The Commonwealth Climate and Law Initiative (CCLI), together with Pollination, launched the legal opinion at an in-person event, ‘Legal Opinion: Directors’ Duties & Nature Risk’. The launch event was held on 13 March 2024, from 08:00 AM to 11:00 PM at The Law Society, London.

The legal opinion, authored by a team of corporate and financial law barristers, Sharif Shivji KC (4 Stone Buildings) and Rebecca Stubbs KC (Maitland Chambers) leading Karl Anderson (4 Stone Buildings) and Hossein Sharafi (4 Stone Buildings), with contributions on environmental law from James Burton (39 Essex Chambers), provides valuable insights into the legal duties of directors subject to the law of England and Wales with regard to nature-related risks. The opinion explains how board directors could breach their duties under sections 172 and 174 of the Companies Act 2006 if they fail to identify and (where appropriate) mitigate latent financial risks arising from a company’s unaddressed nature-related impacts and dependencies. That in turn could expose directors to increased shareholder scrutiny and legal consequences. Directors should document their careful consideration of relevant risks to protect themselves from litigation.

The launch event featured Sharif Shivji KC presenting the key findings and messages of the legal opinion. This was followed by a panel discussion on the legal, governance, and financial risk implications of nature-related risk with Jenni Ramos, (Corporate/Finance and Biodiversity Lawyer, CCLI), Thea Philip (Associate Director, Pollination) and Emma Latham-Jones (Senior Biodiversity Manager, Share Action). The launch event ended with a round-table discussion considering the nature-related risks and opportunities faced by different organisations, hosted by Gemma Cranston (Executive Director, Pollination).