To complement the legal opinion on Legal Opinion on Directors’ Duties and Disclosure Obligations under Hong Kong Law in the Context of Climate Change Risks and Considerations, the Commonwealth Climate and Law Initiative (CCLI) has produced a white paper on Directors’ Liability and Climate Risk under Hong Kong law by Dr. Ernest Lim, National University of Singapore Professor.
The white paper examines climate change as a material financial risk, and what this means for directors’ duty to act in good faith in the best interests of their company, duty to exercise due care, skill and diligence, and duty of disclosure. It also examines possible routes for enforcing these duties, and potential consequences of breach.