Climate lawsuits against governments and corporations are increasing globally, but the rate of growth may be slowing down, according to a recent report. The annual study from the Grantham Research Institute on Climate Change and the Environment at the London School of Economics revealed that in 2023, there were at least 230 new climate cases filed. However, researchers noted that the expansion of such lawsuits was not as rapid as in previous years.
Setzer and Higham, the authors of the report, suggested that this trend could indicate a consolidation and focus of strategic litigation efforts in areas where they are expected to have a significant impact. Despite this, climate litigation has extended to new countries, with cases filed for the first time in Panama and Portugal in 2023.
The report highlighted the rise of “climate-washing” cases, where companies and governments are challenged over misinformation or misleading climate claims. These lawsuits have seen a success rate of over 70 percent in favor of the challengers. Additionally, the targets of climate litigation have expanded beyond the fossil fuel sector to include airlines, financial services firms, and food and beverage companies.
There is also a potential increase in litigation challenging governments’ net-zero targets, as well as a new category of cases focused on “transition risk” – lawsuits against corporate directors and officers for managing climate risks. Shareholders at the Polish utility Enea approved a decision to bring such a case against former directors for planned investments in a new coal-fired power plant.
While the majority of climate lawsuits are aimed at addressing climate change, the report noted that some cases are intentionally obstructing climate action. For example, a consumer protection lawsuit from Tennessee Attorney General Jonathan Skrmetti against investment giant BlackRock alleged false or misleading statements about environmental, social, and governance factors in the firm’s investment strategies.
In the United States, there were 1,745 climate lawsuits in total, with the United Kingdom, Brazil, and Germany following closely behind. The report identified cases in Hungary and Namibia for the first time, bringing the total number of countries with climate cases to 55.
Overall, climate litigation continues to be a powerful tool in holding governments and companies accountable for their contributions to climate change. As these cases evolve and expand to new areas, they have the potential to drive significant changes in climate governance and policy worldwide.
