Environmental management issues used to be a concern only for “smokestack” industries. However, with the increased breadth of environmental regulations and the increased pressure associated with implementing environmental sustainability changes, few companies are immune from environmental reporting obligations and in some cases, investigation and enforcement.
Lululemon Greenwashing Investigation
Headquartered in Vancouver, British Columbia, apparel retailer Lululemon Athletica is currently under investigation for Greenwashing. Greenwashing is false or misleading ads or claims regarding the environmental impacts or benefits of a product.
In an April 26, 2024, correspondence from the Competition Bureau Canada, they state they are conducting an inquiry relating to, “…allegations that lululemon athletica inc. and/or an affiliate thereof has contravened the (Competition) Act by making false, misleading and/or unsubstantiated representations.”
Activist Group Filed the Complaint
The complaint was filed by the environmental activist group, Stand.earth. On their website, the activist group provides the following: “lululemon claims to ‘Be Planet’ but its own reporting shows its climate emissions grew by 83% from 2019-2021. The company has benefitted from a carefully constructed image of environmental sustainability & wellness but its exponential growth has been built on fossil fuels, from clothing literally made from fracked gas to polluting manufacturing that threatens the health of communities in the Global South.”
Lululemon Athletica is currently under investigation for Greenwashing (Photo by P. L. on Unsplash).
Marianne Blondin a spokesperson for the bureau confirmed the Competition Bureau has begun an investigation under the Competition Act into the alleged deceptive marketing practices. “There is no conclusion of wrongdoing at this time…the Bureau is obligated by law to conduct its work confidentially, I cannot provide further details on this case at this time” (CBC).
Last year, we reported about the Keurig greenwashing settlement ($3 million penalty).
The most recognized greenwashing case (“Dieselgate”) was Volkswagen. The fines, penalties, compensations, and legal fees cost Volkswagen about $30 billion.
While greenwashing lawsuits are likely to increase, it does not negate the more traditional environmental enforcement activity.
$2.5 Million Fine
On April 26, 2024, in the Provincial Court of Newfoundland and Labrador, Husky Oil Operations Limited/Cenovus Energy was ordered to pay $2 million after pleading guilty to one charge under the federal Fisheries Act and one charge under the Migratory Birds Convention Act, 1994. The company was also ordered to pay $500,000 for an offence under the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act that was investigated by conservation officers with the Canada-Newfoundland and Labrador Offshore Petroleum Board. A total of $2.4 million will be directed to the Government of Canada’s Environmental Damages Fund to support projects that have a positive impact on Canada’s natural environment. An amount of $100,000 will be paid to the Receiver General for Canada (Source: Environment and Climate Change Canada).
According to court documents, Husky “Did, on…November 16, 2018…having ceased work or activity that was likely to cause pollution did resume work without ensuring it could do so safely and without pollution, from at or near the White Rose Field…contrary to subsection 24(2) of the Newfoundland Offshore Petroleum Drilling and Production Regulations SOR/2009-316, thereby committing offences pursuant to paragraph 194(1)(a) of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act.”
As a result of this conviction, the company’s name will be added to the Environmental Offenders Registry.
Environmental Violations – Administrative Monetary Penalties
Finally, on May 13, 2024, Environment and Climate Change Canada issued a notice that they were open for comment on, “Environmental Violations Administrative Violations Administrative Monetary Penalties Regulations.”
Specifically, Environment and Climate Change Canada is looking for comments on
- The effectiveness of using administrative monetary penalties to address non-compliance.
- The methodology used to calculate fine amounts, as outlined by the Regulations.
- Current environmental, social, economic, and political contexts that are relevant to the Regulations.
- Impacts of the current Regulations on stakeholders.
Administrative Monetary Penalties (AMPs) “are levied by statutory decision without trial or hearing in court. In some circumstances, AMPs can be levied for the same non-compliance that may also attract an offence. The statutory decision maker has the discretion to refer the matter for prosecution, or levy an AMP, and may choose an AMP due to the lower burden of proof required” (Lawson Lundell, LLP).
AMPs can range from $2,000 to $1,000,000.
If you want to comment on the AMP regulations you have until July 15, 2024.
If you need assistance with an environmental issue (compliance, assessments, remediation, excess soil, litigation support, etc…), contact Christopher Pare’, P.Geo. Q.P. at 519-948-7300, Ext. 114.
Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio.
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