Australian legal opinion on nature risks for directors may ripple to Singapore

DIRECTORS who fail to identify their companies’ impact on nature and address the resulting risks could face legal consequences for breaching their duties, according to a new legal opinion in Australia.

While the opinion was focused on Australia, Singapore directors should pay heed. Forest and biodiversity conservation in South-east Asia are coming under greater scrutiny, and companies here are behind the curve when it comes to reporting and managing their risks and opportunities on that front.

The Australian opinion, published in October, was commissioned by climate change advisory Pollination and the Commonwealth Climate and Law Initiative. It makes clear that Australian company directors who fail to consider nature-related risks could be found liable for breaching their duty of care and diligence.