Centre for Environmental Rights – Advancing Environmental Rights in South Africa

This landmark legal opinion explores the potential legal basis for company directors to be held accountable under South African law for failing to adequately address climate risk. It looks at whether addressing the risks posed by climate change – as a foreseeable and material financial risk, just like other risks faced by a company – could fall within the ambit of directors duties under South Africa’s company law and corporate governance standards, as well as under environmental and climate law. The legal opinion finds directors could potentially breach their duties to their company by failing to adequately consider, manage and disclose relevant climate-related financial risks.

Final – Director Duties and Liability for Climate Risk under SA Law