The Commonwealth Climate and Law Initiative (CCLI) is a research, education and outreach project focused on four Commonwealth nations: Australia, Canada, South Africa and the United Kingdom. It provides the legal basis for directors and trustees to consider, manage, and report on climate change-related risk, and the circumstances in which they may be liable for failing to do so.

The issue CCLI seeks to address is providing foresight for unparalleled economic risks associated with climate change. This has created greater concerns regarding the legal liability risks for individuals, companies and investors, as evidenced in September 2015, when Bank of England Governor Mark Carney warned company directors could be held legally liable for failing to manage climate change risks. These developments created greater liability for directors and pension fund trustees, including:

• Contributing to anthropogenic climate change
• Not reasonably managing the risks associated with climate change
• Misleading investors about the business risks of climate change or failing to comply with legal reporting requirements.

In lieu of growing societal and commercial awareness, CCLI was launched in November 2015 as a joint initiative between University of Oxford, Accounting for Sustainability and Client Earth.

The four focus jurisdictions mentioned above produce only 6% of current annual global greenhouse gas emissions, but account for 13% of global coal reserves and 11% of global oil reserves. Their stock exchanges also have 27% of all listed fossil fuel reserves and 36% of listed fossil fuel resources. Furthermore, there are commonalities in the legislative systems in each of these four countries, suggesting the initiative’s recommendations and work are easily transferrable and applicable.

Additionally, CCLI also commissions and undertakes widespread research, engagement and outreach activity across these nations and other Commonwealth nations including India, Pakistan, Nigeria, Malaysia, Singapore and New Zealand.

Purpose: CCLI is examining the legal basis for directors and trustees to take account of physical climate change risk and societal responses to climate change under prevailing statutory and common (judge-made) laws.

Funding sources include:

KR Foundation: Aim to address the key causes of climate change and environmental degradation.

More information available at: https://krfnd.org/

IVEY Foundation: Supports Canada’s transition to a sustainable economy by enabling opportunities for greater resource efficiency.

More information available at: https://ivey.org