ClientEarth v. Enea

Environmental law nonprofit ClientEarth brought a suit as a minority shareholder in the Polish utility Enea SA, arguing that its decision to build a coal-fired power plant in the Polish city of Ostrołęka was an unjustifiable financial risk to shareholders because it did not take climate change properly into account.

The claim was brought under the Polish Commercial Companies Code. The plaintiffs challenge was made on two grounds: that it was an illegal instruction to the company’s board and that it posed an unjustifiable financial risk to shareholders because it did not take climate change properly into account. The plaintiffs argued that, based on rising carbon prices, increased competition from cheaper renewables, and the impact of EU energy reforms on state subsidies for coal power under the capacity market, the investment in a new coal-fired plant would harm the company's financial interests.

The court agreed, finding that construction approval interfered with the management board’s exclusive competence to run the company which breached the Polish Commercial Companies Code.

Resources

 * http://climatecasechart.com/non-us-case/clientearth-v-enea/
 * https://climate-laws.org/geographies/poland/litigation_cases/clientearth-v-enea
 * https://www.clientearth.org/latest/latest-updates/news/major-court-win-shows-power-of-corporate-law-to-fight-climate-change/
 * Climate Activists Win Shareholder Suit to Thwart Coal Plant in Poland. The Climate Docket, 2019.