A lawsuit against energy giant Shell’s directors has been backed by a key local government pensions organisation.
The legal claim, which has attracted support from numerous other shareholders, accused Shell of ‘climate risk mismanagement’.
London CIV, which manages the assets of London local government pension schemes, said it was ‘fully supporting’ the action brought by environmental charity ClientEarth against the 11 directors at the High Court.
In a letter, London CIV wrote: ‘The key concern is that it does not believe the board has adopted a reasonable or effective strategy to manage the risks associated with climate change affecting Shell.
‘Shell’s investments are far too low and in stark contrast with its continued overinvestments in fossil fuels.
‘We consider that ClientEarth’s claim is in our client funds’ interests as a shareholder of Shell and we support it.’
London CIV called for Shell to move away from oil and gas projects.
A Shell spokesperson said: ‘We do not accept ClientEarth’s allegations.
'Our directors have complied with their legal duties and have, at all times, acted in the best interests of the company.’
This article was originally published by The MJ (£).
