Climate Litigation Risks for Businesses
Published on Tuesday, July 16, 2024
Climate-related lawsuits are surging, with environmental groups and investors increasingly holding companies accountable for carbon emissions and unsustainable practices. High-profile cases target energy giants and fast-fashion brands, seeking reparations for environmental damage and failure to meet climate pledges.
The legal trend marks a turning point for corporate accountability. Shareholders demand greater transparency in reporting environmental, social, and governance (ESG) metrics. Companies face rising insurance premiums as underwriters reassess climate risks.
Many firms respond by accelerating sustainability initiatives, such as transitioning to renewable energy and reducing emissions. Legal experts warn that even businesses with indirect environmental impacts are not immune to litigation. This period solidifies climate litigation as a core risk for organizations, emphasizing the importance of proactive environmental stewardship and adherence to global climate goals.
Depending on its business sector and the nature of its activities, your organization may be impacted, directly or indirectly, by this global risk over the coming years.
Whether you are a director, an executive or a manager, you may be wondering if your company is exposed to this global risk or other potential events. And if so, are you and your organization ready to face these challenges?
Should you need advice on the appropriate risk governance and enterprise risk management approach for your organization, please contact us.
Baldwin Global is an independent advisory group offering professional services, education and training in risk governance and enterprise risk management. We help our clients’ boards of directors and management teams attain their objectives by embedding sound risk oversight and management practices into their decision-making process to have a significant positive impact on their business.