Report reveals how Canadian corporations may be supporting action against US climate regulations
Toronto, ON, March 14 – The methane reduction deal reached last week between Prime Minister Trudeau and President Obama could be undermined by aggressive lobbying and legal actions by US trade associations, some of which include Canadian corporations as members.
A case study released this week by the Shareholder Association for Research and Education (SHARE) found that many large American trade associations with Canadian membership are actively lobbying against regulations aimed at reducing greenhouse gas emissions. In some cases, trade association membership dues are supporting an army of lawyers and lobbyists that are challenging Obama’s Clean Power Plan – a centrepiece of the US government’s greenhouse gas reduction plans.
“The actions of these trade associations should raise red flags for their Canadian members,” says SHARE’s Director of Shareholder Engagement, Kevin Thomas, who also authored the report. “Canadian companies need to establish clear and effective oversight and review of their trade association memberships to identify substantial policy misalignments which could result in regulatory, operational and reputational risks for their business and their shareholders.”
The report, “Attacking the Clean Power Plan: How Canadian corporations are indirectly supporting action against US climate regulations,” provides examples of Canadian companies connected to US trade associations and studies the risks that can arise for investors linked to aggressive lobbying, especially as it relates to management and disclosure of political spending associated with climate action.
Read the full report here.