As the United States economy evolves toward sustainability, I am convinced that climate change litigation will be a concern for businesses and risk managers.
Below I have listed a few examples of potential liability exposures facing insureds:
Directors & Officers face considerable exposure from stockholders and outsiders who believe company leadership have not taken sufficient measures to reduce the company's carbon footprint.
Architects & Engineers that design green buildings could be sued if the building they designed does not sufficiently reduce carbon emissions.
Contractors that construct green buildings could also be sued if the constructed building does not sufficiently reduce carbon emissions as projected.
Technology Firms hired to design energy efficient computer systems could be sued if the system is not as energy efficient as their client was lead to believe.
Insurance Agents could face errors and omissions claims if policyholders do not have proper coverage related to green liability claims.
It is in the best interest of all businesses to evaluate their exposure to potential liability claims associated with sustainability.