Climate-Related Risk Heating Up Down Under

Just days out from the 26th United Nations Climate Change Conference of the Parties ("COP26"), the Australian government has pledged to reduce greenhouse gas ("GHG") emissions to net zero by 2050. While Australia has been relatively slow off the mark in committing to a net zero target, it has not lagged behind other jurisdictions in climate-related litigation and other shareholder actions.

Over the last 12 months, there has been a proliferation in shareholder action on climate-related risks in Australia, with a wave of litigation and shareholder resolutions being brought. Such actions have primarily conformed to two main categories:

• Actions against federal and state governments, including environmental regulators, challenging environmental permits and licenses for projects and businesses with high GHG emissions;