A dump truck works near an oil sands extraction facility near Fort McMurray, Alta. in 2014. A provision within the federal government’s Bill C-59 makes changes to the Competition Act to combat greenwashing, and puts companies at legal risk for making environmental or social assertions in public communications that don’t stand up to scrutiny.JASON FRANSON/The Canadian Press
Several Canadian oil companies and lobby groups have added disclaimers to their websites and social-media feeds – in one case, scrubbing all content – in response to new federal legislation that aims to stamp out false or exaggerated environmental claims.
A contentious provision within the government’s Bill C-59 makes changes to the Competition Act to combat greenwashing, and puts companies at legal risk for making environmental or social assertions in public communications that do not stand up to scrutiny. Individuals and companies could face sizable fines if found liable.
On Wednesday, Pathways Alliance, a coalition of oil sands producers proposing a multibillion-dollar carbon capture and storage project, replaced its website and social-media content with a disclaimer it said is in response to the C-59 anti-greenwashing measure.
The amendment “will create significant uncertainty for Canadian companies that want to communicate publicly about the work they are doing to improve their environmental performance, including to address climate change,” it reads. The group warned that creating a disclosure standard it described as vague will open the door to frivolous lawsuits.
The legislative changes are part of the Fall Economic Statement Implementation Act, which received royal assent on Thursday.
Environmentalists have lauded the measure, saying it will help protect consumers by injecting reality into green claims as Canadian regulators drag their feet implementing mandatory climate-related disclosures.
Business and energy groups have argued vociferously against the provision, saying they will be forced to back up their assertions against standards that are still undefined. Alberta, a perennial foe of Prime Minister Justin Trudeau’s government on environmental matters, blasted the measure as “draconian.” Provincial Environment Minister Rebecca Schulz said it will hinder Canadians’ ability “to hear the truth about the energy industry and Alberta’s successes in reducing global emissions.”
At least three of the Pathways Alliance member companies, Suncor Energy Inc. SU-T, Cenovus Energy Inc. CVE-T and Canadian Natural Resources Ltd., CNQ-T have added notes to their online communications that warn of uncertainty regarding their ability to discuss environmental, social and governance matters.
“We’re going to see a lot more of this from a bunch of companies in a variety of sectors in the coming days,” said Conor Chell, national leader, ESG legal risk & disclosure, at KPMG.
“I think it will be a combination of disclaimer-type language…
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