(Reuters) – The UK market regulator has been called upon to sanction cruise ship Carnival and food delivery company Just Eat Takeaway.com for bad revelations in a complaint seen by Reuters.
Both companies have violated their legal obligations by failing to satisfactorily inform investors about the risks of climate change for their companies, says environmental legislation ClientEarth.
In a complaint filed on Tuesday, ClientEarth said it had asked the FCA to refer both companies for investigation, although the regulator is not obliged to
A previous complaint to the FCA by ClientEarth over the revelations from insurers Lancashire Holdings, Admiral and Phoenix Group 201
While the Financial Conduct Authority has not yet sanctioned a company for its climate information, the latest ClientEarth complaint is the first since the British Chancellor of the Exchequer told the FCA in March to "take into account" the government's plan to achieve zero CO2 emissions in 2050.
The complaint also follows a scathing report from the Financial Reporting Council in November, which found that most company accounts did not take climate risk into account properly and needed to do better.
Under UK law, a company has an obligation to disclose significant risks to its business that may affect its value, so investors can make an informed judgment about whether to invest.
By failing to do so, Carnival and Just Eat have violated several FCA disclosure and listing rules to help markets function well, protect customers and improve financial market integrity, ClientEarth said.
Carnival did not refer to climate change in its annual report and only "vague" statements in its strategic report, but no concrete analysis of the impact of climate change on its business model, said ClientEarth.
Carnival did not immediately respond to a request for comment.
In the Just Eat case, ClientEarth stated that the company did not refer to climate change in its financial reporting for 2020 and had no strategy to reduce its CO2 emissions in accordance with the Paris Agreement on Climate Change.
A spokesman for Just Eat said it did not recognize the claims made by ClientEarth and had disclosed all material information to investors in its annual report.
"Recent global efforts to phase out fossil fuels and disposable plastics, changes in consumer behavior and abrupt changes in regulations and business environments are all real challenges to their financial and operational health," said ClientEarths lawyer Maria Petzsch.
"These effects are significant for investors who expect to get the full picture."