US fossil fuel companies facing legal action for misleading disclosure of climate risks: could it happen in Australia?

摘要

There have been a number of recent enforcement actions in the US alleging that major fossil fuel companies, such as ExxonMobil Corp (Exxon) and Peabody Energy, have not adequately or appropriately disclosed the risks posed to their businesses by climate change, as required under US federal securities law. Australian company and securities law is broadly similar to that in the US. As confirmed by a recent legal opinion issued by Sydney barristers Noel Hutley SC and Sebastian Hartford-Davis for the Centre for Policy Development and the Future Business Council (the Hutley SC opinion), Australian listed companies have obligations to disclose material business risks posed by climate change, with potential liability implications for company directors who fail to consider and disclose foreseeable climate risks. This article explores recent developments in the US and the likelihood of similar actions in Australia.