Scenario:
Death Star Group, Ltd is a multinational company operating in the aerospace industry. While the company considers the carbon intensity of their business to be low, they have been publishing greenhouse gas emissions data for a number of years to meet regulatory requirements. At the last AGM, shareholders filed a resolution requesting that Death Star Group, Ltd disclose more information on the risks of climate change to their business and the financial impacts associated with these risks in the next annual report.
As other companies in the aerospace sector have not disclosed this information, the company is concerned that publishing these figures will draw negative attention to the business, as they may be perceived to be more vulnerable in the market. The reporting team have also expressed concerns over the quality of the information you currently have available, as the company have not undertaken a specific climate risk assessment.
Question:
State and discuss the specific legal issues that arise in the above scenario. Advice Death Star Group, Ltd about the convenience of disclosing the risk and financial impact information investors are requesting alongside its legal and reputational implications.
