According to its newest mining guide, the Canada Climate Law Initiative (CCLI) says directors who fail to report to their investors about how the board and management of junior mining companies are mitigating risks of climate change, could be subject to investor exit and legal action.
According to the guide, as early as next year, thanks to proposed changes to legislation in Canada, companies will require more comprehensive reporting of climate-related risks and what the board and management of publicly listed companies are doing to assess and manage those risks.
The guide offers resources to assist companies traded on the TSX Venture Exchange to effectively meet their regulatory and marketing requirements and meet their fiduciary duties to their investors and other stakeholders.
“In meeting their duty to act in the best interests of the company, directors and officers must be diligent in identifying and managing climate-related risks and opportunities that could affect the short-, medium-, and long-term viability of their companies”, said Dr. Janis Sarra, professor of law, University of British Columbia and principal co-investigator, CCLI.
Mona Foster, strategic consultant, Foran Mining is the author of the guide, titled A guide to effective climate governance for TSX venture issuers in the mining sector.
“As demand for critical metals and minerals increases, pressure is on the mining sector to discover new deposits, develop existing projects quickly, engage with First Nations and local communities so they understand the projects, and work with governments to streamline the permitting process for more timely approvals to meet this growing demand,” said Foster.
“Amongst all these priorities, junior resource executives often overlook or aren’t sure how to respond to new reporting requirements about how their company is undertaking climate-related risk management practices,” she added.
To view the guide, follow this link. To learn more about the CCLI, visit www.ccli.ubc.ca.
November 4, 2024
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