Andrew Cuomo (D)
NEW YORK (Legal Newsline) -- Climate change risks must now be disclosed by a national energy company to investors following an agreement announced by the New York attorney general.
Dynegy Inc. will disclose climate change material risks in its annual Form 10-K summary report filings required by the U.S. Securities and Exchange Commission.
Under the agreement, an analysis of material financial risks related to present and probable future climate change regulation and legislation, climate-change related litigation and physical impacts of climate change must now be disclosed.
"This agreement follows our landmark settlement with Xcel Energy and helps protect investors by ensuring disclosure of potential financial risks that climate change may pose," said Attorney General Andrew M. Cuomo, Democrat, who was joined by former Vice President Al Gore at the announcement.
"Today we raise the bar in the industry and ensure transparency and disclosure in the marketplace. Investors have the right to know all the material financial risks faced by coal-fired power plants associated with global warming and I hope and expect that other companies will follow the lead of Dynegy and Xcel. I commend and applaud Dynegy for working with my office to establish a standard that will improve our environment and our marketplace over the long-term," Cuomo said.
Houston, Texas-based Dynegy Inc. has also committed to disclosing current carbon emissions and projected increases in carbon emissions from their planned coal-fired power plants. The company is also implementing strategies to reduce, offset, limit or manage global warming pollution emissions, officials said.
Dynegy Inc. was one of five major energy companies subpoenaed by the attorney general under New York State's 1921 Martin Act in September 2007. Information was requested on if the companies' financial risks related to emissions of global warming pollution were adequately disclosed in SEC filings.
Of the five companies - Xcel Energy, Dynengy Inc., AES Corporation, Dominion Resources and Peabody Energy - Xcel and Dynegy have announced agreements of financial disclosure.