Legal ESG: Toronto

As ESG expectations grow more complex and are being challenged worldwide, the Canadian legal profession faces a dual responsibility: navigating evolving regulatory landscapes and partnering with clients to drive sustainable, responsible business practices.

Legal ESG Toronto, taking place on May 7, 2025, once again hosted by Gowling WLG, offers a critical forum for exploring how the Canadian legal profession can collaborate to tackle the challenges and opportunities of sustainable and responsible business.

The intersection of law and ESG continues to evolve, presenting both pitfalls and possibilities for Canadian legal professionals. As domestic regulatory frameworks expand and international standards are in flux, lawyers must address local obligations while guiding clients through the global ESG landscape.

WHAT TO EXPECT

Key Highlights

Cross-Border Politics and ESG

The implications of shifting geopolitical landscapes - most notably the “Trump 2.0” era in the U.S. and the upcoming Canadian elections - on ESG requirements and strategic decision-making for Canadian businesses.

The Role of the Profession

With today's geopolitical trends, the increasing social polarization, and challenges to traditional business norms and expectations, what is the role of the profession in advancing society toward a more just, equitable and sustainable world?

Collaborative ESG Strategies

The role of law firms in helping clients achieve sustainable and responsible business practices—through hands-on, future-focused guidance.

Climate and Financial Disclosures

How evolving global standards, and the recent EU Ombudsman bill, are impacting Canadian reporting obligations. And what of Canada's regulatory environment?

The Role of the Board

What role do Board members play in strategic decision-making within an ESG framework? How do Boards communicate changes to prior climate and DEI commitments?

Ethics and the Rule of Law

With increasing corruption and ethics challenges globally, how do lawyers advice and influence to uphold the Rule of Law? Given the challenges to the Rule of Law globally, how do lawyers act with agency and urgency?

Artificial Intelligence and the Practice of Law

How will the rapid advancements in AI fundamentally change the practice of law?

The Trump 2.0 era is now fully underway, complete with pardons to convicted Proud Boy/Oath Keeper January 6 seditionists, termination of government DEI programs, a military-enforced immigration crackdown, and an order to exit the Paris Climate Treaty, among many other moves.

While the question of how all sectors of society can appropriately respond to Trump 2.0 is front and center at this particularly volatile and fast-evolving time, the focus here is on the impact of changes in policy and approach in the US on Canadian business and trends they need to be aware of in the ESG space. Canadian elections will be relevant to the Canadian backdrop to these impacts.

OVERVIEW

Canada’s ESG regulatory landscape is undergoing significant change, with evolving disclosure requirements, carbon pricing policies, and environmental assessment frameworks. However, with an upcoming federal election, regulatory uncertainty looms—particularly as opposition parties advocate for scaling back ESG-related regulations.

For multinational companies operating in both Canada and the U.S., diverging regulatory frameworks pose challenges. The potential for political shifts in Canada— especially the Conservative Party’s "Axe the Tax" campaign—could reshape ESG obligations for businesses, impacting long-term investment decisions and compliance strategies.

This session will be a discussion with clients sharing how organizations must remain agile, monitor cross-border ESG trends, ensure alignment with both jurisdictions, and prepare for potential regulatory shifts that could impact operations, trade, and investment planning.

Canada is combatting greenwashing through significant legislative amendments and increased regulatory scrutiny. The recent amendment to the Competition Act explicitly prohibits businesses from making false or misleading environmental claims without proper substantiation.

Now, the burden of proof rests on companies to demonstrate that their environmental benefit claims are based on adequate and proper testing or substantiation, a reversal from previous law. And starting mid-year 2025, private parties will have the right to seek leave from the Competition Tribunal to initiate actions under the Act’s civil misleading representation provisions, including those related to greenwashing.

These legislative changes are expected to lead to increased litigation, including class actions and shareholder activism, as companies navigate the evolving regulatory landscape surrounding environmental claims.

When trust in the Rule of Law declines in countries worldwide (as it has since 2019), civil society around the world is threatened. How can legal professionals strengthen the Rule of Law? How can legal advisers ensure that their clients recognize serious business and greenwashing risks in countries with weak Rule of Law?

Legal professionals play a critical role in strengthening the Rule of Law. By advocating for stronger legal frameworks, supporting due diligence, and promoting transparency, legal advisers can steer their clients toward genuine, impactful practices. This holistic approach can empower businesses to operate responsibly, contribute to stronger governance, and foster long-term viability and sustainability.

The legal profession holds a central and profound role in shaping a just, equitable, and sustainable society. It is the responsibility of legal professionals to uphold the law with the ethical duty to ensure that laws and their application contribute to the greater good of society. Our profession stands at a crossroads, where its potential to effect positive societal change is immense. Whether through policy reform, litigation, or public advocacy, or through our client advice, the role of the legal profession is both an opportunity and an obligation to help build a more just, equitable, and sustainable world.