SANDIP RUDRA’s Post

A new report by The London School of Economics and Political Science (LSE) shows that Australia has the second-highest number of climate-related court cases. Legal cases can drive change and accountability, but they are not a long-term solution. A sustainable transition requires regulation to level the playing field and improve corporate accountability. The current climate-related financial disclosures legislation before parliament could be the start of ensuring real progress towards global emission reduction goals, by removing opportunities for greenwashing and the need for legal action. However, the current legislation provides corporations with legal immunity for three years. Removing third-party rights to take legal action on misleading climate statements reduces accountability and paves the way for corporations to continue greenwashing. For Australia to meaningfully contribute to science-aligned climate action the government must close these loopholes and commit to raising the bar on what business is required to do. ➡ The LSE report on trends in climate litigation: https://lnkd.in/dEWNfK6j ➡  More on the government plan to provide corporations with legal immunity: https://lnkd.in/giKsMtGD

Businesses are key to achieving decarbonisation goals. It is essential to establish a robust governance system with clear, measurable objectives and commitment at all levels. Last week, the IE Law School presented the applied academic report “Corporate Climate Governance and the road to Net Zero: relevance, challenges, and impact in practice.” This study addresses the urgent challenge of climate change, highlighting the crucial role of energy sector companies in mitigating environmental impact and achieving carbon neutrality. It analyses climate governance models in the United States, United Kingdom, Germany, France, and Spain, and through a comparative law approach, underscores the importance of the private sector in climate action. Acknowledgements: Paloma Baena Olabe, Macarena Plaza Vela, Fabio Almeida for their research, and the entire A&O Shearman team led by Mónica R., Reka Palla, and Alvaro Sánchez-Bordona Benardelli, who have worked tirelessly for months to achieve this result. Thank you also to our ponents Paloma Durán y Lalaguna, Victor Viñuales, Jorge Viñuelas González, and to Soledad Atienza Becerril IE Law School Dean. Link to full study 👉🏻https://lnkd.in/dXtvJTt7 #iechainofchange #fosteringpositivechange

Investors are “flying blind” to risk of climate lawsuits Polluting companies could be liable for trillions in damages from climate lawsuits. But few investors and regulators are taking these risks into account when evaluating companies’ climate-related financial risks, according to new Oxford Sustainable Law programme research published today in Science. The research calls for an overhaul in how climate litigation risks are assessed and provides a new framework for doing so.  “Financial risk is the dominant frame through which investors and regulators engage with climate change. But climate risk analysis fails to satisfactorily account for legal developments. Against a backdrop of increasingly impactful climate litigation and regulatory enforcement actions, which shift and amplify climate risks, we argue that current climate risk assessments misrepresent the distribution and scale of climate-related financial risks. That means investors end up investing in the wrong projects and run risks that neither they nor regulators understand, thereby further aggravating the financial risks climate change entails,” explains Associate Professor Thom Wetzer, lead author and Director of the Oxford Sustainable Law Programme.  2,485 climate lawsuits have been ­filed globally to date, and their growing impact presents significant risks for some of the world’s biggest carbon emitters. For example, US oil and gas giant Chevron could be liable for up to $8.5 trillion alone, according to the authors’ estimates. In 1990-2019, the company’s profits were $291 billion. “It’s possible that Chevron’s business may in fact be net value destroying,” says co-author, Dr Rupert Stuart-Smith, Senior Research Associate at the Oxford Sustainable Law Programme. The research also highlights how organisations tasked with providing frameworks for assessing climate risks, such as the International Sustainability Standards Board and The Network for Greening the Financial System, lump in legal risks with “transition risks” and provide “little to no” detail on how to evaluate them. “This suggests they see climate litigation as merely a peripheral risk, when recent events in the courts demonstrate that it is something far greater,” says co-author, Dr Arjuna Dibley, Head of Sustainable Finance Research at Melbourne Climate Futures. #qbsmscbloggers

Climate lawsuits against companies on the rise according to London School of Economics research arm   47 new climate-washing cases were filed in 2023 against companies and governments with more than 140 such cases being filed to date on climate washing, making this one of the most rapidly expanding areas of litigation. Climate litigation against companies is on the rise according to a report published by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science. The report, titled Global trends in climate change litigation: 2024 snapshot found that about 230 climate-aligned lawsuits have been initiated against corporations and trade associations since 2015, with more than two thirds filed since 2020.   This story can be read in its entirety (no paywall) on the Wolters Kluwer Vital Law site at https://lnkd.in/gCFCpf5g.   As reported by Brad Rosen.   #ClimateLitigation #ClimateWashing #ESGBacklash #TransitionRisk #LondonSchoolEconomics 

My conversation with Dr Claudia Dias Soares . "Financial institutions' balance sheets are heavily reliant on #ecosystemservices - such as pollination, water purification, and climate regulation - provided by a diverse and functioning natural world. And financial supervisors in the European Union (EU) are recognising this fact" - is a truly refreshing insight from her. Claudia helps me connect some critical dots for legislative bodies to adopt more agile and adaptive frameworks. She also flags an urgent need for more proactive climate actions via expedited processes. Talking about the growing movement for climate accountability and the need for robust sanctions, she explains: “Such sanctions are not only crucial for compensating affected communities and mitigating further harm but also for deterring future misconduct”. She is mindful: “Legislative frameworks often provide governments with substantial powers to address climate change, but the effectiveness of these powers can vary significantly… Additionally, capacity building and financial mechanisms are crucial to ensure that governments can act decisively and effectively. These resources are not always available…or made available!” That the forthcoming advisory opinion from the International Court of Justice (ICJ) on the Obligations of States in respect of Climate Change is poised to play a pivotal role in defending the interests of future generations - is something to really cheer about. And there is a lot more. Thanks for instilling a sense of optimism, Claudia. #intergenerational #ecocide #greenwashing #fakenews #EMSA #DOJ illuminem https://lnkd.in/gSg-k_qs

Thanks for sending through this beautiful conversation on the key considerations for more #adaptive #legal #frameworks Praveen Gupta. This interview spans from #environmental #policies and the stringency of related #penalties to the #blue #economy, the inclusion of #aviation and #shipping in climate regulation, #intergenerational #equity and #ecocide as an emerging and distinct #crime. I think it is now mainstream an understand that: “#financial #stability is deeply interconnected with the #health of #ecosystems”.

This question is becoming more and more immanent: "Are brown investments more risky than others?" Polluting companies could be liable for trillions in damages from climate lawsuits. But few investors and regulators are taking these risks into account when evaluating companies’ climate-related financial risks, according to new Oxford Sustainable Law programme research published today in Science. The research calls for an overhaul in how climate litigation risks are assessed and provides a new framework for doing so. #investments #fossil https://lnkd.in/e4ejmvTU

In a recent Responsible Investor article, ESG Co-chair Jacob Hupart shared his insights on the ongoing litigation surrounding the SEC’s climate disclosure rule, addressing the various challenges and uncertainty around the rule’s future. Jacob said, “Depending upon the reasoning adopted by the courts, a loss by the SEC could lead to a diminishment of its regulatory authority. Similar regulations, or even those less significant, could be viewed as subject to challenge. Moreover, if the Supreme Court adopts a robust reading of the ‘major questions’ doctrine as the basis for overturning this rule, that would lead to significant limitations on the administrative state, including the SEC.” https://bit.ly/49WmOse

Heard about a supplier using their response to introduce a term into the contract this week. The terms audit is such a powerful activity and using the work of organisations like The Chancery Lane Project feels like an obvious quick win to allow you to focus on environmental issues throughout the lifecycle Of course you then need to manage the contract but one step at a time:)

I see in the news today that lawyers who represent plaintiffs in climate-related cases at the International Court of Justice, the International Tribunal for the Law of the Sea, and the Inter-American Court of Human Rights have no shortage of work. Litigants’ claims for compensation are based on the premise that governments are not doing enough to protect them from the effects of climate change. If you’re wondering about what that means closer to home, pay attention to the pleas from British farmers and the price of food post-harvest this year. The UN Environment Programme predicts the world is on track for a temperature rise of 2.9C above pre-industrial levels, with disastrous consequences, and this will fuel yet more litigation. While individual cases will be argued and appealed, the signal is pretty clear: legal action will intensify the need for political policy responses to climate change, which will impact more and more businesses. The legal profession is busy with climate litigation and the role of accountants in this trend is hotting up too. Evidence in court will be based on data gathered, disclosed and verified in relation to relevant performance indicators, organised into specific categories such as those published by the GHG Protocol, the International Sustainability Standards Board, and the Taskforce for Nature-Related Financial Disclosure. So what’s the good news?! On the flip side of this risk and compliance issue sits the opportunity for businesses whose core purpose is to provide commercial solutions to these challenges, and those whose sustainability impact data out-performs that of competitors while continuing to provide their high quality goods and services.