Shareholder Group Files Greenwashing Complaint Against Cenovus and Enbridge

A shareholder advocacy group has lodged a greenwashing complaint with Alberta's securities regulator. The complaint alleges that Cenovus Inc. and Enbridge Inc. have misled investors in their environmental disclosures.

Investors for Paris Compliance, the group filing the complaint, focuses on holding publicly traded companies accountable for their climate commitments. They contend that the companies have violated the Alberta Securities Act through "inaccurate and incomplete disclosure" regarding their net-zero commitments. The group believes that Cenovus and Enbridge have used net-zero terminology in their communications to create a misleading impression that their business models align with the net-zero energy transition.

The group chose to file the complaint with the Alberta Securities Commission, citing investors' strong interest in the credible and timely enforcement of securities law. They emphasize that amendments to the Competition Act do not supersede the obligations of securities regulators to address greenwashing. They also point to guidance from the Canadian Securities Administrators, which states that environmental disclosures should adhere to the same standards as financial reporting.

Cenovus as a producer and Enbridge as a transporter. The group believes both companies exhibited "consistently flagrant violations of Canadian security principles" in their disclosures. The complaint also notes that Cenovus removed its net-zero statements from its website after the Competition Bureau's anti-greenwashing provisions took effect. The group views the uncertainty surrounding the company's commitment as a form of incomplete disclosure.

The complaint also points to public lobbying efforts that contradict the companies' climate commitments. Executives from both companies signed an open letter urging the government to scrap its cap on greenhouse gas emissions and industrial carbon levy.

Enbridge has stated its commitment to achieving net-zero emissions from its operations by 2050. The company also stated it has reduced emissions from its operations through efficiency improvements, purchasing less carbon-intensive electricity, and investing in renewables. The company also stated it is committed to accuracy and transparency.

Investors for Paris Compliance argues that net-zero reporting should consider emissions from the end use of the fossil fuels produced and shipped, not just emissions from operations. The group is requesting that the Alberta Securities Commission investigate the climate disclosures of Cenovus and Enbridge to assess their accuracy and adequacy. They also want the commission to collaborate with other provincial securities regulators on guidance for net-zero claims for Canadian publicly listed companies. The commission has provided companies with guidance and resources to help them prepare disclosures of material climate-related risks and avoid greenwashing.