Archive · 13 Sep 2025
Canada Securities Regulator Targets Fund for Alleged Greenwashing
The Ontario Securities Commission (OSC) is accusing a Canadian investment firm, Purpose Investments, of 'greenwashing'.
This means the firm allegedly exaggerated how much it considered environmental, social, and governance (ESG) factors in its investment decisions.
The OSC claims that Purpose said they were using ESG principles in a way that wasn't true.
Purpose stated they were using ESG in 75% of their funds, while the OSC alleges the correct figure was less than 35%.
The OSC is now taking action, which could impact the company's operations and finances.
Purpose Investments is disputing the OSC's claims, and a hearing is planned.
The company claims the OSC misunderstands their corporate philosophy.
The OSC is taking its first enforcement action against Purpose Investments Inc. for alleged greenwashing.
The OSC alleges Purpose made misleading statements about incorporating ESG factors.
Purpose is accused of implying ESG principles were embedded throughout their investment process.
The OSC's investigation covers the period from September 2019 to March 2023.
Purpose is contesting the enforcement action and a hearing is scheduled for October 6.
- Who
- Ontario Securities Commission (OSC) and Purpose Investments Inc.
- What
- The OSC is taking enforcement action against Purpose Investments for alleged greenwashing.
- When
- The alleged actions occurred between September 2019 and March 2023. A hearing is scheduled for October 6.
- Where
- Canada
- Why
- The OSC alleges that Purpose made misleading statements about its ESG practices.
OSC
Purpose Investments
ESG Integration
OSC
Purpose made misleading statements about the extent of ESG considerations.
Purpose Investments
The OSC has misunderstood our corporate philosophy around ESG.
- Regulator
- Ontario Securities Commission
- Target
- Purpose Investments Inc.
- Allegation
- Misleading ESG statements
- Timeframe
- September 2019 to March 2023
- Hearing Date
- October 6
- Location
- Toronto, Canada