Alexander Rhodes, Partner and Head of Mishcon Purpose, has contributed to an article in Sustainable Investor, reporting on how courts are increasingly being asked to intervene in disputes between activist shareholders and boards over the management of climate-related risks. This follows recent threats of legal action and a shareholder revolt against BP for excluding a shareholder resolution from its 2026 AGM, which called for the company to set out its strategy for maintaining shareholder value under scenarios of declining oil and gas demand.
Alexander comments: "Courts are increasingly being seen as a legitimate extension of the stewardship tools available to shareholders, and not a last resort. The threat of legal action from shareholders represents a more confrontational approach arising from dissatisfaction with the AGM process, where boards assert that their discretion enables them to refuse to table resolutions, or to decline to act on advisory resolutions if they are passed. This leaves shareholders with nowhere else to go, and the courts are increasingly willing to consider climate risks as material financial risks, and not mere activism.”
Read the full article