November 9, 2015

Peabody Reaches Agreement Over Climate Change Disclosures

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The New York attorney general and Peabody Energy have come to an agreement over the company’s disclosures related to climate change.

The attorney general’s office launched the investigation in 2007. Over the weekend, the office agreed to drop the investigation if Peabody includes certain disclosures about the risks of climate change in its future filings with regulators.

In the document finalizing the agreement, New York attorney general Eric Schneiderman alleges Peabody failed to disclose the potential risks of climate change to its business, even while acknowledging them privately. He also says Peabody used misleading projections in financial statements to suggest a stronger market for coal than most analyses suggest.

In a statement, the company said it “has always sought to make appropriate disclosures.”

The company did not admit to any of the allegations and will not face any fines or penalties.