Following an extensive eight-year investigation initially discussed in Peabody Energy's 2007 disclosures, the company has reached a climate-change settlement wit the New York Attorney General's (NYAG) office regarding the company's disclosures involving climate change.
The coal company has agreed to amend its disclosures. There is no other action associated with this settlement, no admission or denial of wrongdoing and no financial penalty.
Through the agreement, Peabody agreed to modifications in its financial disclosures centering around two primary areas:
- The use of the International Energy Agency's (IEA) World Energy Outlook scenarios. Peabody has agreed to enhance its disclosure around all the published scenarios when referencing IEA's World Energy Outlook.
- The company’s ability to estimate impacts from prospective future laws or regulations. The company has previously stated that it cannot predict the impact of potential laws or regulations on Peabody due to the uncertainty surrounding those predictions. Nonetheless, the company has agreed that any future statements concerning the difficulty of making particular projections or predictions shall be accompanied by a statement that Peabody has made projections of the impact of scenarios involving certain potential laws and regulations relating to climate change or coal, which could result in materially adverse effects on its markets or company. To evaluate risks and allocate capital, Peabody has examined the potential impact of hypothetical future laws on coal markets.
Looking ahead, Peabody has indicated that technology is the bridge to a low-emissions future for a world experiencing rising electricity demand to satisfy urbanisation and offer a higher quality of life.
Peabody has been among the most vocal companies worldwide in advocating clean coal technologies, including greater deployment of high-efficiency low-emissions (HELE) coal-fired plants and development of next-generation carbon capture, and storage (CCS) technologies.
The company is also a founding member of the COAL 21 Fund in Australia supporting technology research and demonstration, and a founding member of the Global Carbon Capture and Storage Institute in Canberra, which has a mandate of developing carbon capture projects.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/10112015/peabody-agrees-to-fuller-disclosures-of-climate-change-impacts-3134/