Directors’ duties in climate change litigation

Wood, John (2026) Directors’ duties in climate change litigation. In: Directors and Creditors : Law and Liability. Oxford University Press, Oxford. ISBN 9780198932772

Abstract

This chapter will focus on private law and explore the rationale and significance of climate-related directors’ duties. If such duties exist, companies that fail to take account and remedial actions for climate change risks are likely to face financially difficulties. A combination of transition risks associated with carbon regulations, and failure to deal with risks related to climate change may have an effect on the solvency of the company. This chapter will ascertain how climate change risks can be addressed by directors, and what are the implications that this may have on the broader creditors and shareholders interests. It will be ascertained how companies and its directors may be held accountable for their climate change records and targets, and the legal challenges that face such climate change litigation. While current case law indicates that successful claims against companies are in short supply, crucial policies may nevertheless influence how climate change is approached.