ESG may be falling out of vogue, but sustainability is becoming unavoidable

“The best estimates I’ve seen are 50 per cent of claims are greenwashed, so we’re going to see this massive pullback once we start to regulate it.”

That’s what Wren Montgomery had to say to the Globe and Mail regarding the state of Canadian greenwashing.

With a confluence of increased Canadian regulation over greenwashing, as well as increased ESG backlash, the landscape is quickly changing. Companies that were never all-in or genuinely valued sustainability are retracting statements and ambitions left and right. Some companies who do care are now greenhushing: being quiet about their sustainability actions, for fear of backlash.  

Other experts interviewed by The Globe and Mail note that even if sustainability is not discussed as frequently, it remains a concern for “climate-conscious firms” and is now inseparable from many industries. A recent survey from KPMG reveals that although 75% of Canadian business leaders polled worry about publicly talking about climate due to reputational risk, 80% are also concerned that “pulling back on climate initiatives could lead to increased frequency and severity of extreme weather.”

Wren goes on to share that “What we see now, when we have regulations coming in, [is companies] who were actually just greenwashing and weren’t doing anything credible are pulling back on those commitments, which is good.”

Read the article to learn more.