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Tough for Singapore shareholders to sue directors over climate risk: NTU study

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Janice Lim

Janice Lim

Published Mon, Sep 4, 2023 · 05:00 AM
    • A general view of Shell's Pulau Bukom petrochemical complex in Singapore, July 15, 2019. Environmental law charity ClientEarth had sued the oil and gas company for not adequately managing climate risks, though the case was dismissed by the English Courts in May this year. 
    • A general view of Shell's Pulau Bukom petrochemical complex in Singapore, July 15, 2019. Environmental law charity ClientEarth had sued the oil and gas company for not adequately managing climate risks, though the case was dismissed by the English Courts in May this year.  PHOTO: REUTERS

    SHAREHOLDERS in Singapore might find it difficult to mount a legal challenge against directors who fail to adequately address climate-related risks, according to a report by Nanyang Business School.

    That is because the Singapore courts have generally been reluctant to interfere with business decisions, even though the laws that lay out directors’ duties to act in companies’ best interests could include taking climate risks into account, according to the report.

    There are “considerable doctrinal and practical difficulties in private enforcement of directors’ duties with regards to climate change”, the report stated.

    Shareholder activismClimate changeESGLawsuitsCorporate governance

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