Understanding Bill C-59 and Its Implications for Businesses

24 June 2024

News




Bill C-59, known as Canada’s Anti-greenwashing bill, brings significant changes to Canada’s Competition Act aimed at preventing greenwashing and ensuring transparency in environmental claims made by businesses. Enacted June 20, 2024, the law introduces stricter rules for companies making sustainability claims. The amendments require companies to back up public environmental statements with verifiable data or face fines and other legal consequences. This blog post provides an overview of Bill C-59 and outlines how Standard Carbon Inc. can help businesses comply with the new requirements.

What is Bill C-59

Bill C-59 is legislation that amends Canada’s Competition Act, implementing measures to enhance consumer protection and enforce regulations against misleading environmental claims. The primary goal is to combat greenwashing, where companies present false or exaggerated information about the environmental benefits of their products, services, or operations. The amendments expand the regulatory powers of authorities to investigate and penalize companies that cannot substantiate their sustainability claims, promoting a higher level of accountability and truthfulness in corporate communications.

Key Changes Introduced by Bill C-59

The new law affects companies across various industries, particularly those making claims about environmental impact or sustainability initiatives. Some of the key changes under Bill C- 59 include:

Stricter Requirements for Environmental Claims
Companies must provide accurate and verifiable data to support any statements about their environmental efforts. Claims about carbon footprint reduction, sustainable sourcing, or eco-friendly practices need to be substantiated with credible evidence.

Increased Scrutiny and Legal Consequences for Greenwashing
Businesses that engage in greenwashing can face penalties under the Competition Act. This includes fines, legal action, and reputational damage. Authorities will have more power to scrutinize advertising and marketing materials that involve environmental messaging.

Regulatory Expansion
The amendments grant increased regulatory powers to competition authorities, enabling them to investigate businesses that make misleading environmental claims more effectively. This includes the ability to demand evidence and data supporting such claims.

Applies to All Businesses Making Sustainability Claims
The rules apply regardless of the company’s size or sector. Any organization communicating about sustainability must ensure that its claims are reliable, and data backed.

Implications for Businesses: Why Bill C-59 Matters

For businesses, the implications of Bill C-59 are significant. The law represents a shift towards greater accountability and could lead to increased costs for compliance and data collection.

However, it also provides an opportunity for companies to differentiate themselves through genuine sustainability efforts. The new requirements mean that companies must take a closer look at their marketing practices, sustainability programs, and emissions tracking systems. If your company reports on sustainability or makes claims about the environmental benefits of your products, it is essential to understand how Bill C-59 affects your operations. Failing to comply could not only lead to penalties but also damage the company’s reputation. Consumers are becoming increasingly aware of environmental issues, and regulatory scrutiny is set to increase as a result.

Preparing for Bill C-59: Steps to Take Now


To comply with the amendments, businesses should consider the following actions:


Review Existing Environmental Claims
Assess any public statements made about your company’s environmental impact. This includes claims about reducing carbon emissions, sustainable sourcing, and other green initiatives. You should be able to back up all statements with data and reports.


Implement an Emissions Tracking System
It is crucial to accurately measure and report Scope 1, 2, and 3 emissions, as well as other indirect emissions such as those resulting from employee commuting. Implementing a robust tracking system will help collect the necessary data to substantiate your claims.


Train Employees on the New Requirements
Ensure your marketing, sustainability, and compliance teams understand the new regulations and are trained to provide accurate and evidence-backed information.


Conduct Regular Compliance Audits
Regularly review your marketing materials, environmental reports, and public statements to ensure they comply with the new standards.


Your Partner in Navigating Bill C-59

As businesses adjust to the new requirements, Standard Carbon Inc. offers services to help companies comply with Bill C-59 and avoid penalties for greenwashing. Our expertise in environmental claim verification, emissions tracking, and sustainability consulting can help you navigate these changes smoothly.

Services Offered by Standard Carbon Inc.

Environmental Claim Verification
We assess the validity of your sustainability claims to ensure they meet the new regulatory standards. This includes verifying data and methodologies used in public statements about environmental impact, such as reductions in greenhouse gas emissions.

Emissions Tracking and Reporting with SCOPE Software
Our SCOPE software tracks Scope 1, 2, and 3 emissions, covering everything from direct emissions to indirect emissions resulting from energy use and supply chain activities. We also help monitor emissions related to employee commuting. The software provides a centralized platform for collecting and analyzing emissions data, making it easier to identify areas for improvement and substantiate your claims.

Compliance Audits
Standard Carbon Inc. conducts thorough audits of your current marketing and environmental reporting practices. We check for alignment with Bill C-59 requirements and offer actionable recommendations to ensure compliance.

Training Programs for Teams
We offer training for your marketing, compliance, and sustainability teams. Our programs cover the new regulations, what constitutes a verifiable claim, and how to accurately communicate your company’s sustainability efforts.

Ongoing Monitoring and Reporting
Staying compliant requires continuous effort. Our services include ongoing monitoring of your sustainability communications and regular reviews of your data to ensure it remains aligned with Bill C-59 requirements. We provide updates on regulatory changes and help adjust your practices accordingly.

Why Work with Standard Carbon Inc.?

Standard Carbon Inc. is an ISO 14065:2020 accredited GHG verifier, so we are qualified to conduct third-party audits on environmental claims and statements. Our team brings a wealth of experience in sustainability consulting and carbon management. We have developed tools like the SCOP3™ software, which is specifically designed to help companies measure, report, and manage their environmental impact. Our services go beyond just ensuring compliance; we help businesses improve their sustainability performance and build trust with consumers.

Practical Steps for Compliance with Bill C-59
Below is a practical checklist that businesses can follow to align with the new requirements:

Review and Update Environmental Marketing Materials

  • Analyze claims about emissions reductions, sustainable sourcing, and other environmental efforts.
  • Ensure all statements are backed by accurate data and have supporting documentation.

Use Software for Emissions Tracking

  • Implement SCOPE software to measure your Scope 1, 2, and 3 emissions, as well as emissions
    from employee commuting.
  • Regularly update emissions data and review reduction targets.

Provide Clear Evidence for Claims

  • Publish detailed methodologies for calculating emissions or sustainability metrics.
  • Share annual greenhouse gas inventories or ESG reports that outline progress.

Train Staff on Compliance Practices

  • Educate your marketing and legal teams on the changes introduced by Bill C-59.
  • Develop internal guidelines on what constitutes an acceptable environmental claim.

Regularly Conduct Compliance Audits

  • Perform routine checks on your marketing and public statements.
  • Work with Standard Carbon Inc. for independent (third-party) verification.

The Risks of Greenwashing Under Bill C-59

Greenwashing not only misleads consumers but also exposes businesses to significant legal and financial risks. Under Bill C-59, companies found guilty of greenwashing can face steep fines and damage to their reputation. This is particularly relevant for companies that have historically made unsubstantiated claims, as the new regulations empower authorities to take more aggressive action.

Penalties under the updated Competition Act could extend beyond fines to include restrictions on business operations, increased scrutiny of future claims, and requirements to issue public corrections. This makes it essential for companies to avoid exaggerated claims and rely only on verifiable data.

The Role of SCOPE Software in Emissions Tracking

Accurately tracking emissions is critical for meeting Bill C-59 requirements, and Standard
Carbon Inc.’s SCOPE software provides a comprehensive solution for businesses. It enables
companies to:

  • Monitor Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and Scope 3 (emissions from the supply chain and other indirect activities) with ease.
  • Track emissions associated with employee commuting and other relevant activities.
  • Create detailed reports for regulatory submissions and public disclosures.
  • Use data analytics to identify opportunities for emission reductions and cost savings.

Taking Action
With Bill C-59 taking effect on June 20, 2024, businesses need to take action immediately. Taking steps to align with the new requirements will help avoid penalties and position your company as a leader in genuine sustainability efforts. Working with Standard Carbon Inc. provides the expertise, tools, and guidance necessary to navigate these changes, from verifying claims to tracking emissions and conducting audits.

Start by reviewing your current sustainability claims, implementing SCOP3 software for accurate emissions tracking, and conducting compliance audits. As a trusted partner, Standard Carbon Inc. can help you meet the demands of the new regulatory environment while advancing your company’s sustainability goals.

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