Maroc - TIMBERBIZ.COM.AU - A La Une - 26/Jul 00:38

Guidance on greenwashing

Canada’s Competition Bureau has published guidance on what might constitute corporate greenwashing as it begins consultations over how it will implement Ottawa’s contentious new measures aimed at preventing false and misleading environmental claims. Source: Business intelligence for BC (Can) The bureau said goals and timelines for achieving environmental objectives such as reducing carbon emissions must be supported by clear and specific plans, and not just be aspirational. It also warned companies against trying to shield their green assertions with disclaimers. The agency issued the commentary on Monday as it launched a request for feedback to help it formulate plans for implementing the new measures, which some companies, industry associations and provincial governments have criticized for being vague and heavy-handed. The consultation period runs to 27 September. Bill C-59 contains the controversial amendment to the Competition Act that puts companies at legal risk for making environmental assertions that do not stand up to scrutiny. The legislation received royal assent on 20 June. Under the legislation, corporate communications must be backed up by as-yet undefined international standards. Individuals and companies could face sizable fines if found liable. In response, several oil and gas companies and industry associations added disclaimers to their websites and social-media feeds or deleted content altogether, citing legal uncertainty. Alberta has been vocal in its opposition, calling the anti-greenwashing provision a “gag order.” The province’s Environment Minister Rebecca Schulz has said she intends to make a submission to the bureau. The federal agency does not have the authority to make changes to the policy itself as part of the process; only government has that power, said Competition Bureau spokesperson Marianne Blondin. “This consultation will inform what further guidance may be offered about environmental claims,” she said in an e-mail. The bureau should have been better prepared for implementation, after it made a submission to a House of Commons committee on finance earlier this year pushing for a stricter policy, said Peter Flynn, a competition specialist at the law firm Stikeman Elliott LLP. However, seeking input to help put the policy into effect is the next best option, Mr. Flynn said. To help avoid more confusion, the bureau should make clear that when ruling on the veracity of claims, it would set a high bar to substitute its own judgment for that of companies that are already relying on internationally recognized standards. On Monday, the bureau published some examples of corporate greenwashing, as well as complaints it has received. It said companies that set aggressive goals and timelines for cutting emissions and achieving carbon neutrality should be commended. But there are risks that such forecasts could become greenwashing, so companies must ensure they have concrete plans to achieve them. Even with clear strategies in place, companies must take care not to be misleading, the bureau said. For instance, a company should avoid creating the impression that it will abandon the use of fossil fuels to slash emissions, while maintaining consumption and buying carbon credits, it said. It also warned against believing that publishing disclaimers will protect against complaints. If a company’s claim creates a false or misleading impression of environmental benefits before any reference to a disclaimer, the “fine print may not help,” it said. The bureau said complaints often zero in on assertions that future investments and strategies will allow companies to reach environmental goals, when they lack credible plans. “Such claims often draw attention to environmental projects or other investments that are environmentally positive. But complainants allege that the projects or investments are token in nature, or pale in comparison to operations of the business that are not consistent with claimed objectives,” the bureau said. Mr Flynn said the legislation is not aimed at stopping companies from communicating their environmental plans, but it is pushing them to be specific. “For companies that are trying to get that green halo around them without actually doing the work, that’s the type of activity that’s going to draw, in our expectation, scrutiny or enforcement action from the bureau, and down the road, open them up potentially to private actions by individuals or groups,” he said. The bureau will lead the process until June 2025, when private parties will be able to go directly to the Competition Tribunal, which will rule on whether proceedings will be in the public interest. This story has been updated to clarify Peter Flynn’s views on how the Competition Bureau should take into account internationally recognized standards.