Bill would force firms to prove their environmental claims
This article was written by Amanda Stephenson and was published in the Toronto Star on June 21, 2024.
The Pathways Alliance group of oil sands companies has removed all content from its website and social media feeds, citing uncertainty over a new antigreenwashing rule poised to become federal law, while a major oil and gas industry group has also modified its website.
The Pathways Alliance is a consortium of Canada’s six largest oil sands companies, which together have publicly committed to reaching net-zero greenhouse gas emissions from oil sands production by 2050.
The consortium has previously spent millions of dollars on a countrywide public relations blitz aimed at demonstrating that the oil sands is committed to helping fight climate change.
But as of Thursday, all that remains on the group’s website is a notice saying Pathways has removed its content due to concerns around an anti-greenwashing provision in federal Bill C-59.
“Imminent amendments to the Competition Act will create significant uncertainty for Canadian companies that want to communicate publicly about the work they are doing to improve their environmental performance,” the Pathways statement reads.
“With uncertainty on how the new law will be interpreted and applied, any clarity the Competition Bureau can provide through specific guidance may help direct our communications approach in the future.”
The group — which has not yet responded to an interview request — added it remains committed to the work it is doing to reduce the environmental impacts of oil sands production.
The Canadian Association of Petroleum Producers also said Thursday it has “chosen to reduce the amount of information available on its website and other digital platforms.”
The omnibus bill C-59, which passed third reading in the Senate Wednesday and will soon become law, contains a truth-in-advertising amendment that would require corporations to provide evidence to support their environmental claims.
The provision is not fossil fuel specific, but applies to all businesses and economic sectors.
The bill’s wording says businesses must not make claims to the public about what they are doing to protect the environment or mitigate the effects of climate change unless those claims are based on “adequate and proper substantiation in accordance with internationally recognized methodology.”
The Pathways Alliance says it remains committed to the work it is doing to reduce the environmental impacts of oil sands production
‘‘ This is basically a very modest provision in the Competition Act. It simply requires companies to tell the truth and to have an evidence base to back up their claims. So I do think this reaction is very telling.”
LEAH TEMPER CANADIAN ASSOCIATION OF PHYSICIANS FOR THE ENVIRONMENT
The passage of the provision is a win for Canadian environmental groups, who have been mounting a full-fledged campaign against “greenwashing” — a term given to the perceived tendency by companies to market their products and practices as more sustainable than they really are.
In the last year, Canadian green groups have lodged at least four formal complaints with the federal Competition Bureau alleging greenwashing or false environmental claims by fossil fuel companies or banks.
The Pathways Alliance was the target of one of those complaints. Environmental groups have said the consortium’s ads and public claims about net-zero are misleading, as the Pathways Alliance has not yet made a final investment decision on its proposed $16.5-billion carbon capture and storage network.
Leah Temper, program director with the Canadian Association of Physicians for the Environment, said Thursday she was “thrilled and surprised” to see the oil sands industry react so strongly to the passage of C-59.
“This is basically a very modest provision in the Competition Act. It simply requires companies to tell the truth and to have an evidence base to back up their claims,” Temper said.
“So I do think this reaction is very telling.”
In a statement, the Canadian Association of Petroleum Producers said the anti-greenwashing provision will have the effect of silencing the energy industry and curtailing the ability of Canadians to participate in debates around climate and environmental policy.
“The burden of proof provision included in the amendments means those making the complaint face no risk or accountability. Rather, the burden falls entirely on companies,” said CAPP president and CEO Lisa Baiton.
“Businesses across Canada are being put at significant risk for communicating their efforts to reduce their impact on the environment.”
But Temper said that as climate change concerns mount, it has become increasingly common for businesses in all industries to make questionable environmental claims in their advertising.
“It has been the Wild West. Companies have been able to make almost any claim they want, using terms such as net-carbon neutral, without any reliable evidence base,” Temper said.
“Hopefully this (C-59) will represent a sea change.”
Alberta Environment Minister Rebecca Shulz has called the antigreenwashing provision an “undemocratic gag order” that creates needless uncertainty for businesses.
Earlier this month, UN secretary general Antonio Guterres urged countries to ban advertising by fossil fuel companies in the face of the climate crisis.
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