The Australian Securities & Investments Commission (ASIC) announced that it made four regulatory interventions to address greenwashing misconduct during the 15-month period ending 30 June 2024.
The regulatory actions involve launching two Federal Court cases and collecting over $123,000 in infringement notices.
The regulatory actions detailed in Report 791, ASIC’s Interventions on Greenwashing Misconduct: 2023–2024 (REP 791), are designed to eliminate misleading and deceptive practices regarding sustainable finance products and services.
In addition, the report includes the findings, recommendations, and good practice examples from its surveillance activities from 1 April 2023 to 30 June 2024.
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ASIC Commissioner Kate O’Rourke, said, “Investors and consumers are entitled to accurate and reliable information so they can make informed and confident investment decisions.”
She added, “Greenwashing claims mislead investors and consumers, and undermines confidence. Where we’ve identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.”
Between April 1, 2023, and June 30, 2024, ASIC undertook a series of regulatory actions to address greenwashing.
These included securing 37 corrective disclosures from various entities, issuing eight infringement notices totaling over $123,000, and initiating civil penalty proceedings against LGSS Pty Limited (Active Super) and Vanguard Investments Australia.
ASIC also advanced a civil penalty case against Mercer Superannuation (Australia) Limited, resulting in an $11.3 million penalty.
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ASIC’s interventions focused on inadequate disclosure of ESG investment criteria, discrepancies between actual investments and stated ESG policies, and unsupported sustainability claims.
The surveillance spanned across sectors including listed companies, managed funds, superannuation funds, and the green bond market.
ASIC’s surveillance revealed a need for better disclosure quality and transparency, urging product issuers and advisers to ensure that sustainability-related information is accurate and comprehensible to investors.
Ms. O’Rourke emphasized the importance of accurate and reasonable sustainability disclosures.
ASIC encourages entities to review the findings in Report 791, Information Sheet 271, and Report 763 to mitigate greenwashing risks.
With the Senate’s approval of mandatory climate-related financial disclosure for large businesses and financial institutions, ASIC will provide guidance and oversee compliance under the new regime once the Bill receives Royal Assent.
During this transition, ASIC will maintain current disclosure standards and enforce legal obligations against misleading practices.