Abstract

The transition from fossil fuels to renewable energy requires cooperation from all, including corporations, shareholders, and institutional investors. The purpose of this paper is to explore climate change litigation risks for Australian energy companies and investors from a policy and governance perspective. Companies are increasingly reporting their climate policies to satisfy their shareholders and investor demands. In addition, the government and judiciary are making laws and decisions to support the Paris Agreement. This paper explores whether company directors can and, in some cases, should be considering the impact of climate change litigation risks on their business, or else risk breaching their obligation to exercise care and diligence under the Corporation Act 2001 (Cth, Australia). The paper concludes that in addition to reducing climate change litigation risks, Australian energy companies and institutional investment bodies that invest in Australian energy companies can make informed climate risk decisions by aligning their investments with the goal of net-zero or reduced emissions.

RAS ID

40351

Document Type

Journal Article

Date of Publication

12-1-2021

Volume

14

Issue

23

School

School of Business and Law

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Publisher

MDPI

Comments

Pearce, P. (2021). Duty to address climate change litigation risks for australian energy companies—policy and governance issues. Energies, 14(23), article 7838.

https://doi.org/10.3390/en14237838

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Link to publisher version (DOI)

10.3390/en14237838