ABSTRACT
This chapter explores the emerging points of liability exposure for the directors of listed, for-profit corporations who fail to adequately assess and/or disclose the impacts of climate change-related issues on corporate risk and strategy. It discusses a 'first principles' approach to the analysis of corporate governance regimes around the world, the laws of the United States, UK and Australia are used to illustrate key points. The chapter provides a brief overview of the evolution of climate risk from an 'ethical externality' to material financial issue. It examines directors' liability exposure under their core statutory and fiduciary duties. The chapter considers circumstances in which a failure to govern for stranded asset risks may raise particular duties liability exposure issues. 'Stranded asset' exposures refer to the risk that an asset cannot viably be exploited at a value or for the life for which it was expected to be utilised, which negatively impacts its current value.
