Energy Cos. Step Up Climate Risk Disclosures

Law360, New York (February 20, 2009, 12:00 AM EST) -- Though companies have no specific disclosure requirements regarding the financial risks of climate change, they have been increasingly under pressure to conduct more extensive due diligence in transactions and give more information to their shareholders.

Steve McMillen, special counsel at Baker Botts LLP, said companies now ask about entity-wide emissions, carbon offsets, greenhouse gas reduction projects and plans to deal with future climate legislation when looking to make an acquisition.

“You're kind of gauging your exposure based on the carbon market,” McMillen said.

“Your exposure is...
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