Climate-Related Disclosure for Canadian Energy Companies - Getting Ready for the Mandatory Regime: Voluntary Guidelines, Rule Proposals, Governance Implications, and Best Practices to Avoid Greenwashing Allegations

Abstract

Canadian energy companies are increasingly releasing corporate statistics, metrics, and strategy on climate-related matters to the public. These disclosures, offered both independently and in response to investor and stakeholder demand, detail strategic management of risks and opportunities related to a company’s present and future environmental impact. The Task Force on Climate Related Financial Disclosures (TFCD) and the International Sustainability Standards Board (ISSB) have helped to standardize voluntary disclosure frameworks and standards, influencing recent proposals for mandatory disclosure rules issued by securities regulators in Canada and the United States. This article presents a comprehensive review of this fast-shifting landscape, outlining governance implications and best practices to help organizations navigate these complex regulatory developments. In this context, it also presents noted trends and international perspectives to help Canadian companies manage legal exposure to civil and regulatory “greenwashing” allegations stemming from voluntary and mandatory public disclosures.