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ARTICLE · 27 SEPTEMBER 2021

ESG & Shareholder Activism: Ready Or Not, Here It Comes

"ESG" stands for Environment, Social and Governance and describes a handful of criteria used by both issuers and investors to focus on a corporation's impact and activity regarding topics...

CanadaCorporate/Commercial Law

“ESG” stands for Environment, Social and Governance and describes a handful of criteria used by both issuers and investors to focus on a corporation's impact and activity regarding topics like environmental protection, climate change, support for the local and global community, diversity in hiring and advancement, and employee compensation.

This investment methodology, once considered novel, has moved into the mainstream.  Institutional investors in particular have been vocal in expressing their belief that maximizing returns to shareholders can no longer be a corporation's only goal, and are increasingly focused on evaluating company performance against ESG key performance indicators in order to determine the sustainability and future financial performance of issuers. Securities regulators are also following this trend and are beginning to implement disclosure requirements for issuers based on ESG factors and aimed at increasing transparency into ESG performance for

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