Trends and Developments in Global Climate Litigation: A Guide for Insurers
Climate-related litigation is entering a new phase of maturity. While the number of new strategic cases declined slightly in 2024, the legal landscape is intensifying, with more sophisticated claims targeting high-impact outcomes. For insurers, this evolution presents growing exposure – both as liability underwriters and as corporate actors subject to scrutiny.
Recent developments include the International Court of Justice’s advisory opinion affirming that states have binding obligations under international law to address climate change. This could influence domestic regulation and litigation against carbon-intensive industries, increasing risk for insured corporates.
Corporate accountability is expanding. Landmark cases like Milieudefensie v. Shell and Luciano Lliuya v. RWE demonstrate courts’ willingness to apply civil law and attribution science to hold companies liable for emissions – even when damages occur abroad. These precedents may drive high-value claims under General Liability, D&O, and Environmental Liability policies.
Project approval litigation is also surging, particularly around environmental impact assessments (EIAs) that fail to account for Scope 3 emissions. Courts in the UK and EFTA have ruled these emissions must be considered, raising litigation risk for developers and their insurers. In contrast, U.S. rulings have limited such obligations, creating jurisdictional divergence.
Greenwashing claims – targeting misleading sustainability messaging – are now the most common strategic cases against corporates, with high success rates and growing regulatory enforcement. Penalties can reach up to 10% of global turnover, and insurers may face claims under D&O and General Liability policies. Insurers must also ensure their own ESG disclosures are accurate to avoid similar risks.
Additional challenges include coverage disputes over pollution exclusions, non-climate aligned litigation challenging ESG strategies, and the emerging role of AI in emissions tracking and sustainability claims. Attribution science continues to reshape tort liability, making climate harm increasingly actionable.
Insurers must proactively adapt underwriting strategies, refine policy wording, and align governance with evolving legal expectations to manage this expanding risk frontier.
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Toolkit: ESG Litigation Guide
The award-winning ESG Litigation Guide provides detailed analysis of chosen European and international ESG litigation cases, both decided and pending. It includes details on the claims raised by the parties, the relevant legislation, public statements by interested parties, as well as links to judgements and press reports. You can find out more about the ESG Litigation Guide here.