Director Duties And Climate Change

Decisions earlier this year from the English courts in ClientEarth v Shell Plc et al., and the recent appeal decision from the Court of Appeal of England and Wales, shed light on climate change issues and how directors can fulfill their duties to the corporations they serve in the face of environmental risks and concerns. These decisions also highlight some constraints on shareholders who seek to bring a derivative action against directors for alleged failures to adequately address climate change, and the latitude that directors have to balance competing corporate interests provided they satisfy their fundamental duties to the corporation.

Overview of Director Duties and Derivative Actions