{"id":85638,"date":"2026-04-20T10:57:22","date_gmt":"2026-04-20T09:57:22","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=85638"},"modified":"2026-04-20T10:57:23","modified_gmt":"2026-04-20T09:57:23","slug":"climate-litigation-as-a-financial-risk-evidence-from-a-global-survey-of-equity-investors","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/climate-litigation-as-a-financial-risk-evidence-from-a-global-survey-of-equity-investors\/","title":{"rendered":"Climate litigation as a financial risk: evidence from a global survey of equity investors"},"content":{"rendered":"\n

Climate change litigation<\/a> against governments and companies has increased sharply in recent years. Strategic climate litigation targeting companies aims to influence the behaviour not only of the individual firm, but also of its investors and other financial market actors.<\/p>\n\n\n\n

Legal scholars and experts have argued that climate litigation can impose material financial costs on companies, even when it does not lead to large direct penalties, for example, through reputational damage, operational disruption, financing conditions and changes in investor expectations.<\/p>\n\n\n\n

Yet despite this, little is known about how investors perceive and process climate litigation risks. In this paper, the authors address this evidence gap, providing the first systematic evidence on how investors perceive climate litigation as a financial risk.<\/p>\n\n\n\n

Drawing on a global survey of 811 institutional equity investors and analysts, the authors find most investors view climate litigation as a material financial risk. However, investors differ on when they believe it becomes relevant and how it affects companies.<\/p>\n\n\n\n

Key points for decision-makers<\/strong><\/p>\n\n\n\n