National:
Investigate and sue polluters and their enablers like financiers

Through a variety of legal mechanisms, people and entities at all levels should initiate investigations and lawsuits that hold polluting and destructive industries and their enablers liable for their multifaceted roles in the climate crisis and wrongdoing.

What does this look like?

  • States, regions, communities, and/or individuals formally launch investigations into polluting and destructive industry corporations and actors to firmly establish what they knew about climate change, and when, and what actions they did or did not take to address these findings.

    • Investigation and legal claims toward agribusiness can be made on the grounds of direct harm or eco-destruction caused through business practices.

  • States, regions, and/or communities formally sue polluting industry corporations for compensation for the damage caused or projected to be caused as a result of their business practices, failure to comply with climate action commitments, or their deception and manipulation.

    • Compensation received should directly support frontline communities and those that endure the direct abuse of polluting and destructive corporations, or to funds that distribute to these communities, such as those detailed here.

  • Register legal claims with national and international judicial bodies to expose and challenge the damage and abuses (environmental or related to people and community) endured as a result of specific projects or business practices of transnational corporations.

    • These claims, often brought by local communities, have the ability to set ground-breaking precedents that spur lasting change. For example, a local community of Indian fishermen launched a lawsuit that wound up setting a powerful legal precedent for international financial institutions via the U.S. Supreme Court. Read more about this here.

  • Judicial systems should guarantee specific prescribed time frames that should be a matter of months (not years), and that States or legal systems are required to adhere to when liability claims are registered.

  • File liability lawsuits against the institutional investors and financiers that enable corporations to pollute, destroy, abuse, and use the corporate personhood or corporate veil to protect themselves.

  • Initiate lawsuits against executives and directors of financial corporations that fail to adequately consider and address climate risks. Just 35 investment banks like JP Morgan Chase, Wells Fargo, Bank of America and HSBC, have channelled more than US$2.66 trillion into fossil fuels between 2016 and 2019.[1][2] There is increasing precedence and potential to sue corporate actors like financiers for breaches of duty of care and diligence.[3][4]

In recent years, climate change litigation to advance liability claims has been increasing significantly across global jurisdictions. In the past, the majority of these lawsuits have been brought against governments. We’re now, however, witnessing an intensifying focus in launching climate liability cases against corporations based on several robust legal arguments and claims.[5][6] This shift in focus on holding corporations legally liable for climate change has been facilitated by advancements in climate attribution science; knowledge from previous legal challenges and precedents; increased evidence regarding corporations’ climate change denial and deception efforts; increased public action to hold corporations accountable for climate change; and more effective collaboration between governments, attorneys, scientists, and advocates across various jurisdictions and legal contexts.

Some of the most prominent types of legal claims that may be utilized to sue corporations directly, collectively, or individually include but are not limited to:

  • Public nuisance

    • Nuisance is an act or omission that interferes with the rights of the community or the public generally. Public nuisance claims focus on the argument that the extraction and promotion of fossil fuels contributes to climate change impacts, such as sea-level rise, and that these impacts create a public nuisance that interferes with rights of individuals or communities represented.

  • Negligence

    • Most polluting corporations had prior knowledge of climate change science and impacts, in some cases decades before it was commonly known by the public. Being able to demonstrate this prior knowledge forms the basis for negligence claims related to a corporation’s breach of their duty of care by not preventing foreseeable harm and for negligent failure to warn of the likelihood of this harm.

  • Misleading advertising

    • These claims focus on corporate advertising that misled the public regarding the corporation’s climate change activities, the nature of its products, or the anticipated impacts of its actions on communities in its supply chain. Misleading advertising cases allege that promotional and advertising campaigns by polluting corporations violate national law or even the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises,[7] which require accurate communications between businesses and people.

  • Consumer protection

    • These claims focus on breaches in consumer protection law, which typically forbids corporations from engaging in any unfair or deceptive trade practices. Consumer protection cases assert that polluting corporations engaged in deceptive marketing and promotion of their products by disseminating misleading information refuting the scientific knowledge generally accepted at that time; advancing junk science; and developing public relations materials that prevented reasonable consumers from recognizing the risk that products like fossil fuels would cause serious climate change impacts.

  • Strict liability

    • Rather than alleging fault (such as negligence or tortious intent by the defendant), these cases claim strict liability for “design defects," (i.e. problems with a product’s design that render it dangerous to use). In these cases, fossil fuels, for example, are the product, with the defect in this case being the impact of the emissions and the known risks associated with them. For strict liability claims to be robust, the evidence needs to show the defendants engaged in business, sold the product to plaintiffs, the product was used as intended and it caused harm to the plaintiffs.

  • Human rights

    • Human-rights-based climate litigation focuses on the role of corporations in driving climate change and the related impact on an individual’s human rights. These types of claims utilize human rights law to demonstrate corporate obligations to respect human rights such as those expressed in the Declaration on the Rights of Peasants, Peasants and Other People Working in Rural Areas.[8] These types of claims demonstrate that domestic human rights bodies may also provide leverage for further action on climate change.

  • Other types of claims that have potential to directly hold polluting or destructive corporations liable include:

    • Nature rights

    • Torts

    • Administrative actions

    • Health recovery costs and strengthen sanitary healthcare systems.

    • Violation of Free, Prior and Informed consent as granted under the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIPs).[9]

    • Violations under the Convention on the Elimination of All Forms of Discrimination against Women.[10]

    • Violations of customary and traditional rights of communities.

Click here to read about the lessons learned through the precedent of advancing tobacco industry liability through the Master Settlement Agreement.

 

 Implementing the measures of the liability roadmap

Decision-makers and movements at all levels should keep the following in mind when implementing the measures laid out in this roadmap:

  • Enacting these policies and measures is simply the first step to holding polluting and destructive industries liable: There will be much work for government officials, decision-makers, activists and civil society alike to do to ensure these measures are fully implemented and move us toward the transformative change the world needs.

  • Liability should be applied to all industries and corporations that make business decisions that contribute to climate change and its impacts, or that cause harm to people and nature. In addition to the fossil fuel industry, these industries include but are not limited to agribusiness, forestry, mining, and the energy sector. 

  • Many of these measures could equally apply to State-owned corporations. Because the national contexts and unique needs vary from country to country, it is worth considering where to apply and how to adapt the principles and measures listed in the liability roadmap to address State-owned polluting corporations. Factors to consider when doing so could include but are not limited to the degree of democratic control over the entity, role and use of funding from oil/gas revenues, and responsiveness of the entity to transition to regenerative, renewable energy sources. 

  • Measures implemented at the national level should support and reinforce, rather than contradict, measures implemented at the sub-national and local, and vice versa.

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 1 Patrick Greenfield and Kalyeena Makortoff, "Study: global banks 'failing miserably' on climate crisis by funneling trillions into fossil fuels," The Guardian, March 18, 2020, https://www.theguardian.com/environment/2020/mar/18/global-banks-climate-crisis-finance-fossil-fuels.

2"Banking On Climate Change," Fossil Fuel Finance Report, 2020, accessed August 28, 2020, https://www.ran.org/wp-content/uploads/2020/03/Banking_on_Climate_Change__2020_vF.pdf. 

3 Alice Klein, "Governments sued over climate change, with banks and firms next," NewScientist, May 26, 2017, https://www.newscientist.com/article/2132927-governments-sued-over-climate-change-with-banks-and-firms-next/.

4 "First-Ever Lawsuit Over ‘Inadequate’ Climate Risk Disclosure Could Set New Precedent for Businesses," Sustainable Brands, accessed August 27, 2020, https://sustainablebrands.com/read/marketing-and-comms/first-ever-lawsuit-over-inadequate-climate-risk-disclosure-could-set-new-precedent-for-businesses.

5 J. Setzer and R. Byrnes. Global trends in climate change litigation: 2019 snapshot, Grantham Research Institute on Climate Change and the Environment and Centre for Climate Change Economics and Policy, London School of Economics and Political Science, 2019, accessed August 25, 2020, https://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2019/07/GRI_Global-trends-in-climate-change-litigation-2019-snapshot-2.pdf.

6 Jennifer Hijazi, "Climate liability is on the rise. Here's what it looks like," E&E News, August 5, 2019, https://www.eenews.net/stories/1060850731.

7 "OECD Guidelines for Multinational Enterprises," Organization for Economic Co-operation and Development, accessed August 28, 2020, http://mneguidelines.oecd.org/guidelines/.

8 UN Human Rights Council. "United Nations Declaration on the Rights of Peasants and Other People Working in Rural Areas," resolution adopted on 28 September 2018, 39th sess., Geneva, accessed August 25, 2020, https://digitallibrary.un.org/record/1650694?ln=en.

9 The United Nations General Assembly. "Declaration on the Rights of Indigenous People," New York, 2007.

10 United Nations Human Rights Office of the High Commissioner. "Convention on the Elimination of All Forms of Discrimination against Women New York, 18 December 1979," accessed August 28, 2020, https://www.ohchr.org/EN/ProfessionalInterest/Pages/CEDAW.aspx.