BMW (OTCPK:BMWYY+1.3%) and Daimler (OTCPK:DDAIF+0.0%) are being sued by German activists, marking the first time German citizens have sued companies for contributing to climate change.
The activist group, Deutsche Umwelthilfe, is also working on filing a lawsuit aimed at Volkswagen (OTCPK:VWAGY+1.6%) but is giving the automaker until Oct 29 to respond to complaints.
Last year, Germany's top court ruled that businesses would have to do more to reduce climate change, stating that not meeting the current goal to become carbon-neutral by 2045 would cause significant challenges to future generations. At around the same time, activist groups successfully sued Shell (RDS.A+3.9%) in the Netherlands for not reducing its impact on the planet enough.
The case could set a precedent that companies are directly responsible for emissions they produce and their impacts on society. The automakers will need to prove that their emissions targets are acceptable.
BMW plans to reduce carbon emissions per vehicle by 40% and have half of all global sales be electric vehicles by 2030, Daimler plans to produce all electric vehicles by that time, and Volkswagen says it will stop manufacturing cars that use fossil fuels by 2035.
Still, activists say that the automakers need to do more to adhere to climate and carbon emissions rulings set by the government. The group wants the companies to legally commit to stop building gas-powered cars by 2030 and ensure their emissions do not go above a calculated fair share. If they are successful, more lawsuits for other companies could follow.
The court case could take years to reach a verdict, but car companies are hastening the shift to electric vehicles as the US and the EU propose stricter emissions regulations.