First climate lawsuit against private company launched in Germany

Following on from reports in September 2021 that environmental NGO Deutsche Umwelthilfe (DUH) and Greenpeace had written a letter to several recipients including Mercedes-Benz and BMW threatening legal action, it has now been confirmed that DUH filed a lawsuit against BMW and Mercedes-Benz in the German courts on 21st September.

The case looks to attempt to build on the recent decision on emissions reduction targets from the German Federal Constitutional Court, with the suit citing both the German Climate Protection Act and the Paris Agreement in its argument that the rights of future generations are being violated by failure to commit to tighter carbon emission targets.

Amongst other demands, the suit is seeking that the car manufacturers cease all sales of petrol/diesel and hybrid cars beyond 31st October 2030 or commit to providing carbon neutrality for all their sales beyond that point.

This represents the first case of its kind in Germany where climate legislation has been used against private companies. This is a phenomenon which has seen significant growth in recent years, particularly in the US and has now made its way to Europe, with Germany and the Netherlands being particular hotbeds for climate related litigation.

This latest development highlights the growing risk ESG and climate policies pose to D&O insurers and their client companies.