Environmental Lawyers Take Shell Directors to Court Over Lack of Climate Action : Is Shell’s $40bn Profit at Risk?
Environmental lawyers, ClientEarth, are suing 11 directors of Shell over the inadequacy of the company's climate strategy.
This is the first lawsuit of its kind seeking to hold corporate directors accountable for the failure to prepare their company for the transition to net zero emissions.
ClientEarth argues that the transition to low-carbon energy is inevitable and that Shell's slow adaptation puts the company's future success at risk.
A group of pension funds and institutional investors are supporting the lawsuit.
Shell has faced a series of legal and regulatory challenges over its climate policies, including a Dutch court order to reduce emissions by 45% by 2030.
ClientEarth is asking the high court to order Shell's board to adopt a climate risk management strategy in accordance with the Dutch court order.
The International Energy Agency has stated that no new oil and gas projects are compatible with net zero emissions by 2050.
Shell claims that its climate targets align with the Paris agreement and that its shareholders support its energy transition strategy.
The outcome of the lawsuit will be closely watched as it could set a precedent for other companies facing similar legal challenges.
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