Liability risk (climate)
ESG & GovernanceThe risk that companies face legal claims over their contribution to climate change, or over misleading climate disclosures.
Liability risk includes lawsuits seeking damages from large emitters, cases against companies or directors for failing to manage climate risk, and claims over greenwashing. In India, consumer protection rules on environmental claims and SEBI's rules on green debt add to this risk. It is often grouped with transition risk.
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