Australia can expect a jump in climate litigation cases next year, Clyde & Co has predicted.  

The law firm made the prediction as the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) look to further crack down on corporate greenwashing.  

“We anticipate that 2024 will bring more litigation and reflective attempts by businesses to mitigate exposure,” Clyde & Co says.  

“This space is moving fast, and we anticipate more and more court action as the climate crises continue to escalate.  

“We expect that the courts may adopt a more progressive approach to interpreting and applying the law in light of societal expectations regarding the climate crisis, establishing precedent advancing the cause of climate justice.”  

ASIC Deputy Chair Sarah Court said last month greenwashing is “simply misleading and deceptive conduct” by another name.  

This year has seen ASIC launched Federal Court actions against Mercer Superannuation, Vanguard Investments and LGSS Super over the businesses’ environmental, social, and governance (ESG) representations.  

“The corporate regulator has taken proactive steps, bringing penalty proceedings in relation to alleged ‘greenwashing’,” Clyde & Co says.  

“Forthcoming judgments on the penalty proceedings will give guidance as to the cost of misleading the public with respect to ESG.”  

Last week the ACCC published eight principles to help businesses ensure any environmental marketing and advertising claims they make about their products or services are clear and accurate, and do not mislead consumers.  

The principles comprise the ACCC’s final guidance on environmental claims, which sets out the competition watchdog’s view of good practice when making environmental claims, as well as making businesses aware of their obligations under the Australian Consumer Law.  

“Misleading environmental and sustainability claims continue to be an enforcement and compliance priority for the ACCC, and we have several active investigations underway,” Acting Chair Catriona Lowe said  

“It is important for businesses to consider whether they are exaggerating the environmental benefits of their product or services and whether they have a reasonable basis to make the claims, otherwise they risk breaching the Australian Consumer Law.”  

Click here for the ACCC final guidance on environmental claims.