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Canadian Government Proposes New Rules to Limit Greenwashing

Canadian financial institutions are being asked for greater transparency and more detailed statements about their environmental impact.

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Thanks to a shift in consumer demand and stricter regulation, Canadian business is becoming greener. This transition, while critical for the future of our planet, can be costly and the path forward is fraught with challenges.  It is unsurprising that businesses are often tempted to overstate how “green” they really are, hoping to attract customers looking for a sustainable alternative. This phenomenon is referred to as “greenwashing” and companies in industries from energy to manufacturing to financial services have been accused of it.

In Canada, the Competition Act governs deceptive advertising and trade practices. While this act already prohibits misleading advertising, the rules about greenwashing have received a major update with the recent introduction of Bill C-59 and the Canadian Financial institutions need to adapt.