Corporate Climate Responsibility and Strategic Responses in the Context of Climate Litigation: A Comparative Study of Judicial Cases in China and Europe

As global climate governance increasingly turns to judicial mechanisms, climate litigation has emerged as a pivotal force in defining corporate liability. This paper examines representative climate litigation cases from China and the European Union (EU) to address two core questions: first, how judicial rulings delineate corporate climate-related responsibilities; and second, how such legal interpretations shape corporate strategic responses. The analysis reveals that the EU has significantly expanded corporate "duty of care" obligations by creatively incorporating human rights principles into judicial reasoning, thereby establishing a robust mechanism that compels genuine low-carbon transitions. In contrast, climate litigation in China remains largely anchored in environmental administrative public interest litigation, where courts primarily assess the legality of governmental actions rather than directly assigning climate responsibilities to enterprises. This lack of clarity regarding corporate liability leads firms to adopt strategies focused predominantly on policy compliance.To address this gap, the paper proposes a "compliance-innovation" dual-track strategic framework tailored to the realities of Chinese enterprises, along with targeted recommendations grounded in judicial practice and policy reform. This study offers both theoretical insights and practical guidance for enterprises navigating risks and opportunities amid the rising tide of climate litigation.

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Publication Details

Journal
JOURNAL OF COMMERCIAL LAW REVIEW
Published
2025-01-01
DOI
https://doi.org/10.47297/wspjclrwsp2516-249713.20250903
Primary Topic
Environmental law and policy
Type
article
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article

Corporate Climate Responsibility and Strategic Responses in the Context of Climate Litigation: A Comparative Study of Judicial Cases in China and Europe

Yihan Chen
JOURNAL OF COMMERCIAL LAW REVIEW
Environmental law and policy
article

Corporate Climate Responsibility and Strategic Responses in the Context of Climate Litigation: A Comparative Study of Judicial Cases in China and Europe

Yihan Chen
article en

Abstract

As global climate governance increasingly turns to judicial mechanisms, climate litigation has emerged as a pivotal force in defining corporate liability. This paper examines representative climate litigation cases from China and the European Union (EU) to address two core questions: first, how judicial rulings delineate corporate climate-related responsibilities; and second, how such legal interpretations shape corporate strategic responses. The analysis reveals that the EU has significantly expanded corporate "duty of care" obligations by creatively incorporating human rights principles into judicial reasoning, thereby establishing a robust mechanism that compels genuine low-carbon transitions. In contrast, climate litigation in China remains largely anchored in environmental administrative public interest litigation, where courts primarily assess the legality of governmental actions rather than directly assigning climate responsibilities to enterprises. This lack of clarity regarding corporate liability leads firms to adopt strategies focused predominantly on policy compliance.To address this gap, the paper proposes a "compliance-innovation" dual-track strategic framework tailored to the realities of Chinese enterprises, along with targeted recommendations grounded in judicial practice and policy reform. This study offers both theoretical insights and practical guidance for enterprises navigating risks and opportunities amid the rising tide of climate litigation.

JOURNAL OF COMMERCIAL LAW REVIEWVol. 9(3)
Openalex Percentile: Top 52%
Environmental law and policy
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Corporate Climate Responsibility and Strategic Responses in the Context of Climate Litigation: A Comparative Study of Judicial Cases in China and Europe — Yihan Chen · JOURNAL OF COMMERCIAL LAW REVIEW (2025) | TGRS Research Map | TGRS