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A greenwashing complaint has been filed with Alberta’s securities watchdog against Cenovus Inc. and Enbridge Inc., alleging the oilsands producer and pipeline operator misled investors in environmental disclosures.

Investors for Paris Compliance accuse the companies of breaching the Alberta Securities Act with “inaccurate and incomplete disclosure” regarding net-zero commitments, the Canadian Press reported.

The group informed the Alberta Securities Commission (ASC) that Cenovus and Enbridge misled investors and the public by claiming their business models support a net-zero transition, despite their continued reliance on fossil fuels.

The complaint was filed with the ASC, not the federal Competition Tribunal, due to investor interest in timely enforcement of securities law under new anti-greenwashing rules.

Greenwashing is a term coined in 2013 that refers to corporate tactics that mislead the public about their environmental protection efforts. 

An April 30, 2024, amendment to the Competition Act, effective June 20, 2024, through C-59, broadly regulates environmental claims by businesses and individuals for investors, partners, and regulators, beyond consumer protection.

Greenwashing rules, initially for heavy industry, now apply to all businesses, including non-profits and foreign entities "marketing in Canada." 

The Competition Act now permits private parties, including environmental groups, to file direct complaints. On June 5, the Competition Bureau issued final guidelines for environmental claims, requiring them to be truthful, tested, specific, non-exaggerated, clear, and substantiated.

Michael Sambasivam, senior analyst with Investors for Paris Compliance, believes private citizens and groups shouldn't bear the enforcement burden for such complaints.

Sambasivam’s group targeted Cenovus and Enbridge to cover raw product (Cenovus) and transport (Enbridge) in the energy sector. He noted both companies had "consistently flagrant violations of Canadian security principles" in their disclosures.

The group requests the ASC investigate Cenovus and Enbridge's climate disclosures for accuracy, comparing them to peers. 

Environmental disclosures must now meet financial reporting standards, per Canadian Securities Administrators guidance. Those in contravention could face significant fines worth millions.

A McDonald-Laurier Institute report claimed that the greenwashing amendments create investor uncertainty and risk, while the Canadian Chamber of Commerce recommends repealing all greenwashing and deceptive marketing amendments.