Alicia Aleksandrowicz, Lead – Sustainability & Social Impact at Weber Shandwick Canada, argues that keeping silent on green credentials is no solution for businesses.
Late in 2024, the Competition Bureau released guidelines to help businesses better understand the Competition Act’s new “anti-greenwashing” provisions.
These new regulations came into effect in June and were met by strong reactions from leaders across the Canadian market. The provisions have been called everything from “an agenda to create chaos” (the Alberta government) to a “watershed moment for corporate accountability” (The National Observer).
The Competition Act now says that a party claiming it offers a benefit to the environment must have evidence that their claims are accurate. The burden of proof is on the company itself – meaning that companies shouldn’t make an environmental claim unless they have evidence to support it.
Canadian businesses looking for further clarity on how to navigate the new rules have until the end of February to provide feedback on the guidelines to the Competition Bureau. The final guidelines will inform the environmental claims they can make for their products, services and investments.
Silence is not the answer.
Greenwashing has become a politicized issue in the current political landscape. Executives may question if it is worth the risk to talk about their environmental initiatives at all given the potential for backlash. There are two important arguments against silence. One, 81% of Canadians still want big businesses to act to stop climate change, according to research from Schneider Electric. And two, silence creates space for others to shape and define who you are and what you stand for.
It’s important, then, to consider what the act says and not just what the headlines imply. The amendment to the Competition Act does not outlaw businesses from talking about their sustainability efforts, nor does it force businesses to take environmental action. It requires that the claims businesses do make are backed by proof. Or, in the words of the Bureau, claims must represent a “little more than wishful thinking”.
Truth in communications is the cornerstone of building trust. All kinds of industries, from pharmaceuticals and automobiles to alcohol and travel, must work within highly regulated frameworks. It therefore makes sense that claims of positive environmental impact are held to a high level of scrutiny.
This is not to say the work required to comply with the act is insubstantial. The transition puts a strain on a company’s legal and compliance teams. It also puts a special burden on communications teams to convey compelling and accurate narratives around sustainability initiatives. This requires new capacities and integration across teams. As a global agency, Weber Shandwick is working with our partners colleagues in the EU to enhance our capabilities and help clients navigate these new developments, including developing AI-powered tools to help identify claims or language used in corporate communications requiring substantiation.
It’s time to get your house in order.
The best way to guarantee the accuracy the regulation demands is to ensure sustainability communications is a shared responsibility, not a siloed function.
And this begs some hard questions: are your sustainability communications integrated? Do you have the resources and expertise to adequately substantiate your claims? Is your organization objective enough to understand what consumers and the global market expect from green claim communications, or do you need to engage third-party experts? Do you have the capacity to train internal teams on anti-greenwashing policies and what they mean for your businesses’ various roles and functions? Do your marketing and communications partners know how to use your data effectively to build narratives that earn consumer trust?
It’s essential that businesses engage the right partners to help them successfully navigate these challenges.
But beyond these questions, what is the ultimate benefit of being in compliance with the amendment?
Increased rigour around sustainability claims can power innovation in the Canadian market. By demanding companies match their words with credible action, we have the potential to unlock unexpected opportunities, partnerships and solutions. In this era of disruption and polycrisis, sustainable innovation will fuel competitive advantage for Canadian business.
Weber Shandwick is a member of the Institute of Canadian Agencies (ICA). Report on Marketing is where leading Canadian agencies showcase their insights, cutting-edge research and client successes. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.
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