So far, most Lawsuits have Centered on Fiduciary Duty to Disclose Climate Risk. Shareholders have Sued the Commonwealth Bank of Australia for Failing to Disclose them, including Risk related to possible Investment in a Coal Mine. The Lawsuit was Dropped when the Bank Published an Annual Report Acknowledging the the Risk.
In America, ExxonMobil has been beset by Class-Action and Shareholder Lawsuits alleging that the Company has Misled Investors on Climate Risks, but None have been Successful.
O'Donnell's Case is still to be heard. If see wins, the Australian Government, which has done much to Support the Coal Industry and Little to Limit National Emissions, may have to Issue a Public Statement about the Financial Risks posed by Climate Change.
A Backlash against Dirty Bonds is Already Hurting some of Australia's Regional Governments.
Last year Sweden's Central Bank said that it would Not Invest in the Assets of Dirty Issuers, and promptly Sold Bonds issued by Queensland and Western Australia.
Occasionally Shareholder Litigation can Lower Emissions directly. In 2018 Client-Earth bought $36 of Shares in Enea, a Polish Power Company, and later Sued over the Firm's Plan to build the last Coal Unit ever to be built in Poland. The NGO argued that the Decarbonisation of the Energy Sector would make the Unit an Unprofitable Stranded Asset, creating an Indefensible Financial Risk. The Polish Courts ruled in Client-Earth's favor Last year, and the Project has been Abandoned, a Powerful Precedent.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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