ESG and shareholder activism: key tips for issuers

Shareholder activism is on the rise in Canada. Investors are closely monitoring environmental, social and governance (ESG) related disclosure, posing potential challenges for companies that make unsubstantiated claims, set unattainable goals, or fail to address ESG issues in a meaningful manner. To navigate this evolving landscape effectively, companies must be prepared to address shareholder activism, potential enforcement actions by securities regulators and potential securities class actions alleging misrepresentation in ESG disclosure.