Should boards of directors have a duty to minimize the corporation's environmental impacts?

Law Prof. Gail Henderson's doctoral thesis examines how corporate law can help to achieve sustainable development

Faculty of Law - 30 September 2014

On July 18, 2014, in a small, un-air-conditioned room at the University of Toronto Faculty of Law, Assistant Professor Gail Henderson successfully defended her doctoral thesis. Prof. Henderson's thesis, entitled "A Duty to Minimize the Corporation's Environmental Impacts: Corporate Governance and Sustainable Development", examines the potential role of the board of directors in reducing the level of environmental harm caused by corporations.

Prof. Henderson argues that although environmental legislation can help to set minimum levels of environmental protection, it does not create sufficient incentives for corporations to work to continuously improve their environmental performance. Balancing environmental protection and economic development for the sake of future generations requires integrating environmental responsibility into corporations statutes, which govern corporations' internal decision-making process, and specifically the role and responsibilities of the board of directors. "Given Canada's and Alberta's economic reliance on natural resource development," Prof. Henderson notes, "it is crucial that we figure out how to strike this balance, for the sake of the long-term health of our environment and our economy."

Prof. Henderson presented her research to the Sustainable Companies conference in Oslo, Norway, an international gathering of fellow scholars focused on how corporate law can contribute to sustainable development. You can watch Prof. Henderson's presentation here: http://www.youtube.com/watch?v=JT-dTCQ5WrQ.

There are a number of people Prof. Henderson thanks for helping her get this project across the finish line, but in particular she thanks her supervisors, Dr. Mohammad Fadel and Prof. Ian Lee, her committee members Prof. Anita Anand and Dr. Andrew Green, her external examiner, Prof. Richard Janda (McGill) and 'internal external' examiner Dr. Albert Yoon. She would also like to thank former Dean Philip Bryden for his encouragement and support during her first year and a half on the faculty at U of A.