More Climate Lawsuits Than Ever Are Trying to Hold Companies and Countries to Account

Aerial view of people walking through a flooded street at the Navegantes neighborhood in Porto Alegre, Rio da Grande do State, Brazil on May 4, 2024. More climate lawsuits have been filed in Brazil than in most other nations, according to a new report.Climate lawsuits against governments and corporations are still on the rise across the globe, but their growth may be slowing, according to new research.

Nearly 50 new “climate-washing” cases were filed last year, making it one of the most rapidly expanding areas of litigation. The Grantham Institute has defined climate-washing lawsuits as cases that challenge companies and governments over misinformation or misleading climate claims. There is also potential for an increase in litigation that challenges governments’ net-zero targets, Setzer and Higham found.

The report also introduces a new category of “transition risk” — cases filed against corporate directors and officers for managing climate risks. The report notes that shareholders at the Polish utility Eneaagainst former directors for planned investments in a new coal-fired power plant. The Grantham report said that the ESG backlash in U.S. climate litigation is"out of step in trends elsewhere in the world."

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