Key Takeaways
- The volume of climate change-related litigation against companies and governments worldwide appears to be growing.
- Climate change attribution science is strengthening and could increasingly contribute to judgments against heavy emitters.
- We believe climate-related judgments may ultimately have financial and reputational consequences for affected issuers.
- While to date climate litigation has not had a material credit impact, it is one of many potential levers that could make transition and physical risk crystalize sooner for issuers globally.
- In this paper, we explore in case study form the current state of climate litigation globally and suggest ways in which the potential financial and reputational risks associated with this emerging issue could be identified and managed.
6 Oct, 2021