There is no single law that requires every Canadian company to publish a full ESG report. However, even without one unified Canadian ESG statute, there are legal obligations to disclose information related to ESG practices that do arise from different areas of Canadian law.

Securities Law

When a company is funded by investors in the public market, it is subject to rules under securities legislation, such as the Securities Act (Ontario).

These laws are designed to protect investors by requiring companies to disclose all material risks that could affect an investor’s decision. This can include ESG-related issues such as environmental risks, governance practices, and certain social risks.

Public companies must also provide this information through regular disclosures. This means that they must explain how they are run, including their board’s independence and diversity.

Corporate Law

In Canada, all incorporated businesses are subject to either the Canada Business Corporations Act (for federally incorporated companies) or the Ontario Business Corporations Act (for provincially incorporated companies).

These statutes establish important rules related to the fiduciary duties of directors and officers, shareholder rights, and overall corporate governance. These rules can govern ESG considerations, particularly in how companies manage risks and make decisions.

Corporate law also requires certain ESG-related disclosures in specific areas. For example, federally incorporated public companies must report on the diversity of their board of directors and senior management.

Environmental Law

Environmental law in Canada regulates how businesses interact with the natural environment.

These laws require certain businesses to monitor, report, and comply with environmental standards depending on their size and impact they have on the environment. For example, companies may be required to obtain permits, report emissions, and disclose environmental impacts to regulators.

Employment and Human Rights Law

Employment and human rights laws in Canada govern how businesses treat employees and individuals in the workplace. This includes rules related to wages, working conditions, workplace safety, and protection from discrimination.

These laws impose legal obligations on employers to comply with minimum employment standards, maintain safe workplaces, and ensure equal treatment of all staff. For example, legislation such as the Employment Standards Act, the Occupational Health and Safety Act, and the Human Rights Code (Ontario) set out these requirements.

Information related to these obligations (e.g., workplace safety practices, diversity, and labour conditions) may form part of a company’s ESG disclosure under the social (S) component.

Competition and Consumer Protection Law

Competition and consumer protection laws in Canada regulate how businesses market their products and interact with consumers. This includes rules against false or misleading advertising and unfair business practices.

These laws impose legal obligations on businesses to ensure that any claims they make are accurate and supported by evidence. This is particularly relevant to ESG where companies promote environmental or social initiatives. If such claims are not substantiated, they may be considered misleading (often referred to as “greenwashing”) and can result in penalties.

Other Relevant Canadian legislation

The above list of laws is not exhaustive. Other Canadian statutes may also require businesses to report or comply with specific environmental, social, or governance matters. However, there is no standardized laws related to ESG reporting to date in Canada.

More information

For more information, visit The Canada Energy Regulator and ESG – Overview of Environmental, Social, and Governance (ESG).

								
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