The Australian Securities & Investments Commission (ASIC) reported that the Federal Court imposed a AUD 10.5 million penalty on Active Super for greenwashing misconduct, after finding the fund contravened the law by investing in securities it had claimed were eliminated or restricted by its environmental, social and governance (ESG) investment screens. Active Super marketed that it eliminated investments posing excessive environmental and community risk, including gambling, coal mining and oil tar sands, and represented after Russia’s invasion of Ukraine that Russian investments were “out”. Contrary to those claims, it held direct and indirect investments including SkyCity Entertainment Group Ltd, Gazprom PJSC, Shell Plc and Whitehaven Coal. The Court characterised the contraventions as serious, noting they continued for around two and a half years, concerned substantial investments, and reflected a failure by senior management to maintain systems and processes to ensure representations were not false or misleading. The misleading representations were made across multiple channels, including the fund’s website, an email to 45,621 members (also published on the website), its 2021/22 Impact Report, 2021 and 2022 product disclosure statement fact sheets, its 2021/22 Responsible Investment Report, several versions of its Sustainable and Responsible Investment Policy, and a CEO interview in Investment Magazine. ASIC noted this was its third greenwashing court outcome and pointed to Information Sheet 271 on avoiding greenwashing when offering or promoting sustainability-related products.
Australian Securities & Investments Commission 2025-03-18
Australian Securities & Investments Commission secures AUD 10.5 million Federal Court penalty against Active Super for greenwashing
The Australian Securities & Investments Commission (ASIC) announced that the Federal Court fined Active Super AUD 10.5 million for greenwashing, after falsely claiming adherence to ESG investment screens. Despite marketing exclusions, Active Super held stakes in companies like Gazprom and Shell. The Court cited serious violations due to poor management oversight and misleading representations. This is ASIC's third greenwashing court outcome, underscoring the importance of accurate sustainability claims.