CSA Targets "Overly Promotional" ESG Disclosure

Weeks after Canada's Competition Bureau launched an investigation into alleged greenwashing at Canada's largest bank, the Canadian Securities Administrators (CSA) have released guidance aimed at cracking down on exaggerated sustainability claims.

On November 3, the CSA published a biennial report on its Continuous Disclosure (CD) Review Program, highlighting common disclosure deficiencies among public issuers - including a growing problem with "overly promotional" ESG disclosure.

"We have observed an increase in issuers making potentially misleading, unsubstantiated or otherwise incomplete claims about business operations or the sustainability of a product or service being offered, conveying a false impression commonly referred to as 'greenwashing,'" the report read.