The world is witnessing a rise in the number of lawsuits launched against companies involved in the energy transition, as claims are made of environmental and human rights abuses.

Almost 100 cases (95), have been launched since 2009, but, according to the Business & Human Rights Resource Centre (BHRRC), 77% of those cases have been launched since 2018, marking a major uptick in lawsuits pushing back against organisations involved in the energy transition.

The cases are mainly connected to the mining of “transition minerals”, but a good number are also prompted by wind power projects, hydropower and solar.

Almost half the lawsuits, 47%, came from Indigenous Peoples, with cases focused on rights to “free, prior and informed consent”, land rights and impact on notable and protected areas.

Elodie Aba, senior legal researcher at the BHRRC, says clean energy cannot come at the expense of “rights holders on the front lines”.

“The energy transition must be centred on the rights and participation of Indigenous Peoples, frontline communities and workers affected by transition minerals mining and renewable energy projects.”

She added that lawsuits had become a “powerful tool” for Indigenous Peoples to push back.

“Our data paints a troubled picture: if companies and investors don’t urgently address disregard for the human rights in the renewable energy value chain, we are likely to see a derating of the much-needed clean energy transition.

“Humans are not a barrier to progress, they are a precondition for it.”

Mineral material problem

BHRRC finds that of the lawsuits they examined, 71% were linked to the mining of transitional minerals. The rest were connected to renewable energies, including wind power projects, hydropower and solar.

Among the environmental cases, most relate to the right to “clean, healthy and sustainable” environment, though another large tranche focuses on water pollution or access to water.

Almost half, 47%, of all cases were filed by Indigenous Peoples. A third of those relate to violation of the right to “free, prior and informed consent”. Much of this is about corporate failure to adequately or sufficiently consult.

Despite pushback in some notable jurisdictions, there is enormous pressure to move to more sustainable energy sources.

Last year, a report from the International Energy Agency (IEA) concluded that global renewable energy provision would grow 2.7 times by 2030, or new capacity of 5,500 gigawatts.

IEA says China alone will account for 60% of the growth. However, the EU and even the US are expected to “double the pace of renewable energy growth”, over six years from 2024 to 2030.

When it comes to minerals, demand is also set to increase rapidly. IEA says demand for lithium will grow “fivefold” by 2040, while demand for graphite and nickel will double. Cobalt and rare earth elements demand will also grow by 50-60%.

IEA says human rights, water and communities are among the six “disruption risks” identified by the IEA as the need for transition minerals climbs.

Part of the risk is handled by corporate disclosures based on sustainability metrics. But IEA points out, “There has started to be some pushback on regulations that require transparency and due diligence on sustainability matters.”

The IEA is pointing to a current effort within the European Union to soften the demands of reporting rules contained in the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.

Pressure to transition is only to grow, as well as pressure on companies to provide clean energy. It would be horrible irony if efforts to save the planet continued to undermine human rights in key jurisdictions. Companies will need to take care.