Six practical insights for Canadian businesses navigating greenwashing

In June, UN Global Compact Network Canada hosted a webinar on greenwashing, bringing together experts to unpack how Canadian businesses can communicate sustainability progress credibly amid evolving disclosure expectations.

The session featured insights from experts at Competition Bureau Canada, British Columbia Securities Commission, and Fasken who shared legal, regulatory, and communications perspectives on what it takes to make credible sustainability claims.

Throughout the discussion, one message emerged clearly: credible sustainability claims begin long before they are communicated. Building trust requires strong governance, robust substantiation, transparency, and credible processes—not perfect information. Below are six practical insights from the conversation;

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What Companies Should Do

1. Build the evidence before you build the message.

Strong sustainability communications start with strong substantiation. Before making a public claim, businesses should ensure they have appropriate evidence, understand the methodology behind it, and document how the claim is supported.

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2. Right-size your claims to the evidence you have.

Perfect information isn't required—but claims should accurately reflect the strength and scope of the available evidence. If certainty is limited, narrow the claim and be transparent about assumptions or limitations.

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3. Build governance into sustainability communications.

Credible claims are the result of collaboration across legal, sustainability, communications, procurement, and leadership teams. Establish clear review processes, maintain supporting documentation, and regularly revisit claims as information evolves.

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What Companies Should Know

1. You don't need perfect data to communicate progress.

Companies can communicate sustainability commitments and progress even when information is still evolving, as long as claims are supported by reasonable evidence, uncertainty is communicated transparently, and statements are not overstated.

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2. It's not just what you say—it's the impression you create.

Regulators look beyond the literal wording of a claim. Images, layout, context, and overall messaging all contribute to the "general impression" a sustainability claim conveys.

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3. Sustainability communication should continue, but it should be credible.

The panel emphasized that increased scrutiny is not intended to discourage businesses from communicating sustainability efforts. Organizations can continue to share their ambitions, progress, and environmental initiatives, provided those claims are truthful, appropriately substantiated, and communicated responsibly.

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Resources and Further Reading

• Supervisory Practices to Address Greenwashing
• Good Sustainable Finance Practices
• Environmental claims and the Competition Act

Looking for more insights and timely discussions on what’s ahead for Canada’s sustainability landscape? Register for our ESG Regulations and Standards Webinar Series. Each session, we’re bringing together leading experts and practitioners to unpack key developments including disclosure frameworks and legislative changes.

Join us and stay ahead in a rapidly evolving ESG environment.

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