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Climate change gets up close and personal for board members

Ron Soonieus
Ron Soonieus4/19/2022 08:40 PM GMT+08  • 6 min read
Climate change gets up close and personal for board members
Shell was accused for not properly preparing for energy transition / Photo by Keming Tan on Unsplash
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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.

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?

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