ClientEarth has issued an investor briefing on regulatory complaints following our move to report Cairn Energy PLC and SOCO International PLC to the Financial Reporting Council for inadequate disclosure of climate-related risks.
The document outlines the legal requirements for reporting climate-related risks, the basis of our complaints to the FRC, the public responses to date from Cairn and SOCO and explains why the FRC must properly oversee climate risk reporting for the benefit of investors.
It also suggests questions investors could ask the FRC about its oversight of corporate climate risk disclosures.
Cairn makes only two brief mentions of climate change which both relate to the Paris Agreement in December of last year. It is impossible to tell from its annual report how important the directors of the company consider climate-related risks.
SOCO makes no mention of climate change beyond the mandatory disclosure of greenhouse gas emissions for which it is responsible.
In response to ClientEarth’s complaint, the FRC has several options open to it, including issuing a court order forcing the companies to prepare a revised report, with the costs recoverable from the directors personally.
Investors can find out more about questions they can ask the regulator by downloading the full ClientEarth Investor Briefing.