Climate Change Risk and Liability Report 2022

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Overview

The Climate Change Risk and Liability Report 2022 report from Clyde & Co provides an in-depth look at the evolving landscape of climate risk and liability, and offers insights on how organizations can position themselves to navigate these challenges and opportunities. It is a valuable resource for understanding the implications for all industries and how to contribute to a sustainable future.

A surge in climate-related lawsuits against governments and corporations, focusing on issues like greenwashing and failure to align with Paris Agreement goals, reflects a growing global concern. Companies are recognizing the potential threat to their business models and the need to address climate change proactively. The report notes that post-COP26, climate pledges and the urgency for action have shaped the legal environment. The report highlights the shift in focus towards climate adaptation, loss, and damage. The global energy crisis and geopolitical events, such as Russia's invasion of Ukraine, have temporarily impacted progress towards climate goals. However, the report suggests that the energy crisis will have both hindering and facilitating effects on long-term global decarbonization, with the climate agenda ultimately prevailing.

The report stresses the importance of a holistic climate risk assessment, including climate liability risk, and integrating climate risk awareness into corporate governance. Legal considerations extend beyond environmental law to areas like asset management, finance, and insurance. The authors anticipate that the upcoming COP27 summit will play a crucial role in defining policies on decarbonization and climate adaptation. In the face of challenges, the report encourages businesses to invest in resilience and adopt a proactive approach to climate risk.