By 2025, climate litigation isn’t just a growing trend-it’s a financial and operational threat to companies that still treat emissions like a cost of doing business. Courts aren’t just hearing cases about polluted rivers anymore. They’re now holding entire industries accountable for decades of climate harm. From oil and gas giants to coal-powered utilities and even heavy manufacturers, no high-emitting sector is safe. The legal landscape has shifted. And if your business still thinks it’s too big to be sued, you’re already behind.
Who’s Being Sued-and Why
In 2024, over 2,300 climate-related lawsuits were filed globally, up from just 800 in 2015. The U.S. leads in volume, but Europe is winning in outcomes. The targets? Companies that have known about climate risks for decades but kept expanding fossil fuel operations. The legal theories? They’re getting creative. Plaintiffs are now using human rights law, consumer protection statutes, and even fiduciary duty claims to go after executives and boards.
Take the case against ExxonMobil in New York. In 2023, a judge ruled the company misled investors about climate risks. That wasn’t a regulatory fine-it was a civil fraud verdict. Now, other oil majors are being sued under the same logic: if you told shareholders you were preparing for a low-carbon future, but kept investing billions in new oil fields, you lied. And lying to investors is illegal.
It’s not just energy companies. Cement producers in Germany faced a lawsuit from a group of farmers who claimed their emissions contributed to droughts that ruined harvests. Coal plants in Australia are being sued by coastal communities for accelerating sea level rise. Even auto manufacturers are being dragged into court-not just for tailpipe emissions, but for failing to transition fast enough to electric vehicles.
The New Legal Tools Being Used
Lawyers aren’t relying on old environmental statutes anymore. They’re using modern legal frameworks that weren’t designed for climate change-but work anyway.
- Public nuisance claims: Courts are accepting that climate change is a widespread harm that affects public health, property, and infrastructure. In California, a county sued 30 oil companies for $1 billion in adaptation costs, arguing they created a public nuisance by selling fossil fuels.
- Corporate director liability: Shareholders in the U.S. and Canada are suing board members for failing to manage climate risk as a fiduciary duty. In 2024, a Delaware court ruled that directors must consider climate impacts when approving capital spending-no longer optional.
- Supply chain liability: Companies like Walmart and Amazon are being named in lawsuits because their suppliers emit large amounts of CO2. Even if you don’t burn coal yourself, your vendors might be dragging you into court.
- Climate fraud and misrepresentation: If your marketing says you’re "net-zero by 2030" but your emissions are rising, you’re opening yourself up to class-action suits from consumers and investors.
One of the most dangerous tools? The "climate attribution science" used in court. Scientists can now pinpoint how much of a specific flood, wildfire, or heatwave was caused by emissions from a particular company. In the 2024 case against Shell in the Netherlands, researchers used this science to show that Shell’s emissions contributed to 4% of global warming since 1980. That’s not a guess-it’s a number in a court filing.
High-Risk Sectors in 2025
Not all industries are equally exposed. Here’s who’s most at risk right now:
| Sector | Primary Legal Risk | Recent Case Example | Risk Level |
|---|---|---|---|
| Oil & Gas | Corporate fraud, fiduciary duty breaches | ExxonMobil (NY, 2023) | Extreme |
| Coal Power | Public nuisance, health damages | Peabody Energy (IL, 2024) | Extreme |
| Cement & Steel | Supply chain liability, emissions disclosure | HeidelbergCement (Germany, 2024) | High |
| Automotive | Failure to transition, greenwashing | Ford (CA, 2025) | High |
| Aviation | Consumer fraud, emissions misreporting | Delta Airlines (GA, 2024) | Medium |
| Financial Institutions | Financing emissions, lack of due diligence | JPMorgan Chase (NY, 2024) | High |
Oil and gas remain the top target-not because they emit the most, but because they’ve been the most transparent about their long-term plans. Internal documents from the 1980s and 90s show these companies knew the risks. That’s why courts are treating them like tobacco companies in the 1990s: knowingly selling a harmful product while hiding the truth.
What’s Changing in 2025
Three big shifts are making lawsuits more dangerous than ever:
- More countries are allowing citizen suits. In the U.S., the Clean Air Act lets citizens sue polluters. In 2025, the EU passed a law letting any resident file a climate lawsuit against companies operating in Europe-even if they’re based in the U.S.
- Insurance is pulling out. Major insurers like Allstate and AXA have stopped covering fossil fuel projects. That means if you’re sued, you can’t rely on your policy to pay legal fees. Your board is now personally liable.
- Government agencies are joining plaintiffs. In 2024, the U.S. Department of Justice filed a suit against a coal company for violating the Clean Air Act. But this time, they didn’t just seek fines-they demanded the company shut down three plants within two years. That’s not a penalty. That’s an execution order.
There’s also a new wave of lawsuits targeting companies that buy carbon offsets. If your offset project turns out to be a scam-like planting trees that die or claiming reductions that never happened-you’re still liable. In 2025, the FTC started cracking down on companies using fake offsets to claim "carbon neutrality." That’s fraud.
How to Protect Your Business
Ignoring climate litigation won’t make it go away. But there are steps you can take right now to reduce your exposure:
- Stop making vague climate promises. Saying "we’re committed to sustainability" is useless. If you claim a net-zero target, publish your emissions data annually, third-party verified.
- Review your supply chain. If your top three suppliers emit more than you do, you’re at risk. Map emissions all the way to raw materials.
- Train your board on fiduciary duty. Directors who don’t understand climate risk are personally liable. Bring in legal counsel to explain what’s expected.
- Stop using carbon offsets as a shield. Reduce emissions first. Offset only what’s unavoidable-and use only verified, permanent credits.
- Document your transition plan. Courts love paper trails. If you can show you’ve been actively shifting to low-carbon operations since 2020, you’re far less likely to be hit with fraud claims.
One company that got it right? NextEra Energy. They stopped investing in natural gas plants in 2021. Instead, they poured billions into wind and solar. They still get sued-but the cases against them are weak. Their legal team doesn’t spend months defending climate claims. They spend it expanding their renewable portfolio.
What Happens If You Do Nothing
If your company is a high emitter and you’re doing nothing, here’s what’s coming:
- Shareholder lawsuits that force you to disclose internal climate risk assessments.
- Attorney generals from multiple states filing joint suits against you.
- Insurance companies canceling your coverage, leaving you exposed.
- Customers and employees walking away because your brand is seen as harmful.
- Bank loans being pulled because lenders now require climate risk disclosures.
It’s not theoretical. In 2024, a mid-sized coal company in West Virginia lost its credit rating after a climate lawsuit made headlines. Within six months, it couldn’t get a loan to repair its aging plant. It shut down.
The message is clear: climate litigation isn’t about punishing bad actors anymore. It’s about forcing change. And if you’re not changing fast enough, the courts will change you.
Can small businesses be sued for climate emissions?
Yes. While most lawsuits target large emitters, small businesses aren’t immune. If you’re a trucking company using diesel fleets, a restaurant using single-use plastics, or a manufacturer with high energy use, you can be named in class-action suits or state-level enforcement actions. The scale of your emissions matters less than whether you’ve hidden risks or misled customers.
Are climate lawsuits only happening in the U.S.?
No. The Netherlands, Germany, France, Australia, and Canada have all seen landmark climate cases. In 2024, a Belgian court ordered a cement company to cut emissions by 45% within five years. The EU’s new Corporate Sustainability Reporting Directive (CSRD) now requires all large companies to disclose climate risks, making it easier for plaintiffs to build cases.
Can I be personally sued as a CEO or board member?
Absolutely. In 2024, a U.S. court ruled that a CEO could be held personally liable for failing to disclose climate risks to investors. Directors in Australia and the UK have faced similar rulings. Personal liability is now a real threat if you ignore climate governance.
Do carbon offsets protect me from lawsuits?
Not if they’re unreliable. Offsets from unverified projects-like tree planting that fails or methane capture that’s overstated-are being challenged in court as greenwashing. The FTC now treats false offset claims as deceptive advertising. You’re better off reducing emissions directly.
What’s the biggest mistake companies make?
Delaying action while making bold public claims. Companies that say "we’re going net-zero by 2030" but keep investing in fossil fuel infrastructure are setting themselves up for fraud lawsuits. Courts look at actions, not slogans. If your spending doesn’t match your messaging, you’re vulnerable.
If you’re in a high-emitting sector, the time for denial is over. The lawsuits are here. The science is clear. The legal tools are powerful. The only question left is whether you’ll adapt-or become the next headline.
