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The Supreme Court has dealt a significant blow to the oil industry by allowing lawsuits to proceed from California and other states, seeking billions in damages for climate change impacts. The justices declined to block appeals from major energy producers like Sunoco and Shell. Justice Samuel A. Alito Jr. recused himself due to stock ownership in affected companies. California Governor Gavin Newsom said in reference to the deceptive practices of oil companies regarding the dangers of fossil fuels: “For more than 50 years, Big Oil has been lying to us.”  The lawsuits, which follow a pattern similar to successful claims against the tobacco and pharmaceutical industries, argue that oil producers failed to warn consumers about the risks associated with their products. The court's decision allows approximately two dozen states and municipalities to pursue their claims against the companies.

 

The Columbian

Los Angeles Times

Natural catastrophes caused $320bn in losses in 2024, or about a third more than the year before, underscoring the toll taken by climate change and property development in areas hit by extreme weather, Munich Re has said. "One record-breaking high after another – the consequences are devastating. The destructive forces of climate change are becoming increasingly evident, as backed up by science. Societies need to prepare for more severe weather catastrophes," said Thomas Blunck, a member of Munich Re’s board of management. The Americas shouldered approximately 60% of global natural catastrophe losses, higher than the 10-year average of 54%.

 

Financial Times

Reinsurance Business

Russian insurance company Ingosstrakh has raised the alarm over the potential for increased environmental disasters due to recent U.S. sanctions. The Biden administration's sanctions, which are aimed at crippling Russia's oil and gas revenues, have targeted Ingosstrakh and another maritime insurer, Alphastrakhovanie. Ingosstrakh warned: "Removing Ingosstrakh from the market creates a vacuum that will inevitably be filled by fly-by-night insurers lacking the capacity or intent to ensure compliance or pay claims." Despite the sanctions, Ingosstrakh claims to be operating normally and meeting its obligations to clients. The UK government also designated Ingosstrakh as a sanctioned entity in June 2024.

 

Reuters

Analysis of annual risk factor disclosures published by Deloitte and the Peter Arkley Institute for Risk Management at the University of Southern California’s Marshall School of Business reveals that over 50% of S&P 500 firms across a range of sectors have AI-related material risks. These are in areas such as cybersecurity, competition, innovation, regulatory, intellectual property (IP), ethics, and reputation risk. 

 

Wall Street Journal

Robinhood Markets has agreed to pay $45m to settle charges from the Securities and Exchange Commission (SEC) regarding multiple violations, including inadequate record keeping and trade reporting. The SEC's acting director, Sanjay Wadhwa, said Robinhood's firms "failed to comply with a broad array of requirements," which included accurately reporting trading activity and filing timely reports of suspicious activities.

 

Reuters

Brussels is reassessing its investigations of tech giants including Apple, Meta and Google, just as the U.S. groups urge president-elect Donald Trump to intervene against what they say is overzealous enforcement.

 

Financial Times

A survey by Baker McKenzie has found that nearly 75% of corporate lawyers and risk leaders consider lawsuits related to environmental, social and governance values their biggest worry. The report states that “A wider range of organizations now find themselves targeted by [ESG-related] litigation, and a wider range of claimants are bringing it.” With over 2,000 active climate change cases globally, governments of developing countries and small island nations who see themselves as victims of global warming are becoming more aggressive in pursuing litigation. Cyber issues and employment disputes are also top concerns. 

 

Legal Dive

A potential ban on TikTok, affecting its 170m U.S. users, is under scrutiny as the Supreme Court evaluates the constitutionality of a law mandating its China-based owner, ByteDance, to divest by January 19th. The Protecting Americans From Foreign Adversary Controlled Applications Act, signed by President Joe Biden, allows the government to ban apps deemed national security threats. Users are advised to download their data and consider workarounds like VPNs, as the app may become less functional over time. The future of TikTok remains uncertain, particularly with President-elect Donald Trump potentially influencing the situation.

 

NPR / National Public Radio

U.S. District Judge Reed O’Connor in Fort Worth, Texas has ruled that American Airlines encouraged environmentally and socially responsible investing in its 401(k) plan, thereby violating its legal responsibilities. O'Connor said that the airline's “incestuous relationship with BlackRock and its own corporate goals disloyally influenced administration of the Plan," and observed that BlackRock had a climate change agenda unrelated to economic interests, while American “utterly failed to loyally investigate BlackRock’s ESG investment activities.”

 

Wall Street Journal

Bloomberg's CFO Briefing interviews recruiters about the type of CFO that firms will need this year. Experience is ranked highly on the list of attributes deemed necessary. Cathy Logue, managing director and global practice leader at Stanton Chase, is quoted as saying that “The key theme of the year when it comes to CFO recruitment in 2025 will be ‘been there, done that.’ It will be proven CFO experience.” The article also notes that "While CFOs are more optimistic about the economic outlook, they see clear risks, for example around geopolitics."

 

Bloomberg

The International Monetary Fund (IMF) expects to see steady global growth and continuing disinflation in 2025, according to its latest World Economic Outlook. IMF managing director Kristalina Georgieva suggested that governments need to cut fiscal spending and adopt reforms to boost growth. She said: “Countries cannot borrow their way out. They can only grow out of this problem.” In October, the IMF raised its 2024 economic growth forecasts for the US, Brazil and Britain but cut them for China, Japan and the euro zone. It also left its forecast for 2024 global growth unchanged at the 3.2% projected in July. The IMF also lowered its global forecast for 3.2% growth in 2025 and warned that global medium-term growth would slip to 3.1% in five years.

 

Reuters

International mining companies are at the mercy of “terrifying” tactics from military regimes in Africa’s Sahel, whose leaders are using legal disputes and nationalisations to assert greater control over critical minerals.

 

Financial Times

An FDA inspection of Taylor Farms' Colorado facility revealed significant violations following an E. coli outbreak linked to McDonald's. The inspection report, obtained by CBS News, highlighted poor sanitation practices, including equipment with biofilm and food debris. Inspectors noted that "management could not provide a manufacturer label" for cleaning chemicals, raising concerns about hygiene. McDonald's had already ceased sourcing from the facility prior to the inspection, stating: "We hold our suppliers to the highest expectations and standards of food safety." The outbreak affected over 100 individuals, resulting in 34 hospitalizations and one death, prompting a recall of onions used in McDonald's products. Taylor Farms asserted confidence in their food safety processes, claiming no illnesses were linked to the inspection findings.

 

CBS News

Daily Mail