Skip to content Skip to sidebar Skip to footer

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

16 September 2021 – Directors of Indian companies could face civil or penal liability
for failing to consider climate change, warns a new legal opinion from Mr. Shyam Divan, a
Senior Advocate who practices before the Supreme Court of India.


Indian law requires directors to act in the best interests of the environment, which includes the company’s effects on climate change, the new legal analysis explains. If directors fail to do so, both the directors and their companies may potentially face claims by shareholders for mismanagement based on a breach of ‘public interest’.

Directors may also face prosecution under environmental laws – which could lead to penal sanctions – for the company’s failure to comply with statutory provisions or directions of the
regulator relating to climate change.

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.

CCLI © 2022. All Rights Reserved.