Institutional investors and governance professionals are increasingly looking to senior management and boards to demonstrate that they have identified and are effectively managing their short, medium and long-term risk to Environment and Social Concerns. This can be a challenge for issuers as there is no one set of rules to guide as each industry and company within that industry will have their own unique set of risk considerations and will need to identify and implement an approach that works in their unique circumstances.

There are many resources available that can provide guidance and assistance in meeting this challenge. A new resource, The Canadian Coalition for Good Governance (CCGG), The Directors E&S Guidebook has just been released and provides valuable insight to help an organization assess and develop their current E&S strategy and board oversight. This document provides specific observations and takeaways from the CCGG study on Corporate culture, Risk Management, Corporate Strategy, Board Composition, Board Structure, Board practices, Performance Evaluation and Incentives and Shareholder Disclosure.

While E&S factors have always been an important consideration for issuers, it has usually been managed by internal staff. There is increasing pressure for boards and C-suite executives to take an active and accountable role in the effective management of the risk associated with E&S concerns. Not properly managing these risks, can change a successful investment for a shareholder to a loss overnight. As a result, shareholders are looking to issuers to not only mitigate the risk but also provide sufficient disclosure so they can be assured that their own risk and exposure to investing in your company.

You can read the CCGG The Directors’ E&S Guidebook here: https://www.ccgg.ca/index.cfm?pagepath=Policies/The_Directors__E_S_Guidebook&id=88084.