The Latest in a Series of ACE Progress Reports, Critical Research on
Current and Emerging Risk Management Issues
ACE USA, the U.S.-based retail operating division of the ACE Group,
today launched a new audio podcast discussing climate change-related
litigation against companies and the disclosure liability for directors
and officers of publicly-traded companies.
In the podcast, Carol Zacharias, Senior Vice President and Chief Counsel
of ACE Professional Risk is joined by William P. Hazelton, Senior Vice
President of ACE Environmental Risk, as they discuss a report authored
by Ms. Zacharias, “Climate Change is Heating Up D&O Liability.” This
commentary is a part of ACE Progress ReportsSM, a collection
of white papers, articles and executive reports on current and emerging
risk management issues. Ms. Zacharias’ article also appeared in the
Spring 2009 issue of John Liner Review. In the discussion, Mr.
Hazelton and Ms. Zacharias examine the existing laws and regulations
that have been applied in recent corporate climate change litigation and
resulting settlements that have set high standards for management
disclosure, analysis, and assessment of the financial impact of climate
risk. They also address new and proposed federal, state, and foreign
laws that could create more restrictions and obligations for companies,
providing the basis for potential additional litigation.
“Climate change-related litigation against companies has already
started, and several settlements have already set unprecedented
standards for detailed management disclosure under existing laws. Where
management disclosure duties exist, liability exposure for directors and
officers exists as well,” said Ms. Zacharias. “Companies are now
evaluating whether, when, and to what extent climate changes or the
impact of climate change regulations present material risks and warrant
further disclosures. And, with increased exposure comes the risk of
increased liability, since directors and officers can be liable for
omissions or material misrepresentations. So, the disclosure decision is
critical.”
Mr. Hazelton commenting further on the findings of the co-authored
report said, “Not surprisingly, shareholders are also demanding more and
more climate change risk disclosures from the companies in which they
invest. In addition to regulators and shareholders, various advocacy
groups are also asking for greater climate change-related disclosures by
corporations. Asset managers and leading U.S. institutional investors
have requested that the Securities and Exchange Commission (SEC) require
corporations to provide greater disclosure about climate change exposure
and management.”
To access the ACE USA audio podcast program (approximately sixteen
minutes in length), please visit: www.aceusa.com/News/Pages/Podcasts.aspx.
To access the co-authored report, please visit: www.aceusa.com/News/Pages/ACEProgressReports.aspx.
The material presented in the podcast is not intended to provide legal
or other expert advice. It is presented for general information only.
Listeners of this podcast should consult legal counsel or other experts,
as applicable, with any questions.
ACE USA is the U.S.-based retail operating division of the ACE Group,
headed by ACE Limited (NYSE: ACE), and is rated A+ (Superior) by A.M.
Best Company and A+ (Strong) by Standard & Poor’s. ACE USA, through
its underwriting companies, provides insurance products and services
throughout the U.S. Additional information on ACE USA and its products
and services can be found at www.aceusa.com.
The ACE Group provides insurance and reinsurance for a diverse group of
clients around the world.
ACE USA
Carla Ferrara
215-640-4744
carla.ferrara@acegroup.com
