In a landmark decision, the District Court of the Hague has ordered Royal Dutch Shell to reduce its net CO2 emissions by 45% from 2019 levels by the end of 2030. Shell must also make “significant best efforts” to reduce emissions along its entire value chain, including those of its suppliers and consumers.
The judgment marks the first time that a corporation has been held to be responsible for reducing its net emissions in line with targets introduced by the Paris Agreement. The District Court in the Hague has ruled that Shell’s business plan violates its obligations under provisions of the Dutch Civil Code, informed by Articles 2 (the right to life) and 8 (rights to a private and family life) of the European Convention on Human Rights, by undermining the aims of the Paris Agreement on climate change.
Whilst this judgment relates to the energy sector, the reasoning could be applied to corporations in other carbon-intensive sectors.
Our webinar will give an overview the significance of this judgment for insurers, and look at the unfolding landscape for climate change litigation.