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Climate derivative actions: over before they began?

19 March 2024 / Author(s): Jeremy Sher , Claire Clayton-Stead , Erin Sculthorpe
Issue: August-September 2023 / Categories: In Practice
Company: DLA Piper

Earlier this year, environmental law charity ClientEarth announced the first UK climate-based shareholder derivative action, seeking to hold a board of directors accountable for alleged deficiencies in their emissions reduction strategy. The claim fell at the first hurdle, the High Court refusing it permission to proceed on the papers – albeit ClientEarth will now have a second bite at the cherry in an oral hearing. This In Practice article considers the lessons learnt for future climate-related claims and the potential impact for the financial services sector.

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