Climate Litigation Comes For Directors

On February 9, 2023, ClientEarth, an environmental NGO headquartered in London, filed a derivative action in the High Court of England and Wales against the board of directors of Shell plc (Shell) alleging that Shell's climate strategy is unreasonable — a global first.

Action challenges Shell's climate strategy

A year ago, ClientEarth sent a pre-action letter to Shell, notifying the company of its pending claim against the company's board. It is now seeking the permission of the High Court of England and Wales to bring its claim. ClientEarth alleges that Shell's directors breached their duty under the U.K. Companies Act to promote the success of Shell for the benefit of its members as a whole and to act with reasonable care, skill and diligence by allegedly failing to adopt and implement a climate strategy that is consistent with the Paris Agreement.