Climate Change Liability – Increasing Risks for Directors? Perspectives From Common and Civil Law Jurisdictions

Abstract

Businesses are increasingly expected to consider the environmental and social impacts of their undertakings. In recent years, the focus has shifted specifically to climate change related aspects of corporate behaviour. While climate change litigation against corporations continues to evolve globally, there is a growing debate with regard to directors' duties: are directors exposed to risks of personal liability in the climate change context, and if so, to which extent? The issue has received considerable attention from common law commentators, but is so far less discussed in civil law countries. This article seeks to help bridge this gap by presenting a comparative analysis with a main focus on corporate law.

Keywords: Climate Change Litigation – Climate Change Risks, Corporate Governance, Directors’ Duties, Due Diligence, Institutional Investors