Several state attorneys general (“state AGs”) have recently announced investigations into energy companies’ securities disclosures about the risks climate change poses to their businesses. In November 2015, Peabody Energy settled a two-year investigation by the New York Attorney General into its climate-related disclosures. In the past six months, the attorneys general for New York, California, Massachusetts, and the U.S. Virgin Islands have all initiated investigations into ExxonMobil’s disclosures about its climate change research. On March 29, 2016, a coalition of 18 “AGs United for Clean Power,” joined by former Vice President Al Gore, announced that they would coordinate efforts to investigate whether companies made misleading statements about the dangers of climate change.

The growing focus by state AGs on climate change could present significant challenges for energy companies going forward.