How To Avoid Greenwashing

Recent changes to the Competition Act in Canada mandated by Bill C-59 (The Fall Economic Statement Implementation Act, 2023) herald an important change to the way in which companies can promote the environmental and social benefits of their climate change actions. It also has implications for all claims made about the environmental and social benefits of sustainability strategies.

In short, the Act makes it illegal to make a representation (statement, warranty, or guarantee) that a particular product or activity has benefits for the environment, or mitigates the environmental, social and ecological causes or effects of climate change. Companies are now required to provide proof in the form of an adequate and proper test or substantiation in accordance with internationally recognized methodology of any such claims and statements.

Going-forward, organizations will have to set clear, measurable goals using precise language, and provide evidence of the achievement or benefit in question. Verification based on international norms and standards will be necessary. Supply chain evaluation will increase as supply chains account for a high proportion of environmental impact and this will bring a greater emphasis on partnering with reputable companies.

While managing the legal risk of being in contravention of the amendments is top of mind, simply expunging past statements and avoiding any future claims, will have precisely the wrong effect on your risk management and sustainability efforts.

When the dust settles and even prior to the release of guidance from the Competition Bureau, companies should be gearing up to approach reporting differently, looking at the opportunity this presents to distinguish themselves and double-down on strategies.

Step 1 is having accurate, defensible ESG data which can be verified across a wide range of ESG data points, particularly for carbon emissions and Net Zero statements.

Step 2 is ensuring that data is collected and reported in alignment with “internationally recognized methodologies”; this is now more important than ever and essential to compliance with the Act.

Shift Critical with its partner Position Green has the perfect solution. Position Green’s platform designed by sustainability experts will automate your compliance process and change the way you think about ESG. Additionally, it will streamline your processes in preparation for mandatory reporting in Canada and make your sustainability strategy data-powered.

We can resolve your Competition Act and reporting concerns in one go. Call us today for a Demo. With over 700 hundred organizations and over 50,000 users you will be in great company.