Pursued for “breach of duties” under UK company law, the Shell board is the first to suffer this ignominious fate with respect to climate change. Will directors of other companies also find themselves personally liable for their companies’ sustainability shortcomings?
Shell’s directors are the first to face legal action for mismanaging climate risk. Two new INSEAD reports offer advice to board members seeking to avoid the same fate.
In the spring of 2022, while war raged once again in Europe, a momentous event in business history passed most people by. The environmental law charity, ClientEarth, began legal action against the 13 executive and non-executive directors of the mighty multinational, Shell. The charge? Failure to properly prepare for the energy transition.
