Climate change poses threat of liability claims

Scientific evidence of the causes of global warming may reach a point of sophistication that supports allegations of liability for individuals, entities, industries and nations responsible for emissions of Green House Gases (GHG), Aon warns.
In its report, Will Insurers be Burned by the Climate Change Phenomenon? Peter C. Breitstone, CEO of Aon Environmental Services Group, cautions of the risk of liability claims for corporations and directors and officers linked to an increase in GHG.
If global warming claims were treated like asbestos claims, the liability would be retroactive, strict, joint and several, Breitstone wrote.
A recent U.S. Supreme Court ruling has found that greenhouse gases are air pollutants that are subject to regulation by the Environmental Protection Agency, Breitstone wrote.
This case is expected to have broad implications with respect to the future liability of emitters for the impact of the cumulative effect of greenhouse gases in the atmosphere.
In addition to the direct liability of corporations, executives who fail to implement sustainability measures may also face liability, the Aon report said.
There have also been a record number of resolutions introduced by shareholders asking corporations to enact policies that provide protection to the environment, Breitstone wrote.
In corporations where officers and directors continue to ignore these calls for responsibility, these individuals are opening themselves and their companies to future liability.
The last area of liability outlined in the report related to global warming involves the permanent loss of ecological assets as a result of irreversible changes caused by climate change.
Examples of this form of liability may include ski resorts bringing claims against power generators because there is no longer enough snow to operate on a normal schedule or fishermen filing claims against industrialized nations because species they harvested are no longer present due to warmer ocean temperatures, the report said.