ClientEarth calls for review of SOCO Intl. & Cairn Energy's climate-related risks disclosure
"ClientEarth triggers review of companies’ climate disclosures," 22 Aug 2016
ClientEarth has alerted the UK financial regulator to reporting breaches by two oil and gas companies…In detailed legal letters to the Financial Reporting Council (FRC) the international environmental law organisation has requested intervention to correct defective reporting by SOCO International Plc and Cairn Energy PLC. The two…companies make scant reference to climate-related risks to their business in their annual reports. This means investors are not fully informed of risks to the business. In the UK, the Companies Act 2006 sets out a legal framework for companies to report material risks to the business. The FRC is the regulator responsible for monitoring compliance…ClientEarth lawyer Alice Garton said: “…Failing to adequately disclose climate risk is failing to mention one of the most important risks…This information is vital for investors...We want the FRC to take decisive action and oblige these companies to report on climate related risks to their business – as they are required by law to do.”
[Please find the investor briefing attached.]