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RESEARCH AND BRIEFINGS

Climate Change on the Corporate Governance Landscape

 


Climate change is no longer just an ethical environmental issue. It has fast become a matter of corporate governance, with regulators both here and abroad increasing oversight and pressure on greater corporate disclosure of climate change risks. At the same time, litigation against companies and their boards on climate change exposures has accelerated pace.

As a result, the implications of climate change on the personal liabilities of company directors are increasingly apparent. Against this changing landscape, this paper examines what protection for climate change exposure can be offered under current directors and officers (D&O) policies, where potential gaps in cover exist, and how a policy is likely to respond in the event of a regulatory investigation, shareholder litigation or the threat of an adverse outcome with environmental obligations.

"Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by Jardine Lloyd Thompson Pty Ltd (ABN 69 009 098 864, AFSL 226 827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

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