Investors are turning up the pressure on publicly traded companies to disclose any financial risks climate change poses to their business. New York state’s attorney general Andrew Cuomo subpoenaed five energy companies over the same disclosure issue. And recently two of them–Xcel Energy and Dynegy—agreed. Dan Bakal advises the investor and environmental network CERES on the energy sector. He says other coal companies could follow suit.
“Legal experts out there are recognizing the significance of the developments with Xcel Energy and with Dynegy and advising their corporate clients how to respond. And we hope that means expanded disclosure, good and useful information for investors,” says Bakal.
One of the largest coal companies, Peabody, which has operations in Kentucky, was also subpoenaed. It’s not yet clear how the company will respond.