Cairn Energy reported to financial regulator for (allegedly) failing to disclose full environmental risks

Cairn EnergyEdinburgh-based oil company Cairn Energy has been reported to a financial regulator for allegedly failing to disclose the full environmental impact of its exploration work.

It has been referred to the Financial Reporting Council by Client Earth, a group of environment lawyers.

Client Earth said it had asked the financial council to intervene to “correct defective reporting”.

Lawyer Alice Garton said: “For companies operating in this sector – with business models and strategies which rely on the continued use of hydrocarbons – it is inconceivable that climate risk is not a material and significant factor for these companies.

“Failing to adequately disclose climate risk is failing to mention one of the most important risks facing the company and means the annual report is only telling the positive side of the story. This information is vital for investors; without it they simply cannot make a fully informed investment decision.”

In response, a spokesman for Cairn Energy said: “Cairn Energy plc is a constituent of the FTSE4Good whereby the company is selected and screened in accordance with transparent and defined Environmental, Social and Governance criteria. The index is designed to identify companies with recognised corporate responsibility practices.

“Corporate Responsibility is key to our business and we take our commitments to responsible and transparent reporting very seriously and have been recognised for the quality of our work in this area.   We continually identify corporate responsibility priorities and our 2015 annual report featured climate change in the comprehensive materiality matrix.”

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