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Climate Change: The Companies being Taken to Court

Mia Yaffes explores the mounting legal challenges faced by companies over their roles in climate change.

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Photo by: Patric Hendry


As the urgency of climate change grows amidst the attempts to combat this crisis, the rise in the number of court cases involving environmental organisations and other vulnerable parties continues.

 

In July 2023, the U.N. Environmental Programme (UNEP) released a report stating that between 2020 and 2022, there were 2180 Climate Change cases. According to the UNEP, a climate change case involves a lawsuit aimed at addressing specific climate-related issues, such as reducing greenhouse emissions (mitigation), preparation for extreme weather (adaptation), or improving scientific understanding (attribution science). 


How do cases promise to aid climate change? 


The heightened anxiety of citizens and activists can begin to explain the rise in the numbers of cases. For these affected groups, one of the most tangible means to take action against climate change is to apply legal pressure with court litigations. This pressure has manifested globally.  

 

Surprisingly, while the majority of cases occur in the US, developing countries and small island nations account for 17% of reported cases. Moreover, these cases promote the voices of otherwise unprotected youth, with 34 cases representing under-25-year-olds. 

 

Many of these cases focus on one central concern: the escalating global temperatures. Governments fail to comply with outstanding greenhouse emission rates, which "inevitably will lead more people to resort to the courts", said Michael Gerrard, Sabin Centre’s Faculty Director. 

 

These lawsuits are typically one of six types such as Infringement on human rights; disputing corporate greenwashing; locals demanding their government to increase climate policies, and companies and governments being held accountable for responding to the aftermath of climate change accordingly.

Did you know? Climate change cases have more than doubled since 2017 from 884 in 2017 to 2180 in 2022                                              
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Examples of cases 

 

The key climate litigation cases have created positive change worldwide. The majority of these cases tackle a government’s inability to comply with pre-existing climate goals or neglecting to take sufficient action. 

 

For instance, The European Commission and EU consumers authorities have written to 20 airlines operating in the EU asking them to address “several types” of “misleading green claims” made to appeal to consumers and giving them 30 days to say how they will bring their practices in line with EU law.


Brazil’s supreme court deemed the Paris Agreement as ‘supranational’; Germany’s court condemned the Federal Climate Protecting Act for its human rights violations, and a Dutch organisation mandated that the infamous oil and gas company Shell reduce its carbon emission levels. 

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The battle against Shell 

 

Shell faced yet another major court case battle by one of their shareholders, the environmental law charity Client Earth. The Companies Act 2006 provided the legal framework for shareholders to take derivative actions against Shell’s directors. Client Earth pursued legal action against Shell due to the company's failure to progress towards its target of achieving carbon neutrality by 2050.

The judge, however, ruled against Client Earth, saying their evidence was not concrete and without good faith. The judge also said there were no clear means for Shell to achieve its emissions reduction targets.


An optimistic outlook


According to the CCC, the UK, in comparison to neighbouring countries, ranked 21st out of 21 for per-capita installations of heat pumps in 2022. In the midst of the current cost of living crisis, it is true that making drastic changes to homes will prove impossible for many people as stated by the CEO of Good Energy, Nigel Pocklington 


"Many of these cases focus on one central concern: the escalating global temperatures. Governments fail to comply with outstanding greenhouse emission rates, which ‘inevitably will lead more people to resort to the courts" - Michael Gerrard, Sabin Centre’s Faculty Director

Conclusion 

 

Does it combat climate change and benefit the environment to take a company to court? In instances like Client Earth's unsuccessful attempt to prosecute Shell, it may seem doubtful. However, the successful cases can lead to concrete and viable plans which actively address climate crisis, such as when a UK court found the government in breach of its legal duties under the Climate Change Act 2008. 

Furthermore, as the cases have doubled within a five-year period, and reached up to 65 judicial types, it is apparent that people are committed passionate about confronting climate change. The rising number of court cases reflects a growing awareness and dedication to a critical cause.

 

 

Researcher: Robyn Donovan | Editor: Fiona Patterson | Online Editors: Elena Silvestri & Alison Poole

 

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