• Register
Return to: Home > News > Standards > 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

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    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.