Quebec Regulator Issues New Greenwashing Guidance with CSA Support

The CSA, AMF, and ACVM release a report with new guidelines on ESG disclosures to prevent misleading claims

Canadian regulators collaborate to strengthen guidance on corporate sustainability disclosures

• The CSA, AMF, and ACVM report sets standards for clear and accurate ESG communications.

• Companies are urged to support ESG claims with factual and transparent information.

• Issuers must define terms like "sustainable" and disclose assumptions behind ESG targets.

The Canadian Securities Administrators (CSA), Autorités canadiennes en valeurs mobilières (ACVM), and Quebec’s Autorité des marchés financiers (AMF) have jointly released a biennial report addressing continuous disclosure requirements for public companies. This report outlines best practices for ESG disclosures, aiming to help companies meet compliance standards and avoid greenwashing.

This joint guidance is crucial as sustainable investment grows and concerns about “greenwashing” rise. By setting standards for factual and unbiased ESG communications, the CSA, AMF, and ACVM aim to bolster trust in corporate sustainability claims.

---

Technical Focus

Canadian regulators set a stronger framework to prevent greenwashing as sustainable investing rises. The CSA, ACVM, and AMF encourage companies to clearly define terms and avoid vague ESG claims that could mislead investors. These guidelines help ensure that ESG targets and plans are substantiated by data, thus improving transparency.

---

The report advises issuers to base ESG targets on solid data, disclose underlying assumptions, and clarify the specific risks of achieving these targets. Using broad terms like "ethical" or "responsible" without definition can mislead stakeholders, making it essential for companies to provide transparent explanations.