The Climate Emergency and Company Law Reform: Would the Better Business Act reforms make a difference?

A Scottish Climate Emergency Legal Network event

Supported by The Clark Foundation

Sponsored by Aberdeen University, Centre for Energy Law

Tickets: £5 standard, free for concessions (student, under 22, unemployed) (+ Eventbrite fee) (capacity limited to 40 persons, waiting list available)

This is an in-person event of importance to everyone

Event: 15.00-17.30 (Refreshments 16.45-17.30)

CPD 2 hours

PEAT Outcome - Relevant legal knowledge

List of Speakers:

Chair: Jerry McNally, Member, SCELN

Andrew Shannon - fund manager at Circularity Capital

Dr Thomas Muinzer - climate law expert from the University of Aberdeen’s Centre for Energy Transition (member, SCELN)

Euan McVicar, Senior Climate Advisor and corporate governance expert, Pinsent Masons, Solicitors

Dr Frances Maguire, Senior Policy Adviser, Scottish Government (TBC)

Company Law and Environmental Obligations

A panel discussion on the company law duties to shareholders, communities and the environment.

Current UK company law is seen as requiring directors to put profit over people and planet. The Better Business Act Campaign (BBA) proposes amendments to that law to empower directors to put communities and the environment on an equal footing with shareholders. Is that the right goal? Would the reforms be an effective mechanism to achieve a just transition to sustainability?

On 15th June 2022, SCELN is hosting a panel discussion with industry experts on the impacts and effectiveness of the proposed changes. Speakers: climate law expert Dr Thomas Muinzer from the University of Aberdeen’s Centre for Energy Transition, fund manager Andrew Shannon at Circularity Capital, company lawyer Euan McVicar from Pinsent Masons, Professor Abbe Brown of Aberdeen University Centre for Energy Law and Dr Frances Maguire, Scottish Government.

The panel will discuss the challenges of company law and the potential impacts of the Better Business Act and there will be an opportunity for Q&A. A drinks reception will be provided.

Further Detail

Under the s172 of the Companies Act 2006, directors have a duty to promote the success of the company for the benefit of its members as a whole, and have regard to other factors in decisions such as long term consequences and the impact on communities and the environment. The requirement to have regard to the environment has not been seen to have much impact.

The Better Business Act proposes to amend s172 of the 2006 Act to put benefits to wider society, the environment and reducing harms on level footing with shareholders when directors are making decisions.

The aim of the BBA proposals is to empower directors to prioritise the environment and communities in line with the purpose of their business. The panel discussion will consider whether these proposals are an effective mechanism for their aims, if they go far enough and if they are the right method for tackling climate and environmental challenges in the business sphere.

The nature of pensions today means that all workers are investors in business. As a result, these issues engage everyone - not only the business community.

Organisers

This conference is organised by Scottish Climate Emergency Legal Network (SCELN). This is an open network (anyone may join) aimed at demystifying the law on climate issues, campaigning to change the law where necessary and to support lawyers, campaign organisations or voluntary groups to take relevant action including appropriate litigation. SCELN’s first year has had notable achievements: its campaign to have Nitrogen Trifluoride (a highly potent climate change gas: 500 times more long lasting than carbon dioxide) included in the UK Climate Change Act has been accepted by the UK government. To join, please email paulbrown@lsa.org.uk.

Who is this event for?

Business is key to climate. This event is aimed at everyone who is concerned to push for a just transition to net zero as soon as possible. It will be of interest to lawyers, staff working in or for businesses, share owners as well as campaigners, reformers or legislators and of course students as well as pensioners either now or in the future.