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I don't know. That sounds like a question for Damian Green.
Just because something is actionable doesn't mean that it will be actioned.
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when the Observer printed
You mean this article?
That's the New York Observer, no? And not the Guardian Media Observer.
It's likely that it's not worth suing a US publication in the US, as they have different defamation laws than the UK, with their freedom of speech dogma and all. An suing them in the UK would likely go nowhere either.
It's also possible that, given the fact that Damian Green was actually found to be have sexually harassed people by a police investigation, the publishers may have actually had evidence, and could have defended a libel suit.
As @Howard wrote - the UK press would have restricted itself to reporting the existence of the list, and that the list made accusations of sexual activities, impropriety and assault. But not who was on the list.
For example: Who is 'handsy in taxis'? Spreadsheet of sexual allegations alarms Tories
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NotThamesWater
@ketsbaia
So why, then, when the Observer printed: "The list also includes Damian Green, The First Secretary of State and the Prime Ministers’ de facto number two. He’s accused of being “handy at parties.”." was it not sued?