1.0Centre for Policy Developmenthttps://cpd.org.auLuisa Bollhttps://cpd.org.au/author/luisaboll/rich600338<blockquote class="wp-embedded-content"><a href="https://cpd.org.au/2019/03/directors-duties-2019/">Updated Hutley opinion on directors’ duties and climate risk</a></blockquote> <script type='text/javascript'> <!--//--><![CDATA[//><!-- /*! This file is auto-generated */ !function(d,l){"use strict";var e=!1,o=!1;if(l.querySelector)if(d.addEventListener)e=!0;if(d.wp=d.wp||{},!d.wp.receiveEmbedMessage)if(d.wp.receiveEmbedMessage=function(e){var t=e.data;if(t)if(t.secret||t.message||t.value)if(!/[^a-zA-Z0-9]/.test(t.secret)){var r,a,i,s,n,o=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),c=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]');for(r=0;r<c.length;r++)c[r].style.display="none";for(r=0;r<o.length;r++)if(a=o[r],e.source===a.contentWindow){if(a.removeAttribute("style"),"height"===t.message){if(1e3<(i=parseInt(t.value,10)))i=1e3;else if(~~i<200)i=200;a.height=i}if("link"===t.message)if(s=l.createElement("a"),n=l.createElement("a"),s.href=a.getAttribute("src"),n.href=t.value,n.host===s.host)if(l.activeElement===a)d.top.location.href=t.value}}},e)d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",t,!1),d.addEventListener("load",t,!1);function t(){if(!o){o=!0;var e,t,r,a,i=-1!==navigator.appVersion.indexOf("MSIE 10"),s=!!navigator.userAgent.match(/Trident.*rv:11\./),n=l.querySelectorAll("iframe.wp-embedded-content");for(t=0;t<n.length;t++){if(!(r=n[t]).getAttribute("data-secret"))a=Math.random().toString(36).substr(2,10),r.src+="#?secret="+a,r.setAttribute("data-secret",a);if(i||s)(e=r.cloneNode(!0)).removeAttribute("security"),r.parentNode.replaceChild(e,r)}}}}(window,document); //--><!]]> </script><iframe sandbox="allow-scripts" security="restricted" src="https://cpd.org.au/2019/03/directors-duties-2019/embed/" width="600" height="338" title="“Updated Hutley opinion on directors’ duties and climate risk” — Centre for Policy Development" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe>https://cpd.org.au/wp-content/uploads/2019/03/Screen-Shot-2019-03-29-at-12.14.20-AM.png11921090Full supplementary memorandum of opinion here Today CPD has released an update of a landmark 2016 legal opinion on how Australian law requires company directors to consider, disclose and respond to climate change. Summary of findings The original Hutley opinion, which we commissioned and released in 2016 after extensive consultation with business leaders and legal experts, found that directors who do not properly manage climate risk could be held liable for breaching their legal duty of due care and diligence. The supplementary opinion, provided again by Noel Hutley SC and Sebastian Hartford Davison on instruction from Sarah Barker at MinterEllison Lawyers, reinforces and strengthens the 2016 findings. It emphasises five material developments since 2016 that have elevated the need for directors to consider climate risks and opportunities and reinforced the urgency of improved board-level governance of this issue. These five developments are: Coordinated engagement by financial regulators on climate: The opinion highlights recent statements on climate risk by APRA, ASIC and the Reserve Bank as evidence of “striking” alignment between Australia’s regulators on “the financial and economic significance of climate change.” New reporting frameworks: The opinion highlights three major advances in financial reporting frameworks relevant to the disclosure of climate risk: the final recommendations of the...