Oil giants under fire for allegedly shady practices: 'Inaccurate and incomplete disclosure'

A complaint filed in Canada has accused huge companies of greenwashing, an irresponsible business practice that dupes climate-concerned customers.

What happened?

According to The Canadian Press, shareholder advocacy group Investors for Paris Compliance filed a complaint against two major Canadian energy companies, Enbridge Inc. and Cenovus Inc.  

Investors for Paris Compliance alleged the companies misled investors through a "long-standing and widespread inaccurate and incomplete disclosure" related to their net-zero commitments. 

Essentially, the group asserted that these companies claimed to be committed to the future of clean energy while their core business remained focused on dirty fuels.

As evidence, the complaint pointed out that executives from both companies signed a letter urging the Canadian government to scrap its cap on heat-trapping pollution. 

In another revealing move, Cenovus stripped its net-zero statements from its website entirely after new anti-greenwashing laws took effect.

Why is greenwashing concerning?

Think of greenwashing like the corporate version of the three-card shuffle scam you'd find on a street corner. 

Corporations and big brands often present misleading information to make you think you're supporting an eco-friendly business while hiding their true practices. This sleight of hand hurts both the consumer and the environment.

Underhanded corporate behavior can erode public trust and misdirect investors who want to support genuinely sustainable businesses. 

These companies often only count the pollution from their direct operations, not the much larger amount created when the oil and gas they sell is actually burned. 

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Investors for Paris Compliance also maintained that both companies were failing to allocate "more than a fraction" of their capital expenditure to reaching net zero.

This isn't an isolated issue. A landmark court case determined that the airline KLM had also engaged in greenwashing. Elsewhere, energy company Santos faced a lawsuit in Australia over its clean energy claims. 

What's being done about greenwashing?

The good news is that accountability is on the rise, as evidenced by lawsuits like these. 

New laws and advocacy groups are putting pressure on companies to be honest, and citizens and investors are also becoming more aware of these tactics. 

To protect yourself and your wallet, educate yourself about greenwashing to better identify false promises and misleading eco-friendly claims.

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