Corporate Disclosures on Climate Change: An Empirical Analysis of FTSE All-Share British Fossil Fuel Producers

Abstract

AbstractAlthough UK company law has become more sensitive to climate change problems, many open questions and issues remain about the practical utility of disclosure as a presumptive regulatory solution. This article presents and analyses unique empirical research to explore if and to what extent FTSE All-Share British fossil fuel producers are clearly and reliably: (a) integrating into their overall business risk management the ‘material’ risks that climate change presents to their operations; and (b) reporting the impact of their business activities on the climate and the likely consequences of any business decisions in the long term. The results show that current disclosure regulation apparently fails to secure behavioural change on the part of most companies in our sample. The article offers several explanations that provide a possible answer with validity as to why disclosure does not achieve its organising purpose of managing the risks and impacts of climate change.