abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

21 Dec 2017

Author:
Cynthia Williams, The Lawyer's Daily (Canada)

Companies face an increased risk of climate change litigation and should take action, says Canadian commentator

" Climate change is very real — and so is the risk of litigation ", 21 Dec 2017 [subscription required]

...[O]ne type of litigation should be of increasing concern to Canadian officers and directors: litigation targeting actions and inactions of company officials in evaluating their company’s strategies in light of a changing regulatory and physical landscape, or challenging failures in disclosing risks or opportunities for their company from those changes.

...What are the obligations of officers and directors in Canada in light of such developments?...According to regulators and expert lawyers participating in the conferences, a number of factors suggest that at the least, officers and directors in Canadian companies in virtually every industry — not just oil, gas and coal — must be aware of the science of climate change; must evaluate risks and opportunities in their industry, and locations from physical changes and regulatory frameworks to address climate change; must evaluate their company’s strategies in light of those risks and opportunities; and must make informed decisions about what strategic changes, if any, their company needs to initiate.

While reasonable decisions in light of such board-level evaluation will be given the protection of the business judgment rule, unconsidered inaction will not be so protected.

...Canadian officers and directors may think that the prospects of climate litigation are too remote to take the time to consider climate change among the other pressing matters on their agendas. Leading lawyers and law firms... think otherwise.

It is only a matter of time before activist NGOs and litigators in Canada will come forward to put climate complacent boards’ theories to the test.