It closely resembles the draft advice on the rules, which came into effect last June to crack down on companies that fail to properly back up their environmental claims. “Companies are free to make any environmental claims they wish,” the bureau said, “as long as they are not false or misleading, and have been adequately and properly tested or substantiated where required.” (The Logic)
Talking point: Industry and interest groups had sought more clarity on exactly what environmental claims they can make in their marketing material, but the new guidance doesn’t quite spell that out. The bureau said it’s ultimately up to the courts to interpret the language of the law. Companies and investors have raised concerns that the rules expose them to lawsuits if they don’t adequately back up their climate claims. The oilsands consortium Pathways Alliance scrubbed its website of its environmental marketing material after the law passed last year. In April, RBC walked back its pledge to facilitate $500 billion in sustainable finance, and said it wouldn’t disclose how much it finances high-carbon energy assets compared to low-carbon alternatives. In May, the Canada Pension Plan Investment Board removed its target to achieve net-zero emissions by 2050, citing legal risks associated with the pledge.