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Developments in climate-related litigation, disclosures and due diligence requirements: What board directors need to know

The Commonwealth Climate and Law Initiative (CCLI) has partnered with the Climate Governance Initiative to publish this briefing for board directors on the Climate Governance Hub

A resource for navigating the rapidly-evolving landscape of sustainability-related corporate responsibilities, this:


Climate-related derivative claims are being tested. Two UK court judgements refused permission for climate-related derivative claims (brought by shareholders on behalf of the company against directors). Similar claims could in future apply to  directors’ management of biodiversity-related risks.

•  Due diligence regulations. The EU Regulation on deforestation-free supply chains has come into force and it is requiring companies to investigate the source of a range of commodities sold in or exported from the EU. The proposed EU Corporate Sustainability Due Diligence Directive has taken another step towards approval, which would require in-scope companies to undertake due diligence to identify, prevent, mitigate, monitor and report on negative environmental and social impacts in their operations, subsidiaries and value chains.

Establishment of reporting standards. Comprehensive reporting standards for sustainability-related and climate-related financial disclosures were finalised by the International Sustainability Standards Board (ISSB) and endorsed by the Organization of Securities Commissions (IOSCO). The IOSCO  called on securities regulators around the world to consider adopting the ISSB standards.

International assurance standards. Consultations have been opened by the International Auditing and Assurance Standards Board (IAASB) on its proposed International Standard on Sustainability Assurance (ISSA) 5000.