Australian pension fund fined A$11.3 million for greenwashing case filed by ASIC 

ASIC Deputy Chair Sarah Court said, “This was ASIC’s first greenwashing case brought before the Federal Court; a landmark case both for ASIC and for the financial services industry. It demonstrates the importance of making accurate ESG claims to investors and potential investors.” 

The Court determined that Mercer made misleading claims on its website regarding seven ‘Sustainable Plus’ investment options provided by the Mercer Super Trust, for which Mercer is the trustee.  

These claims promoted the Sustainable Plus options as ideal for members who are “deeply committed to sustainability” by excluding investments in companies engaged in carbon-intensive fossil fuels such as thermal coal. The exclusions were also said to cover companies involved in alcohol production and gambling. 

In delivering his decision, Justice Horan stated, “The contraventions admitted by Mercer are serious. They arose from failures by Mercer to implement adequate systems to ensure that ESG claims in relation to its superannuation products were accurate and to monitor and enforce the application of any sustainability exclusions associated with such ESG claims.” 

Read more: Big banks face scrutiny for ‘greenwashing’ their role in Amazon Rainforest destruction  

In an emailed statement to Bloomberg, a spokesperson for Mercer said, “We accept the Court’s decision handed down today regarding five marketing statements that were overly broad.” 

The spokesperson also added that Mercer has comprehensively reviewed their internal marketing processes and procedures.