4. Conclusion

This chapter has explored the various ways in which climate change is relevant to company law and the way in which company law is relevant to society’s response to climate change. While recent developments in company law have certainly increased the consideration of climate change by company directors and underlined its importance as a source of financial risk, there are also persistent barriers within company law which disincentivise companies from taking timely and ambitious steps to address climate change where these would conflict with the (short-term) interests of shareholders. The chapter discussed the ways in which strategic litigation and investor engagement and advocacy is seeking to shift company responses to climate change beyond a narrow focus on near-term financial risks to company interests towards a broader, longer-term focus on aligning risk management with the international goals of the Paris Agreement. This shift is also evident in recent sustainable finance reforms, which are further advanced in jurisdictions like Europe but also developing in Australia. The discussion also canvassed a range of more radical reforms to company law which would more explicitly require companies to consider and address the risks and impacts of their activities on the climate.