Directors warned they face legal risk if they ignore climate change

Alice Garton, Lawyer at ClientEarth, said: “The Bank of England’s report should sound warning bells for anyone working in the financial sector. It says climate change is an immediate, material business risk.”

ClientEarth works to protect the environment through advocacy, litigation and research. They use the best scientific and policy analysis when choosing strategic directions. Their legal action, whether in advocacy or in cases before courts and administrative bodies, is built on solid law and science.

“The case for litigation brought against those ignoring climate change risk grows ever stronger. If directors fail to manage the risks and opportunities presented by climate change, they could be found personally liable for losses incurred by the company in the future.

“Investors such as pension fund trustees and their advisors also have legal duties to manage the risks affecting their portfolios. ClientEarth is examining these duties and we may bring legal challenges if we find that funds are failing to meet their obligations.

“Investors across the board cannot afford to treat climate change as a distant possibility. Increased regulation, changing market dynamics and heightened risk to physical assets must shape their investment decisions from today.”