Peabody Energy, a publicly-traded coal company that owns a mine in Colorado, has agreed to be more specific about its financial risks from climate change, after New York Attorney General Eric Schneiderman accused the company of violating his state's laws with misleading statements to investors.
He said those statements downplayed the financial risks of climate change and potential regulatory responses. Missouri-based Peabody admits no wrongdoing in the agreement and says it’s always tried to make appropriate disclosures. NPR reported:
An investigation by the attorney general's office found that Peabody repeatedly stated that it couldn't predict the impact of climate change regulation on its bottom line, even though consultants hired by Peabody had projected that it would have a "severe impact."
Timothy Smith, with Boston-based Walden Asset Management, a financial firm that specializes in sustainable investments, says the Peabody settlement rings an alarm bell for other companies to be more forthright.
“What’s happened with Peabody is a reminder that this is being taken even more seriously," he said.
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