The Australian Securities and Investments Commission (ASIC) has undertaken 47 regulatory actions to combat greenwashing misconduct over the 15 months ending June 30, 2024. These actions include initiating two Federal Court cases and issuing more than $123,000 in infringement notices.
Detailed in Report 791, “ASIC’s Interventions on Greenwashing Misconduct: 2023–2024,” the regulatory measures target misleading and deceptive practices in sustainable finance products and services. The report also shares findings, recommendations, and examples of good practices from ASIC’s surveillance activities between April 1, 2023, and June 30, 2024.
ASIC Commissioner Kate O’Rourke highlighted the importance of addressing greenwashing to preserve trust in sustainable finance. “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 undermine confidence. Where we’ve identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.”
During the 15-month period, ASIC’s interventions included securing 37 corrective disclosures from various entities, issuing eight infringement notices totaling more than $123,000, and launching 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.
The regulatory actions addressed issues such as inadequate disclosure of ESG investment screens and methodologies, investments inconsistent with disclosed ESG policies, and sustainability claims lacking reasonable grounds or sufficient detail. ASIC’s surveillance spanned multiple sectors, including listed companies, managed funds, superannuation funds, and the wholesale green bond market.
“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. Sustainability-related information, like any other, should be accurate, based on reasonable grounds and be easily understood by investors,” O’Rourke said.
Looking ahead, ASIC is preparing for significant changes with the expected introduction of mandatory climate-related financial disclosure requirements for large businesses and financial institutions. The related Bill has passed the Senate, and once it receives Royal Assent, further information will be provided by ASIC.
