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CCCA_V3No2_Dept-Environment-FIN.qxd:CCCA_V1No2_Dept-CrossBdr-V1.qxd 4/27/09 4:22 PM Page 14 Environment Absorbing the heat Corporations need to formulate strategic responses to, and carry out due diligence on, climate change issues. with an eight-point climate change due diligence checklist: 1. Assess climate risk through analysis of (a) your organization’s own carbon footprint, or (b) another organization’s carbon footprint in an investment/ acquisition context. 2.Evaluate the organization’s carbon foot- print, which includes an accounting of the emissions generated by the organiza- tion’s products and supply chain. 3. Analyze the organization’s greenhouse gas (GHG) inventories. 4. Evaluate the organization’s mitigation strategies. 5. Analyze the organization’s environ- mental management system and the integration of a GHG management sys- tem into business processes. 6. Assess regulatory compliance. 7.Develop an emissions compliance strategy. 8. Participate in voluntary carbon disclosure initiatives (e.g., the Global Framework for Climate Risk Disclosure, the Carbon ven in the midst of a global reces- Paul Cassidy, a partner and head of the Disclosure Project (CDP), or Global Re- Esion, corporations and stake- Environmental Law Group at Blake Cassels porting Initiative (GRI)). holders haven’t forgotten about the & Graydon LLP in Vancouver, the session “other” global worry: climate change. brought together lawyers from government, Cassidy suggested that, despite the cur- Regardless of whether you’re a skeptic in-house and the private bar in a wide- rent regulatory uncertainty prevailing in about or a convert to the green move- ranging series of presentations and conver- North America“companies would be well ment, the fact remains that legal and sations about the legal issues arising from advised to begin using this checklist soon- regulatory risks and requirements are climate change and how to craft effective er rather than later,” because broad-based multiplying in the environmental field. strategic responses. carbon rules are, without doubt, going Every company — even those not heav- Factors driving the increased demand to happen. ily invested in natural resources — needs for action on climate change include pub- to be aware of and responsive to their lic disclosure obligations (such as under Disclosure and quantification environmental behaviour. National Instrument 51-102: Continuous Transparency is the new buzzword in cor- That was the subject of an engaging Disclosure Obligations), expectations from porate governance circles. But when it discussion at the CCCA’s World Summit investors and shareholders, and risk man- comes to environmental matters, a balance in Vancouver in late January. Hosted by agement. The panel presented attendees has to be struck between disclosure and 14 CCCA Canadian Corporate Counsel Association SUMMER 2009