This website uses cookies. By using this website, you agree to our Cookie Policy.
Study Assesses Cost of Climate Litigation on Shareholder Value
May 30, 2023A working paper from the London School of Economics and Political Science that looked at over 100 climate-related lawsuits between 2005 and 2021 found that the filing of a climate-based litigation claim or corresponding unfavorable court decision reduced the market capitalization of the defendant company by about 0.41%, on average.
Broken out by incident, the study found that the mere filing of a climate-related lawsuit could decrease a company’s market valuation by 0.35%, while an actual court decision finding liability on the company reduced the defendant company’s market capitalization by 0.99%.
