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Prediction: Landmark decision in Italian climate change litigation will impact insurance

Environment
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In a landmark decision in the Italian courts between Greenpeace and others and ENI and others, the Joint Sections of the Court of Cassation provided critical guidance including for the insurance sector. Claims in the context of climate change litigation fall within the scope of tort liability. Liability may extend not only to the legal entity directly involved in climate-harmful conduct, but also to its shareholders, and ultimately, to the State. The order also outlines the potential for a new category of liability borne by corporate executives of legal persons engaged in practices with a potential negative impact on the climate. This decision has the potential to impact claims falling under liability policies and D&O cover. Policy wordings will need to take into account such risks and, if necessary, provide for specific sub-limits and/or exclusions.

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