1 November 2021 – Directors of Hong Kong-incorporated companies are obliged to take climate risk into account in the discharge of their obligations to the company or face the potential for personal liability, warns a new legal opinion.

Commissioned by the Commonwealth Climate and Law Initiative (CCLI), the legal opinion, ‘Directors’ Duties and Disclosure Obligations under Hong Kong Law in the Context of Climate Change Risks and Considerations’ is authored by Mr Alex Stock SC and Ms Jennifer Fan at Temple Chambers.

As diplomats, scientists, lobbyists, activists, artists, the media, politicians, high-level executives and NGOs gather in Glasgow for COP26, the importance of climate change for businesses worldwide is clearly apparent, and it is increasingly clear that climate change is something Hong Kong directors should be considering in their roles as board directors.