UK: Shell's shareholder files lawsuit against company directors over alleged failure to timely reduce emissions
In January 2023, ClientEarth, announced it filed a lawsuit against Shell's 11 Directors. The legal action before the London High Court in the UK alleges that Shell’s Board breached its legal duties under the UK Companies Act to manage the climate risk facing the company.
The organisation that has shares in Shell says it is the "the first time ever that a company’s board has been challenged on its failure to properly prepare for the energy transition". It is supported by large pension funds and other institutional investors.
Shell declared: “We do not accept ClientEarth’s allegations. Our directors have complied with their legal duties and have, at all times, acted in the best interests of the company. We believe our climate targets are aligned with the more ambitious [1.5C] goal of the Paris agreement."
In May 2023, the High Court dismissed the lawsuit. Clientearth said it would challenge this decision at a oral hearing.