YOUR
Search

    23.07.2025

    Italian Supreme Court Opens the Door to Climate Litigation Against Corporates


    Main takeaway:
    For the first time, Italy’s Supreme Court of Cassation (Suprema Corte di Cassazione, Sezioni Unite Civili, Ordinanza n. 71/2025 (RG 13085/2024), 21 July 2025) has ruled that domestic civil courts can hear climate-related tort claims against a private energy major (ENI) and its public shareholders (the Ministry of Economy & Finance and Cassa Depositi e Prestiti). The decision sweeps aside “political question” objections and positions climate harms as justiciable violations of fundamental rights, signalling a new era of corporate climate liability in Italy and, potentially, across the EU.

     

    What the Sezioni Unite decided

    Issue Examined

    Court’s ruling

    Practical meaning

     
    Justiciability

    Climate claims are not “political questions”; courts may assess whether private conduct breaches rights to life, health and private/family life under Art. 8 ECHR and the Italian Constitution.

     

    Judges can scrutinise corporate climate strategies, even if they involve high-level policy choices. 
    Jurisdiction

    Italian civil courts have jurisdiction because (i) ENI is domiciled in Italy and (ii) the alleged climate damages materialise where the plaintiffs reside (Italy), satisfying Art. 7(2) Brussels I bis.

     

    Claimants need not sue in every country where emissions occur; a single forum is enough. 
    Corporate liability

    The parent company may be liable for group-wide emissions if its overall strategy drives the harm; parent–subsidiary separateness does not shield ENI.

     

    Parent companies must police climate impacts throughout their value chains. 
    Role of public shareholders

    MEF and CDP, as controlling shareholders, can be sued for failing to use their influence to align the company with the Paris goals.

     

    Large state or sovereign investors may face direct litigation risk for passive stewardship. 
        
        

     

    Why this matters

    1. Precedent for strategic litigation – The ruling is Italy’s first high-level endorsement of climate tort claims against a fossil-fuel producer, echoing landmark cases like Urgenda(NL) and Milieudefensie v. Shell (NL), but within a civil-law jurisdiction.
    2. Expands the net of liability – By recognising claims against shareholders, the Court broadens potential defendants to include investors with controlling stakes, strengthening the hand of activists and minority shareholders alike.
    3. Aligns with EU sustainability agenda – The reasoning dovetails with the forthcoming Corporate Sustainability Due Diligence Directive (CS3D) and the revised EU Emissions Trading Scheme, adding judicial pressure to legislative and market forces.
    4. Heightens directors’ duties – Executives now face clearer litigation exposure if corporate transition plans fall short of the best available climate science, raising the bar for disclosure and risk management.

     

    Action points for boards, banks, and investors

    • Stress-test transition plans against a 1.5 °C pathway; ensure emission-reduction targets are credible, time-bound and science-aligned.
    • Map group-wide exposure — include subsidiaries and joint ventures — and embed climate clauses in intragroup governance documents.
    • Document stewardship by significant shareholders (not only state entities) to demonstrate active oversight of portfolio companies’ climate performance.
    • Update litigation risk registers to reflect potential tort claims under ECHR-based arguments, not just statutory environmental breaches.
    • Banks and investors to assess direct and indirect liability from financing hard-to-abate and carbon-intensive sectors and to include related risk in PD, LGD and EV/NPV considerations.

     

    Looking ahead

    The case now returns to the Rome Civil Court for a merits trial that could impose operational emissions caps on ENI or mandate shareholder-driven policy shifts. Regardless of the outcome, the Supreme Court has already reshaped Italy’s climate-litigation landscape: corporations can no longer rely on jurisdictional or political-question defences to sidestep ambitious climate suits. Expect a surge in filings targeting high-emitters (including companies active in hard-to-abate and carbon-intensive sectors), shareholders and potentially lenders, heightened investor engagement, and closer integration between EU regulatory reforms and domestic judicial enforcement.

    ADVANT Nctm invests in homegrown talent, promoting Marco Cosa and Francesco Mazzocchi to Partner
    ADVANT Nctm is pleased to announce the promotion of Marco Cosa and Francesco…
    Read more
    EU Inc proposals will simplify European business creation and accelerate growth – but complexity remains
    European Business Magazine Marie Hindré, Partner at ADVANT AltanaMarkus P.…
    Read more
    ESG and ‘Self-Declared’ Environmental Labels: what happens in Italy after 27 September 2026
    Legislative Decree 30/2026 radically changes the rules for self-declared…
    Read more
    TRANSACTIONAL RISK INSURANCE IN ENERGY AND INFRASTRUCTURE M&A TRANSACTIONS
    Among the contractual risk-allocation tools typically used in M&A transactions,…
    Read more
    Packaging and packaging waste regulation ("PPWR"): new obligations for businesses
    Regulation (EU) 2025/40 (the so-called “PPWR”) introduces new obligations for…
    Read more
    Italy implements new EU Greenwashing Rules: Legislative Decree 30/2026 Redefines the Boundaries of Environmental Commercial Practices
    In a market where sustainability and environmental awareness are increasingly…
    Read more
    Decree-law 19/2026: new provisions on remediation and unhealthy industries
    Introduction Decree-Law No. 19 of 19 February 2026, titled “Further urgent…
    Read more
    Antonio Corda joins ADVANT Nctm as Of Counsel
    Antonio Corda today joins ADVANT Nctm as Of Counsel in the Corporate and…
    Read more
    [Translate to English:]
    Migrant Child - Some private law reflections on the "removal" of street artworks
    The case of The Migrant Child, attributed to Banksy and created in 2019 on the…
    Read more