Insight

Perilous Times and Bottom Lines

Given the frequency and severity of extreme weather events in recent years, the changing climate is a topic of hot conversation. As the earth’s temperature rises, it is incumbent upon company executives to take stock of the foreseeable risks the climate crisis presents to their operations—and take every possible precaution to mitigate them.

Man in business suit standing in window of office building
Bruno Caron

Bruno Caron, Bryan J. Buttigieg, Geoff Mason, P. Jason Kroft, Selina Lee-Andersen, and Christie McLeod

September 28, 2023 11:00 PM

The climate crisis is prompting reconsideration, in the C-suite and elsewhere, of what exactly constitutes a foreseeable risk to a given business. The World Health Organization considers the following to be known hazards of climate change:

  • increased severity and frequency of extreme weather;
  • increased ambient temperature;
  • increased air pollution;
  • and increased exposure to UV radiation.

These and other far-reaching effects present new challenges for executives to consider. Here’s a rundown.

The Impact on Workers

Although occupational health and safety legislation requires employers to take reasonable precautions to protect their staffers, extreme weather such as floods, hurricanes or heat waves can transform an ordinarily safe work area into a hazardous space. Higher temperatures can also alter a person’s skills and cognitive and physical capacities, particularly those who work outdoors or who have pre-existing health conditions.

As Canada experiences its worst wildfire season on record, smoke and poor overall air quality may affect workers’ ability to do their jobs—or necessitate additional protective equipment such as a respirator. These hazards are not limited to those who work outdoors, though, as higher temperatures will be difficult to tolerate for those working in non-air-conditioned spaces such as restaurant kitchens and industrial laundries; bad air will likewise affect anyone working in a poorly ventilated space.

Health and safety regulations throughout Canada feature specific rules designed to address the hazards of extreme heat and other weather-related problems in the workplace. As global temperatures continue to rise, more employers will be required to understand and comply with these strictures. In cases where extreme heat or other weather might aggravate a worker’s medical condition or have other adverse effects due to a disability, employers may also be subject to obligations under human-rights legislation in addition to standard occupational health-and-safety requirements.

In some instances, extreme weather might even bring employment to an untimely end—if a storm destroys a field of crops, wildfires ravage a forest or unseasonable temperatures shutter a winter resort. These could all leave employers exposed to wrongful-dismissal liability claims.

Foreseeing the Unforeseeable?

Buildings and infrastructure across Canada face a range of climate hazards. Flooding, degrading permafrost, deteriorating roads, water-supply constraints and more-frequent power outages pose risks to business performance and supply-chain integrity. In a 2021 online report titled Under Water: The Costs of Climate Change for Canada’s Infrastructure, the Canadian Climate Institute found that temperature- and rainfall-related damage to roads and railways could increase by up to CAD 5.4 billion annually by midcentury, and the cost to repair and maintain climate-affected electrical infrastructure could reach $2.4 billion a year by the same period. According to Statistics Canada, spending on flood protection infrastructure in the country rose 90% from 2018 to 2021, with a staggering $1.699 trillion spent by governments and businesses in 2021 alone.

As the Canadian economy faces increased exposure to extreme weather, companies may be motivated to take a closer look at their contract provisions, in particular the force majeure clause within. With greater awareness of climate-related risks to their operations, entities might look to rely on such clauses, through which it can potentially spare itself certain contractual obligations related to situations outside their control.

For example, a wildfire could impede the transport of goods by road or rail, thereby triggering a force majeure clause. Contractual definitions of force majeure often set out a list of specific events tailored to the transaction and industry, along with general language to capture unforeseen occurrences beyond a given party’s reasonable control—a factor the entity relying on force majeure assumes the burden of establishing. A traditional clause, which requires a force majeure event to be unforeseen and impossible to prevent, may not be the right tool for dealing with climate-related troubles.

Spending on flood protection infrastructure in the country rose 90% from 2018 to 2021."

Conclusion

Lawmakers and businesses alike must carefully consider the extent to which climate change–related events are unforeseen (for example, a natural disaster as opposed to merely inclement weather, or what exactly constitutes “extreme” weather) and what efforts they must make to meet their legislative and contractual obligations. As the wide-ranging effects of the climate crisis persist, employers should identify new and emerging hazards likely to arise at their workplace and take steps to address them. Different solutions will suit different workplaces, of course, but they could include tactics such as developing new training and awareness tools for employees or providing access to additional resources.

Whatever the case, employers should know the hazards unique to their workplace; review their internal systems, employment contracts and policies; and adapt as necessary to insulate against any foreseeable risks. Contracting parties that consider their contractual obligations during the initial stages of negotiations will be better positioned to effectively manage the potential effects of climate-related events on their operations. They might also consider including requirements for partners to act to mitigate damages, perform their contractual obligations to the extent feasible, adjust prices as needed and manage inventory during a force majeure event. As the climate crisis will not subside in the near future, businesses should be proactive and manage their risks as effectively as they can.

Bryan J. Buttigieg is recognized as one of the leading practitioners of environmental law in Canada and is certified by the Law Society of Ontario as a specialist in Environmental Law. His practice at Miller Thomson includes a combination of litigation and transactional advice involving civil litigation and regulatory defence representation in environmental and occupational health and safety matters. Bryan represents corporations in litigation arising out of the sale, purchase and use of contaminated property. He provides advice regarding claims for environmental damages, including clean-up costs, loss of use, loss of market value and negligent misrepresentation.

Bruno Caron is the co-leader of Miller Thomson’s ESG and Carbon Finance group. Bruno’s practice is primarily focused on corporate law, securities, financing, mergers and acquisitions of public and private companies, and corporate governance. He is frequently retained as counsel on matters involving business restructuring, statutory arrangements, continuous disclosure requirements and the rules governing shareholders’ meetings. He has also acted as corporate secretary on the board of several public corporations. Bruno has a particular interest with respect to green financing as a mean to mitigate and adapt to climate change and the disclosure rules applicable to the risks associated with climate change. Since its inaugural issuance in 2017, Bruno has acted for the Province of Québec in its multiple green bond issuances. Bruno was also nominated by the Canada Climate Law Initiative to join the list of Canadian Climate Governance Experts. Since 2000, Bruno has been registered as a Foreign Legal Consultant in the state of New York. He practiced law in New York and in Romania and has broad international experience.

P. Jason Kroft is a senior corporate lawyer with over two decades of experience assisting his Canadian and international business clients. Jason is co-leader of Miller Thomson’s ESG and Carbon Finance group. He is also the co-leader of the firm’s national Structured Finance and Securitization practice and routinely advises Canadian and foreign banks and other financial institutions, borrowers, hedgers, financial intermediaries and similar entities in a diverse range of advisory and transactional matters, including financial service product structuring, design, implementation and execution and including complex and novel regulatory and governance matters.

Selina Lee-Andersen is a senior environmental lawyer at Miller Thomson with in-depth experience and leading industry insights that enable her to provide clients with practical advice to address their most challenging legal issues. Having worked in an advisory capacity in both the public and private sectors, Selina is well-positioned to deliver innovative legal solutions to organizations and value-added guidance on the opportunities and impacts of regulatory developments on their operations. Clients value Selina's ability to understand the business environment in which they operate and to tailor legal solutions best suited to meet their needs. Selina is an experienced lawyer in the areas of environmental law, Aboriginal law and regulatory matters. In addition, she regularly advises clients on commercial issues relating to mergers and acquisitions, financing transactions and procurement processes. Selina also specializes in climate change law, where she provides strategic counsel to clients on matters relating to carbon offset systems, emissions trading, regulatory compliance and clean technologies. Selina is widely published on a range of environmental issues, including contaminated sites, natural resource management, climate change policy and carbon transactions.

A seasoned employment and human rights lawyer at Miller Thomson, Geoff Mason provides practical, creative and timely solutions to complex workplace issues. Geoff is uniquely attuned to his clients’ business needs, having been an entrepreneur himself and having worked with start-ups and Fortune 500 companies in industries spanning forestry, mining and high technology. Geoff leans on this experience to approach legal issues innovatively and pragmatically and deliver solutions tailored to his clients. While Geoff strives to enhance the way legal services are offered, he does not compromise on the fundamentals—competency, efficiency and results—and he takes pride in being meticulous and devoted to his work.

Christie McLeod is a member of Miller Thomson's Commercial Litigation Group and focuses on environmental, Aboriginal, administrative and other litigation matters. Christie joined Miller Thomson as a student in 2019 and concluded her articles in 2021. She completed the joint J.D./Masters in Environmental Studies program at Osgoode Hall Law School and York University, with the latter focusing on Canadian climate accountability. During her education, Christie also worked with Human Rights Watch in New York City and Toronto to research the impact of climate change on food security in Indigenous communities in Canada and with West Coast Environmental Law as a summer student and legal researcher. Christie also serves as a member of Lawyers for Climate Justice and a Policy Advisor for the Fossil Fuel Non-Proliferation Treaty Global Steering Committee.

Headline Image: iStock/Baona

Related Articles

Unwrapping Shrinkflation


by Justin Smulison

Through the lens of the United States, we take a closer look at the global implication of companies downsizing products while maintaining and often raising prices.

Chocolate bar being unwrapped from foil

Global Perspectives


by Gregory Sirico

Through reviewing other countries’ past handling of natural disasters, we find lessons in the current supply chain crisis and how we might contend with similar issues in the present and future.

Cargo ship with red chain link in front

Green, With Conscience Clean


by Emilie Bundock and Kai Alderson

Businesses of all kinds are increasingly expected to keep the public informed about what they’re doing to help combat climate change. The key tactic that somehow often gets overlooked: Be honest, about successes and failures alike.

Green paint roller over heat map of the world

"Lawyer of the Year"


Lawyer in suit smiles for professional headshot

Kevin M. Levy

Technology Law

Miami, FL

2025

History Eraser


by Gregory Sirico

Penguin Random House and several other major book publishing houses filed litigation against Florida education leaders who recently passed a book ban law.

Penguin logo in front of black and white books

"Lawyer of the Year"


Man in suit and tie smiling for professional headshot

Dylan D. Rudolph

Litigation - ERISA

San Francisco, CA

2025

Scarlett Law Group: Mastering TBI Trial Law


by Justin Smulison

Randall H. Scarlett shares successes in traumatic brain injury cases, fueling Scarlett Law Group's growth across Northern California with specialized insights.

Two lawyers, suited, standing in front of law firm sign

One of the Greatest Ever...


by Justin Smulison

Steve Yerrid, a top catastrophic injury lawyer, has secured over 300 verdicts of $1M+ and has been recognized as "Lawyer of the Year" multiple times in Tampa.

Lawyer in blue suit poses in office for headshot

"Lawyer of the Year"


Lawyer poses for professional firm headshot

Mindi M. Richter

Copyright Law

Tampa, FL

2025

IN PARTNERSHIP

Georgia Car Accident: How to File a Car Accident Case


by Robert Hammers

In a car accident in Georgia? Read this guide for key steps from actions at the scene to settlement talks and lawsuit filing. Stay informed and prepared.

Figure with clipboard assesses the scene of an accident

"Lawyer of the Year"


Lawyer wearing glasses and suit smiles in headshot photo

Duane C. Pozza

Advertising Law

Washington, D.C., DC

2025

New SAFE Act Aims to Tackle Rising Crime in DC


by Gregory Sirico

As DC grapples with skyrocketing crime rates, the Secure Apartments for Everyone Regulation Amendment Act seeks to implement actionable change

Security cameras affixed to animated building

How a New Maryland Bike Safety Law Honors a Client’s Legacy


by Justin Smulison

Four-time Lawyer Of The Year Patrick Regan discusses how a client’s bicycling tragedy led to a result that improved Maryland traffic law to protect riders.

Group of lawyers posing for a photo

IN PARTNERSHIP

Three Steps To Maximizing Compensation After a Columbus Car Accident


by Jonathan Mani

Car accidents could result in costly medical bills and significant pain and suffering. To ensure you're compensated, contact a car accident attorney now.

Toy car laying upside down on pile of money

IN PARTNERSHIP

Immigration Pathways in the United States


by Versfeld & Hugo

Leon Versfeld knows firsthand how challenging obtaining a visa can be. Whether your path to residency involves investments, employment or athletic accolades, Versfeld & Hugo will guide you through every step.

Immigration Pathways in the United States

IN PARTNERSHIP

Bannister, Wyatt & Stalvey: Compassionate Service and Relentless Representation


by Bannister, Wyatt & Stalvey

The attorneys at Bannister, Wyatt & Stalvey, LLC are here to help you navigate your criminal case in South Carolina, specializing in DUIs, Criminal Sexual Conduct, Homicide and Expungement.

Bannister, Wyatt & Stalvey: Compassionate and Relentless

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background