Most investors believe climate litigation risk to be financially material, although they differ over the timeline of its importance and how it impacts companies, according to a study carried out by researchers from the London School of Economics and University of Zurich.
Out of the 811 investment professionals surveyed, nearly 80% said it is either moderately important or very important for assessing climate-related risk exposure.
In addition, 41% said climate litigation is already financially relevant, whilst 30% said it will become relevant over the next five years, and a further 17% anticipate these risks to become material over the next decade.