The stock market to the rescue? Carbon disclosure and the future of securities-related climate change litigation

Review of European Community and International Environmental Law

Volumn 18, Issue 2, 2009, Pages 164-171

  Erion, Graham ^a  

^a LLP   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

ACTION PLAN; CARBON EMISSION; CLIMATE CHANGE; EMISSION CONTROL; ENVIRONMENTAL LEGISLATION; ENVIRONMENTAL RISK; GREENHOUSE GAS; INVESTMENT; REGULATORY FRAMEWORK; STOCK MARKET;

NORTH AMERICA;

EID: 70350371872     PISSN: 09628797     EISSN: 14679388     Source Type: Journal    
DOI: 10.1111/j.1467-9388.2009.00638.x     Document Type: Article

References (65)

1. Massachusetts v. Environmental Protection Agency, 549 US 1 (2007).
2. Friends of the Earth, Inc. v. Spinelli [2002]Civ. No. 02-4106, (N.D. Cal.). Note that the settlements can be read at Environmental Law Alliance, Landmark Global Warming Lawsuit Settled (Environmental Law Alliance, undated), available at 〈http://climatelaw.org/cases/ country/us/eca/settlement〉.
3. N. Gronewold, 'Hansen Hopes Lawmakers'Cap-and-Trade Approach to Climate will Fail', ClimateWire (4 May 2009).
4. See, e.g., Connecticut et al v. American Electric Power Company, Inc. etal., [2005]406 F. Supp. 2d 265 (SDNY); Comer v. Murphy Oil Co., [2007]No. 05-CV-436LG (SD Miss., 30 August 2007); and California v. General Motors Corp etal., [2007]US Dist. LEXIS 68547 (ND Cal. 2007).
5. As obligated in Canada under National Instrument 51-102 and in the USA by Regulation S-K. See National Instrument 51-102 -Continuous Disclosure Obligations', [2004]27 OSCB 3439; and Regulation S-K 17, CFR §229.303
6. Robert D. Allen et al., 'Emerging Issues: Global Warming Claims and Coverage Issues', 76:1 Def. Coun. J. (2009), 18.
7. See, e.g., J.M. McFarland, 'Warming Up to Climate Change Risk Disclosure', 14:2 Fordham J. Corp. & Fin. L. (2009), 281; P.A. Koval et al., 'Climate Change Disclosure Heats Up', 2:2 Corp. Disclosure (2008), 14; K. Weigand, 'Climate Change Disclosure: Ensuring the Viability of the Insurance Industry While Protecting the Investor', 34:1 WM & Mary Envtl. L. & Pol'y Rev. (forthcoming 2010)
8. Carbon Disclosure Project, German Report of the Carbon Disclosure Project (Carbon Disclosure Project, 2008), at 7.
9. Investor Network on Climate Risk, Letter to Florence E. Harmon, Acting Secretary, Securities and Exchange Commission (22 October 2008), available at 〈http://www.ceres.org/Document.Doc?id=376〉.
10. Climate Change Act 2008 (UK), c. 27, Section 85.
11. Canadian Institute of Chartered Accountants, 'Investors Hungry for Climate Change Information', Press Release (18 February, 2009), available at 〈http://www.marketwire.com/press-release/ Chartered-Accountants-Of-Canada-951009.html〉.
12. Canadian Institute of Chartered Accountants, Building a Better MD&A: Climate Change Disclosures (CICA, 2008), at 6.
13. See National Instrument 51-102, n. 5 above.
14. See Regulation S-K, n. 5 above.
15. Canadian Securities Administrators, 'National Instrument 51-201 -Disclosure Standards', [2002]25 OSCB 4492, Section 4.1
16. See CICA, n. 11 above, at 17.
17. Basic v. Levinson, 458 US 224 (1988), at 237-240.
18. See US Securities and Exchange Commission, Form 10-K: Annual Report Pursuant to Section 13 or 15(D) of the Securities Exchange Act of 1934 (SEC, undated), available at 〈http://www.sec.gov/about/forms/ form10-k.pdf〉.
19. Ontario Securities Commission, Staff Notice 51-716 - 'Environmental Reporting', [2008]31 OSCB 2223.
20. See CICA, n. 11 above, at 5.
21. An audit committee is an operating committee of the board of directors (composed of independent and outside directors) and is charged with oversight of financial reporting and disclosure.
22. B. Young et al., Climate Risk Disclosure in SEC Filings: An Analysis of 10-K Reporting by Oil and Gas, Insurance, Coal, Transportation and Electric Power Companies (The Corporate Library, 2009).
23. For the complete Framework, see United Nations Environment Programme's Finance Initiative, Global Framework for Climate Risk Disclosure (UNEPFI, undated), available at 〈http://www.unepfi.org/fileadmin/ documents/global_framework.pdf〉.
24. See B. Young etal., n. 22 above, at 12.
25. Ibid., at 34.
26. Ibid., at 54.
27. Investor Network on Climate Risk, Petition for Interpretive Guidance on Climate Risk Disclosure (Investor Network on Climate Risk, 18 September 2009), available at 〈http://www.incr.com//Document.Doc?id=187〉.
28. Ibid.
29. Ceres, 'Investors Praise Language in Senate Funding Bill Urging the SEC to Issue Guidance on Corporate Climate Change Risk Disclosure', Press Release (18 July 2008), available at 〈http://www.ceres.org/ Page.aspx?pid=920〉.
30. For more information on the CDP, see Carbon Disclosure Project (CDP, undated), available at 〈http://www.cdproject.net〉.
31. Carbon Disclosure Project, Report: Canada 200 (CDP, October 2008), at 22.
32. The subpoenas can be viewed online at State of New York, Office of the Attorney-General, Energy Company Subpoenas, available at 〈http://www.oag.state.ny.us/media_center/2007/sep/ sep17a_07.html〉.
33. Office of the Attorney-General of New York State, 'Cuomo Reaches Landmark Agreement with Major Energy Company, Xcel Energy, to Require Disclosure of Financial Risks of Climate Change to Investors', News Release (27 August 2008), available at 〈http://www.oag.state.ny.us/ media_center/2008/aug/aug27a_08.html〉.
34. Office of the Attorney-General of New York State, 'Attorney General Cuomo, Joined by Vice President Gore, Announces Agreement With Major Energy Company, Dynegy Inc.', News Release (23 October 2008), available at 〈http://www.oag.state.ny.us/media_center/2008/oct/ oct23a_08.html〉.
35. Xcel Energy, Annual Report Pursuant to Section 13 or 15(D) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2007 (Xcel Energy, 20 February 2008).
36. Xcel Energy, Annual Report Pursuant to Section 13 or 15(D) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2008 (Xcel Energy, 27 February 2009).
37. Ibid., at 35.
38. Ibid., at 50.
39. Dynegy, Annual Report Pursuant to Section 13 or 15(D) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2008 (Dynegy, 6 February 2009), at 14.
40. J.-A. Matear and N. Varma, Environmental Reporting: Climate Change Lawyers Network, presentation to Climate Change Lawyers Network, Toronto, Ontario (3 June 2009).
41. New York General Business Law, Section 352 et seq.
42. Pitts v. Am. Express Int'l, [1996]911 F. Supp. 710, 719 (SDNY 1996).
43. R.A. McTamaney, 'New York's Martin Act: Expanding Enforcement in an Era of Federal Securities Regulation', 18:5 Legal Backgrounder (28 February 2003), 1.
44. Securities Act, R.S.O. 1990, c. S.5, Section 11(1) (OSA).
45. Ibid., Section 13(2).
46. Ibid., Section 122(1).
47. Ibid., Section 122(2).
48. See J.-A. Matear and N. Varma, n. 40 above.
49. R. King, 'Investors Demand Carbon-Risk Disclosure', Business Week (1 June 2009), available at 〈http://www.businessweek.com/technology/ content/jun2009/tc2009061_144414.htm〉.
50. Ibid.
51. For a complete and up-to-date list of shareholder resolutions filed by the Ethical Funds Company, see Ethical Funds Company, Shareholder Resolutions (Ethical Funds, undated), available at 〈https://www.ethicalfunds.com/en/Investor/ChangingTheWorld/ DifferencesWeMake/MakingGoodCompaniesBetter/ShareholderResolutions/ Pages/default.aspx〉.
52. 'TD Bank Financial Group Announces Greenhouse Gas Emissions Plan', Press Release (5 February 2008).
53. See R. King, n. 49, above.
54. PR Newswire, Climate Change Shareholder Resolution Wins Majority at IDACORP AGM (PR Newswire, 21 May 2009).
55. For a summary of recent climate change resolutions, see Ceres, Shareholder Resolutions (Ceres, undated), available at 〈http://www.ceres.org//Page.aspx?pid=428〉.
56. See R. King, n. 49, above.
57. L. Bolten, Member of Provincial Parliament for Etobicoke-Lakeshore, 'Ontario Legislature Calls for Enhanced Disclosure Requirements', News Release (9 April 2009).
58. See Ceres, n. 29 above.
59. Global Warming Pollution Reduction Act, S.309, 110th Cong. (2007).
60. Ibid.
61. Global Warming Reduction Act of 2007, S.485, 110th Cong. (2007).
62. American Clean Energy and Security Act of 2009, H.R. 2454, 111th Cong. (2009).
63. See OSA, n. 44 above, Section 138.3(1).
64. Ibid., Section 138.4(5).
65. Ibid., Section 138.4(6).