The Australian Securities and Investments Commission (ASIC) has taken action nearly 50 times in the past 15 months in relation to greenwashing activities carried out by investment firms and superannuation trustees.
The corporate regulator’s “Report 791 ASIC’s interventions on greenwashing misconduct: 2023-2024”, which details the level of its activities in this area from 1 April 2023 to 30 June 2024, stated it had made 47 regulatory interventions to address greenwashing misconduct.
The report further stated those interventions included obtaining 37 corrective disclosure outcomes by various entities, issuing eight infringement notices adding up to over $123,000 and commencing civil penalty proceedings against LGSS Pty Ltd, trading as Active Super, and Vanguard Investments Australia.
ASIC added it had also started civil penalty proceedings against Mercer Superannuation (Australia), which concluded with Mercer paying an $11.3 million penalty after it admitted it made misleading statements about the sustainable nature and characteristics of some of its super investment options.
The greenwashing surveillance activities of the regulator cover listed companies, managed funds, superannuation funds and the wholesale green bond market.
The regulatory interventions undertaken so far relate to insufficient disclosure on the scope of environmental, social and governance (ESG) investment screens and investment methodologies, underlying investments that were inconsistent with disclosed ESG investment screens and investment policies, and sustainability-related claims made without reasonable grounds or sufficient detail.
ASIC commissioner Kate O’Rourke said tackling greenwashing was central to maintaining trust in sustainable finance-related products and services.
“Investors and consumers are entitled to accurate and reliable information so they can make informed and confident investment decisions. Greenwashing claims mislead investors and consumers, and undermines confidence,” O’Rourke said.
“Where we’ve identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.
“Our surveillance indicates there is ample room for improvement and we strongly encourage product issuers and their advisers to focus on the quality of disclosures and the data underpinning them.”
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