The Australian Securities & Investments Commission (ASIC) Australia’s corporate, markets, and financial services regulator, announced today the launch of its first court action against greenwashing, initiating proceedings against Marsh McLennan company Mercer Superannuation for allegedly making false claims about some of its sustainable investment options.
According to a statement released by ASIC announcing the commencement of the civil penalty proceedings in the Federal Court, the regulator is alleging that Mercer made claims on its website about seven ‘Sustainable Plus’ investment options, including investment exclusions applied to involved in carbon intensive fossil fuels like thermal coal, as well as companies involved in alcohol production and gambling. The regulator notes, however, that investors who chose these options had investments in several fossil fuel companies, including those producing coal such as BHP Group and Glencore, as well as in 15 companies involved in alcohol production and 19 companies involved in gambling.
ASIC said that it alleges that by doing so, “Mercer made false and misleading statements and engaged in conduct that could mislead the public.”
Sarah Court, ASIC Deputy Chair, said:
“There is increased demand for sustainability-related financial products, and with that comes the growing risk of misleading marketing and greenwashing. If financial products make sustainable investment claims to investors and potential investors, they need to reflect the true position.”
