{"id":78737,"date":"2025-06-12T07:00:00","date_gmt":"2025-06-12T06:00:00","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=78737"},"modified":"2025-06-11T17:22:03","modified_gmt":"2025-06-11T16:22:03","slug":"banks-and-climate-litigation-risk-navigating-the-low-carbon-transition","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/","title":{"rendered":"Banks and climate litigation risk: navigating the low-carbon transition"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>Climate-related litigation trends pose material financial risks to banks. In addition, credit institutions need to manage risks related to the rapidly evolving landscape of climate litigation against corporate clients. How banks identify, manage and mitigate these novel legal risks is of strong relevance from the perspective of prudential policy and the effectiveness of transition policies more broadly.<\/p>\n\n\n\n<p>To respond to this challenge, this report from the Centre for Economic Transition Expertise (CETEx) and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks. It explains how insights from bank current practice, such as gaps in their legal risk management approaches, should be addressed with targeted prudential policy interventions.<\/p>\n\n\n\n<p><strong><em><a class=\"link link--external\" rel=\"noopener\" href=\"https:\/\/cetex.org\/publications\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/\" aria-describedby=\"link-description-new-window\" target=\"_blank\" title=\"\">External link to publication&#65279;<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 16 16\" role=\"img\" aria-hidden=\"true\"><path d=\"M14.42 1.04L3.2.7a.8.8 0 00-.8.76v.1a.8.8 0 00.76.7l9.39.3L.93 14.16c-.3.3-.3.8 0 1.1l.09.08c.3.23.73.2 1.01-.07L13.65 3.65l.29 9.4a.8.8 0 00.8.76.79.79 0 00.77-.8L15.17 1.8a.82.82 0 00-.75-.76z\" fill=\"#2e3152\"><\/path><\/svg><\/a><\/em><\/strong><\/p>\n\n\n\n<p><\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.<\/p>\n\n","protected":false},"author":23,"featured_media":78739,"template":"","tags":[1789,1142,1079,581,2243,1675,4491],"publication-type":[1682],"topic_area":[4695,4711,4712],"class_list":["post-78737","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-banks","tag-court-case","tag-esg","tag-litigation","tag-prudential-policy","tag-risk-management","tag-transition-plans","publication-type-policy-publications","topic_area-climate-change-laws-and-litigation","topic_area-banking-and-private-investors","topic_area-central-banks-and-other-financial-institutions"],"acf":{"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["agnieszka-smolenska","tiffanie-chan","ira-poensgen","catherine-higham"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"description\" content=\"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/\" \/>\n<meta property=\"og:site_name\" content=\"Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/\",\"name\":\"Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/joshua-woods-hUREQwNYiZQ-unsplash.jpg\",\"datePublished\":\"2025-06-12T06:00:00+00:00\",\"description\":\"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/joshua-woods-hUREQwNYiZQ-unsplash.jpg\",\"contentUrl\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/joshua-woods-hUREQwNYiZQ-unsplash.jpg\",\"width\":640,\"height\":480,\"caption\":\"Photo: Joshua Woods, Unsplash\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/?post_type=publication\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Policy publication\",\"item\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/?publication-type=policy-publications\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Banks and climate litigation risk: navigating the low-carbon transition\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/#website\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/\",\"name\":\"Grantham Research Institute on climate change and the environment\",\"description\":\"The Grantham Research Institute at LSE carries out world-class research on climate change and the environment.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment","description":"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/","og_locale":"en_GB","og_type":"article","og_title":"Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment","og_description":"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.","og_url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/","og_site_name":"Grantham Research Institute on climate change and the environment","og_image":[{"width":640,"height":480,"url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Estimated reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/","name":"Banks and climate litigation risk: navigating the low-carbon transition - Grantham Research Institute on climate change and the environment","isPartOf":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/#primaryimage"},"image":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/#primaryimage"},"thumbnailUrl":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg","datePublished":"2025-06-12T06:00:00+00:00","description":"This report from CETEx and the Grantham Research Institute investigates how credit institutions engage with climate- and environment-related legal risks and explains how insights from bank current practice should be addressed with targeted prudential policy interventions.","breadcrumb":{"@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/#primaryimage","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg","contentUrl":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg","width":640,"height":480,"caption":"Photo: Joshua Woods, Unsplash"},{"@type":"BreadcrumbList","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/banks-and-climate-litigation-risk-navigating-the-low-carbon-transition\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/"},{"@type":"ListItem","position":2,"name":"Publications","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication"},{"@type":"ListItem","position":3,"name":"Policy publication","item":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?publication-type=policy-publications"},{"@type":"ListItem","position":4,"name":"Banks and climate litigation risk: navigating the low-carbon transition"}]},{"@type":"WebSite","@id":"https:\/\/www.lse.ac.uk\/granthaminstitute\/#website","url":"https:\/\/www.lse.ac.uk\/granthaminstitute\/","name":"Grantham Research Institute on climate change and the environment","description":"The Grantham Research Institute at LSE carries out world-class research on climate change and the environment.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"}]}},"taxonomies":{"post_tag":["banks","court case","ESG","litigation","Prudential policy","risk management","transition plans"],"publication-type":["Policy publication"],"topic_area":["Climate change laws and litigation","Banking and private investors","Central banks and other financial institutions"]},"featured_image_src":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2025\/06\/joshua-woods-hUREQwNYiZQ-unsplash.jpg","_links":{"self":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/78737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication"}],"about":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/types\/publication"}],"author":[{"embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/users\/23"}],"version-history":[{"count":3,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/78737\/revisions"}],"predecessor-version":[{"id":78741,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication\/78737\/revisions\/78741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/media\/78739"}],"wp:attachment":[{"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/media?parent=78737"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/tags?post=78737"},{"taxonomy":"publication-type","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/publication-type?post=78737"},{"taxonomy":"topic_area","embeddable":true,"href":"https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-json\/wp\/v2\/topic_area?post=78737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}