What gets companies to match climate words with proven actions? That was the theme of a FundForum 2023 session, titled ‘The rise of climate and human rights litigation in getting companies to match climate words with proven actions?’, held at the Grimaldi Forum in Monaco on June 27.
The session aimed to explore the factors that drive companies to align their climate rhetoric with tangible actions. The session consisted of two parts, featuring interviews and discussions with industry experts.
Climate litigation: driving change through legal expertise
During an interview, Laura Clarke expressed the mission of ClientEarth to change the rules of the game by using legal expertise to improve outcomes.
She explained that ClientEarth trains lawyers, prosecutors and judges to effectively utilise the law to bring about positive change. Additionally, Client Earth extends its legal support to governments and businesses in their transition towards climate action.
Clarke highlighted a significant case when ClientEarth, along with indigenous Torres Strait Islanders Australia, challenged Australia’s inaction on climate change, successfully arguing that it violated the rights of the Torres Strait Islanders to live their culture. This case was recognised by the UN Human Rights Committee.
Clarke emphasised the importance of individual accountability and cited ClientEarth’s recent lawsuit against Shell’s board of directors. This lawsuit created ripple effects, sparking discussions among general counsel at conferences and boardrooms across the UK and beyond. The goal is to instigate a mindset shift and hold companies responsible for their actions.
Climate litigation’s impact on sustainable investment
Mark Versey, CEO of Aviva Investors, stressed the need for engagement during the session’s panel discussion. He explained that Aviva Investors actively votes against the re-election of individual board members to drive change. It also engages in efforts to influence government policy through coalitions and lobbying activities.
Clarke emphasised the impact of litigation on peer organisations, stating that when one entity faces litigation, it captures the attention of others within the same sector. The importance of placing a “proper price” on negative externalities, such as emissions, pollution, and biodiversity loss, was highlighted. The aim is to link these externalities to financial consequences.
Vincent Hamelink, CEO of Candriam, acknowledged Clarke’s efforts to change the system. He emphasised the need to raise awareness and build pressure from various systems to encourage consumers to support sustainable change. Hamelink advocated for allocating capital to businesses that prioritise sustainability.
Clarke concluded that litigation is considered a last resort to shed light on those who claim to invest in the future but are protecting their vested interests. By utilising litigation, deceptive actions can be exposed, and a push for genuine climate action can be achieved.
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