Greenwashing has become a hot topic in recent years, especially in the business world. Companies are under pressure to prove their environmental claims, leading to new rules and discussions aimed at ending misleading marketing. In Canada, the introduction of updated provisions in the Competition Act has brought this issue to the forefront.
The Alberta Securities Act has often shielded companies from legal trouble for certain forward-looking statements. However, climate-related disclosures were not given the same protection. This gap in the law was highlighted recently when a climate-focused investor group filed a complaint with the Alberta Securities Commission (ASC), alleging violations tied to misleading climate statements. Instead of addressing this through the Competition Act, they chose to focus on securities law violations.
In response, the ASC has halted work on mandatory climate disclosures for now, but it’s clear: companies should not be at risk for making good-faith efforts to share their environmental ambitions.
To address this issue, Alberta passed Bill 12: the Financial Statutes Amendment Act in December 2025. This amendment empowers the ASC to create rules that specify when companies won’t face liability for their climate-related disclosures. This is an important step, as it creates a safe harbor for companies trying to communicate their environmental initiatives without fear of punishment.
Recent surveys show that 75% of Canadian consumers are more likely to trust companies that communicate their sustainability efforts clearly. This sentiment highlights the growing importance of transparency in business practices. Companies that engage in genuine reporting of their environmental goals may find themselves favored by both consumers and regulators.
The legislative changes in Alberta mark a shift toward balancing transparency and protecting companies from undue risks. As regulations are developed, it’s essential for businesses to stay informed and adapt to this evolving landscape, ensuring that they communicate their environmental efforts truthfully while minimizing legal liabilities.
