Shareholder Group Files Greenwashing Complaint Against Cenovus and Enbridge

A shareholder advocacy group, Investors for Paris Compliance, has filed a complaint with Alberta's securities watchdog, alleging that Cenovus Inc. and Enbridge Inc. have misled investors through inaccurate and incomplete environmental disclosures. The group argues that the companies have breached the Alberta Securities Act by extensively using net-zero terminology in their communications, leading investors to believe their business models are aligned with the net-zero energy transition, which is not the case. This complaint highlights the lack of credible and timely enforcement of securities law in Canada.

Key Takeaways:

• Investors for Paris Compliance has filed a greenwashing complaint with Alberta's securities watchdog against Cenovus Inc. and Enbridge Inc., alleging inaccurate and incomplete environmental disclosures related to net-zero commitments.
• The group argues that the companies have breached the Alberta Securities Act by extensively using net-zero terminology in their communications, which has led investors to believe their business models are aligned with the net-zero energy transition.
• The complaint targets both Cenovus, a major oilsands producer, and Enbridge, the country's biggest crude pipeline operator, as they represent different segments of the energy business.
• Uncertainty over whether Cenovus has abandoned its net-zero commitments constitutes incomplete disclosure, in violation of the Alberta Securities Act.
• Top executives of both companies, including Enbridge's spokesperson, have publicly stated commitments to net-zero emissions, while simultaneously lobbying to scrap emission regulations.
• Investors for Paris Compliance argues that emissions from the end use of fossil fuels produced and shipped should be taken into account in net-zero reporting, not just emissions from operations.

Statistics:

• 22% reduction in emissions from Enbridge's operations compared to its 2018 baseline, achieved through improved efficiency, purchasing less carbon-intensive electricity, and investing in renewables.
• Timeframe for Enbridge's net-zero emissions commitment: by 2050.
• Industry efforts to undermine climate regulations through lobbying, including oil and gas industry leaders' open letter to Prime Minister Mark Carney this spring.

Sources:

• "Shareholder group files greenwashing complaint against Cenovus, Enbridge" by The Canadian Press (no publication date provided)
• http://www.investorsforparis.com (website of Investors for Paris Compliance)
• Canadian Securities Administrators' guidance on environmental disclosures