Directors have a “fiduciary duty” to consider climate change risks, say experts—but legal action is unlikely unless enforcement is beefed up.
Directors’ duties are currently the focus of intense debate, and even calls for reform. New academic observations will likely fuel concerns that unless enforcement of boardroom duties is transformed, directors’ duties as they currently stand will fall short of holding leaders and companies to account for their efforts to tackle carbon emissions and damage to the environment.
At a recent conference hosted by Oxford University panelists suggested that directors should consider themselves having a “fiduciary duty” to consider climate change risks, especially under laws such as the UK’s section 172 of the Companies Act.
But one ac
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