In brief
- The legal and regulatory framework.
- Litigation: holding governments to account.
- Litigation risks for businesses.
The climate crisis has dominated news headlines around the world over recent years as the true scale of the challenge to address our climate breakdown becomes increasingly clear. A key part of action to address the crisis must be the introduction and enforcement of a legal framework which facilitates significant change. Here, we consider the existing legal framework in England and Wales, particularly focusing on directors’ duties, and the role of recent and potential future developments in climate change litigation for the wider debate.
The legal & regulatory framework
As regards directors’ duties relating to climate change, several provisions under the Companies Act 2006 offer ways for investors to monitor and take necessary action. Under s 393, directors must not approve accounts unless they are satisfied that they ‘give a fair view of the assets, liabilities, financial position and profit or loss’. Section 414C attempts to ensure that
