Eighty-six climate lawsuits have been filed against the world’s largest oil, gas, and coal producing corporations – including BP, Chevron, Eni, ExxonMobil, Shell, and TotalEnergies – with two in five cases involving claims for compensation for climate change damages linked to fossil fuels.
The number of cases filed against fossil fuel companies each year has nearly tripled since the Paris Agreement was reached in 2015, according to a new report, titled “Big Oil in Court – The latest trends in climate litigation against fossil fuel companies” by Oil Change International and Zero Carbon Analytics.
The analysis reveals the intensifying legal pressure on fossil fuel corporations responsible for 69% of human-caused carbon dioxide emissions, the main driver of the climate crisis. The report is the first in-depth analysis of the escalating wave of climate litigation aimed at fossil fuel giants.
Three categories of lawsuits have grown significantly in recent years, and they are listed to include:
- Compensation for climate damages that hold companies accountable for the environmental and community damages they have caused (38% of cases);
- Challenges to misleading advertising claims by companies about the climate and environment (16%); and,
- Requirements for companies to reduce their emissions (12%).
David Tong, Industry Campaign Manager at Oil Change International, said: “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. 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.”
Climate Damages Cases
The report shows that compensation claims for climate damages make up the largest share of climate lawsuits against fossil fuel companies, accounting for 38% of cases. These cases heighten the financial and liability risks these corporations and their investors face, as scientists are increasingly able to connect specific extreme weather events with the fossil fuel emissions that drove them.
ExxonMobil, Shell, and BP are estimated to be responsible for climate-related costs of at least $1 trillion each, a similar value to their profits over the last three decades.
One example is a case filed against RWE, a German electricity producer, by a Peruvian farmer, Saúl Luciano Lliuya. Lliuya claims that the company’s greenhouse gas emissions contribute to the melting of a glacier near his home, which threatens 50,000 residents with flooding. He argues that RWE should partially reimburse him and the local authorities for the costs of flood defenses. The case, which was filed in 2015, is ongoing.
Lliuya said: “Taking on carbon majors in court can be daunting. But the fear of losing your home and everything you’ve worked for due to the reckless actions of fossil fuel companies is even greater. For those of us directly impacted by the climate crisis, the courts offer a glimmer of hope. People like me are in court because our livelihoods are at serious risk, and we are asking judges to hold the fossil fuel companies responsible.”
Misleading Advertising Cases
Oil and gas companies are also under growing pressure for making false claims about climate and the environment. Cases challenging companies’ misleading advertising make up 16% of lawsuits and are a winning legal tactic, with nearly all concluded complaints resulting in decisions against corporations or adverts being withdrawn.
Recently, ClientEarth successfully challenged BP’s ads in the UK for exaggerating its investments in renewable energy, leading BP to withdraw the ads.
Emission Reduction Cases
Emissions reductions cases make up 12% of climate lawsuits. These cases are brought against fossil fuel companies over their failure to set and implement Paris-aligned emissions reductions.
In 2021, a landmark ruling by a Dutch Court ordered Shell to cut its emissions by 45% by 2030, setting a precedent as the first legal mandate for a major fossil fuel company to reduce emissions. Shell has appealed, with a decision expected in autumn 2024.
