Peabody Energy, the world’s biggest private-sector coal company, violated New York laws with misleading statements to investors and the public about the financial risks from climate change and potential regulatory responses, New York’s attorney general said Monday.
St. Louis-based Peabody didn’t admit or deny those findings in an agreement signed Sunday, but it did agree to revise its shareholder disclosures with the Securities and Exchange Commission to describe possible future reductions in projected demand for coal. The agreement doesn’t require the company to pay fines or reimburse New York for the cost of the investigation.
“As a publicly traded company whose core business generates massive amounts of carbon emissions, Peabody Energy has a responsibility to be honest with its investors and the public about the risks posed by climate change, now and in the future,” Attorney General Eric Schneiderman said. His office began investigating Peabody two years ago, though it first made inquiries into the company eight years ago. It subpoenaed similar documents from Irving, Texas-based Exxon Mobil Corp. on Wednesday.
Investigators said Peabody repeatedly denied in public filings that it had the ability to predict the impact of regulation, despite internal projections that certain regulatory measures to reduce global warming from carbon emissions would cut coal sales in its primary U.S. markets.