Australia’s federal court has imposed an A$11.3 million ($7.4 million) fine on Mercer Superannuation for false claims about the environmental, social, and governance (ESG) aspects of its pension fund investments, the Australian Securities and Investments Commission (ASIC) announced on Friday.
ASIC initiated legal action against Mercer in early 2023 for misleading the public regarding its environmentally friendly investment claims, marking its first case of this nature.
“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,” ASIC Deputy Chair Sarah Court said.
Mercer has accepted the court’s ruling on its five marketing statements, stating it has cooperated with ASIC and reviewed its internal marketing processes. The company also confirmed that members’ funds would not be used to cover the fine.
In February 2023, ASIC highlighted that Mercer’s “Sustainable Plus” investment options, advertised as ideal for those committed to sustainability, included investments in AGL Energy, Australia’s top carbon emitter, major alcohol producers like Carlsberg, and gambling companies, contradicting their “sustainable” claims.