A federal court in Australia released a ruling, finding that Vanguard Investments Australia was guilty of making misleading claims about one of its ESG funds, including failing to exclude investments in companies with fossil fuel activities from the fund as claimed in its communication materials and disclosures.
The suit against Vanguard was launched last year by Australia’s corporate, markets, and financial services regulator, the Australian Securities & Investments Commission (ASIC), forming part of a series of greenwashing-focused actions by the regulator, including a case against Marsh McLennan company. The cases follow a warning by (ASIC) Chair to providers of investment funds and financial products that the regulator was watching out for misleading sustainability claims, and that it was providing guidance for fund managers and issuers to keep clear of greenwashing.
