Source: IPSOS Full Report July 2024 (PDF)
Key highlights from Canada’s new greenwashing regulations:
- Amendments to the Competition Act require companies, industry associations, and spokespeople to ensure that their ESG (Environmental, Social, and Governance) communications, especially regarding plans to reduce carbon output, are fact-based and verified for accuracy by an independent source.
- These amendments, part of Bill C-59, aim to enhance transparency and accountability in environmental marketing claims.
- Companies must now substantiate their sustainability claims with reliable data and third-party verification to avoid fines. Penalties can amount to up to 3% of annual global revenues or $15 million per offense.
- Views on the amendments vary widely. Supporters argue it aligns Canada with other jurisdictions like the UK, US, and China, promoting trust in public claims. Critics view it as poorly defined and potentially stifling ESG communications, investment, and innovation, which could hinder progress on carbon reduction and other environmental commitments.
These regulations mark a significant shift towards more stringent standards for ESG communications in Canada, impacting how companies market their environmental commitments and the consequences for inaccurate claims.
