Liability for Misleading Disclosure of Climate Risk

Venue: Seminar Room, Level 1, 257

Presenters: Professor Jacqueline Peel

There have been a number of recent enforcement actions in the United States alleging that major fossil fuel companies, such as ExxonMobil Corp and Peabody Energy, have not adequately or appropriately disclosed the risks posed to their businesses by climate change, as required under US federal securities law.

Climate change risk encompass both physical and non-physical risks. Physical risks involve damage to assets and disruption to operations caused by extreme events. Non-physical risks involve the need to comply with change climate regulatory requirements, the indirect effects of those requirements, and business trends that include declining demand for carbon intensive products. The rationale behind these requirements in that full and timely disclosure of material business risks is critical to market transparency. In addition, information on the climate risk exposure of companies is increasingly sought by large-scale investors to support their long term decision-making.

Australian corporate and securities law is broadly similar to that in the US. As confirmed by a recent legal opinion issued by Sydney barristers Noel Hutley SC and Sebastian Hartford-Davis for the Centre for Policy Development and the Future Business Council, Australian listed companies have obligations to disclose material business risks posed by climate change, with potential liability implications for company directors who fail to consider and disclose foreseeable climate risks. This presentation explores recent developments in the US and the likelihood of similar actions in Australia.

from
https://events.unimelb.edu.au/events/9746-liability-for-misleading-disclosure-of-climate-risk