Climate Change Forces General Counsels to Manage Complex Emerging Risks

This post contains affiliate links, and I will be compensated if you make a purchase after clicking on my links, at no cost to you.

This blog post explains how the role of the general counsel (GC) is changing in response to climate change.

It summarizes why GCs are being pulled into the center of corporate climate strategy, the misperceptions that hinder long-term planning, and the practical duties legal leaders now face — from compliance and litigation to supply chain and reputational risk.

Buy Emergency Weather Gear On Amazon

Drawing on three decades of experience advising boards and executive teams, I show how legal leaders can shape resilient governance frameworks.

Why general counsel are now central to corporate climate response

Climate-driven extreme weather events have stopped being isolated operational headaches and are now recognized as board-level, enterprise risks.

The increasing frequency and severity of storms, floods, fires and heat events create complex legal exposures that touch almost every corporate function.

Executives and boards are turning to GCs not only for regulatory interpretation but for enterprise-wide risk management and strategy.

Buy Emergency Weather Gear On Amazon

This shift is not merely advisory — it repositions GCs as architects of corporate resilience.

Rising expectations from boards and executives

Boards expect the GC to translate climate science and regulation into practical governance, ensuring that corporate decision-making accounts for potential legal, financial and reputational consequences.

That includes integrating climate considerations into risk registers, compliance programs, contract language, and disclosure practices.

Key areas where GCs are now indispensable:

  • Regulatory compliance: Interpreting evolving climate laws, emissions reporting requirements, and jurisdictional rules.
  • Litigation preparedness: Anticipating climate-related claims, from liability for facilities damaged by weather to suits over disclosures and transitions.
  • Supply chain resilience: Structuring contracts and contingency plans to manage supplier disruptions, force majeure, and logistics risk.
  • Reputational risk: Advising on public disclosures, ESG claims, and marketing language to avoid greenwashing allegations.
  • Enterprise risk strategy: Embedding climate scenarios into stress tests, M&A due diligence, and capital allocation decisions.
  • Overcoming the ‘random event’ misconception

    One of the most persistent obstacles to effective climate planning is the belief that extreme weather is random and therefore not worth long-term investment.

    This view undermines proactive risk management, leaving companies exposed to escalating threats that compound over time.

    GCs must challenge that narrative with evidence-based risk assessments and scenario planning.

    The legal argument is persuasive: treating climate events as systemic rather than stochastic changes regulatory obligations, disclosure duties and fiduciary responsibilities for boards.

    How GCs can operationalize climate resilience

    Legal leaders should take a multi-layered approach that combines immediate risk mitigation with long-term governance reforms.

    Practical steps include updating contract clauses, enhancing insurance and indemnity language, revising crisis playbooks, and overseeing climate risk disclosures to investors and regulators.

    Integration is crucial: legal risk mitigation must align with operational continuity, finance, and sustainability planning.

    GCs are uniquely positioned to convene these functions and ensure consistent standards across the organization.

    Skills and capabilities GCs need to develop

  • Interdisciplinary fluency: Understanding climate science basics, supply chain dynamics, and financial implications.
  • Scenario planning expertise: Leading legal input into stress tests and future-looking disclosures.
  • Stakeholder communication: Framing complex legal risks for boards, investors and regulators in clear, actionable terms.
  •  
    Here is the source article for this story: Climate Change Forcing GCs to Confront Complex Web of Emerging Risks

    Scroll to Top