1. Causes of Action

6. HURDLES AND CHALLENGES

In Australia, Brazil, Nigeria, Kenya, India, and Japan, directors' liability for climate risks is evolving but may encounter challenges in enforcement due to a lack of clarity on enforcement mechanisms or direct applicability. As for Canada, the lack of standardised regulations for climate-related disclosures hinders cases being the progress of climate litigation. For example, the proposed regulations like National Instrument 51-107, being on hold until international standards are established, indicate a challenge in streamlining climate-related disclosures. In France and Italy, claims rely on torts and general civil code provisions, respectively, that may limit the legal tools available for addressing specific climate-related grievances. In Germany, the lack of an external director's liability and strict limitations on direct shareholder actions against the board reflect challenges in addressing climate concerns using company laws. In the case of Poland and Norway, their respective legislation is derived from regional EU directives; however, the lack of clarity on its direct application in the climate litigation context seems to be a challenge. In the United Kingdom, the lack of specific cases suggests hurdles in translating legal frameworks into practical litigation. The US faces jurisdictional challenges as well as admissibility challenges, as seen in the third wave of climate cases.

In the case of China, environmental or climate-related cases often relate to breach of contract or fraud rather than company or financial laws. India and Japan have not seen climate or environmental claims based on company or financial laws due to the lack of domestic legislation requiring clearer climate action. In Kenya, company and financial frameworks integrate climate considerations, but they are not made mandatory and are guidelines. This has made the enforcement of obligations of corporations and the potential liability of directors and shareholders remain uncertain. These examples highlight the complexities and uncertainties in utilising company and financial laws to address environmental and climate change issues in various countries.