AES resolves investigation by NY Attorney General Cuomo with agreement to disclose climate-change risks to investors
In his latest use of New York's Martin Act as an environmental enforcement tool, on November 19, 2009, New York Attorney General Andrew M. Cuomo announced an agreement with The AES Corporation requiring AES to disclose material risks associated with climate change in its annual report to the Securities and Exchange Commission. The agreement resolves an investigation that began with Mr. Cuomo’s September 14, 2007 letters and accompanying subpoenas to AES and four other energy companies.
Under the terms of the November 19, 2009 Assurance of Discontinuance Pursuant to Executive Law § 63(15), AES’ disclosures will include an analysis of material financial risks associated with current and probable future greenhouse gas legislation and regulations, as well as material financial risks to the company from the physical impacts of climate change, including “the impact of an increase in sea level and changes in weather conditions.” In addition, AES has agreed to a broad litigation disclosure in which the company will describe any climate-change-related litigation involving AES,
the outcome of which will likely have a material financial effect on the Company and any climate change-related decisions issued by the United States Supreme Court, any United States Court of Appeals, or any court in any jurisdiction in which the Company operates that the Company concludes are likely to have a material financial effect on its business.
The Attorney General previously reached similar agreements with Xcel (see August 26, 2008 Xcel settlement) and Dynegy (see October 23, 2008 Dynegy settlement).
http://www.globalclimatelaw.com/admin/trackback/168098
