African companies are confronting a new kind of business risk that no longer stems from competition or market cycles, but from the courts. Climate litigation is moving steadily from the Global North into African jurisdictions, reshaping the way firms assess liability, investment, and corporate responsibility.
A wave gathering pace
Although Africa accounts for less than 4 percent of global emissions, it is among the most climate-vulnerable regions. That vulnerability is now translating into courtroom action. According to a 2024 review by White & Case, only around ten formal climate-related cases have been filed across the continent to date, but the number is expected to rise as activists and communities pursue justice for environmental harm (White & Case, Climate Change Litigation in Africa: Current Status and Future Developments, 2024).
A 2025 paper published through the Social Science Research Network (SSRN) concluded that Africa is “poised for a new wave of climate-change disputes” involving both state and non-state actors. The authors warned that courts are increasingly being asked to “link climate inaction to violations of constitutional and human rights,” including the right to a clean and healthy environment (SSRN, Africa’s Potential for Climate-Change Litigation, 2025).
These trends mirror developments in Europe, where Dutch courts held Shell responsible for reducing its emissions, and in Asia, where the Philippines’ Commission on Human Rights recognised the duty of fossil fuel companies to prevent harm. The pattern suggests that legal activism in Africa could accelerate as awareness of climate impacts grows.
Why it matters for business
Litigation risk is emerging as a material concern for African firms. The Sabin Center for Climate Change Law at Columbia University recorded more than 230 new climate-related cases worldwide in 2024, over one-quarter of them targeting private companies. For African subsidiaries of multinational corporations, the spread of disclosure and sustainability reporting obligations—such as the EU’s Corporate Sustainability Reporting Directive—may expose them to cross-border liability.
“The focus is shifting from governments to companies, directors and financiers,” said Ikenna Emehelu, a partner at White & Case who advises on energy and infrastructure. Speaking to his firm’s Africa practice group in May 2024, Emehelu noted that “boards must now treat climate litigation as part of their fiduciary and disclosure duties.”
In South Africa, the shift is already visible. In 2022, a coalition led by the African Climate Alliance successfully challenged the government’s plan to add 1,500 megawatts of new coal power. The High Court ruled that the proposal violated constitutional rights to life and a healthy environment, setting a precedent for integrating climate considerations into energy policy (Norton Rose Fulbright, Climate Change Litigation Update, July 2025).
These cases have immediate financial implications. Investors and insurers are factoring potential climate liabilities into valuations and underwriting decisions. A 2024 report by Allianz Global Investors described climate litigation as a “rapidly evolving source of transition risk,” advising fund managers to stress-test portfolios for exposure to high-carbon assets.
Sectors under scrutiny
The energy, mining, and agribusiness sectors remain most exposed. Oil and gas firms in Nigeria’s Niger Delta, coal producers in South Africa, and financiers underwriting infrastructure projects face the greatest risk of being drawn into litigation. But smaller firms are also indirectly affected. Exporters linked to European value chains, as well as companies in the carbon offset or reforestation markets, could face disputes if projects fail to deliver promised community benefits or emissions reductions.
“Litigation risk doesn’t stop at large emitters,” said Winnie Chege, an environmental lawyer with the Kenya Climate Change Working Group, in an interview with Business Daily Africa in September 2024. “Any company whose operations contribute to or are affected by climate impacts must now think about liability, disclosure, and due diligence.”
Legal and institutional constraints
Africa’s courts have traditionally been slow to hear environmental cases, and procedural hurdles remain significant. A 2025 joint analysis by legal scholars from Lagos State University and the University of Cape Town identified standing (locus standi) and the exhaustion of domestic remedies as key constraints preventing many claims from progressing to regional courts.
However, institutional shifts are under way. In late 2024, the African Court on Human and Peoples’ Rights accepted an advisory request from civil society groups asking it to clarify whether private companies, not just states, can be held liable for climate-related human rights violations. Writing for the European Journal of International Law, legal scholar Damilola Olawuyi observed that such an opinion could “extend climate accountability to corporations operating in Africa,” effectively expanding the legal frontier for climate justice.
“The African Court’s involvement could be a game-changer,” said Nairobi-based policy analyst Alice Munyua. “If the Court affirms that businesses share responsibility for climate harms, corporate liability will no longer be theoretical—it will be enforceable.”
The political economy of climate justice
Even as litigation gathers momentum, African governments face competing pressures. Many countries still rely on fossil fuels and extractive industries to fund development. “The energy and industrial needs of African economies mean that laws permitting emission-heavy activities will persist,” wrote Nigerian legal scholar Olufemi Aborisade in Shaping Africa’s Climate Action through Climate Litigation (ResearchGate, 2024). Courts have so far been cautious in overriding these national priorities.
This balancing act means climate litigation in Africa may evolve more incrementally than in Europe. Yet its influence is already visible in corporate and financial decision-making. South African banks have tightened lending criteria for coal projects, citing both climate and reputational risk. In Kenya, insurers are reassessing exposure to flood-prone regions and carbon-intensive sectors. The African Development Bank has introduced an Environmental and Social Risk Framework that explicitly references climate-related legal exposure.
Strategic implications for business leaders
For African executives, the implications are clear. Climate litigation risk now intersects with governance, finance, and stakeholder engagement. Boards are expected to anticipate legal exposure in the same way they do for tax, labour, or corruption risks. Firms that integrate legal foresight into sustainability strategy are more likely to maintain investor confidence and market access.
Key actions include:
- Conducting climate-liability audits to identify exposure across jurisdictions and supply chains.
- Strengthening disclosure under international reporting frameworks to pre-empt regulatory or investor challenges.
- Enhancing community engagement and grievance mechanisms to reduce the likelihood of litigation.
- Incorporating climate risk into insurance and financing negotiations.
- Training directors and senior managers on legal duties related to climate governance.
“Companies that continue to treat climate litigation as a reputational issue will be caught off guard,” Chege added. “This is now a matter of financial and operational resilience.”
A defining legal shift
The coming decade is likely to see African courts play a growing role in shaping corporate climate accountability. While the number of cases remains limited, early judgments in South Africa and Kenya indicate that legal precedent is forming. As the African Court and regional tribunals clarify the boundaries of corporate responsibility, businesses will need to adapt rapidly.
Climate litigation, once viewed as a distant concern, has entered Africa’s boardrooms. For executives and investors, it marks the next frontier of risk — one that will test not just compliance, but the credibility of corporate commitments to sustainability and resilience.
Reporting based on:
White & Case (2024); SSRN (2025); Columbia University Sabin Center for Climate Change Law (2024); Norton Rose Fulbright (2025); Allianz Global Investors (2024); European Journal of International Law (2024); ResearchGate (2024); Business Daily Africa (2024).
Compiled by the Analysis Desk.
