Lessons for business
The ECHR ruling has put governments on notice to deliver on their climate promises. It has already become clear in recent months that some European governments are stepping back from green policies prior to general elections in which such issues have become politically incendiary amidst an anti-green â or anti-ESG â backlash.
There are equally stark lessons for businesses, which could increasingly become targets of citizen legal action if they do not move fast enough to meet their environmental obligations. Indeed, in a practice known as âgreenhushingâ, there is evidence that some organizations are already promising less or at least becoming less vocal when it comes to their sustainability strategies and actions.
According to a 2023/2024 report by climate consultancy South Pole, the majority of surveyed companies – nine of the 14 major sectors – are actively decreasing their climate communications. This seems likely to happen more as companies seek to avoid litigation regarding overly optimistic promises they made in the heyday of sustainability reporting.
As people wake up to the urgency of slowing climate change, there is a growing sense that sustainability is getting real and that organizations need to tread carefully and consider whether they can deliver what they say they will.
An interesting aspect of this watershed case is that it could only succeed in a country where the government had already set very clear expectations regarding the rights its citizens could expect to enjoy. Although it involved taking a government to court, it was not a party-political act but a challenge regarding how a country protects the health and welfare of its citizens.
Many government and business leaders today acknowledge that climate change is an important challenge facing society. But awareness is not enough. Looking ahead, Switzerland has committed to reducing its greenhouse gas emissions by at least 50% by 2030, compared to 1990, and to net zero by 2050. Similar targets have been set by countries worldwide. If future targets are missed, it is likely that the example set by the KlimaSeniorinnen will empower citizens to be more confident in taking legal action for change.