Top Law Firm Warns Companies of Climate-Change Reporting Pitfalls

Advice to corporations from an influential law firm may leave investors wanting for more-useful climate-change disclosures from public companies.

“Disclosures in annual reports, especially on any ongoing risk, are almost always inadequate,” Julie Gorte, senior vice president for sustainable investing at Impax Asset Management LLC, told Bloomberg Tax.

“Investors have to build up their own picture of what such risks might do to company performance,” she said.

That picture could become harder to bring into focus.

Attorneys at Wachtell, Lipton, Rosen & Katz of New York said in a July 10 memo to corporate clients that ...