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New legal opinion cautions Hong Kong company directors to take climate change seriously or risk personal liability

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.

Commonwealth Climate and Law Initiative
The CCLI examines the legal basis for directors and trustees to consider, manage, and report on climate change and broader environmental risks, opportunities and impacts, and the circumstances in which there may be liability for failing to do so. We also work to advance knowledge on effective sustainable governance practice.
Contact

The Commonwealth Climate and Law Initiative is a company limited by guarantee registered in England and Wales with company number 11813153 and with registered office at 128 City Road, London, United Kingdom EC1V 2NX.

Commonwealth Climate and Law Initiative

The CCLI examines the legal basis for directors and trustees to consider, manage, and report on climate change and broader environmental risks, opportunities and impacts, and the circumstances in which there may be liability for failing to do so. We also work to advance knowledge on effective sustainable governance practice.

Contact

The Commonwealth Climate and Law Initiative is a company limited by guarantee registered in England and Wales with company number 11813153 and with registered office at 128 City Road, London, United Kingdom EC1V 2NX.

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