Businesses Brace for More Climate Cases After Ruling on Shell Emissions

Businesses Brace for More Climate Cases After Ruling on Shell Emissions

A court decision ordering Royal Dutch Shell PLC to cut its carbon emissions has emboldened litigants in similar cases, including two that could have big implications for Exxon Mobil Corp. and French oil giant Total.

Companies in various industries have already grasped the ruling's potential ripple effects, such as whether they will need to speed up plans to reduce their emissions, lawyers said, and are seeking advice on whether it could apply outside the Netherlands. The ruling could set a precedent, at least in Europe, that individual companies bear a legal responsibility to protect people from climate change.

Shell's defeat comes as oil-and-gas companies face growing scrutiny over their emissions from activists, governments and investors, and adds momentum to other climate-related suits where the legal system or arguments are similar, plaintiffs and legal experts said.