Scenario three
Activism Amplified
Increased public activism and class actions
Our third scenario imagines a world in 2035 in which popular movements hostile to big business increase litigation risk, while discontented citizens take legal action against companies. The context for the following scenario is real; the scenario itself is hypothetical.
The business impact of amplified activism
Starting the conversation
Activism is reshaping the disputes risk landscape. Companies are encountering more legal challenges driven by consumer expectations and increased calls for protection backed by campaign activity and community engagement.
We expect this trend to continue in the future, with activism being pursued by a wide range of claimants. Individuals and groups of claimants like consumers, shareholders, institutional investors, and employees will not only bring more claims on a domestic basis, but an international one.
NGOs, charities, and pressure groups will also be prevalent. Anticipated reforms to regulations impacting litigation funding will likely improve access to justice, despite the introduction of regulation which in the end, we predict, doesn't stifle the market.
In sectors like energy and infrastructure, we have seen a rise of climate change-linked litigation – including disputes over emissions reporting, resource access, construction delays, and land use. ESG regulation, investor activism, and greenwashing claims are also driving new forms of litigation. Parties don’t always seek financial redress. Instead, they want structural change, pressuring companies to alter behaviour or improve governance.
Cases will likely include:
- greenwashing claims tied to carbon neutrality statements
- breaches of directors’ duties
- misrepresentation and mis-selling claims
- supply chain disputes
- mass torts including forced labour, product liability, safety, and environmental claims.
Some cases will continue to test parent company liability in relation to the activities of subsidiaries or outsourced operations. Others will use judicial review, regulatory enforcement action, and private prosecutions, or expanding consumer redress mechanisms to force corporate change.
Business leaders anticipate that climate change-linked disasters will cause the greatest increase in disputes over the next 10 years (by market)
UK
France
Middle East
USA
Germany
The Netherlands
UK
France
Middle East
USA
Germany
The Netherlands
Reputations at stake: Despite these projected risks, according to our research, only 54% of business leaders have anticipated and mitigated the risks in advance when it comes to climate change-linked disasters over the last 10 years.
Only 54% of business leaders have proactively prepared for climate change-linked disasters in the last 10 years, despite it being the area that they anticipate the greatest rise in disputes over the next 10 years.
When asked about concerns stemming from increased public and social disputes, business leaders cited reputational damage as the top risk, followed by increasing regulatory scrutiny, higher disputes spend, competitive disadvantage, and fraud and corruption.
Top five concerns for business leaders regarding the Activism Amplified scenario
1. Reputational damage
2. Increasing regulatory scrutiny
3. Higher disputes spend
4. Competitive disadvantage
5. Fraud and corruption
1. Reputational damage
2. Increasing regulatory scrutiny
3. Higher disputes spend
4. Competitive disadvantage
5. Fraud and corruption
Reputation is now a top-tier legal risk. We’ve seen litigation triggered not by wrongdoing, but by public perception, stakeholder pressure, or brand missteps.”
Andrew Howell Partner, Executive Board member
Key areas of risk
Businesses should consider the following legal challenges and issues as public activism gains momentum.
Class actions
These become more popular in new jurisdictions, fuelled by activist groups, maturing collective redress mechanisms, and the rise of third-party litigation funding. This heightens disputes risks for multinational businesses and demand for legal services.
The types of claims raised in opt-out regimes expand beyond competition law; a new wave of class action-style cases is seen across:
- consumer protection
- environmental litigation
- digital markets
- AI
- product safety
- data and cyber.
These cases result in large-scale litigation in a variety of sectors.
Reputational risks
Activists continue to exploit social media and AI to raise concerns and mobilise public support, amplifying reputational damage and forcing changes to defence strategy. Deploying crisis management teams becomes increasingly important, as does proactive planning and a swift response to minimise damage. An integrated approach to crisis management and litigation strategy ensures immediate response in times of need and longer-term protection.
Arbitration
Large companies increasingly turn to arbitration as they seek to avoid public trials. Rules are clarified and the efficiency of arbitration processes are enhanced, persuading more businesses to resolve their disputes via arbitration.
B2C digital businesses and consumer protection
Consumer-facing tech businesses face heightened risk of large-scale litigation due to increasing digital regulatory scrutiny and demand for consumer protection. Legislative reforms supporting litigation funding and class actions make it easier for claims on a mass scale, expanding beyond antitrust claims into diverse areas including data privacy, online safety, product liability and product safety, and consumer protection.
Product liability
Rigorous supply chain oversight and compliance efforts become even more essential as courts take an increasingly claimant-friendly approach, significantly easing the burden of proof and expanding harm, covering everything from environmental damage to psychological impacts on consumers. Software and gaming companies, as well as manufacturers, which incorporate AI into their products face new litigation risk in revised strict no-fault product liability regimes.
Class actions
These become more popular in new jurisdictions, fuelled by activist groups, maturing collective redress mechanisms, and the rise of third-party litigation funding. This heightens disputes risks for multinational businesses and demand for legal services.
The types of claims raised in opt-out regimes expand beyond competition law; a new wave of class action-style cases is seen across:
- consumer protection
- environmental litigation
- digital markets
- AI
- product safety
- data and cyber.
These cases result in large-scale litigation in a variety of sectors.
Reputational risks
Activists continue to exploit social media and AI to raise concerns and mobilise public support, amplifying reputational damage and forcing changes to defence strategy. Deploying crisis management teams becomes increasingly important, as does proactive planning and a swift response to minimise damage. An integrated approach to crisis management and litigation strategy ensures immediate response in times of need and longer-term protection.
Arbitration
Large companies increasingly turn to arbitration as they seek to avoid public trials. Rules are clarified and the efficiency of arbitration processes are enhanced, persuading more businesses to resolve their disputes via arbitration.
B2C digital businesses and consumer protection
Consumer-facing tech businesses face heightened risk of large-scale litigation due to increasing digital regulatory scrutiny and demand for consumer protection. Legislative reforms supporting litigation funding and class actions make it easier for claims on a mass scale, expanding beyond antitrust claims into diverse areas including data privacy, online safety, product liability and product safety, and consumer protection.
Product liability
Rigorous supply chain oversight and compliance efforts become even more essential as courts take an increasingly claimant-friendly approach, significantly easing the burden of proof and expanding harm, covering everything from environmental damage to psychological impacts on consumers. Software and gaming companies, as well as manufacturers, which incorporate AI into their products face new litigation risk in revised strict no-fault product liability regimes.
Evolving class action mechanisms and consumer-friendly rules will make it easier for claimants to bring claims, putting global businesses at greater risk of mass litigation. AI-related disputes will become the norm, marking a new phase of legal risk and accountability.
Katie Chandler Partner, UK Head of Disputes and Investigations, London
