Xcel Energy, the nation’s fifth largest emitter of greenhouse gases (GHGs), signed an agreement this week with New York Attorney General Andrew M. Cuomo that requires the company to disclose the financial risks that climate change poses to its investors. The agreement, called an "Assurance of Discontinuance Pursuant to Executive Law § 63(15) (the "Agreement")," follows Cuomo’s issuance of subpoenas to various energy companies in September, 2007, in which New York sought greater investor disclosure of climate change risks. The subpoenas were issued pursuant to New York State’s Martin Act, a ...

One could hardly ask for a more serendipitously named case if one wanted to write about insurance coverage for a substance emitted into the atmosphere than Sealed Air v. Royal Indemnity Co., but such an appellation was delivered by the New Jersey Appellate Division last Friday.  The case addresses Directors & Officers (D&O) liability coverage for alleged fraudulent statements in SEC disclosures concerning alleged pollution.  Before addressing the case, however, we need to take a short detour into the world of climate change disclosure. We read today in the chemical industry ...