In a world of uncertainty in ESG, it’s good to know there are some things you can count on. Here in the US, that something is ESG litigation, which showed no signs of slowing down in 2024. The Grantham Research Institute’s annual Global Trends in Climate Litigation study tracks ESG and climate litigation year over year, and found that US litigation is going strong:
“While the number of cases continues to grow, the overall rate of growth slowed during the year. But the United States, historically the country with the highest numbers of cases filed year on year, appears to maintain a stable rate of activity. 164 cases were recorded in the US in 2024.”
Of course, these are the results from 2024, before the new administration. We’ll have to wait for next year’s report to know if the administration’s policies produce a chilling effect on climate litigation. For my money, I bet that we’ll see the opposite. The administration’s hard pivot on climate and ESG is likely to create tension with the pro-ESG crowd, resulting in legal fallout.
The report offers another interesting insight – more cases are reaching maturity. The report indicates:
“Between 2015 and 2024, 276 climate-related cases reached apex courts – such as supreme and constitutional courts – globally: 117 in the US and 159 elsewhere. More than 80% of these cases involve government defendants, but cases against corporate defendants appear to have a higher overall success rate.”
We’ve been talking about climate litigation for years, and we don’t have a lot to show for it. That’s because the judicial system often moves at a glacial pace, with cases taking years to resolve. Additionally, many cases are dismissed on procedural grounds before going to trial. The rise in cases reaching “apex courts” indicates that we’re closer than ever to seeing the widespread effects of litigation that has been pending for years. Additionally, it shows a maturity in the cases being brought, with fewer being thrown out as Plaintiffs refine their pleading strategies. The deregulatory environment means that US companies are unlikely to see compliance mandates anytime soon, but litigation risk remains very real.
Members who want to know more about climate litigation can check out our litigation subject area here. Additionally, for an overview of the various climate suits and how they may impact your company check out our Evaluating and Managing ESG Litigation Risks Guidebook
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