In the realm of the legal industry, one of the more burgeoning issues has become climate change litigation. According to a recent report by Standard & Poor’s Global Ratings, this type of litigation has seen a substantial increase over the past decade, and the implications for industries, particularly oil and gas, are starting to become apparent. Published in the New Jersey Law Journal, the report elucidates how climate change lawsuits have spiked up from 581 in 2013 to about 2,410 in 2023.
The report delves into comparisons of current circumstances with historic litigation trends in the asbestos, tobacco, and opioids industries. It however, leaves unanswered the question of whether history will repeat itself with oil and gas industries facing the same fate as these earlier rounds of litigation.
Furthermore, in line with the rising number and severity of climate related lawsuits, it becomes increasingly plausible that insurance coverage for this category of litigation may become more challenging to acquire. Standard & Poor’s Global Ratings, while shedding light on the uptick in cases, also indicates concerns surrounding obtaining insurance coverage for these lawsuits.
As the impact of climate change continues to escalate, industries worldwide will need to prepare not only for the potential financial and operational impacts brought on by changing environmental regulations and norms, but also the rising tide of climate change litigation.