Australian pension fund Active Super has been fined A$10.5 million ($6.7 million) for making a number of misrepresentations about its environmental, social and governance credentials amid a regulator push to stamp out greenwashing.
In June, the Federal Court found regulator Australian Securities and Investments Commission was largely successful in proving its case that the trustee of Active Super, known as LGSS, made a number of misrepresentations about its environmental, social and governance credentials. Those included labeling its coal and gambling investment screens as misleading and deceptive, according to the judgment.
Active Super merged with Vision Super on March 1 to create a A$29 billion pension fund.
Australia’s A$4.2 trillion pensions industry has come under pressure to justify ESG claims. ASIC has taken multiple cases over greenwashing allegations amid the heightened focus, resulting in a range of penalties.
“The financial penalty handed down by the Federal Court relates to historical issues with LGSS’s disclosures,” a Vision Super spokesman said in an emailed statement, adding that LGSS remained responsible for paying the penalty.
ASIC Deputy Chair Sarah Court said the regulator would continue to keep greenwashing in its sights. “This is a significant penalty that sends a strong message to companies making sustainable investment claims that those claims need to reflect the true position,” Court said in a statement.
In a separate case, Vanguard Investments Australia was fined A$12.9 million for making misleading ESG claims, the highest greenwashing penalty issued in the country. In August, Mercer Superannuation Australia was ordered to pay A$11.3 million after ASIC sued the firm for misleading investors over some sustainable products.
Australia’s financial sector has a new climate reporting framework being phased in, which includes mandatory climate disclosures. It’s also developing ESG labeling standards for products being marketed as sustainable.
Photograph: A man with a cane walks in Sydney, Australia, on Tuesday, Nov. 28, 2023. Photo credit: Brent Lewin/Bloomberg
Related:
Topics Australia
Was this article valuable?
Here are more articles you may enjoy.
South Florida Insurance Broker Pleads Guilty to Fraud in $133M ACA Enrollment Scheme 
Questions About How a Deputy’s Stepson Became the Accused Gunman at FSU Shooting 
Allstate Agent Can Be Sued Over Nonrenewal of ‘Grandfathered’ Flood Insurance Policy 
Class Action Accuses Toyota of Illegally Sharing Drivers’ Data With Progressive 
