Australian companies may face securities class actions unless they adequately report the risks that climate change poses to their businesses. The potential exposure is for 700 companies that will “eventually be required to report their emissions levels under the National Greenhouse and Energy Reporting Act, brought in from July 1 this year,” according to The Age.
According to the article in The Age, Freehills’ attorney Renee Garner said increasingly savvy shareholders are seeking more information about the carbon profile of companies ahead of the carbon pollution reduction scheme. She states:
“This information could, and is likely to affect, shareholder value and how they see the company, and it could change people’s investment decisions.”
“The risk of not providing that information leaves open the potential for class actions, which we are likely to see more and more of.
“Whether or not it is shareholder action against companies for failure to disclose, or other class actions, it will become more real.”