CLIMATE DUTY OF CARE: HOW GLOBAL LEGAL TRENDS ARE RAISING THE STAKES FOR BUSINESS

In the past decade, the legal landscape surrounding climate change has undergone a profound transformation. What was once the domain of voluntary corporate social responsibility and aspirational sustainability targets is now rapidly becoming a matter of legal obligation, with courts and international tribunals around the world signalling that both states and businesses must take meaningful action to address climate risk. The emergence of a ‘climate duty of care’ is no longer a theoretical possibility but an evolving and realistic risk, reshaping the expectations placed on commercial actors and raising the stakes for those who fail to adapt.

The shift is being driven by a confluence of landmark decisions and advisory opinions from the international community’s most authoritative legal bodies, including the International Court of Justice (ICJ), the Inter-American Court of Human Rights (IACHR), the International Tribunal for the Law of the Sea (ITLOS), and national courts in jurisdictions such as the Netherlands, Germany, New Zealand and Australia. These developments are not only clarifying the obligations of states but are also having a profound knock-on effect on the private sector, particularly for companies with significant greenhouse gas emissions or those operating in high-risk sectors.

The ICJ: a new era of climate accountability

The most significant recent development is the ICJ’s landmark advisory opinion, delivered in July 2025, which has set a new global benchmark for climate responsibility. While the opinion is technically non-binding, its legal and moral authority is considerable, and its influence is already being felt in domestic and international litigation.

Oct-Dec 2025 issue

Ashurst