Climate and responsibility: What the International Court of Justice’s decision means for states … and businesses.

On July 23, 2025, the International Court of Justice (ICJ) issued a landmark advisory opinion on state responsibility when it comes to climate change. This decision, while not legally binding, redefines international environmental obligations and will have profound repercussions for both public policy and industrial practices.

What the ICS is now imposing on states

The ICJ affirms that:

• States have a legal obligation to prevent significant environmental damage, including that caused by greenhouse gas emissions.
• They must act proactively and cooperatively to limit global warming.
• This responsibility applies even if a state is not the world’s largest emitter, as long as its actions (or inactions) contribute to environmental harm.

In short, states can no longer hide behind their relative share of emissions or their level of development. They must show that they are taking all reasonable steps to mitigate their climate impact.

Why businesses are directly affected

Even though the order targets states, it will have tangible impacts on businesses:

• Stricter rules will follow: Governments will have to strengthen their climate policies, resulting in stricter standards for businesses (emissions, disclosure and compliance).
• Increased legal liability: Companies could be sued if their activities significantly contribute to climate change, especially if they fail to take credible mitigation measures.
• Social and reputational pressure: Consumers, investors and NGOs are paying increasing attention to climate commitments as inaction is becoming a strategic risk.

What companies can do now

1. Assess their carbon footprint: Understanding their direct and indirect emissions is essential in building a credible strategy.
2. Implement climate governance: Integrate environmental issues into strategic decisions with clear performance indicators.
3. Invest in innovation: Clean technologies, energy efficiency and the circular economy are just some of the solutions that can help set businesses apart and stay competitive.
4. Communicate credibly: Avoid greenwashing by showing a commitment to using reliable date and making measurable commitments.
5. Collaborate with all stakeholders: Work with governments, suppliers and customers to build resilient and sustainable value chains.

Act today to avoid negative consequences tomorrow

The ICJ’s opinion sends a strong message: international law is now clearly aligned with climate science. Waiting for obligations to become binding means running the risk of sanctions, lost markets and reputational damage.

Conversely, companies that take the lead can not only protect themselves against these risks but also position themselves as leaders of the transition. And this is a clear competitive advantage in a rapidly changing world.

Be part of the solution. Tell us about your goals and let’s work together to reduce your energy consumption.