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ClientEarth loses high court fight with Shell over climate strategy

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By illuminem briefings 🌎

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece here in The Guardian or enjoy below 

🗞️ Driving the news: Environmental law charity ClientEarth has lost a high court case against energy company Shell regarding its climate strategy
• The charity asserted that Shell's existing transition plan falls short of its 2050 net-zero carbon emissions goal, suggesting a dereliction of duty by its directors towards shareholders

🔭 The context: ClientEarth, which holds 27 shares in Shell, initially saw its lawsuit rejected in May 
• The London high court, presided over by Judge William Trower, again dismissed the case, asserting that the management of a large, complex business like Shell must consider a range of competing factors, areas in which courts should not interfere

🌎 Why does it matter for the planet: If the lawsuit had been successful, it could have set a precedent allowing investors in other companies to sue their boards for alleged failure to manage climate-related risks adequately

⏭️ What's next: A senior lawyer at ClientEarth, Paul Benson, expressed disappointment at the verdict and announced the charity's intention to appeal

💬 One quote: "This is the right outcome. The court has reaffirmed its decision that this claim is fundamentally flawed and has, once again, dismissed it. We believe our directors have always complied with their duties and acted in the company’s best interest." (Shell Spokeperson)

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