A new report, ‘Big Oil in Court – The latest trends in climate litigation against fossil fuel companies,’ by Oil Change International and Zero Carbon Analytics, has found that legal pressure is intensifying for fossil fuel corporations, responsible for 69% of human-caused carbon dioxide emissions.
According to the report, 86 climate lawsuits have been filed against the world’s largest oil, gas, and coal-producing corporations, including BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies.
Moreover, the number of cases filed each year has tripled since the Paris Agreement in 2015.
“The growing number of lawsuits against fossil fuel corporations underlines how their historic and continued role in driving and profiting from climate change is catching up to them,” said David Tong, Industry Campaign Manager at Oil Change International.
“No major oil and gas company is pledging to do the bare minimum to prevent climate chaos, so communities are taking them to court. The wave of lawsuits against Big Oil could lead to serious impacts on their bottom line, a disincentive for investment in fossil fuel infrastructure, a reduction in corporate value, and a challenge to their social licence to continue harming communities around the world,” Tong added.
The report found that three categories of lawsuits, in particular, have grown in recent years:
- Compensation for climate damages (38 per cent of cases);
- Misleading advertising claims (16 per cent);
- Emissions reduction (12 per cent).
The analysis showed that more than half of all cases have been brought in the US (58 per cent), with another 24 per cent of cases brought in Europe.
Further, it was found that the overwhelming majority of cases have been brought against investor-owned oil and gas companies, accounting for nine of the top 10 corporate defendants.
The report notes that as scientists are increasingly able to connect extreme weather events with the fossil fuels that drove them, the potential liabilities for fossil fuel companies are substantial.
According to the report, ExxonMobil, Shell, and BP are estimated to be responsible for climate-related costs of at least USD 1 trillion each.
“If courts and governments start holding oil and gas companies liable for climate change damages, the costs to companies, their investors and insurers could be very significant, as could the financial benefits to communities around the world harmed by climate disasters and other impacts,” the report reads.
For the full report, head here.