|  | | 2007 News and Press Releases | | |
HEADLINE NEWS:
Report Warns Of Legal Fallout From Climate Change
Anne Urda
Securities Law360. December 5, 2007
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EXCERPT: A new study has sounded the alarm over the legal chain reaction that climate change may create for businesses and has warned companies to prepare themselves for potential shareholder litigation and increased insurance premiums related to environmental changes. On Wednesday, the Corporate Library, a corporate governance research outfit, released a report titled “Whose Carbon Footprint Is Too Big Big For Their Corporate Boot?” The report sought to identify those companies most at risk for future climate-change-related liability. “In light of the attention now being paid to climate change, we were surprised at the wide range of practices, including the number of companies that made no disclosures in their SEC filings or on their Web sites regarding the effect of climate change and regulations adopted to mitigate it," said the study's author, senior research associate Beth Young. For the report, the Corporate Library partnered with Trucost to examine two dozen carbon-intense companies contained in the Russell 1000 index, paying particular attention to their disclosure practices and governance arrangements in regard to climate change. American Electric Power led the ratings overall, with Burlington Northern Santa Fe, Seacor and Tidewater crowding the bottom of the list, according to the study. “Overall, scores varied widely, from a low of two points to a high of 18,” the report said. “The mean was 6.5 and the median was 4.5.” According to the report, a huge range exists in the disclosure practices of the companies, setting up a potentially dangerous legal situation for those which fail to take the threat seriously. |
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