Climate Litigation Report 2025

The United Nations Environment Programme recently released its Climate Litigation Report 2025, the fourth in its series following earlier reports in 2017, 2020, and 2023. The report highlights the rapid growth of climate-related litigation in recent years and identifies several interesting trends, including an increase in climate litigation, a growing focus on consumer and investor protection in areas such as ESG (Environmental, Social, Governance) investing and greenwashing, and an increase in litigation targeting financial institutions and other indirect participants in the fossil fuel industry. Canada ranks among the top ten countries with the highest prevalence of climate litigation[1], underscoring the importance for Canadian businesses and investors to understand the potential implications.

Since the last edition of the Climate Litigation Report, the number of climate-related cases has risen. Over 60% still originate in the United States, but filings in Latin America and Europe are growing[2]. Many high profile cases have also been decided since the last edition of the report. In Held, et al v State of Montana, et al, for example, 16 youth sued the state of Montana alleging that the state had violated their constitutional right to a clean and healthful environment. The Montana District Court found in favour of the plaintiffs in 2023, and the decision was upheld on appeal to the Montana Supreme Court in 2024[3]. For more information about the Held litigation, please see our series of articles: Part I, Part II, Part III, Part IV, and Part V.

Despite success in cases such as Held, the report also emphasizes the procedural hurdles that climate litigants continue to face, such as the lack of standing of the plaintiff to bring the cause of action. In Lliuya v RWE AG, for example, the court found that the threat posed to the plaintiff’s property by melting glaciers was not sufficiently concrete or imminent to justify judicial relief[4].

Several recent decisions have addressed allegations of greenwashing—marketing that misleads the public about the environmental impacts of a product or service. For example, in ASA Ruling on BMW (UK) Ltd., the United Kingdom’s Advertising Standards Authority held that advertising promising “zero emissions” from BMW electric vehicles was misleading due to the omission of material information, including data about emissions from energy generation and vehicle manufacturing[5]. Consumer protection claims have also been used to challenge corporate climate policies that had negative consequences for investors and pension plan participants. In Spence v American Airlines, for instance, a U.S. court found that American Airlines breached its fiduciary duties to pension plan participants by allowing its ESG objectives to influence the management of employee retirement funds[6]. However, as our articles on the topic explain ( Part I and Part II) 2024 amendments to the Canadian Competition Act, including a private right of action that came into effect in June 2025, give rise to significant potential risks to Canadian industry associated with greenwashing claims, which amendments have already led some Canadian companies to change some of their practices.

Finally, the report also notes an increase in claims seeking to hold indirect participants in the fossil fuel industry accountable. Several pending lawsuits allege that directors and officers breached their fiduciary duties by failing to consider or mitigate long-term climate-related risks. In one Polish case, energy company Enea has commenced proceedings against former board members and their insurers, alleging that the directors ignored climate-related risks such as rising carbon prices, tightening EU policy, and declining financing prospects when approving a coal power plant project that was later abandoned mid-construction. While the outcome remains pending, the case raises significant questions for directors, officers, and insurers regarding potential liability for climate-related decision-making[7].

Overall, the Climate Litigation Report 2025 reflects a global landscape where climate-related claims are expanding in scope, sophistication, and targets. For Canadian companies, directors, and investors, these developments signal the growing legal and financial risks associated with climate disclosures, ESG oversight, and consideration of long-term climate impacts.

For more information on climate change issues, including litigation and greenwashing, please contact Stuart Chambers, Joelle French, Aaron Mann, Anais Kneppers, or any member of our Environmental & Energy Law Practice Group.