How ESG Backlash Is Driving Climate Litigation Battles

A growing political backlash against environmental, social, and governance (ESG) initiatives is now reshaping climate litigation, with a sharp rise in lawsuits intended to slow or stop climate action, particularly in the United States.

According to the 2024 Global Climate Litigation Report by the Grantham Research Institute on Climate Change and the Environment, 60 of the 226 lawsuits filed globally last year directly challenged efforts to cut emissions. This marks a 6% increase from 2023 and highlights a shifting legal landscape where so-called “non-climate-aligned” cases are gaining ground.

These lawsuits are filed by a wide range of actors, from industry groups and state governments to fossil fuel-linked organizations, and often seek to question the legitimacy of climate policies. Legal challenges have been raised against both government mandates and private companies’ climate commitments. Some cases target climate protesters, while others focus on legal claims under antitrust or fiduciary duty laws.

The report also draws attention to emerging types of litigation, including just transition lawsuits, brought by communities opposing clean energy projects that may negatively impact their rights, and green vs green cases, where competing environmental goals (like climate mitigation vs. biodiversity protection) clash.

“These cases show that bypassing social protections to speed up the energy transition can backfire,” the report notes. With global investments in renewable energy and climate adaptation infrastructure growing, the researchers expect such legal conflicts to increase.

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The US: Ground Zero for Anti-Climate Litigation

While climate lawsuits have been rising since the 2015 Paris Agreement, global filings appear to be tapering. However, the United States stabnds out, with 164 climate-related lawsuits filed in 2024, more than double the combined total (62) from the rest of the world.

The return of Donald Trump to the presidency in January 2025 has further intensified this trend. Since taking office, the Trump administration has filed multiple lawsuits challenging state-led climate initiatives, while various nonprofits and investors have taken legal action to oppose federal rollbacks of existing climate policy.

These developments are expanding the nature of US climate litigation to include cases against the federal government’s resistance to renewable energy permits and climate-related investments.

Meanwhile, countries like Australia, the UK, and Brazil continue to record relatively high numbers of climate cases. In contrast, litigation data from China remains limited due to language barriers and resource constraints. Although Chinese courts have reportedly handled over 500 cases related to energy transition and carbon markets, most focus on enforcing national policies rather than challenging them.

Corporate Risk Grows

Approximately 20% of climate lawsuits in 2024 were filed against companies or their directors. Sectors such as professional services, food, and retail are facing increasing scrutiny over their emissions, particularly from animal agriculture or emissions enabled through consulting.

The financial risk of climate litigation is no longer theoretical. New scientific tools and legal databases are enabling plaintiffs to trace emissions and liability more precisely, making litigation a growing concern for businesses and investors alike. Some US states, including New York and Vermont, have proposed “climate superfund” laws that would make fossil fuel companies pay for damages caused by their emissions.

Although laws imposing climate liability are still pending, their financial implications are becoming “material” for companies and financial institutions, the report states.

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Wins Amid Backlash

Despite the rise of anti-climate lawsuits, 2024 also saw key victories for climate campaigners. A landmark court settlement in Hawaii, successful greenwashing cases brought by regulators, and a pivotal ruling by the European Court of Human Rights, were among the highlights.

Still, the report stresses that the true impact of these wins depends on their implementation. As both sides of the climate debate increasingly turn to the courts, the outcomes of these legal battles could shape the pace and direction of global climate action in the years ahead.

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Source: SustainableViews