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July 1, 2025

Canada issues clear anti‑greenwashing rules for environmental claims

Canada’s Competition Bureau has released its final guidance to assist businesses in complying with the country’s recently updated anti‑greenwashing laws under the Competition Act. The guidance emphasizes that firms must substantiate any future‑oriented environmental claims—such as net‑zero targets—with a concrete, realistic roadmap including interim targets and measurable steps. Claims must also be backed by adequate, reliable testing or third‑party verification where appropriate, following internationally recognized methodologies. Canada’s strengthened legal framework adopts tough penalties, including fines of up to C$10 million—or for repeat offences, up to C$15 million—or even 3 % of annual revenues or three times the benefit gained from the misleading conduct.

In response to industry feedback from two Bureau consultations, the guidelines clarify that vague or broad environmental claims—such as “climate friendly” or comparisons lacking context—must be specific, verifiable, and supported by solid evidence . Companies are expressly warned that aspirational promises without follow‑through could be treated as “wishful thinking.” Since the law came into effect last year, some businesses, including RBC, have already withdrawn sustainability claims to ensure compliance. Overall, the guidance aims to protect consumers from misleading green claims and reinforce confidence in environmental messaging.

Other News

May 23, 2024

EU adopts methane emissions law for energy sector

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May 23, 2024

US Government takes steps to boost carbon offset market credibility 

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