Who? Paul Benson, senior lawyer, ClientEarth.
Why is he in the news? Acted in a claim on behalf of shareholders which would have held Shell directors personally liable under the Companies Act 2006 for alleged environmental strategy failings.
Thoughts on the case: ‘This is the first claim worldwide to challenge corporate directors over their failure to prepare for the energy transition. Clearly, directors have a legal duty to manage material and foreseeable risks to the company. For an oil and gas company, the energy transition is as clear an example of that as you can get. Shell’s board has recognised those risks. We say in this litigation that its strategy to deal with them is fundamentally flawed. Our derivative action claim has been dismissed at the first hurdle. Yet Shell’s board has so far avoided engaging with any of the flaws we have identified in its energy transition strategy. It says this is “management territory”. We say that territory is wide – but has limits. The board is acting so far outside the reasonable range of discretion that, we argue, it constitutes a breach of legal duties. In light of the importance of the issues raised by the case, we are now seeking permission to appeal.’
A spokesperson for Shell said: ‘We believe our directors have always complied with their duties and acted in the company’s best interest.’
Dealing with the media: ‘Cutting-edge cases require claimants not only to make their legal arguments, but also to explain the context in which the case is being brought. Climate risk is a material financial risk for companies. Shell’s board accepted this, as did the High Court in its decision. But the precise relationship between that risk and directors’ legal duties is not settled. The heightened media interest in our claim illustrates the significance of the litigation. In a world where the board is ploughing billions into new oil and gas fields despite an expected decline in demand, failing to comply with an enforceable court order in the Netherlands requiring it to reduce emissions and failing to set appropriate targets to manage the risk, it’s clear that these can add up to a real case for breach of duty.’
Why become a lawyer? ‘I enjoy it, and I’m good at it. Before coming to ClientEarth, I spent over 10 years in private practice, specialising in commercial litigation and contentious environmental matters.’
Career high: ‘The support we received from institutional investors for this claim was unprecedented. It was quite something to see the UK’s largest workplace pension scheme, for example, say that they hope our claim makes the whole energy industry sit up and take notice.’
Career low: ‘The High Court’s decision was disappointing. However, it is not the end of the road. We stand by our claim and will continue to seek an order for the Shell board to adopt a strategy that truly aligns with the Paris agreement, and their legal duties under the Companies Act.’
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