Climate change expertise lacking in Canadian boardrooms
Many publicly traded companies address environmental risks but issues tend to be about meeting regulatory requirements.
CALGARY — An institutional shareholder advisory firm says Canada’s biggest oil and gas producers and utilities lack expertise in climate change at the board level.
The Shareholder Association for Research and Education or SHARE says in a report that none of the 39 producers or 13 utility companies whose disclosure documents it reviewed lists knowledge of climate change as a skill for any board member.
SHARE says that while many of the publicly traded companies address environmental risks in committee and board mandates, those issues tend to be about meeting regulatory requirements related to pollution and remediation.
Climate change risks, on the other hand, come from changes in physical weather patterns, availability and access to natural resources, regulatory framework issues and market conditions, it says.
In December, a task force appointed by Bank of England governor Mark Carney recommended the global private sector do more to disclose the risks climate change pose to their businesses and what they’re doing to adapt.