An environmental law charity has called for sanctions against Carnival Corporation over claims the cruise giant failed to properly brief investors around the impact of climate change upon its business.
ClientEarth claims Carnival and takeaway delivery firm Just Eat breached legal obligations by not adequately telling investors about potential risks posed to their operations.
Under UK law, a firm must disclose material risks to its business that could impact its future value, allowing shareholders to make informed judgements on whether to invest.
ClientEarth has now reported both companies to the Financial Conduct Authority (FCA), according to Reuters.
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An environmental law charity has called for sanctions against Carnival Corporation over claims the cruise giant failed to properly brief investors around the impact of climate change upon its business.
ClientEarth claims Carnival and takeaway delivery firm Just Eat breached legal obligations by not adequately telling investors about potential risks posed to their operations.
Under UK law, a firm must disclose material risks to its business that could impact its future value, allowing shareholders to make informed judgements on whether to invest.
ClientEarth has now reported both companies to the Financial Conduct Authority (FCA), according to Reuters.
While the FCA has yet to sanction a company over its climate disclosures, ClientEarth claimed Carnival and Just Eat had breached several of the disclosure and listings rules set by the authority to help markets function well, protect customers and enhance financial market integrity.
The legal firm alleged Carnival made “no reference to climate change” in its Carnival Corporation and Carnival PLC consolidated annual report and only “vague” statements were made in its strategic report.
ClientEarth also claimed Carnival’s strategic report “did not include any concrete analysis of climate impacts on its business model” and said it believed the cruise company’s alleged actions “risks greenwashing investors” by giving “a potentially misleading impression” of how resilient to climate change it is.
TTG has approached Carnival in response to the claims made.
In recent years Carnival has joined other cruise operators in promoting its sustainability efforts – claiming to have invested “billions” of dollars on green technologies.
They include shore power capabilities, using liquefied natural gas fuel and large storage battery systems, as well as “dramatically reducing” plastic use and ship waste.
The company has reduced its carbon footprint rate by more than 25% and announced plans to reduce it by 40% by 2030 – with an ultimate goal of zero emissions.
ClientEarth lawyer Maria Petzsch said: “Recent global efforts to phase out fossil fuels and single-use plastics, shifts in consumer behaviour, and abrupt changes to regulatory and business environments all present very real challenges to their financial and operational health.
“These impacts are material to investors, who expect to be given the full picture.”
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