Climate liability risk

Climate change - liability risks.

Climate liability risks, as identified and defined by the Bank of England, come from people or businesses seeking compensation for losses they may have suffered from the physical or transition risks from climate change.

Examples - liability risks

"Suppose investors back a business which goes on to make a loss due to climate-related events. There may then be a question as to whether the business had provided enough information about its exposure to these climate-related financial risks. If investors felt this information had not been provided, they might make a claim against the business.

Liability cases could also include people who have suffered from physical events, such as flooding, making claims against polluting companies who they argue are, at least in part, responsible."

Bank of England - Climate change - What are the risks to financial stability?

See also

• Climate change
• Climate Financial Risk Forum
• Climate physical risk
• Climate risk
• Climate transition risk
• IFRS Foundation
• Liability
• Transition risk

Other resource

• Climate change - What are the risks to financial stability? Bank of England