FCA faces judicial review over climate statements in approved prospectus

ClientEarth has announced the filing of an application for judicial review of FCA’s decision to approve a prospectus which it alleges failed properly to describe climate-related risks faced by the company. It says the prospectus of Ithaca Energy plc, which has significant interests in oil and gas fields in the North Sea, acknowledged that climate change presents risks but did not explain how the risks affect its business specifically, or how significant the risks are for that company.  ClientEarth says that, by failing to spot this omission an by failing to provide investors with a meaningful indication of the potential effect on the company of full or partial achievement of the Paris Agreement goal, the prospectus requirements were breached, and FCA should not have approved the prospectus.

Emma Radmore