The directors of Shell are being personally sued for failing to adequately manage the risks posed to the oil and gas company by climate change, in a case that could set a new precedent for climate-focused shareholder action against corporate boards.
The lawsuit, filed by environmental law charity ClientEarth, a minor shareholder in Shell, alleges the firm's 11 directors have breached their legal duties by failing to implement an energy transition strategy that aligns with the goals of the Paris Agreement. ClientEarth said the claim, brought before the High Court of England and Wales, is the first such action to be brought against a company by a shareholder under the Companies Act. The so-called derivative action suit has garnered support from a number of Shell's other investors, with UK pension funds Nest and London CIV, Swedish ...
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