ClientEarth litigation against Shell’s Board FAQs

ClientEarth is pursuing a 'world-first' derivative action in the High Court of England and Wales to hold Shell's Board of Directors personally liable for mismanaging climate risks. The claim argues that Shell's energy transition strategy is insufficient, as its net-zero targets are not reflected in budgets and its reduction targets focus on 'carbon intensity' rather than absolute emissions. ClientEarth asserts this mismanagement breaches the UK Companies Act, specifically Section 172, which requires directors to promote the company's long-term success. The action is supported by various institutional investors from the UK, Sweden, France, Belgium, and Denmark.

• ClientEarth alleges that Shell's Board is mismanaging material climate risks, which threatens the company's long-term commercial viability and investors' capital. These risks include physical impacts like extreme weather affecting offshore platforms and refineries, as well as transition risks where assets may become 'stranded' due to regulatory and market shifts.
• The document identifies several failures in Shell's climate strategy: net-zero targets are not integrated into operating plans or budgets, and the 'Energy Transition Strategy' uses 'carbon intensity' targets rather than absolute greenhouse gas emission reductions. Furthermore, the 50% Scope 1 and Scope 2 reduction target covers less than 10% of total emissions, and analyst research from September 2022 suggests the strategy would only reduce net emissions by 5% by 2030.

APA

ClientEarth (2023). ClientEarth litigation against Shell’s Board FAQs. https://www.clientearth.org/media/lf4mcv3v/shell-directors-case-faq-2023.pdf

Chicago

ClientEarth. ClientEarth litigation against Shell’s Board FAQs. 2023. https://www.clientearth.org/media/lf4mcv3v/shell-directors-case-faq-2023.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=ClientEarth litigation against Shell’s Board FAQs |date=February 2023 |url=https://www.clientearth.org/media/lf4mcv3v/shell-directors-case-faq-2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearth2023clientearth, author = {{ClientEarth}}, title = {{ClientEarth litigation against Shell’s Board FAQs}}, institution = {ClientEarth}, year = {2023}, month = feb, url = {https://www.clientearth.org/media/lf4mcv3v/shell-directors-case-faq-2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }