Publication
Building long-term integrity in the voluntary carbon market
In recent years, an important question has arisen in relation to the voluntary carbon market (VCM) as it continues to expand: How do we elevate and maintain its integrity?
Author:
Canada | Publication | March 11, 2020 4 PM ET
COVID-19, a new disease caused by the novel coronavirus, has a confirmed presence in over 100 countries and dominates the global media. It already has been a formidable economic disrupter and poses current and future challenges for Canadian businesses.
What are the legal duties of corporate Boards in responding to this unique challenge? Canadian statutes generally charge Boards with the duty to manage, or supervise the management of, the business and affairs of the corporation. Directors have a fiduciary duty to act in good faith with a view to the best interests of the corporation and a duty to act with the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duties, directors may take into account the impact of their decisions on the interests of various corporate stakeholders. Their decisions are not judged from a standard of perfection, but must represent a reasonable exercise of business judgment.
How can Boards fulfil these duties in addressing COVID-19 challenges? There is no single blueprint that could possibly address the risk for all businesses. Each corporation, depending on the nature of its business, will experience a unique impact caused directly or indirectly by COVID-19. The Board’s responsibility is to oversee and monitor the risk and the corporation’s response to the risk. A prudent Board will ensure that: (i) the appropriate senior management report to the Board on key risks; (ii) the Board understands those key risks; (iii) professional advisers assist, if necessary and appropriate, in identifying, managing and mitigating risk; (iv) a contingency plan is put in place for foreseeable scenarios; and (v) the Board monitors the ongoing implementation of its decisions and guidance and remains sufficiently flexible to respond to the evolving situation. No list could be comprehensive, but relevant considerations could include:
Publication
In recent years, an important question has arisen in relation to the voluntary carbon market (VCM) as it continues to expand: How do we elevate and maintain its integrity?
Publication
On 16 April 2024, the Hon Tanya Plibersek MP, the Minister for the Environment and Water (the Minister) announced progress on the package of reforms to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act).
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023