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10 January 2022
Disputes Quick Read – 97 of 101 Insights
Disputes Quick Read: Climate change litigation – what's the latest?
- Briefing
In 2020 we wrote about climate change activism by litigation. There have been a number of developments relating to net zero since then, including COP26. So, what's the latest on climate change litigation?
In October 2021 the UK government announced that it will introduce legal requirements for Britain’s largest companies and financial institutions to report on climate-related risks and opportunities.
The announcement came shortly after the publication of the UK's Net Zero Strategy, setting out policies and proposals for decarbonising all sectors of the UK economy to meet our 2050 net zero target. But what impact have these developments had on the UK litigation landscape?
The international movement
Climate change litigation has already emerged globally, with a resurgence in Europe in the last two years in the wake of the 2019 Urgenda decision. While governments still appear to be the primary target, they're not the only ones feeling the heat.
Corporations and financial institutions are increasingly under scrutiny as attention shifts towards financial risks and corporate due diligence. Banks, pension funds, asset managers, insurers and major retailers are now moving into the firing line:
- In Milieudefensie, the Dutch Court ruled in May 2021 that Shell had an obligation to reduce its own emissions, along with a 'significant best-efforts obligation' to reduce emissions along its entire value chain, including those of its suppliers and consumers. Some noting that this potentially paves the way for 'value chain litigation' where claimants seek to hold companies responsible for acts and omissions in their value and/or supply chains.
- ClientEarth initiated proceedings in April this year for injunctive relief against the Banque Nationale de Belgique (NBB). ClientEarth is alleging that NBB violated EU Treaty provisions, and the Charter of Fundamental Rights, by implementing a new programme which doesn't acknowledge requirements regarding the protection of the environment.
The national landscape
The courts in England and Wales have so far been slow to follow their European counterparts. The Supreme Court's decision to overturn the Court of Appeal's ruling that a third runway at Heathrow was illegal was viewed by many as a signal that our judges aren't willing to apply the same scrutiny to the government's climate policies as other jurisdictions yet.
Activists haven't lost hope though. Following the Heathrow runway case, a wave of climate change litigation has been launched in response to various government initiatives. Targets include a £27 billion road expansion scheme; proposals for a Cumbrian coal mine; and the expansion of North Sea oil and gas exploration by the Oil & Gas Authority (OGA).
Get your business ready
Unlike our European neighbours, UK private entities appear – for now – to be relatively untouched. How long this will last considering precedents being set in other jurisdictions remains to be seen.
The regulatory landscape is also changing. The FCA will be regulating ESG-marketed financial products to prevent greenwashing. Asset managers will also be required to make climate-related disclosures for financial products, with the first reporting phase starting by 30 June 2023. As with other FCA rules, non-compliant institutions will risk fines or sanctions. The changing regulatory landscape will surely expose companies to a greater litigation risk as industry standards and best practices are regularised.
The more national laws and international agreements appearing that mandate a reduction in greenhouse gas emissions, the higher the chance of climate-related litigation being brought. The attitudes of customers are changing, and investors' awareness of climate-related issues is only increasing. Private businesses, not just governments, must be ready.
If you'd like to know more about what this might mean for you, reach out to a member of our Disputes & Investigation team.
In this series
Wirral Council v Indivior plc: Court of Appeal upholds strike out of opt-in representative action securities claim
30 January 2025
What are the litigation trends in 2025?
22 January 2025
by Multiple authors
Changes to the privilege rules between companies and shareholders
6 December 2024
Victory for energy companies/defeat for the environment?
14 November 2024
Failure to prevent fraud offence to come into force in September 2025
14 November 2024
by Emma Allen
Essex Cricket Club charged by Cricket Regulator
30 October 2024
by Multiple authors
UK introduces mandatory reimbursement rules to combat APP fraud
15 October 2024
New SFO Director announces bold plans to tackle fraud
21 March 2024
by Emma Allen, Amy Cheng
First of its kind judicial guidance on the use of AI in the courts
14 December 2023
Witness familiarisation - does it affect the court's assessment of witness credibility?
13 December 2023
The use of AI in Trial Witness Statements post-PD 57AC
23 October 2023
by Multiple authors
CAT to hear the first application for a collective settlement approval order
17 October 2023
Pre-Action Protocols – what is different?
12 September 2023
by Tom Charnley
Failure to prevent fraud – a new offence?
14 August 2023
by Multiple authors
Supreme Court rules that APP fraud victims cannot rely on Quincecare Duty
4 August 2023
by Multiple authors
The Law Commission's Consultation Process on the Arbitration Act 1996 – taking stock
21 July 2023
What does the latest decision of the CAT in the Mastercard/Visa proceedings mean for class actions?
10 July 2023
Disputes Quick Read: ClientEarth refused permission to pursue directors of Shell
1 June 2023
by Multiple authors
Disputes Quick Read – developments in the fixed costs regime
3 May 2023
by James Bryden
Disputes Quick Read: Service by email – are the rules any clearer?
20 April 2023
by James Bryden
Disputes Quick Read: Breaking the north/south divide?
5 April 2023
by Tom Charnley
Disputes Quick Read - What do practitioners think about making alternative dispute resolution (ADR) compulsory?
8 March 2023
Disputes Quick Read: What are the litigation trends for 2023?
2 March 2023
Disputes Quick Read: further guidance on witness statement preparation rules
14 February 2023
Disputes Quick Read: A cautionary tale – settlement agreement (un)wittingly releases all claims for fraud
13 February 2023
Disputes Quick Read: Why the UK should join the Hague Judgments Convention 2019
8 February 2023
Disputes Quick Read: extensive information orders granted against crypto exchanges following hack
19 January 2023
Disputes Quick Read: A new approach to giving evidence? WhatsApp with that?
3 October 2022
Disputes Quick Read: Ethereum Merge - what legal issues arise?
22 September 2022
by Ben Jones, Emma Allen
Disputes Quick Read: New obligations on cryptobusinesses to report under the UK sanctions regime
9 August 2022
by Nick Maday
Disputes Quick Read: Disclosure - What information can be redacted?
25 July 2022
Disputes Quick Read: what claims exist when a smart contract is breached?
6 July 2022
by Emma Allen
Disputes Quick Read: New gateway for serving Norwich Pharmacal Orders and Bankers Trust orders out of the jurisdiction
Welcome news for those pursuing fraud claims in the English Courts
28 July 2022
Disputes Quick Read: Defining the duty - the limits of the responsibility assumed by professionals
27 July 2022
by Stuart Broom
Disputes Quick Read: Climate change litigation – successful challenge to government's Net Zero Strategy
29 July 2022
Disputes Quick Read: Judicial Review and Courts Act 2022 – now in force
17 June 2022
Disputes Quick Read: an important reminder of the duty to disclose electronic documents in native format
13 June 2022
Disputes Quick Read: ENRC prevails in claim against former solicitor
26 May 2022
Disputes Quick Read: Climate change litigation update – McGaughey v Universities Superannuation Scheme Limited
31 May 2022
by Multiple authors
Don't lose your keys: Bitcoin developers do not have a duty to assist owners in recovering lost cryptocurrency
4 April 2022
Disputes Quick Read: The new witness statement preparation rules – a year on
5 April 2022
Disputes Quick Read: ClientEarth v Shell – climate change litigation shifts focus to UK companies
31 March 2022
by Multiple authors
Disputes Quick Read: High Court rules that failure to provide adequate data security is not a positive act
21 September 2021
Disputes Quick Read: Key changes to the Disclosure Pilot Scheme
13 September 2021
Disputes Quick Read: Judicial Review and Courts Bill – unpacking the UK government's proposed amendments
6 September 2021
Disputes Quick Read: Will litigants be compelled to participate in alternative dispute resolution?
2 August 2021
Disputes Quick Read: Freezing injunctions – maximum custodial sentence imposed for breach
21 July 2021
Disputes Quick Read: The online future of civil justice – the end of the legal profession or the end of legal drudgery?
15 July 2021
by Jess Thomas
Disputes Quick Read: Will the courts change forever post-COVID?
26 May 2021
Disputes Quick Read: One Blackfriars administrators cleared of misfeasance
5 May 2021
Disputes Quick Read: Not your prerogative – the Independent Review of Administrative Law reports its recommendations on judicial review
21 April 2021
Disputes Quick Read: Amendments to the Disclosure Pilot Scheme – a step in the right direction
31 March 2021
Disputes Quick Read: UK Supreme Court rules on the territorial extent of the SFO's powers
26 February 2021
by Tim Strong
Disputes Quick Read: No dropping anchor – parent company liability for environmental claims
24 February 2021
Disputes Quick Read: What lawyers need to know about new witness statement preparation rules
20 January 2021
Disputes Quick Read: Should you still choose the English courts to have jurisdiction in your international contracts after Brexit?
12 January 2021
by Tim Strong
Disputes Quick Read: Privilege lost in the EU post-Brexit (with exceptions)
23 November 2020
Disputes Quick Read: Law on interest applicable to US dollar awards reaffirmed
16 October 2020
Disputes Quick Read: Care required when drafting SPA claim notices
23 September 2020
Disputes Quick Read: Why the modernised LCIA rules are a welcome update
7 October 2020
by Nick Storrs
Disputes Quick Read: COVID-19 and supply chain disruption – key issues
9 April 2020
by Multiple authors
Disputes Quick Read: High Court orders parties to explore options for 5-week remote trial
15 April 2020
Disputes Quick Read: Tomlin Orders – ensuring the confidentiality of settlement terms
27 April 2020
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Disputes Quick Read: UK's OFSI fines Standard Chartered Bank £20 million for sanctions breaches
21 April 2020
Disputes Quick Read: A different approach to witness evidence
11 March 2020
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Disputes Quick Read: Coronavirus - a growth in virtual courts?
17 March 2020
by Stuart Broom
Disputes quick read: climate change activism by litigation
26 February 2020
Disputes Quick Read: Commercial Court's arbitral power shift
21 February 2020
Disputes Quick Read: Court stays evictions during COVID-19 – is this lawful?
2 June 2020
Disputes Quick Read: Will the civil justice system change forever post COVID-19?
16 June 2020
Disputes Quick Read: Retailers reign supreme in Visa and Mastercard proceedings
9 July 2020
Disputes Quick Read: The contra proferentem rule reconsidered?
21 July 2020
Disputes Quick Read: Scope of duty and the SAAMCo counterfactual following Manchester Building Society
3 December 2021
Disputes Quick Read: Facilitating transactions in cryptoassets - Lord Leggatt and the point of commercial law
24 November 2021
by Stuart Broom
Disputes Quick Read: Privy Council clarifies the law on freezing injunctions in aid of foreign proceedings
8 October 2021
Disputes Quick Read: Climate change litigation – what's the latest?
10 January 2022
Disputes Quick Read: Court decisions on the Disclosure Pilot Scheme – the 2021 roundup
20 January 2022
Disputes Quick Read: Assumption of responsibility - tax schemes and investors
22 March 2022
Disputes Quick Read: Dealing in crypto? Be careful what you call it
7 April 2022
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