Video: ESG needs realistic overhaul, O’Toole says

American voter backlash against environmental, social and governance (ESG) principles threatens Canada’s mining industry and its role in the continent’s emerging clean energy supply chain, the former head of the Conservative party says.

Erin O’Toole, now a business intelligence executive, warned of rising geopolitical risk at The Northern Miner’s International Metals Symposium in London this month.

U.S. president-elect Donald Trump’s threat of 25% tariffs already puts at risk the two-thirds of Canadian exports headed south of the border. Canadian miners could lose to China and the so-called BRICS nations (Brazil, Russia, India, China, South Africa and others) in supplying energy transition metals.

“ESG is in crisis,” O’Toole declared during an interview with TNM Group president Anthony Vaccaro. “If we don’t hold BRICS countries to the same standards, they will exploit this gap and undercut responsible producers.”

He cited the retreat of major players like investment house BlackRock, which abandoned the term ESG. He also noted Trump adviser Elon Musk has labeled it as “rebranded communism.” U.S. working-class voters’ cultural divide from ESG proponents and skepticism have fuelled a backlash, weakening support for sustainability initiatives.

Policy alignment

To secure its position, Canada must align its trade policy with U.S. priorities while promoting ESG as a competitive advantage, O’Toole said. He urged faster project approvals and investment in Arctic infrastructure. This would unlock critical mineral deposits and secure Canada’s northern sovereignty.

“Canada should be the reliable partner the U.S. needs, supplying responsibly sourced metals that uphold the highest environmental and social standards,” he said. “Defence spending on ports, airstrips and roads in the Arctic can open access to critical minerals while benefiting Indigenous communities.”

O’Toole framed the stakes as existential. If Canada fails to act, it risks being cut out of U.S. supply chains, ceding dominance to China, and losing its chance to lead in clean energy metals.

“This is about economic security,” he said. “Canada must get serious.”

Watch the full chat below.