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Business
Richard Calland, Associate Professor in Public Law, University of Cape Town

To stay in the game directors need to rewire corporate missions and bring new faces to the table

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In the first ever case of its kind, ClientEarth – a UK-based organisation that works with NGOS to fight legal battles on environmental issues – is taking Shell’s board of directors to court for failing to properly prepare for an energy transition. This involves moving from carbon-emitting fossil fuels in line with climate science, and at a pace and scale that aligns with the Paris Agreement goal to keep global temperature rises to below 1.5°C by 2050.

In mid-March the campaign group began legal proceedings based on the claim that Shell board’s mismanagement of climate risk puts it in breach of its duties under the UK Companies Act. Under English law, company directors have a duty to assess, disclose and manage material risks to the company.

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