Investors for Paris Compliance, a shareholder advocacy group that aims to hold companies accountable for climate pledges, is urging the Ontario Securities Commission and the Autorité des marchés financiers of Quebec to investigate Canada’s largest banks over their use of the term “sustainable finance.” (The Logic)

Talking point: The complaint argues that the banks have committed hundreds of billions of dollars in sustainable finance as part of their net-zero plans, but failed to disclose the carbon-emissions impact of these green lending activities. It claims that in some cases, these green loans or investments may have increased greenhouse gas emissions. The lack of clarity and consistency around terms like ESG (environmental, social and corporate governance) and sustainable finance leaves room for greenwashing, and compromises the credibility of net-zero commitments, it says. The Canadian Bankers Association, a lobby group, said Canada’s banks follow North American ESG standards. There are growing calls from within the finance community to strengthen definitions and rules for reporting on green assets.