Law Commons^™

Modelling Climate Litigation Risk For (Re)Insurers, Martin Lockman

Sabin Center for Climate Change Law

In response to the growing threat of climate change, the insurance industry has made significant investments in modelling and quantifying physical climate risks. However, the emerging risk of climate litigation has proven particularly difficult to model. In 2015 Mark Carney, then-Governor of the Bank of England and Chairman of the Financial Stability Board, warned that climate litigation poses “long-tail risks” for insurers that may be “significant, uncertain and non-linear.” Since that warning, the number of climate-related cases has more than doubled, and the scope and financial significance of climate litigation has become increasingly clear. However, insurers and regulators still struggle …

Moving At A Glacial Pace: What Can State Attorneys General Do About Sec Inattention To Nondisclosure Of Financially Material Risks Arising From Climate Change?, Nina Hart

Sabin Center for Climate Change Law

In recent years, two certainties have created a mass of uncertainty for public companies. First, companies must disclose material financial information in their annual statements, known as 10-Ks, to the SEC. Second, climate change poses financial risks to the way businesses operate. Together, these principles have generated significant uncertainty within the regulatory and law enforcement arenas. Specifically, companies and law enforcement officials are uncertain about what risks stemming from climate change must be disclosed in 10-Ks, and how that information should be presented.

The actor primarily responsible for clarifying disclosure requirements is the Securities & Exchange Commission (SEC). This Note …