Milieudefensie v ING: Climate Breakdown and Banks’ Duty of Care
There is a trend towards climate lawsuits against companies based on their alleged duty of care not to emit more than a certain amount of greenhouse gases (GHGs). Currently, there are four such cases before courts in Germany, all of which have been unsuccessful so far. On 19 January 2024, Milieudefensie, a Dutch environmental group, initiated legal proceedings against the Dutch Bank ING, for the first time raising the issue of whether financial actors have such a duty of care. This case represents a significant milestone in the worldwide effort to transform the financial sector and curb its seemingly endless appetite for financing fossil fuels. In light of these proceedings, I argue that the German courts have adopted an imprecise understanding of what the duty of care entails and that an appropriate application of this duty can increase the accountability of financial actors.
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