The most widely read magazine for Canadian lawyers
Issue link: https://digital.canadianlawyermag.com/i/1527910
"It is not about whether companies should worry about the environment or social issues but how these things interact with their profitability" E SG, and by extension DEI, is under attack. Critics say that having "environ- mental, social, and governance" goals – with diversity, equity, and inclu- sion often lumped into the "social" bucket – distracts from what private organizations should focus on. They should be worried about the bottom line and nothing more, the argument goes. While this position has the benefit of simplicity, it ignores the nuances of ESG. It is not about whether companies should worry about the environment or social issues but how these things interact with their profitability. There is no doubt that a company's operating environment and the diversity of its workforce will affect its profits. Yet many companies treat ESG as a "check- the-box" exercise, simply stating they are doing something with no substance to their claims. This is where attacks on ESG should be directed. As Conor Chell at KPMG outlines (p. 15), regulators are catching up to this superficial approach to ESG compliance. "Greenwashing," where environmental claims don't match the reality, is on the radar of the Competition Bureau. Companies that make exaggerated or false claims about their environmental bona fides are being notified that they may be fined. While there may not be an equivalent regulatory crackdown on false claims about social initiatives, businesses that claimed they were committed to improving their diversity during the Black Lives Matter protests in 2020 are also being pushed to prove their ongoing commitment. Those that said they were committed to engaging with underrepresented communities but did nothing will see the effects on their brand in the court of public opinion. Increased scrutiny should be a welcome development for companies genuinely committed to change. Understanding how environmental changes and the makeup of their workforce affect their businesses will help them operate more profitably. As Chell notes, "It is no longer optional for companies to not take accountability for or provide further transparency into their public ESG commitments. Companies that fail to adapt will risk legal repercussions and lose the trust of the public and the investment community." Conor Chell will be the keynote speaker at the ESG Summit in Toronto on October 30. Visit ESG-summit.ca to register. Tim Wilbur, managing editor www.canadianlawyermag.com 1 EDITOR'S DESK UPFRONT www.canadianlawyermag.com Making companies accountable for ESG and DEI ISSUE 48.02 | OCTOBER 2024 Canadian Lawyer is published 2 times a year by KM Business Information Canada Ltd. KEY MEDIA and the KEY MEDIA logo are used under licence by KM Business Information Canada Ltd. CANADIAN LAWYER is a trademark of KM Business Information Canada Ltd. All rights reserved. Contents may not be reprinted without written permission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Canadian Lawyer disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. Publications Mail Agreement #41261516 ISSN 0703-2129 ©2023 GST/HST Registration #799898465RC-0001 RETURN UNDELIVERABLE CANADIAN ADDRESS TO: CIRCULATION DEPARTMENT 317 Adelaide Street West, Suite 910, Toronto, ON M5V 1P9 RETOURNER TOUTE CORRESPONDANCE NE POUVANT ÉTRE LIVREÉ AU CANADA AU SERVICE DES PUBLICATIONS 317 Adelaide Street West, Suite 910, Toronto, ON M5V 1P9 KM Business Information Canada Ltd 317 Adelaide Street West, Suite 910 Toronto, ON M5V 1P9 tel: +1 416 644 8740 www.keymedia.com EDITORIAL Managing Editor Tim Wilbur Editor Jessica Mach Production Editors Christina Jelinek, Karen Atienza Writers Angelica Dino, Bernise Carolino, Kiezzsa Cruz ART & PRODUCTION Designer Noel Avendaño Vice President, Production Monica Lalisan Production Coordinator Kat Guzman Client Success Coordinators Dyanne Dimatulac, Kristina Reyes SALES & MARKETING Director, Business Development Lynda Fenton Digital Development Director Kevin Shields Sr. Business Development Manager Steffanie Munroe Business Development Manager Jacquie Rankin Account Executive Mathew Oriel CORPORATE President Tim Duce HR Business Partner Anna Aljabo Director, People and Culture Julia Bookallil Vice President, Strategic Event Development Chris Davis Vice President, Strategic Alliances John Mackenzie Chief Revenue Officer Dane Taylor Chief Information Officer Terry Szames Chief Operating Officer George Walmsley Chief Executive Officer Mike Shipley EDITORIAL INQUIRIES tim.wilbur@keymedia.com NAUK SUBSCRIPTIONS CO-ORDINATOR Donnabel Reyes tel: 647 374 4536 ext. 243 donnabel.reyes@keymedia.com ADVERTISING INQUIRIES lynda.fenton@keymedia.com