Australian Securities and Investments Commission Reports Progress in Combatting Greenwashing
The Australian Securities and Investments Commission (ASIC) has been actively addressing its efforts to combat greenwashing, carrying out 47 regulatory interventions between April 2023 and June 2024.
The initiative is part of ASIC’s strategy to ensure accurate and reliable information in sustainable finance products.
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Kate O’Rourke, the ASIC Commissioner said, “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.
She added, “Where we’ve identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.”
During the period from April 1, 2023, to June 30, 2024, ASIC delivered 37 corrective disclosure outcomes by various entities, issued eight infringement notices totaling over $123,000, and initiated civil penalty proceedings against LGSS Pty Limited and Vangourd Investments Australia.
Additionally, ASIC also progressed the civil penalty proceeding against Mercer Superannuation (Australia) Limited, resulting in a $11.3 million penalty.
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The surveillance of ASIC’s greenwashing activities covered various sectors, including listed companies, managed funds, superannuation funds, and the wholesale green bond market.
ASIC also talked about its ongoing efforts to introduce mandatory climate-related financial disclosures for large businesses and financial institutions, a legislative move that recently cleared the Senate and is awaiting Royal Assent.
These new requirements are expected for transparency in sustainability-related reporting, with ASIC committing to a practical and proportionate approach to supervision and enforcement.
