There’s Been a Surge in Climate Lawsuits Against Corporations!

The number of climate-related lawsuits against companies is rapidly increasing, with many resulting in successful outcomes. According to a recent report by the Grantham Research Institute on Climate change and the Environment, around 230 climate-aligned lawsuits have been filed against corporations and trade associations since 2015, with two-thirds initiated since 2020.

A significant area of growth in litigation is “climate-washing,” where companies are accused of misrepresenting their progress toward environmental goals. In 2023 alone, 47 climate-washing cases were filed, reflecting the increasing scrutiny of corporate climate communications. Of the 140 climate-washing cases reviewed between 2016 and 2023, 54 out of 77 concluded cases favored the claimants.

In addition to climate-washing, over 30 cases in 2023 focused on the “polluter pays” principle, holding companies accountable for damages caused by high greenhouse gas emissions. There were also six notable “turning off the taps” cases, challenging financial flows to projects that undermine climate objectives.

The United States led in climate litigation in 2023 with 129 cases, followed by the UK with 24, and Brazil with 10. Notably, Panama and Portugal recorded their first climate lawsuits in 2023, bringing the total number of countries with climate litigation cases to 55. The global south accounts for about 8% of these cases. While most climate litigation is still directed at governments, an increasing proportion targets companies, particularly outside the US. In the US, only 15% of cases involve companies, compared to 40% in other regions.

The report highlighted that while some cases have already impacted domestic climate governance, the long-term effects of others, like climate-washing cases, remain uncertain. The UN Environment Programme and the Sabin Center for Climate change Law underscored the critical role of litigation in advancing global climate action.

Significant cases in 2023 included the Montana ruling, where a judge sided with young residents claiming state officials infringed on their right to a clean environment by supporting fossil fuels. In the UK, the Supreme Court ruled that the emissions impact of burning fossil fuels must be considered in new extraction project applications.

Although lawsuits against companies are still emerging, they are starting to influence corporate behavior. Notable targets include Shell, KLM, and Santos.

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