Canada Anti-Greenwashing Guidelines are now reshaping how businesses communicate their sustainability efforts. Released by Canada’s Competition Bureau in June 2025, these guidelines aim to ensure that environmental claims made by companies are credible, transparent, and verifiable. The move is part of a wider global trend toward stricter regulation of environmental marketing. As expectations rise, businesses must adapt—or risk legal, reputational, and financial consequences.
How Canada Anti-Greenwashing Guidelines Are Reshaping Corporate Sustainability Claims
The Competition Bureau’s guidelines, stemming from amendments to the Competition Act in 2024, mandate that environmental claims must be based on “adequate and proper testing” and substantiated using internationally recognized methodologies.
Future-oriented claims, such as net-zero targets, require concrete, realistic, and verifiable plans with interim targets and meaningful steps underway.
Penalties for non-compliance can be substantial, including fines up to CAD 10 million or 3% of annual revenues, whichever is greater (Canada Competition Bureau).
Real-World Business Impacts of Canada’s New Greenwashing Rules
The new regulations have prompted Canadian companies to reassess their environmental claims and marketing materials.
For example, the Pathways Alliance — a consortium of major oil sands producers — removed content regarding its climate goals from its website and social media platforms, citing “significant uncertainty” over the federal government’s anti-greenwashing legislation.
This is a clear signal that even large, established businesses are adjusting strategies to avoid regulatory penalties.
The Global Landscape: How Canada Fits In
Europe: Raising the Bar with the Green Claims Directive
Alongside Canada Anti-Greenwashing Guidelines, the European Union is also taking robust steps to combat greenwashing. The proposed EU Green Claims Directive requires companies to:
- Substantiate environmental claims using robust, science-based, and verifiable methods;
- Submit claims for independent verification by accredited bodies;
- Clearly state what is being claimed and how it was measured.
Vague or misleading claims will be prohibited, and enforcement will be consistent across all EU member states.
United States: Revising the Green Guides
In the United States, the Federal Trade Commission (FTC) is updating its Green Guides, which provide voluntary guidance on environmental marketing.
The Brookings Institution noted in a 2025 commentary that the revised Green Guides are expected to increase scrutiny on carbon claims, “sustainability” labels, and offset programs.
Businesses must prepare to back up these types of claims with real-world evidence and avoid aspirational language without credible support.
Why This Matters for Business
The tightening of regulations globally signals that companies must be prepared to rigorously substantiate their environmental claims.
Failure to do so can result in:
- Legal liability under national competition or consumer protection laws;
- Reputational damage if stakeholders discover exaggerated or unverified claims;
- Loss of investor confidence, especially among ESG-conscious funds.
On the other hand, companies that adopt transparent and verifiable practices will strengthen trust with stakeholders and gain a competitive edge.
As the Harvard Law School Corporate Governance blog notes, anti-greenwashing enforcement is increasingly driven by both regulators and investors who demand greater transparency.
Building Internal Capability: The Skills Gap
A significant challenge for many businesses is the lack of internal expertise to navigate this increasingly complex sustainability reporting landscape.
According to the Global Green Skills Report 2024, demand for skills in sustainable marketing, ESG reporting, and supply chain transparency has risen by over 40% in the past two years. Mastering Canada Anti-Greenwashing Guidelines is now essential for sustainability professionals and marketers to ensure compliance and avoid reputational risks.
Yet as Bruegel highlighted in its report on integrated value assessment, many companies still rely on outdated tools and vague language when describing their sustainability progress.
To meet the new bar, organizations must upskill marketing teams, legal counsel, and sustainability professionals — ensuring they understand how to substantiate claims and communicate them clearly.
A Future of Credible Sustainability Marketing
Ultimately, Canada’s move is part of a larger global evolution toward credible sustainability marketing.
As the Atlantic Council emphasized in its 2025 Global Energy Agenda, transparency and accountability will define the next phase of the green economy.
From Europe to North America, regulators and investors are converging on a shared principle: consumers deserve accurate, verifiable information about environmental impacts. Businesses must evolve to meet this expectation.
Additionally, modern corporate reporting platforms like Trellis help businesses align their ESG data and disclosures with Canada Anti-Greenwashing Guidelines, ensuring that corporate sustainability data is both transparent and verifiable—not just in annual ESG reports, but across all marketing and investor communication channels.
Final Thoughts on Adapting to Canada Anti-Greenwashing Guidelines
The global fight against greenwashing is reshaping the way businesses communicate sustainability. Canada’s new guidelines underscore the need for authenticity, transparency, and scientific evidence in all environmental claims.
Companies that embrace this shift will not only remain compliant — they will also build stronger relationships with stakeholders and contribute to genuine climate progress.
The time to invest in skills, systems, and culture to support credible sustainability marketing is now.
Enhance Your Expertise
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