Group files greenwashing complaint with securities watchdog against Enbridge, Cenovus

A shareholder advocacy group has raised concerns about the environmental disclosures of two major Canadian energy companies, Cenovus Inc. and Enbridge Inc. Investors for Paris Compliance has filed a complaint with Alberta’s securities watchdog, alleging that the companies have misled investors with inaccurate and incomplete information regarding their net-zero commitments.

The group argues that by using net-zero terminology in their communications, Cenovus and Enbridge have created a false impression that their business models are aligned with the transition to net-zero energy. This, according to Investors for Paris Compliance, could mislead investors and the public about the companies’ actual impact on climate change.

The complaint was brought to the Alberta Securities Commission rather than the federal Competition Tribunal, as the group believes that securities regulators have a responsibility to enforce laws related to greenwashing. The group cites guidance from the Canadian Securities Administrators, stating that environmental disclosures should be held to the same standards as financial reporting.

Michael Sambasivam, a senior analyst with Investors for Paris Compliance, emphasized that enforcement of such complaints should not solely rely on private citizens and groups. The group targeted Cenovus and Enbridge due to their significant roles in the energy sector and what it considers to be consistent violations of securities principles in their disclosures.

Following the implementation of anti-greenwashing provisions in the Competition Act, Cenovus removed its net-zero statements from its website, leading to uncertainty about the company’s commitments. Investors for Paris Compliance views this as a form of incomplete disclosure, which is prohibited under the Alberta Securities Act.

The complaint also highlights public lobbying efforts by the companies that appear to contradict their climate commitments. Despite Enbridge’s commitment to achieving net-zero emissions by 2050, the group argues that emissions from the end use of fossil fuels should be considered in net-zero reporting, not just emissions from operations.

Enbridge maintains that it is dedicated to accuracy and transparency in its communications and reports. However, Cenovus did not respond to requests for comment on the matter.

Investors for Paris Compliance is calling on the Alberta Securities Commission to investigate the accuracy and adequacy of climate disclosures from Cenovus and Enbridge. The group also urges the ASC to collaborate with other provincial securities regulators to provide guidance on net-zero claims for Canadian publicly listed companies.

In response, a spokeswoman for the commission stated that they have provided guidance and resources to help companies prepare disclosures of climate-related risks and avoid language that could be considered greenwashing. However, the commission does not comment on specific reviews of complaints.

Overall, the complaint raises important questions about the transparency and accuracy of environmental disclosures in the energy sector, highlighting the need for rigorous oversight and enforcement to combat greenwashing practices.