Environmental pollution and climate change claims

Climate change is recognised globally as the major issue of our time. Businesses and professional advisors in many sectors will see their conduct and liability risk increase as a result.

The trend of climate change litigation continues to grow at pace. As companies establish their own carbon-neutral or carbon-negative pledges and governments implement net-zero carbon targets we expect to see further disputes. Further, as the importance of biodiversity loss to the achievement of 'net zero' gains prominence, we expect these disputes to broaden to include wider sustainability issues. Climate change-related litigation is varied and includes:

• The risk to companies of claims alleging their contribution toward the effects of climate change / environmental pollution (see also OECD complaints).
• Commercial disputes arising out of climate change events (eg, insurance claims and claims related to potential force majeure events).
• The increased focus on infrastructure projects and alignment with the Paris Agreement.
• Strategic cases brought against private corporations to curb carbon-emitting behaviour (often as tort or nuisance claims).
• Claims brought against states to increase climate change mitigation measures.

See also Mis-selling / Greenwashing claims, Fiduciary duties and Stakeholder actions regarding claims relating to the need for institutions or businesses to take account of climate change risk in making investments, or to disclose the climate risk arising in respect of existing investments.