CANADA Law and Practice Contributed by: Laura Duke, Will Shaw and Emma Russell, Lawson Lundell LLP
16.3 Corporate Disclosure Requirement The disclosure of environmental information in annual reports is still largely voluntary in Canada. However, under Canadian securities rules, reporting issuers (which are largely public companies) must disclose all material information, including material informa- tion about environmental and social issues. Reporting issuers may also have disclosure obligations under the policies of a particular stock exchange. As noted in 6.5 ESG Requirements , environmental reporting is required for certain federally regulated banks and insurance institutions. On 20 June 2024, amendments to the Competition Act introduced Canada’s first set of explicit greenwashing provisions, targeting false or misleading environmen- tal and climate-related claims. These changes show a shift in Canadian competition law and corporate accountability, with significant penalties for unsub- stantiated environmental claims and new enforce- ment tools for regulators and private parties. Since their enactment, proposed class actions and regu- latory investigations against consumer brands have emerged, especially relating to environmental market- ing claims. Further, as of 20 June 2025, private access applications will allow individuals and organisations to bring deceptive marketing cases directly before the Competition Tribunal, likely leading to increased litigation and focus on allegations of greenwashing in Canada. 16.4 Green Finance The regulation and enforcement of green finance in Canada is still in the early stages of development. In May 2021, the government of Canada launched the Sustainable Finance Action Council (SFAC) to help lead the Canadian financial sector towards integrating sustainable finance into standard industry practice. The SFAC has a mandate to support the growth of a well-functioning sustainable finance market in Cana- da, in order to strengthen the mobilisation of private capital in support of Canada’s emissions reductions targets and climate adaptation and resilience goals. On 3 March 2022, Canada’s Department of Finance released Canada’s Green Bond Framework, which
to “near misses” where no harmful substance is actu- ally spilled. Larger spills or releases may also need to be reported to the public at large. Disclosure Requirements There are requirements to self-report environmen- tal incidents or damage to regulators in Canada ‒ although the specific contours of these requirements vary by statutory scheme. In general, mandatory reporting requirements may arise in relation to spills or releases of environmentally harmful substances such as oil, sewage and ozone-depleting substances, but may also apply to “near misses” where no substance is actually spilled into the environment. Larger spills or releases may also be required to be reported to the public at large. Failure to comply with incident disclosure obligations may be an offence in itself or may be used against an offender as an aggravating factor in sentencing. Permit- and authorisation-holders also often have annual reporting requirements. Failure to meet these requirements may be a breach of the permit conditions and, by extension, the underlying statute or regulation. Reporting Requirements Remediation of historical environmental damage typi- cally comes about at the direction of government or on the initiative of current landowners, who may be barred from developing a property until remedia- tion occurs. The government may impose reporting requirements during the course of remediation, so as to ensure that progress is being made and applicable standards are being met. Failure to report as required may be a violation of environmental law. See also 3.2 Breaching Protections . 16.2 Public Environmental Information Canadian government agencies often publish environ- mental information on their websites. The public may also request government documents and information through access-to-information requests, which apply to nearly all public authorities and bodies and can compel production of a wide range of government documents.
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