the claimants; and
- More than 30 "polluter pays" cases working their way through the courts that seek to hold companies accountable for climate-related harm allegedly caused by their contributions to greenhouse gas emissions.
The study's research dataset, primarily drawn from climate litigation databases compiled by the Sabin Center for Climate Change Law at Columbia Law School, contained 2,666 climate litigation cases, with about 70% of those filed since 2015, the year the Paris Agreement was adopted.
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