Bill C-59

Investors for Paris Compliance (I4PC), a shareholder advocacy organization, yesterday filed a complaint with the Alberta Securities Commission (ASC), alleging that two major energy companies have engaged in misleading disclosure regarding their net zero plans. The complaint targets Cenovus Energy and Enbridge Inc., two reporting issuers that are principally regulated in Alberta. A copy of the full complaint is available here [PDF]. The complaint is based on section 92(4.1) of the Securities Act (Alberta), which prohibits reporting issuers from making misleading or untrue statements that would reasonably be expected to have a significant effect on the market price or value of a security, as well as CSA Staff Notice 51-333 Environmental Reporting Guidance and CSA Staff Notice 51-358 Reporting of Climate Change-related Risks. The complaint also makes reference to the anti-greenwashing provisions of the Competition Act that were introduced through Bill C-59. Submissions. I4PC submits that: Cenovus and Enbridge have a “core net zero contradiction” by engaging in significant fossil fuel expansion while claiming alignment with net zero; Cenovus and Enbridge have consistently failed to meet core transition metrics on net zero, particularly around capital expenditures; Cenovus and Enbridge have consistently engaged in “overly promotional disclosure regarding net zero”, both directly and via associations; and Cenovus has been allowed to foster investor uncertainty with lack of clarity regarding its net zero commitment (which I4PC expressly ties to Cenovus’ withdrawal of net-zero disclosures prompted by Bill C-59). Remedies Sought. I4PC requests that the ASC grant the following remedies: An investigation be launched into existing and past climate disclosures of Cenovus and Enbridge to assess the accuracy and adequacy of their disclosures. Because the practices of Cenovus and Enbridge are repeated by other Alberta-registered oil and gas companies, that the investigation also consider evidence from peers and competitors. That overly promotional disclosure in relation to net…

Canada’s Competition Bureau today released its final guidelines (PDF) on environmental claims (the Guidelines). The Guidelines follow new greenwashing provisions added to the Competition Act (the Act) through a series of Bill C-59 amendments that became law on June 20, 2024 and two rounds of public consultations conducted over the past year, which resulted in more than 400 submissions. The Competition Bureau also published a backgrounder on the Guidelines. The Guidelines provide a summary of the civil provisions of the Act that are relevant to environmental claims, including those provisions that deal with: False or misleading representations; Product performance claims; Claims about the environmental benefits of a product; and Claims about the environmental benefits of a business or business activity. The Guidelines then set out a series of six principles for compliance. The principles first appeared in Volume 7 of the Deceptive Marketing Practices Digest and are re-introduced with modifications to reflect the new provisions of the Act: Environmental claims should be truthful, and not false or misleading. Environmental benefits of a product and performance claims should be adequately and properly tested. Comparative environmental claims should be specific about what is being compared. Environmental claims should avoid exaggeration. Environmental claims should be clear and specific – not vague. Environmental claims about the future should be supported by substantiation and a clear plan. The Guidelines are expected to inform how the Competition Bureau exercises its enforcement discretion with respect to environmental claims. Private parties are also able to seek permission to file an application against businesses under the deceptive marketing practices provisions of the Act beginning on June 20, 2025. The Competition Bureau has indicated that it expects to publish updated general guidance with respect to private access to the Competition Tribunal. For further information or to discuss the contents of this bulletin, please contact Lisa…

I4PC Files Greenwashing Complaint with Alberta Securities Regulator

Competition Bureau Releases Final Guidelines on “Greenwashing” Provisions