Canadian directors have a legal duty to address risks stemming from biodiversity loss, freshwater stress, ecosystem degradation, and extreme weather. Failing to do so could expose them to a range of legal action including shareholder and creditor lawsuits as well as greenwashing and negligence claims.

These are the findings of a new legal opinion authored by Resilient LLP, a leading Canadian climate and energy law firm.

The opinion outlines how nature-related risks fall squarely within directors’ legal duties under Canadian law.