By Jordan Lee
New York, NY – September 18, 2025
General counsels face new pressures. Climate change is the main cause. It brings a web of risks. These risks are complex and growing. GCs must handle them now. Laws are changing fast. Companies need to adapt. Or they face big problems.
GCs are top lawyers in companies. They give legal advice. They manage risks. Climate change adds layers. It affects business every day. Extreme weather hurts supply chains. New rules demand reports on emissions. Litigation is rising too. Shareholders sue over green claims.
One big risk is disclosure rules. The SEC pushed climate rules in 2024. They require reports on risks. Like floods or heat waves. But courts blocked them. On March 27, 2025, the SEC stopped defending the rule. Now, states like California step in. Their laws demand similar info. GCs must check what applies. Wrong reports can lead to fines. Or lawsuits.
ESG is key here. ESG means environmental, social, and governance. PwC says GCs guide on this. They handle EU rules too. Like the Corporate Sustainability Reporting Directive. It covers emissions and risks. Companies must report Scope 1, 2, and 3 emissions. Scope 3 is from suppliers. It is hard to track. GCs work with teams to collect data. They avoid greenwashing claims. That is false eco-friendly ads.
Litigation is exploding. The UNEP report shows 2,180 cases by 2022. Many more now. Cases span 65 countries. They target governments and firms. In the US, cities sue oil companies. They blame them for climate costs. Like in New York superfund laws. These hold fossil firms liable. Europe has big wins too. A Dutch court ordered Shell to cut emissions 45% by 2030. It rejected their defenses.
GCs see physical risks. Storms damage assets. Droughts hit farms. Insurance costs rise. Latham & Watkins helps clients. They set reduction targets. They do scenario analysis. What if warming hits 2 degrees? Plans must cover that. Transition risks are next. Shifting to green energy. New taxes on carbon. Or lost fossil fuel value.
A CLE course from Lawline warns of enforcement. Agencies target ESG now. Like environmental justice probes. GCs build compliance plans. They train staff. Risk management is vital. Voluntary reports can backfire. If data is wrong, suits follow.
Experts say GCs lead change. At Oxford’s Smith School, courses teach this. Law evolves with science. Geopolitics adds tension. Trade wars over green tech. GCs advise on lobbying. They push for clear rules.
Take ClientEarth’s case. In 2023, they sued Shell’s board. They said directors ignored risks. It endangers the firm. Such suits grow. Boards face blame. GCs draft policies. They ensure fiduciary duty includes climate.
In the EU, the Omnibus proposal tightens screws. It bans green claims without proof. GCs review ads. They audit suppliers. In the US, Treasury’s Climate Hub watches finance. Banks must assess risks. Loans to polluters get scrutiny.
Companies like Exxon face heat. CEOs testified in 2021. Lawmakers asked about misleading info. GCs prepare for such probes. They manage PR too.
What can GCs do? Build teams. Hire climate experts. Use tools like Sabin Center databases. Track cases worldwide. Partner with firms like Holland & Knight. They handle NEPA reviews. That is for federal projects. Climate impact must be in plans.
Diversity matters. Women and youth lead suits. Indigenous groups too. GCs engage them. Avoid new fights.
The web is tangled. Regulations overlap. Litigation crosses borders. Physical hits mix with policy. GCs must map it. They turn risks to chances. Green bonds raise funds. Sustainable supply chains win clients.
A PwC leader said, “Climate impacts strategy. GCs safeguard value.” They model risks. Plan for worst cases.
Firms adapt. Cleary Gottlieb notes corporate risks. Vedanta case showed parent duties. For ESG oversight.
This is urgent. IIGCC says litigation shapes finance. Investors pull from high-risk firms. GCs influence boards. Push net zero goals.
In 2025, cases rose. From 1,550 in 2020 to more now. Human rights link in. Right to clean air. Courts use it.
GCs train on this. Winston & Strawn courses cover it. They prep for mandatory reports.
The fight goes on. Climate change waits for no one. GCs lead the charge. They protect firms. They shape the future.
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One challenge for general counsel to overcome is a perception within organizations that extreme weather is random, undermining the value of planning.