The Australian Securities and Investments Commission (ASIC) began a review of investment managers and their green claims last year,resulting in a number of funds paying fines and,for the first time,a manager being taken to court over allegations of greenwashing.
More and more investors want their retirement savings and other investments to be invested ethically,particularly in mitigating climate change.
More than $25 billion flowed into responsible investments that have been certified by the Responsible Investment Association of Australasia (RIAA) in 2022. The inflow in 2017 was $10 billion,figures fromPlan for Life – which include New Zealand – show.
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Two of the world’s largest fund managers have been called out by ASIC. Late last year,Vanguard Investments Australia paid a fine ofalmost $40,000 over claims one of its investment products excluded tobacco investments,but in reality,it did not exclude companies involved in the sale of tobacco products. Vanguard made no admission of guilt or liability.
ASIC last month upped the ante when it began its first civil penalty court proceedings against Mercer Superannuation Australia over allegations of greenwashing.
Italleges Mercer made statements on its website about some of its investment options including that they are suitable for members who “are deeply committed to sustainability”. ASIC alleges the investment options had investments in companies involved in industries the website statements said were excluded.