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Menopausal Mother Nature

News about Climate Change and our Planet


Youth plaintiffs get another shot to bring climate change lawsuit

Summary 9th Circ. had said courts can’t mandate broad policy changes Judge said declaratory relief is enough (Reuters) – An Oregon federal judge on Thursday revived a lawsuit filed by 21 young Americans aiming to hold the U.S. government accountable…

Eco-Activist Reveals The Players Behind Those Frivolous Lawsuits Targeting Energy Companies

In the wake of the Supreme Court’s recent ruling on state climate litigation, longtime environmental activist Bill McKibben [pictured] provided a helpful reminder about who is really driving frivolous cases against energy companies in state courts across the country. McKibben’s…

Arnold Schwarzenegger: ‘No one gives a s— about’ climate change — this is what it should be called instead

Austrian-US actor, filmmaker, politician and activist Arnold Schwarzenegger gives a speech during the opening ceremony of the R20 Regions of Climate Action Austrian World Summit in Vienna, Austria, on May 28, 2019. Georg Hochmuth | Afp | Getty Images Arnold…

James Hansen Warns of a Short-Term Climate Shock Bringing 2 Degrees of Warming by 2050 – Inside Climate News

A team of scientists led by former NASA climate researcher James Hansen, who formally raised the alarm about climate change to U.S. government leaders in his 1988 testimony to Congress, is working on a new study that warns of a…


Climate lawsuits against major polluters linked with fall in their stock prices: Study

Big emitters hurt the most by new cases and unfavourable verdicts in climate litigation

The civil society holding polluting companies accountable for causing climate change has not only helped grant climate justice but also changed how investors perceive these companies. A new working paper is the first to quantify this impact. 

The analysis found that company share prices dropped in the days following a fresh climate lawsuit or a negative court verdict, news organisation The Guardian reported.

The report was based on a working paper by the The Centre for Climate Change Economics and Policy and the Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science. 

The researchers looked at how the market reacted to 108 lawsuit filings and verdicts against 98 companies listed in the United States and Europe from 2005 and 2021.

They found that “climate litigation filings or unfavourable court decisions reduced firm value by -0.41 per cent on average”.

Companies that emit the most, termed ‘Carbon Majors’ in the study, were affected the most, the findings showed. Their value dropped by -0.57 per cent following a new lawsuit against them and by -1.50 per cent after an unfavourable judgement. These companies include those operating in energy, utilities and materials sectors. 

They also identified another major factor that hurt market sentiments the most: New cases including “a new form of legal argument or in a jurisdiction that has not previously seen a case”.

A similar trend was not seen for cases that are not Carbon Majors, the authors wrote. 

Over a three-day window from the day before, or and after the filing, new cases led to an abnormal decrease in share prices by -0.35 per cent, the report noted.

During the study period, the number of climate litigation in a year grew to over 200 from 10. The first case of climate ligitation against a corporation was in 1995. Though the initial cases were unsuccessful, they garnered the necessary attention to historical emissions and climate injustice. 

A couple of such cases mentioned by the authors are: Comer vs Murphy Oil (2005), where residents and property owners from the Mississippi Gulf Coast sought damages related to Hurricane Katrina and Kivalina vs Exxon (2008) where coastal Alaskan residents facing the threat of a rising sea level filed a case seeking financial damages for the potential relocation. 

In the second decade of the millennium, climate litigation picked pace, driven by an explosive analysis of carbon emissions by 90 fossil fuel and cement producers by Richard Heede published in 2014 as well as the Paris Agreement the following year. 

A growing number of verdicts against the polluting companies also encouraged the civil society to become more litigious in their fight against climate change. “For example in 2017, in Lliuya vs RWE, a German appeals court deemed as admissible a Peruvian farmer’s claim that higher water levels near his farm were caused by carbon emissions from RWE,” the analysts wrote. 

The verdict against Royal Dutch Shell mandating the company to nearly halve its carbon emissions by 2030 also inspired the public, according to the authors of the report. 

“We find consistently larger and statistically significant effects after 2019, of all filings (-0.34 per cent), filings against Carbon Majors (-0.55 per cent) and negative decisions (-1.55 per cent), suggesting capital markets are increasingly responding to climate litigation,” they added. 

The cost of such cases, especially for the large emitters, is much more than the average cost of defending a major litigation case, the authors found. “The average economic cost of a negative decision is $360 million,” they observed.

This can lead to lower cash flows and reputational risks, thereby hurting the overall market value of the companies, they added. 

The researchers hope their research will induce lenders, financial regulators and governments to consider climate litigation risk as a relevant financial risk in the current scenario. 

Voices against environmental degradation by coporates is growing louder by the day. Just this week, the annual general meeting of Shell held in London was disrupted by climate activists. 

Amid growing environmental consciousness and public concern about their future in a warming world, the researchers believe falling stock prices due to climate litigation will shape corportate behavious for the better. 

Heat-Related Prison Deaths Are Rising Due to Climate Change

The best time to visit a prisoner in Texas is early morning, when the crowds are thin and the lines are short. During the summer months psychologist Amite Dominick aims for mid-afternoon, not because it’s better for her schedule—it’s not—but…

Big polluters’ share prices fall after climate lawsuits, study finds

Climate litigation poses a financial risk to fossil fuel companies because it lowers the share price of big polluters, research has found. A study to be published on Tuesday by LSE’s Grantham Research Institute examines how the stock market reacts…

Judge presiding over Big Oil climate change lawsuit reveals connection to plaintiff’s eco lawyers

The Hawaii state judge presiding over a high-stakes climate change case between the City of Honolulu and several multinational oil corporations is facing calls for recusal over his indirect relationship to plaintiffs. Mark Recktenwald, the chief justice of the Hawaii…

The challenges and promises of climate lawsuits

Enlarge / Shareholders of the Swiss National Bank (SNB), join a demonstration against the central bank’s investments in the East African Crude Oil Pipeline (EACOP), ahead of the annual general meeting in Bern, Switzerland, on Friday, April 28, 2023. Bloomberg…

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