The basic rule of responsible ESG reporting is that ESG claims must be: (1) true and not misleading; (2) specific and not general or ambiguous; (3) accurate and not exaggerated; and (4) substantiated and objectively verifiable. ESG claims that do not meet these criteria could be subject to allegations of “greenwashing,” which could lead to sanctions from regulators.

In Canada, the Competition Bureau has adopted a series of procedures for businesses to ensure that ESG claims, including any environmental and so-called “green” claims, are not considered misleading.

One of the most prominent allegations of “greenwashing” in Canada was launched by Greenpeace Canada, which filed a complaint with the Competition Bureau in 2023 alleging that six of Canada’s largest oil sands producers (those that make up the “Pathways Alliance”) made false and misleading statements to the public in their “Let’s Clean Up the Air” advertising campaign. ( Bryan J. Buttigieg, Sabrina Garieri, More at lexology.com)