Sustainability and Bank Lending: Assessing Environmental and Social Lender Liability

How far does a bank’s responsibility extend when its financing enables harm to people or the planet? As sustainable finance moves to the forefront of regulatory priorities, financial institutions are under increasing pressure to integrate ESG considerations into their credit decisions. While this evolution is increasingly reflected in European regulation, its implications for banks’ private-law duties remain largely unexplored.

This book offers a pioneering legal analysis of banks’ potential liability for environmental and social harm caused by their borrowers. It adopts a dual approach, examining both the Belgian liability framework and the influence of emerging prudential regulations at the EU level. Drawing on foreign case law and legal scholarship, it applies a functional comparative methodology to identify lessons from jurisdictions where banks have already faced climate-related litigation.

By linking regulatory developments to civil liability risks, the study addresses a critical gap in legal scholarship. It offers essential insights for legal practitioners, financial institutions, advocacy groups, and policymakers navigating the transition towards a sustainable economy.

Niels Rogge holds a PhD in Law from Ghent University. His research explores how evolving ESG obligations are reshaping banks’ legal responsibilities. Combining academic rigour with practical experience as an attorney at law, his expertise covers financial law, European regulation, and the legal risks associated with climate-related litigation.