ClientEarth takes Shell's Board of Directors to Court
In this radical move, ClientEarth is taking Shell's Board of Directors to court over failure to plan for a future that includes clean energy, arguing that Shell's Board is in breach of its legal duties under the UK Companies Act.
Shell's shareholders and investors have used combined leverage to send a clear message to the Board to strengthen and accelerate Shell's climate plans and to reduce emissions more quickly.
According to the Breaking News:
The future consequences of Shell’s flawed climate plans could cause the company’s value to plummet, costing jobs and running the risk of shareholders and investors losing significant amounts of money, including people’s pension funds.
How?
ClientEarth argues that if Shell is unable to move away from fossil fuels, towards an alternative business model it will:
Fail to remain competitive in future energy markets as consumers worldwide choose cheeper, cleaner energy
Fail to deliver the reduction in emissions that will keep climate goals in reach
Promote fossil fuel production for decades and tie the company to projects and investments that are likely to become unprofitable as clean energy systems develop
Put the company's long-term viability at risk and threaten efforts to protect the planet
This will be the first time that a company's board has been challenged on its failure to prepare for the energy transition and the consequent damage to a company's long term value, linking corporate sustainability to the triple bottom line of people, profit and planet. It could be capitalism at its finest.
To follow on the ClientEarth website go to www.clientearth.org.
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