Shell sued for mismanagement of climate risk
22:19
The international NGO ClientEarth has sued Shell's Board of Directors for mismanagement of climate risk. The lawsuit went to court in London on Wednesday. This is the first lawsuit of its kind in the world, and the London court will now examine whether it has merit.
As the organization noted, it is suing Shell as a shareholder of the corporation, but the suit is supported by institutional investors holding more than 12 million shares in the company. ClientEarth claims in the lawsuit that Shell's 11 directors breached their legal obligations under corporate law by failing to adopt and implement an energy transition strategy that would have been consistent with the 2015 Paris Agreement. According to the organization, this amounts to a failure to effectively manage the significant and foreseeable risks that climate change poses to the company.
