Glossary
Liability risk

Liability risk

Which climate risk platform is right for your business?

Definition

Liability risk is the exposure to legal claims, compensation, and litigation arising from climate change — for example, for failing to manage, disclose, or act on climate risks.

Example in context

You're a director signing off a disclosure. If the climate reporting is thin or misleading, the company — and the board — can face claims, which makes a defensible assessment a governance issue, not a tick-box.

Why it matters

Liability completes the climate-risk picture alongside physical and transition risk, and sound, evidenced assessment is the best protection. EarthScan provides transparent, science-based evidence that stands up to scrutiny.

Make your disclosures defensible

FAQ

What is climate liability risk?

The risk of legal or compensation claims for failing to manage, disclose, or act on climate-related risks.

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