Climate Lawsuits Are Rising: Is Your Board Prepared?

Imagine this: Your company’s net zero claims are plastered across your website, your investor decks, and your annual report.

Then comes the subpoena.

You're not being sued for pollution. You're being sued for misleading the public. By a group of teenagers. And they’re winning.

Welcome to the new legal frontier of climate change—climate litigation.

This Isn’t Just a Trend. It’s a Tidal Wave.

In 2017, there were fewer than 900 climate-related lawsuits globally. Today? Over 2,500 active cases across 65 jurisdictions—and counting.

According to the Grantham Research Institute at LSE:

• Over 60% of these cases were filed in just the last five years.

• More than 30% are now targeting private companies and their directors—not just governments.

This is no longer a concern for oil majors alone. Retailers, banks, tech firms, real estate developers, insurers—no sector is safe.

Why Climate Lawsuits Are a Real Risk for Boards

A new breed of lawsuit is emerging: strategic climate litigation. It’s personal. It’s public. And it’s powerful.

These aren’t just compliance failures. They are fiduciary breaches:

• Failing to disclose material climate risks

• Overstating sustainability claims (greenwashing)

• Inadequate decarbonization planning

Boards are being accused of not doing enough—or saying too much without backing it up.

In 2023, a class action lawsuit was filed against a major Australian bank for financing fossil fuel projects while claiming to be “Paris-aligned.” The board members were named individually.

In Europe, directors face mounting pressure from EU CSRD and CSDDD regulations, which require transparent sustainability disclosures and due diligence across the supply chain.

Case Study: Shell’s Board Under Fire

In a landmark 2021 case, Dutch courts ordered Shell to cut its emissions by 45% by 2030—not just operational emissions, but those of its entire value chain.

Now, climate activists are suing Shell’s board personally for failing to comply.

Let that sink in.

This isn’t about reputational damage anymore. This is about legal liability—and potentially criminal negligence.

So, Is Your Board Ready?

Let’s ask the real questions:

• Has your board been briefed on climate-related fiduciary duties?

• Are net zero commitments matched with action plans and timelines?

• Is the company’s ESG disclosure aligned with ISSB, TCFD, or national mandates?

• Have legal teams reviewed climate risk exposure in corporate filings?

• Is board remuneration tied to ESG outcomes—or just earnings per share?

Because regulators, investors, and now courts are all asking the same thing: “What did the board know—and when did they act on it?”

The Cost of Inaction

Climate litigation can be slow—but it’s not toothless.

In 2022, German utility RWE was sued by a Peruvian farmer for its role in glacial melting that threatens his village. The case was dismissed—then reinstated by a higher court.

Meanwhile, legal fees skyrocket, insurance premiums rise, and shareholder activism intensifies.

The real danger? Paralysis by PR. Boards that respond with slogans, not strategy, will find themselves in the dock—figuratively and literally.

Take Action: A Legal Checklist for Boards

This isn’t legal advice. This is survival strategy:

1. Conduct a climate risk audit of all board-level decisions and disclosures.

2. Establish climate competency as a requirement for new directors.

3. Align your reporting with global frameworks like ISSB and GRI.

4. Create an ESG escalation committee to monitor regulatory and litigation threats.

5. Stress test your business model against 1.5°C and 2°C climate scenarios.

Because the courtroom is now part of your climate transition plan.