Australia’s corporate watchdog has investigated more than 100 companies under a drive to flush out greenwashing in the managed funds sector, and warned it plans to step up scrutiny of the issue.
(Bloomberg) — Australia’s corporate watchdog has investigated more than 100 companies under a drive to flush out greenwashing in the managed funds sector, and warned it plans to step up scrutiny of the issue.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles by Kevin Carmichael, Victoria Wells, Jake Edmiston, Gabriel Friedman and others.
- Daily content from Financial Times, the world’s leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles by Kevin Carmichael, Victoria Wells, Jake Edmiston, Gabriel Friedman and others.
- Daily content from Financial Times, the world’s leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
The Australian Securities and Investments Commission launched a first legal case this year against pension fund Mercer Superannuation Australia Ltd., and issued 11 infringement notices and agreed on 23 corrective actions in the nine months through March, according to a report Wednesday.
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
ASIC reviewed disclosure statements from 122 funds and examined investment processes, advertising, websites and misconduct complaints for evidence of the misleading use of terms including ‘carbon neutral’, ‘clean’ or ‘green’, the report said.
“Interventions are aimed squarely at promoting fair and transparent markets so that retail investors and financial consumers are well informed and not misled on the ‘green credentials’ of investments and listed companies,” ASIC’s Deputy Chair Karen Chester said in a statement. “We have ongoing surveillances and several investigations underway and anticipate further regulatory action.”
Advertisement 3
Regulators globally are sharpening their focus on companies making claims about investments sold with environmental, social and governance credentials, particularly with investors relying on the pledges to meet net zero targets. The UK has warned funds must improve reporting of ESG-related data, while officials at the European Securities & Markets Authority are also focused on a “very widespread” risk of so-called greenwashing by money managers, Executive Director Natasha Cazenave said Tuesday.
In the US, the Securities and Exchange Commission has also proposed stricter rules. Goldman Sachs Group Inc. last year agreed to pay $4 million to settle regulators’ claims that its asset-management unit didn’t properly weigh ESG factors in some investment products.
ASIC’s actions since July include infringement notices against Vanguard Investments Australia Ltd. in relation to alleged misleading statements about funds excluding companies tied to tobacco sales, and another issued to Tlou Energy Ltd. over claims that it would produce carbon neutral electricity.
