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ARTICLE · 17 APRIL 2021

Climate-related risk: a rising bar for directors' responsibilities

Corrs Chambers Westgarth
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Directors who do not manage climate-related risk may be held liable for breaching their duty of due care and diligence.

AustraliaCorporate/Commercial Law
Andrew Lumsden
Andrew Lumsden
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There is a growing body of commentary on the implications of climate change for Australian companies and their directors. Investors and regulators alike are demanding better climate-related financial disclosures and are alive to 'greenwashing'.

Climate change and a range of other issues including modern slavery, have been swept up in a tide of broader ESG momentum. As a result of this groundswell, climate-related risk has shifted from a corporate social responsibility feature, to an important consideration for all Australian corporates in two important ways. First, in identifying climate-related risks and opportunities, and second, in addressing how they are reported.

What are climate-related risks?

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