Greenwashing provisions under the Competition Act
This submission matters because overlapping or inconsistent greenwashing rules could create confusion, increase regulatory burden, and limit clear, reliable ESG information for investors.
Submission – Competition Bureau – Consultation – Competition Act New Greenwashing Provisions
Recipients
- Deceptive Marketing Practices Directorate
Competition Bureau
50 Victoria Street
Gatineau, Quebec K1A 0C9
Email: greenwashingconsultationecoblanchiment@cb-bc.gc.ca
Industry segments this resource supports
- Assets management
- Wealth management
Summary
We submitted comments to the Competition Bureau on the new greenwashing provisions under the Competition Act. While we support the intent of ensuring accurate and substantiated environmental claims, we emphasize that the investment funds industry is already subject to extensive ESG-related oversight by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO). We urge the Competition Bureau to defer to these securities regulators to avoid duplicative or contradictory requirements. The submission outlines how existing securities rules, CSA ESG guidance, and enforcement practices already address misleading or exaggerated ESG claims. We also highlight the importance of allowing forward-looking environmental statements, such as net zero‑ commitments, when appropriately qualified.
Why this matters: This submission matters because overlapping or inconsistent greenwashing rules could create confusion, increase regulatory burden, and limit clear, reliable ESG information for investors.
Key takeaways
- IFIC supports the goals of the new greenwashing provisions but stresses that securities regulators already have robust frameworks to prevent misleading ESG claims.
- Introducing Competition Bureau oversight into securities regulation could create conflicting standards, unnecessary complexity, and increased compliance burden.
- CSA and CIRO rules already require investment funds and registrants to ensure ESG-related disclosures and marketing are accurate, substantiated, and not misleading.
- CSA Staff Notice 81‑334 provides detailed ESG disclosure guidance aligned with international IOSCO standards.
- IFIC recommends that the Competition Bureau recognize CSA ESG guidance as an internationally accepted methodology for substantiating environmental claims.
- Forward-looking environmental claims (e.g., net‑-zero targets) should remain permissible when supported by reasonable assumptions, interim milestones, and appropriate disclaimers.
- Duplicative oversight could discourage firms from providing useful ESG information, ultimately reducing transparency for investors.
