Law firm ClientEarth plans to appeal the dismissal of its landmark lawsuit against Shell’s Board of Directors over climate risk mismanagement. Earlier this month a High Court judge maintained his decision in May to dismiss ClientEarth’s claim, which is the first derivative action worldwide to argue that corporate directors should be held personally liable for their failure to prepare for the energy transition. ClientEarth will now request permission to appeal. ClientEarth senior lawyer Paul Benson said: “We are disappointed that the Judge has declined to reconsider his decision. The recent hearing was a first step towards appeal, which we will now pursue. The Court has accepted that climate change poses significant and foreseeable risks to Shell. We firmly stand behind our claim that the Board is currently neglecting to address those risks adequately, to the detriment of its shareholders.” Institutional investors holding a combined £12 million (US$ 15.5 million) in shares in Shell have supported ShareAction’s claim, including Nest, the UK’s largest workplace pension fund.
When charting new paths – which is what we @ClientEarth are doing with our case against Shell's Board – you can expect obstacles along the way. We are appealing the decision – clear that there is a legal obligation on Boards to manage climate risks properly. https://t.co/ktj7njegJV
— Laura Clarke (@LauraClarkeCE) July 24, 2023