The heat is on—companies reported to financial regulator for climate disclosure failures

Table of contents

• Original news
• What is the background to this story?
• What are the reporting requirements under the Companies Act 2006 (CA 2006)?
• Is there any guidance on the appropriate level of reporting and adequate disclosure?
• Are companies obliged to report on any other environmental issues?
• What references were made by the two companies to climate risk?
• What is the penalty for non-compliance?
• What is the reputational risk for companies in non-compliance?
• What steps are likely to now be taken by the FRC?
• Is there any guidance on the appropriate level of reporting and adequate disclosure?

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Article summary

Environment analysis: Two oil and gas companies have been reported to the Financial Reporting Council (FRC) for allegedly failing to adequately disclose climate change risks to their businesses in their annual reports. David Cooke, a lawyer at international environmental law organisation ClientEarth which alerted the FRC to the alleged reporting breaches, explains why it took action.