The environmental liability landscape is evolving, with heightened regulation, scientific developments, and litigation trends driving new risks across industries.
PFAS: Rising regulation and legal exposure
Stricter PFAS limits, import bans, and government inquiries are increasing pressure on businesses. Legacy contamination and emerging health concerns are driving litigation risk.
PFAS claims: From property to personal injury
Litigation is expanding beyond property damage to include potential personal injury and consumer claims. Downstream users and waste handlers face rising exposure.
Microplastics: A new frontier in liability
Microplastics are under growing scrutiny, with regulatory bans and global treaty talks underway. Lawsuits and greenwashing claims are emerging, particularly in the US.
Energy storage: Fire, waste, and contamination risks
Lithium-Ion battery (LIB) fires, toxic waste, and CO2 leakage are raising environmental and liability concerns as renewable energy systems scale up.
The environmental liability landscape is becoming more complex and high-stakes, with increasing regulation, scientific scrutiny, and litigation expanding risks across sectors. From PFAS and microplastics to energy storage systems, businesses face growing exposure and must adapt to manage these evolving challenges. See our 3 standout insights for environmental liability below.
Charu Stevenson Partner, Environmental Liability +61 2 8273 9842 charu.stevenson@wottonkearney.com
3 standout insights for environmental liability
PFAS risks: Stricter laws with a broader legal exposure
Australia’s PFAS crackdown is intensifying, with new bans on imports and manufacturing, lower drinking water thresholds, and multiple inquiries at both federal and state levels. The classification of PFOA as carcinogenic has accelerated regulatory momentum.
At the same time, PFAS litigation is expanding beyond remediation and property damage to potential personal injury, consumer product claims, and class actions. As testing improves and legacy contamination is reassessed, companies across water, waste, and industrial sectors are facing new risks.
Microplastics: The next frontier in environmental liability
Microplastics are fast emerging as a regulatory and legal concern, with bans on microbeads, growing scientific evidence of health impacts, and early-stage litigation targeting consumer brands.
Found in blood, food, and air, they mirror PFAS in both persistence and public concern.
With class actions already filed in the US and greenwashing scrutiny rising, companies involved in plastic production, packaging, and consumer goods face increasing product liability and ESG-related litigation risks.
Renewable energy storage: Unseen environmental risks
As Australia expands renewable energy storage systems, especially lithium-ion batteries and pumped hydrogen, new environmental and regulatory risks are surfacing.
Fire hazards, toxic waste, groundwater contamination, and insufficient emergency protocols pose material risks to operators and insurers. With regulation still catching up to innovation, businesses must proactively manage compliance, safety, and end-of-life disposal to avoid future liability, reputational damage, and sustainability setbacks.
“I'm interested to see whether there is an uptick in environmental claims, noting we saw a new PFAS claim brought in the last few months (and several new claims in the US), along with talk of further actions in this space. Whether the Round-up and Essure decisions creates issues for plaintiffs in these kinds of actions will also be an area to watch.”
Samantha Saad, Special Counsel, Class Actions
Environmental Liability in Australia and New Zealand – Reference Guide 2025
With tighter legislation and broader liability across Australia and New Zealand, businesses face growing regulatory risks in the event of a pollution incident.
Our 2025 Environmental Liability in Australia and New Zealand Reference Guide outlines key offences, compliance obligations, enforcement powers, and penalties across all jurisdictions – including major updates taking effect this year.
Partner Charu Stevenson shared: “As regulatory scrutiny intensifies, businesses of all sizes need to stay ahead. Our guide offers practical insights to help you manage your obligations and mitigate risk.”
If you'd like to discuss the guide or any of the changes, our team is here to help.
Click here to view our report.
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