The Impact of Canada’s New Greenwashing Regulations

There are pros and cons to Canada’s recently passed amendments to the Competition Act but there is no doubt it will have an impact on ESG related communications and how companies position themselves and their products in the market. The amendments require companies, industry associations and company spokespeople (they can be held personally accountable) to ensure that communication of their ESG commitments (most notably around plans to reduce carbon output) are fact based and vetted for accuracy by an independent source.

As expected, views of the amendments vary. Pundits on one side of the debate call it a long overdue alignment with other jurisdictions (such as the UK, the US and China) that ensure publicly made claims can be trusted. Those on the other side have called it a poorly defined initiative that will curtail both ESG communications (reducing the information people have available to make decisions) and ESG investment and innovation; and in turn curtailing progress on carbon reduction and other environmental commitments.

However, the fact remains that the number of Canadians searching for a company’s or a product’s credentials has been growing, with 4 in 10 now doing so. Unfortunately, almost 7 in 10 are pre-disposed to believe that companies are making ESG commitments solely for the purpose of increasing sales. At the same time, they expect more from companies operating in Canada, with close to 6 in 10 saying that companies are not doing enough in terms of supporting sustainability and ethical best practices. In our latest paper we discuss Ipsos’ ESG Segmentation profiles and opportunities for companies to avoid greenwashing and earning the trust of Canadians.

Part 2: What happens after the Conservatives axe the carbon tax? 

The carbon tax has been a signature environmental policy of the Federal Liberal Government. New research insights from Ipsos Global Trends shows that the values of autonomy, health, self-reliance, and informed consumerism are the top values across the globe and for Canadians. The common link between these values is a desire for people to make informed decisions for themselves. At its core, the carbon tax is about encouraging choice. Had the federal government communicated this purpose more effectively, perhaps people would be making those informed choices today. 

Read on as we explain why the carbon tax fell out of favour with Canadians and that if it does get axed, Canadians will still have high expectations of business and governments to address their environmental concerns.