How climate litigation, shareholder pressure, and disclosure frameworks are transforming the future of business

Climate activism is no longer a fringe movement. It’s a global force influencing investors, governments, and companies to act more responsibly and transparently on environmental issues. From powerful courtroom wins to grassroots campaigns led by teenagers, the momentum is building—and businesses can no longer afford to ignore it.

From Paris to Protest: A Timeline of Transformation

Since the Paris Agreement was signed in 2015, the climate conversation has expanded far beyond policy rooms and scientific circles. This landmark accord committed nations to limiting global temperature rises to well below 2°C—and ideally to 1.5°C. But perhaps more importantly, it catalysed a new wave of social and corporate accountability.

One of the most powerful moments in climate activism came on 26 May 2021—now known as Black Wednesday for Oil. On this day alone:

• ExxonMobil faced a shareholder rebellion led by activist hedge fund Engine No.1, which successfully appointed climate-focused directors.

• Chevron saw a 61% majority vote in favour of reducing Scope 3 emissions, a direct result of pressure from the activist group Follow This.

• Shell was ordered by a Dutch court to reduce its carbon emissions by 45% by 2030 after a lawsuit by Friends of the Earth.

In Australia, a landmark case saw a group of teenagers and a nun challenge the expansion of the Vickery coal mine. The court ruled that the Environment Minister has a duty of care to protect young people from climate harm—setting a strong precedent, even if legal consensus on its implications is still forming.

Bottom-Up vs. Top-Down: Where Real Change Happens

While policies and regulations are important (top-down), individual and collective action (bottom-up) is proving just as impactful. Shareholder activism is gaining strength, with institutional investors leading the way—but even smaller investors and grassroots movements are making headlines.

For instance, despite its size, Engine No.1’s $50 million fund forced change at Exxon by putting climate change at the centre of the boardroom agenda. And it’s not just ethical pressure: transparency pays off. On average, firms that disclose climate-related risks see a 1.21% increase in their stock price following the announcement (Flammer et al., 2021).

Beyond ESG: Why Business-as-Usual No Longer Works

Many companies claim sustainability by ticking off Environmental, Social and Governance (ESG) checklists. But this surface-level compliance isn’t enough. Real change comes when ESG is integrated into the core business strategy, not isolated in separate departments.

Operating on a “business-as-usual” trajectory threatens to push us beyond the limits of our planetary boundaries—a framework identifying nine vital Earth systems essential for human survival. Among them, climate stability and biosphere integrity are already being critically disrupted, leading to consequences like rising sea levels, biodiversity loss, and mass migration.

The Rise of Risk Disclosure Frameworks

With financial regulators now recognising the economic risks of climate inaction, two major frameworks have emerged:

• Task Force on Climate-related Financial Disclosures (TCFD) – providing recommendations on how companies should disclose climate risks and strategies.

• Task Force on Nature-related Financial Disclosures (TNFD) – set to finalise by 2023, focusing on biodiversity and nature-based risks.

These are more than just frameworks—they’re rapidly becoming mandatory standards, shaping investment decisions and public accountability across global markets.

Arteh’s Role in a Climate-Active Future

At Arteh, we’re here to make this transition easier and more accessible for all businesses. Our platform helps companies:

• Upload and analyse emissions data

• Align with Science-Based Targets

• Prepare for TCFD-aligned reporting

• Identify realistic and cost-effective reduction strategies

We’re building tools that simplify complex climate data, support strategic action, and reduce the burden of compliance—because climate transparency shouldn’t be a barrier. It should be a catalyst for innovation, trust, and long-term growth.