• Register
Return to: Home > News > Legal experts say there are no excuses when it comes to climate related disclosure

Legal experts say there are no excuses when it comes to climate related disclosure

When it comes to climate risk reporting silence is the most dangerous option according to a report by legal experts from the Commonwealth Climate and Law Initiative (CCLI), and the fear of legal action is no excuse for not disclosing the information.

Commentators have expressed concerns that compliance with the Task Force on Climate-related Financial Disclosure (TCFD) recommendations will expose companies to legal liabilities. This is because investors or clients relay on companies forward looking statements and then suffer losses if they fail to occur. There is also uncertainty surrounding future climate risk impacts and costs.

The report entitled Concerns misplaced: Will compliance with the TCFD recommendations really expose companies and directors to liability risk? explains that this concern misrepresents security laws and overstates the liability risk associated with forward looking statements. Secondly, the paper argues that compliance with the recommendations from the TCFD will actually protect companies from the kind of legal liability claims they fear.

ClientEarth corporate lawyer and co-author of the report Alice Garton explained: “Following the TCFD framework is currently the best insurance policy because if directors fail to reference material climate risk, the message to investors that business is as usual, which can leave them open to liability claims.”

Task Force special adviser Russell Picot added: “Climate risk is present in almost all investment portfolios. Companies need to look at different scenarios and give clear indications to investors of how they believe these might play out. Fear of liability should not be used as an excuse.”

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.