April 13, 2021
Directors’ Liability and Climate Risk: White Paper on Singapore
Alongside the new Chan legal opinion on directors’ responsibilities and climate change under Singapore law, the CCLI are pleased to publish a new white paper: Directors’ Liability and Climate Risk: White Paper on Singapore.
Authored by Dr. Ernest Lim, Associate Professor, NUS Law who is also co-author of the Chan legal opinion, the white paper complements and extends the analysis in the Chan legal opinion. The white paper explores the legal risks to directors for breaches of their duties and disclosure obligations in relation to climate change, as well as how directors’ duties can be enforced using the techniques of derivative action and oppression.
Dr. Ernest Lim explained of the legal opinion and white paper: “The legal analysis is based on evidence. As the impacts of climate change on Singapore become more visible and legislative and regulatory responses strengthen, this affects the standards of conduct directors must meet to fulfil their duties. Just last year the Monetary Authority of Singapore issued environmental risk management guidelines, setting out their expectations that directors and senior management of financial institutions should maintain oversight of environmental risk management and be assigned specific responsibilities in this regard. The legal opinion draws on these and other developments to find that climate issues are within directors’ responsibilities.”