PMAC responded to the Competition Bureau’s consultation regarding the new Competition Act greenwashing provisions (Provisions).
PMAC commented that, given the rapidly evolving area of responsible investing globally, we would strongly suggest that direct consultation with the CSA, the provincial securities regulatory authorities, and industry participants to discuss the practical implications of the Provisions, would be beneficial to achieving an approach that addresses the Bureau’s policy objectives while considering the implementation risks faced by the investment industry. PMAC would be happy to facilitate such a discussion.
We are concerned that the Provisions may have unintended consequences, including limiting the quality of disclosures that corporate issuers provide to investors with respect to sustainability metrics and goals, for fear of legal and regulatory repercussions.
KEY RECOMMENDATIONS
The following are PMAC’s key recommendations with respect to the Consultation:
- Defer to existing regulations by carving out disclosures that are mandated and governed by provincial securities regulators, the CSA and global entities that oversee the preparation of ESG-related voluntary reports
- Clarify that reliance on company disclosures, reputable third-party information sources and cautionary statements will satisfy the requirement for adequate and proper testing
- Interpret the term “internationally recognized methodology” in a broad, flexible and principles-based manner taking into account evolving science and standards, and specify the criteria to be taken into consideration when determining whether a particular methodology meets the standard
You can read PMAC’s full response here.
