Lawyer Monthly Magazine - August 2019 Edition

Contact Selina Lee-Andersen Partner Environmental/Aboriginal T: 604-643-7964 E: slandersen@mccarthy.ca McCarthy Tétrault LLP Suite 2400 745 Thurlow Street Vancouver BC V6E 0C5 About Selina and the Firm McCarthy Tétrault is a Ca- nadian law firm that offers a full suite of legal and business solutions to clients in Canada and around the world. A part- ner in the firm’s Business Law Group, Selina Lee-Andersen practices environmental and Aboriginal law in Vancouver, Canada and advises on is- sues in the energy and natu- ral resource sectors. Selina’s practice also specializes in cli- mate change law, where she provides strategic advice to clients on emissions trading, offset systems, carbon pricing and clean technologies. Seli- na is widely published in the areas of carbon transactions, and has been endorsed as a leading Canadian environ- mental lawyer in PLC Which Lawyer? Environment Hand- book. respect to climate change- related risks. In recent years, there has been increasing scrutiny in both Canada and abroad on the disclosure by reporting issuers of material climate change-related risks. Currently, reporting issuers in Canada are required to disclose material risks associated with climate change in their periodic disclosure. Guidance in respect of these disclosure requirements is set out in reporting guidance document established by the Canadian Securities Administrators (CSA). Following the Paris climate negotiations in 2015, the Financial Stability Board Task Force on Climate- related Financial Disclosures (TCFD) developed a set of recommendations for voluntary climate-related financial risk disclosures in mainstream filings. TCFD released a series of recommendations in June 2017 focused on governance, strategy, risk management, and metrics. A country- specific review of the TCFD’s recommendations for Canada concluded that company disclosure requirements are progressing relatively slowly in Canada. The review noted that Canada currently has limited corporate disclosure covering environmental, social and governance factors. Inaddition, climate change tends to be grouped under the umbrella of environmental requirements, and is not addressed as a stand- alone concern. As a next step, federal and provincial securities regulators should endorse the TCFD’s recommendations, and the Toronto Stock Exchange and TSX Venture Exchange should reference them in their reporting guidelines. Following a review in 2017 by CSA of disclosure by reporting issuers of the risks and financial impacts associated with climate change, CSA identified a number of key issues including materiality, current disclosure practices, dissatisfaction with the state of disclosure, and concerns about mandatory disclosure requirements. Based on its findings, CSA is looking at developing new guidance for issuers in connection with the disclosure of climate change- related risks, opportunities and financial impacts. Demands for better and more consistent disclosure of climate-related risks underscore the growing trend not only for companies to consider the impact of climate change on their operations, but also for institutional investors to demand better climate change-related information from companies. It is within this context that Canadian securities regulators should continue to monitor the ongoing development of best practices within both voluntary and mandatory disclosure frameworks. Why is it important for project proponents and stakeholders to incorporate environmental law considerations into project development processes and transactions? Continuous monitoring and assessment of the potential impacts of environmental laws on projects is key to risk identification and management, as well as effective due diligence in a transactional context. For example, the recent changes to Canada’s environmental impact assessment regime will likely have significant impacts on the development of large projects. To illustrate, Canada’s proposed new impact assessment process requires an early planning and engagement phase for all projects, which could impact project development timing. In addition, new issues to be considered in project assessment include climate change and cumulative effects – as a result, the proponent will likely need to carry out additional studies to meet impact assessment requirements. The new impact assessmentprocessalso includes enhanced engagement with potentially impacted Aboriginal communities, which will require greater coordination among the proponent, regulators and local community stakeholders. Regarding environmental law, what classifies as ‘good practice’ for large firms? The most effective environmental law practitioners not only stay on top of legal developments, but they are also able to understand the complex interaction between public policy andbusiness issues. This enables them to provide practical and innovative legal advice to organisations. Specifically, an in-depth understanding of each client’s business and risk profile enables practitioners to tailor a solution that is best suited to that client’s needs. The ability to deliver this level of service provides value- add for clients. LM 43 AUG 2019 | WWW.LAWYER-MONTHLY.COM Expert Insight By Selina Lee-Andersen, McCarthy Tétrault LLP