June 20, 2024 - When is a board of directors permitted to withhold information from one of its members? Although the Canadian corporate statutes generally grant directors a blanket right to inspect board and committee minutes, there is uncertainty as to whether a board could nonetheless withhold from a director...
Guide
Governance Insights: Charting a (Safe) Path Through the ESG Wilderness
The rapid and growing recognition of the importance of accounting for ESG factors in strategic decision-making and corporate reporting has, perhaps predictably, been followed by a notable increase in anti-ESG sentiment and a questioning of the integrity of measures purported to advance sustainability and ESG goals.
Notwithstanding these shifting sentiments in some quarters, overall investor and stakeholder demand remains a carrot driving further movement down the ESG path, while regulators’ increasing focus on ESG disclosure and ESG investment funds is the corresponding stick. Board members, asset managers and individual investors must attend to both the ESG “carrots” and the ESG “sticks” while planning for a future that will most certainly require an ongoing commitment to ESG.
In this second article of the 2023 edition of Governance Insights, we assess the current state of anti-ESG sentiment and discuss potential paths forward. Specifically, we explore financial risks, materiality, greenwashing, investing, international developments and enforcement.
Key Contacts
Related
Bill S-285: A Canadian Contribution to the Stakeholder Governance Debate
June 11, 2024 - Senator Julie Miville-Dechêne recently introduced the 21st-Century Business Act (Bill S-285), a Senate public bill that proposes substantive amendments to the Canada Business Corporations Act (CBCA). The legislative proposal seeks to define the “purpose” of business corporations...
