Press release – 18 November, 2015Sydney, 19 November 2015 – Greenpeace International is calling for an Australian government investigation into coal companies listed on the Australian Securities Exchange after finding most of them have not disclosed the risks to their business over climate change.Marina Lou, Legal Advisor for Greenpeace International, said research into the Australian coal companies shows that four of them, including Rio, Whitehaven, AGL and Wesfarmers, have not disclosed risks to their business based on a 2°C warming scenario in their most recent annual reports.
Peabody Energy, a major US coal company, has recently been found by the New York attorney-general to be in violation of New York securities law because of the failure to disclose this risk [1].
“The finding of the New York attorney-general was precedent-setting. Climate change, and the regulatory risk it poses to fossil fuel companies, can have a material impact,” said Ms Lou.
“If known, it should be disclosed to investors. That’s why we are urging Australian regulators to conduct investigations into companies listed on the ASX, for potentially similar misconduct.
“Greenpeace International has been systematically scrutinising disclosure of fossil fuel-exposed companies like Exxon and Peabody for a long time.
“With other major coal mining countries like Indonesia cutting their production and export of coal, Australia could soon become the world’s biggest supplier of seaborne coal.
“The exposure this poses to the Australian securities market could have marked impact on all Australian investors,” she said.
Greenpeace International, legally represented by Environmental Justice Australia (EJA), today wrote to the Australian Securities and Investments Commission (ASIC), Australia’s company regulator, asking for an investigation into the state of climate disclosure for these companies.
ASIC was told that these companies should disclose any internal assessments they have made regarding climate change risk to their business as material risks to investors, in accordance with Australian law.
EJA, under instruction from Greenpeace, conducted the research and analysis into the Australian companies.
“In our research, we found ASX pure-play coal companies publishing optimistic long-range coal forecasts. Like Peabody, they fail to inform investors about downside risks under a 2C warming scenario.
“Australia should follow the example set by the New York attorney-general and stamp out this behaviour,” said  David Barnden, lawyer for Environmental Justice Australia.
Key research findings:
– Rio and Whitehaven said they were monitoring policy developments in 2015.
– Whitehaven, a highly leveraged pure-play coal company with plans to develop the new Vickery coal mine, was particularly at risk and relied on forecasts favourable to its business without disclosing downside risk.
– Wesfarmers, AGL and BHP supported a 2°C limit.
– None disclosed impacts of a 2°C regulation scenario, except BHP, which said climate change regulation was difficult to predict and could negatively affect its business.
1.
http://ag.ny.gov/pdfs/Peabody-Energy-Assurance-signed.pdf
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