Record heatwaves in the UK and continental Europe refocus attention on the impact of global warming. Rising numbers of climate lawsuits have taken a “polluter pays” principle. But even if companies and governments face greater ESG litigation expenses, payouts for wronged consumers and their commercial backers are less certain.
Roughly one-quarter of all climate litigation cases recorded since 1986 were filed between 2020 and 2022, according to the London School of Economics. While the US makes up the lion’s share, claims are increasing in other jurisdictions, including Australia, the UK, EU and Global South.
Many cases against corporations are brought by activists seeking behavioural change. Shell’s defeat last year in the Dutch courts, where it was ordered to accelerate emissions cuts, was a landmark. Such litigation is costly for companies. The Bank of England warned in May of gaps in insurance coverage.