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(Adds industry context in paragraph 10)

Jan 9 (Reuters) - Climate activist group Investors for Paris Compliance lodged a complaint on Tuesday urging securities regulators to investigate major Canadian banks on their climate-related claims and alleged misleading disclosures.

The complaint with the Ontario Securities Commission and Quebec's Autorite des Marches Financiers specifically named Royal Bank of Canada , Toronto-Dominion Bank , Bank of Nova Scotia , Bank of Montreal and Canadian Imperial Bank of Commerce .

Investors for Paris Compliance has alleged the banks' green-lending activities lack proper disclosures about their carbon emissions impact and that certain investments under the sustainable finance category could potentially increase greenhouse gas emissions.

"At best, sustainable finance as currently practiced by Canada's big banks is a $2 trillion placebo," said Matt Price, executive director at Investors for Paris Compliance. "At worst, it is greenwashing of carbon-intensive businesses, misleading investors and the public."

Several Canadian banks have committed to "net-zero financed emissions" by 2050 but have drawn doubts from many investors, due to concerns over the lack of a defined goal.

Regulators in the Americas and Europe have increasingly been worried about greenwashing, whereby companies exaggerate their environmental credentials.

"Canadian banks follow prevailing North American market standards on environmental, social and governance (ESG) disclosure, comply with applicable disclosure rules and regulations," the Canadian Bankers Association said in an emailed statement.

Canada's largest banks have previously faced greenwashing criticism from some environmental groups and investors claiming they are using sustainability-linked financing (SLF) merely for pretence of a lower carbon footprint rather than take meaningful steps in that direction.

Companies and investors increasingly consider factors such as climate change and workforce diversity - components of ESG - which they say can affect company performances and reputations.

The complaint comes at the heels of a turbulent year for major Canadian banks, which have had to contend with pressure on profits due to bigger loan-loss provisions, a dealmaking slump and slowing loan growth.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri) ((Manya.Saini@thomsonreuters.com;)) Keywords: CANADA BANKS/ESG (UPDATE 1)

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