Australian investors who want their money managed ethically need to be alert for misleading and overzealous environmental and social claims.

Earlier this month saw the most significant greenwashing action taken to date by regulators in Australia. Australian Securities and Investments Commission (ASIC) launched court action against Mercer Superannuation for greenwashing conduct regarding several of their superannuation investment options.

In a recent speech ASIC Chair Joseph Longo presented ASIC’s new corporate plan and noted that:

“Rather than attempting to be ‘everywhere’, we must prioritise the areas of greatest harm and take action to protect vulnerable people. Being a regulator is all about choices, so we must be targeted in the way we deploy resources.”

I thought you'd like to know that ASIC is now turning its attention to whether the ethical investments offered by funds are as 'green' or ESG-focused as the funds are claiming.