Letter to the European Securities and Markets Authority (ESMA) on Climate risk disclosures by companies in the oil and gas, and coal sectors

In the wake of the Paris climate agreement, ClientEarth, along with partners, has written to a European financial authority urging it to promote climate risk disclosures from fossil fuel companies across the EU.

With the Climate Disclosure Standards Board, CDP Europe and ShareAction, ClientEarth has asked the European Securities and Markets Authority to ensure climate risk disclosures are included in management reports from fossil fuel companies.

It also requests ESMA aligns with the work of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures and promotes a consistent regulatory approach by EU financial regulators in relation to climate risk disclosures.

The letter focuses on what fossil fuel companies say about their principal risks and uncertainties. It highlights that, with the Paris agreement meaning up to 80% of current fossil fuel reserves must remain in the ground, fossil fuel companies are now bound to treat climate change as a principal risk and report on it accordingly.