UN Court: States and Businesses Now Legally Accountable for Climate Change
On July 23, 2025, the International Court of Justice (ICJ) published its Advisory Opinion in the case “Obligations of States in respect of Climate Change” (Case 187). This is the first time that the UN’s highest judicial body has directly addressed the issue of climate change and international law. Requested by the UN General Assembly, the Opinion represents a historic step as it provides a clear legal framework on state obligations and sets the foundation for stricter expectations on businesses and legislation.
What the ICJ ruled
The ICJ confirmed that states have legal obligations under international law to:
- Significantly and promptly reduce greenhouse gas emissions, in line with the goal of limiting global warming to 1.5 °C.
- Protect the rights of vulnerable states and communities most affected by climate change – including small island nations, regions with high poverty levels, and communities exposed to extreme climate events.
- Cooperate internationally, by sharing technologies, financing, and knowledge to ensure a just transition to a low-carbon economy.
Why it matters for business
Although non-binding, the Opinion carries enormous authority. It will shape future laws, regulations, and even lawsuits against both states and corporations.
- Stricter decarbonization demands – Companies will need measurable climate action plans: achieving carbon neutrality, adopting Science-Based Targets, and embedding climate risks into core strategies.
- Supply chain accountability (Scope 3) – Oversight of suppliers and partners will tighten, with ESG reporting required across entire value chains – and liability for third-party harms becoming a real risk.
- Mandatory ESG disclosures – Frameworks like CSRD, CSDDD, IFRS/ISSB, and TCFD are set to become compulsory, requiring firms to disclose not just emissions but forward-looking transition plans.
- Litigation and reputational pressure – The Opinion strengthens climate litigation prospects. Businesses face potential lawsuits, compensation claims, bans on harmful activities – alongside mounting public and investor scrutiny.
Impact on legislation
- Global level: The Opinion reinforces the Paris Agreement and climate talks, opening the door for tougher global mechanisms and new support funds for vulnerable states.
- EU level: It bolsters the European Green Deal, corporate accountability under CSRD/CSDDD, ETS expansion, and stricter CBAM rules.
- National level: Governments are expected to roll out carbon taxes, mandatory climate transition plans for major firms, and tighter sectoral rules in energy, transport, construction, and finance.
The ICJ has made it clear: climate action is no longer optional goodwill or CSR—it is a legal obligation that will reshape economies and corporate strategies.
For companies, this means:
- Reviewing climate policies and decarbonization targets,
- Integrating climate risks into financial and operational planning,
- Engaging regulators, investors, and civil society to stay compliant and competitive.
source: www.icj-cij.org
Implementation of management standards
CONSEJO Ltd. is a consulting company with over 20 years of practical experience in the development, implementation and maintenance of management systems in accordance with international standards and regulatory requirements. The company provides consulting services in the areas of quality management, environmental management, occupational health and safety, food safety, information security, cybersecurity, risk management and sustainable development. Our expertise covers standards and schemes such as ISO 9001, ISO 14001, ISO 45001, ISO 22000, ISO/IEC 27001, IFS Food, BRCGS and HACCP, as well as consulting services related to NIS2, DORA, GDPR and EcoVadis.
The CONSEJO team has been involved in over 1,500 projects for organizations across various sectors of the economy, including manufacturing, construction, energy, information technology, transport, trade, the food industry and services. Our approach focuses on developing management systems that work effectively in practice, tailored to the specific characteristics and needs of each organization. We work closely with our clients, providing consulting support, staff training and assistance during implementation. We strive to deliver high-quality services within the agreed deadlines and solutions that support successful certification and create long-term value for businesses.
