Environmental and health groups welcome new rules to curb ‘eco-shaming’ as oil sands affiliated Pathways Alliance launches initiative to cut communications – Ecojustice

OTTAWA/TRADITIONAL, RELIABLE TERRITORY OF THE ALGONQUIN ANISHNAABEG PEOPLE — The Canadian Association of Physicians for the Environment (CAPE), Ecojustice, Équiterre and the Quebec Environmental Law Center welcome the introduction of new “eco-darking” provisions in Bill C-59, which aims to address the problem of “eco-darking” in Canada by introducing stricter rules for companies making environmental claims. These changes respond to concerns that greenwashing is a systemic problem in Canada – companies misleading consumers about their green credentials in order to attract more business and investment and slow down the implementation of regulations.

New rules – included in amendments to the federal law Competition Act — aim to protect consumers and truly green businesses by requiring companies to substantiate their environmental claims. Through bipartisan collaboration with environmental and health groups, several amendments were introduced that broadened the scope of the Act so that it applies not only to claims about products, but also to claims about companies and their activities.

These changes should facilitate the work of the Competition Bureau, which is currently investigating a number of high-profile complaints about “eco-shaming” – to do its job more effectively. Crucially, the Bill will also give ordinary consumers the ability to enforce these rules by taking complaints directly to the Competition Tribunal, thereby relieving the Competition Bureau.

By increasing the credibility of all environmental claims, the bill will help dispel consumer skepticism and enable leading companies to reap the benefits of sustainability investments.

The bill’s impact is already being felt – the new threat of federal penalties reportedly led to the Alberta government shutting down its Alberta Energy “war room” earlier this week, while the Pathways Alliance, a coalition of large Canadian oilsands companies, is currently under investigation by the Office of Competition over its demands for net zero emissions under its Clean the Air program has silenced its website and social media accounts in response. These immediate impacts leave groups hopeful for greater accountability from corporations in the oil and gas industry and beyond.

However, the new regulations are not limited to any one industry and could have an impact across the Canadian economy, where commonly used but controversial claims such as “net zero”, “carbon neutrality” and “sustainable” will be examined more closely.

The Canadian Association of Physicians for the Environment (CAPE), Ecojustice, Équiterre and the Quebec Environmental Law Center (CQDE) welcome the significant progress made with the updates Competition Act and call for further action to protect consumers, support green innovation and strengthen a sustainable, competitive economy:

The Competition Bureau will conduct extensive public consultations before publishing the final guidelines setting out the standards that companies must meet to meet the new requirements of the Act. We note that there are already several internationally recognized methodologies that Canadian companies can use to support their claims, e.g. Honesty matters standards for businesses and financial institutions, an easily accessible international methodology for net zero commitments.
Minister Champagne to adopt laws explicitly prohibiting the most egregious and common forms of greenwashing, such as selective disclosure, aspirational claims, or the use of vague and difficult-to-prove terms such as “green,” “eco-friendly,” and “climate neutral.”
The federal government will commit to establishing clear, industry-specific rules on the content of effective climate plans, such as those proposed for the financial sector in Climate-adapted finance act.

Representatives of the groups made the following statements:

Tanya Jemec, lawyer for Ecojustice, said:

“We hope that the greenwashing fixes in Competition Act in Bill C-59 are the beginning, not the end, of government action on this issue. While the passage of Bill C-59 is a significant step towards ending the rampant green money laundering in Canada, loopholes remain that make it difficult to hold companies accountable. For example, companies still do not have to make publicly available the justification for environmental claims. “Companies that want to benefit from a green claim should be willing and able to make follow-up information available to the public immediately – not only when it is challenged.”

Julien Beaulieu, a lawyer and researcher at the Quebec Environmental Law Center, said:

“These amendments will address a particularly common form of ‘eco-deception’: lack of evidence. From now on, companies wishing to advertise their net zero commitments, reliance on carbon offsets and conservation commitments will have to back up these claims with sufficient evidence. “We hope that as a next step the government will tackle other forms of ‘eco-dark’ money laundering, such as generic claims and selective disclosure, and that the Competition Bureau will intensify its enforcement efforts.”

Leah Temper, director of health and economic policy for the Canadian Association of Environmental Physicians, said:

“We are pleased that Pathways Alliance’s false claims regarding net-zero tar sands have been removed, demonstrating the far-reaching impact of this modest truth in advertising law even before it is enacted. This marks a potential watershed moment for corporate responsibility in Canada, particularly in the oil and gas industry. False greenwashing claims not only deceive consumers, but also contribute to environmental pollution and degradation, which has serious consequences for human health. It is encouraging to see polluters beginning to understand that they can no longer mislead the public about their environmental credentials without evidence. It is time for them to clean up their act.”

Marc-André Viau, Director of Government Relations at Équiterre:

“Ecoeconomics is an insidious obstacle to effective climate action. Canada badly needed this legal reform because some of its most powerful industries prefer to pretend rather than take action towards carbon neutrality. Businesses that are actually making significant and significant progress in the areas of environmental and climate protection will welcome this leveling of the playing field. While this is welcome progress, more needs to be done to ensure that the eco-crime can be controlled.”

ABOUT

Ecojustice uses the power of law to defend nature, fight climate change and fight for a healthy environment. Its strategic litigation and public interest advocacy lead to precedent-setting judicial decisions, law and policy that provide lasting solutions to Canada’s most pressing environmental problems. As Canada’s largest environmental law charity, Ecojustice has offices in Vancouver, Calgary, Toronto, Ottawa and Halifax.

Canadian Association of Physicians for the Environment (CAPE) is a physician-led nonprofit organization dedicated to securing human health by protecting the planet. Since its founding in 1994, CAPE has achieved significant policy victories in collaboration with many partners in the environmental and health movements. From coast to coast, the organization operates throughout the country, with regional committees operating in most provinces and all territories.

Center Québécois du droit de l’environnement (Quebec Environmental Law Center)Quebec’s only environmental law charity, it offers independent legal knowledge and educational tools to citizens and law students, contributes to the development of progressive environmental law and uses it to protect the environment and citizens’ rights to access justice.

Since 1993 evenly helps find solutions, transform social norms and encourage ambitious public policies through research, advocacy, education, mobilization and awareness-building initiatives. This progress is helping to establish new rules for how we eat, how we move, and how we produce and consume, designed for our communities, respecting our ecosystems, in line with social justice and, of course, low carbon.