Resilient LLP (formerly DeMarco Allan LLP)
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DT Vollmer

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CCLI Releases New Opinion on Legal Implications of Climate Change For Pension Plans

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The Canadian Climate Law Initiative today released a new opinion by pensions lawyer Randy Bauslaugh, titled Climate Change: Legal Implications for Canadian Pension Plan Fiduciaries and Policy-Makers (the Opinion). The Opinion makes clear that (i) pension fund fiduciaries have a duty to consider climate-related financial risks and opportunities and (ii) failing to do so may lead to personal liability for economic, reputational, or organizational loss. This bulletin briefly summarizes the key findings of the Opinion: Legal responsibilities of plan fiduciaries. Climate change poses immediate and long-term economic and portfolio risks and opportunities that result in the need to take a multi-generational oversight approach. In addition, flowing from the fiduciary’s standard of care and duty of loyalty, climate change is a primary consideration of fiduciaries in advancing the primary purpose of plan fiduciaries: providing periodic payments to individuals after retirement and until death in respect of their service as employees. The financial relevance of climate change to fiduciary investment responsibilities. The financial relevance of climate change is supported by its acceptance by the financial services sector, including bankers, accountants, insurers, investment managers, securities regulators, academics, and public sector organizations, as well as the unequivocal acceptance of the causes and impacts of climate change by all parties in the recent Supreme Court of Canada decision upholding the federal Greenhouse Gas Pollution Pricing Act (read our earlier bulletin here). Must plan fiduciaries consider implications of climate change? The Opinion notes that with the growing consensus around the materiality of climate-related risks and opportunities, failure to take climate change into account may result in a fiduciary facing:  -removal;  -court-ordered disclosure of information related to climate change-related risks;  -fines and penalties under pension standards legislation; and -personal financial responsibility for investment underperformance or loss resulting from failure to properly manage climate change risks and opportunities, including equitable compensation or exemplary damages Please contact Lisa DeMarco at lisa@resilientllp.com should…

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Taskforce on Scaling Voluntary Carbon Markets Launches Public Consultation

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The Taskforce on Scaling Voluntary Carbon Markets (the TSVCM) today released its Phase 2 Public Consultation Report (the Report). The Report provides background on TSVCM activities and current thinking in support of consultations launched today to help inform and provide stakeholder feedback for the Phase 2 Final Report, to be published in July (read our previous bulletin on the TSVCM’s Phase 1 Final Report on creating large-scale carbon credit trading markets here). The TSVCM is conducting public consultation between May 21 and June 21, 2021 on the proposed governance design and preliminary recommendation guidelines from interested parties, particularly those interested in being a Founding Sponsor, Independent Board Member, Expert Panel Member or Executive Secretariat Host for the new governance body. Interested parties are encouraged to contact Lisa DeMarco at lisa@resilientllp.com to discuss opportunities for engagement with the TSVCM. Background. The TSVCM was launched in 2020 by Mark Carney, UN Special Envoy for Climate Action and Finance and former governor of both the Bank of Canada and the Bank of England, and is chaired by Bill Winters, Group Chief Executive, Standard Chartered, and sponsored by the Institute of International Finance (IIF) through the leadership of Tim Adams, President and CEO, with Annette Nazareth, former Commissioner of the US Securities and Exchange Commission, serving as TSVCM’s Operating Lead. Objectives and focus of the TSVCM. The Report provides the objectives and focus of the TSVCM, which include increasing public awareness of the climate and co-benefits associated with voluntary carbon markets (VCM). In addition, the TSVCM focuses on: High-integrity carbon credits and robust, transparent, and liquid markets; Addressing the oversight needs for an at-scale market; Legal principles and contracts through harmonization and liquidity by streamlining standard Terms of Use and developing general trading terms; Credit level integrity with respect to Core Carbon Principles (CCPs)…

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Unilever Shareholders Overwhelmingly Support Climate Transition Action Plan

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Yesterday, over 99% of Unilever shareholders voted in favour of a non-binding resolution supporting the company’s Climate Transition Action Plan (the “Plan”). The Plan sets a target of achieving net-zero by 2039 for each and all of Scope 1, 2, and 3 emissions. The Plan sets the following targets: Net-zero by 2039 across Scope 1, 2, and 3 emissions; 70% reduction against a 2015 baseline in Scope 1 and 2 emissions by 2025 and 100% reduction by 2030; 1.5oC aligned Science Based Target; Cut the footprint of products in half by 2030 against a 2010 baseline; and €1 billion for a Climate and Nature Fund To achieve the goals and targets of the Plan, Unilever is undertaking, among others, the following actions: 100% reusable, recyclable, or compostable plastic packaging by 2025; By 2030, electric vehicles will make up 100% of Unilever’s global car fleet; 100% renewable grid electricity (achieved in 2020) and heat by 2030; phase out high-impact HFC refrigerant from cooling systems; align capital expenditure with their 1.5oC pathways; €1B target for annual sales of plant-based meat and dairy alternative by 2025-2027; 60% reduction of product emissions through concentration and compaction; Replace fossil-fuel derived carbon with renewable or recycled carbon by 2030 in home care formulations; and Help protect and regenerate 1.5 million hectares of land, forests, and oceans by 2030. In addition, as part of the Plan, Unilever will begin to disclose the carbon footprint of every product is sells. Please contact Lisa DeMarco at lisa@resilientllp.com should you wish to discuss the contents of this bulletin.

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Ministry of Natural Resources and Forestry Releases Draft Forest Biomass Action Plan

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Today the Ontario Ministry of Natural Resources and Forestry (“MNRF”) released a draft Forest Biomass Action Plan (the “Draft Plan”), a commitment made in Ontario’s forest sector strategy, released on August 20, 2020. The Draft Plan is now open for comment until June 21, 2021. This bulletin briefly summarizes the Draft Plan. The Draft Plan seeks to examine innovative uses of forest biomass, such as mill by-products and underutilized forest biofibre, for applications in heat and power generation and sustainable, low-carbon consumer products. The Draft Plan strives to secure jobs, support economic development, and encourage sustainability in the forest sector. The Draft Plan seeks to achieve the following five objectives: Identify pathways to markets for forest biomass by: further refining Ontario’s inventory of forest biomass; publishing reports summarizing the types of forest bioproducts and technologies and describing current and future demand for Ontario bioproducts; completing a jurisdictional scan; developing a life cycle inventory for traditional and non-traditional wood products, study biomass carbon dynamics, and refine life-cycle impact assessment models; supporting development of regional clusters; and conducting collaborative research studies on soil quality, stand development, productivity, and biodiversity. Support demand for forest bioenergy and bioproducts by: ensuring that existing facilities receive ongoing access to the provincial market at fair compensation; publishing a report quantifying the financial contribution of forest biomass; providing resources for the development of community-led projects; advancing the use of forest biomass through the Ontario Bioheat Initiative; creating a provincial bioheat strategy; engaging with potential industry users to integrate forest biomass into supply chains; and pursuing government procurements that use biomass to reduce the carbon footprint of buildings, energy, and other products. Improve the business and regulatory environments for the use of forest biomass by: reviewing and updating Ontario’s Forest Biofibre Directive; streamlining permitting and reduce regulatory burdens; making…

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Federal Government Announces New Climate Change Plan, Carbon Price to Increase to $170 by 2030

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Today, Prime Minister Trudeau and Ministers McKenna, Wilkinson, and Guilbeault announced a new and updated climate change plan: A Healthy Environment and a Health Economy (the Plan). The Plan, released by Environment and Climate Change Canada (ECCC), seeks to strengthen Canada’s emissions reduction commitments under the Paris Agreement while simultaneously investing in cleaner and more sustainable economic growth. Starting in 2023, the Plan will increase the federal carbon price by $15 per year to $170 by 2030. The Plan includes 64 new measures and $15.2 billion in new investments on top of the previously committed $60 billion in the 2016 Pan-Canadian Framework on Clean Growth and Climate Change and $6 billion to be invested in clean infrastructure by the Canada Infrastructure Bank (CIB). The Plan includes investments in the following categories: Making the Places Canadians Live and Gather More Affordable by Cutting Energy Waste. The federal government will invest $1.5 billion for green and inclusive community buildings, with 10% allocated to First Nations, Inuit, and Métis communities, $2.6 billion to help homeowners make their homes more energy efficient through grants of up to $5,000, and $2 billion in financing for commercial and large-scale building retrofits as part ofthe CIB’s $10 billion Growth Plan. Making Clean, Affordable Transportation and Power Available in Every Canadian Community. The federal government will invest an additional $287 million over two years to continue the Incentives for Zero-Emission Vehicles (iZEV) program until March 2022, additional $150 million over three years in charging and refuelling stations across Canada, an additional $964 million over four years to advance smart renewable energy and grid modernization projects, an additional $300 million over five years to advance the government’s commitment to ensure rural, remote and Indigenous communities that currently rely on diesel have the opportunity to be powered by clean, reliable…

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