Developments In Climate Change Disclosure Requirements

Investors and securities regulators are increasingly paying attention to what public companies are disclosing about their climate change risks and opportunities. Securities regulators in Ontario and Alberta are scrutinizing environmental disclosure in general and, in the United States, the SEC has been pressured by both institutional investors and a U.S. Senate sub-committee to focus on climate change disclosure. More significantly, voluntary disclosure initiatives are proliferating as a result of pressure from institutional investors and other stakeholders. Although there is no standard Canadian market practice on climate change and GHG emissions disclosure, by carefully considering climate change–related risks and opportunities in the context of securities laws and by monitoring existing voluntary initiatives, issuers will be in a better position to make prudent carbon disclosure decisions.