Australian firms correct claims after regulator's 'greenwashing' crackdown

Black Mountain Energy

10/05/2023 07:45

May 10 (Reuters) - Several Australian firms have
corrected their exaggerated claims regarding environmentally
friendly investments and products, called 'greenwashing', after
the Australian Securities and Investments Commission (ASIC)
intervened, the regulator said on Wednesday.
    The ASIC said it secured 23 corrective disclosure outcomes
and issued 11 infringement notices between July 2022 and March
2023 as part of its investigation into public companies, managed
funds and superannuation funds' claims about their
environmental, social and governance (ESG) credentials.
    The regulator said it also commenced a civil penalty
proceeding against Mercer Superannuation in February and issued
infringement notices to Black Mountain Energy Ltd  BME.AX  and
Tlou Energy Ltd  TOU.AX .
    The ASIC's report on its efforts included examples of its
interventions in relation to the use of terms such as 'carbon
neutral', 'clean' or 'green', net zero targets, fund labels and
the scope and application of investment screens.
    "We identified instances where financial products or managed
funds were not 'true to label' – that is, the names of the
products or funds included sustainability-related terms that
were inconsistent with the funds' investments or the investment
process described," the ASIC said.
    "In disclosing how and why we intervened, alongside the
corrective outcomes of our actions, we hope to further inform
the market on how to avoid greenwashing," ASIC Deputy Chair
Karen Chester said.
    ASIC said the Australian government recently announced an
additional A$4.3 million ($2.92 million) in funding for 2023-24
to continue its greenwashing surveillance and enforcement work.
 
 ($1 = 1.4743 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru; Editing by Savio
D'Souza)
 ((Upasana.Singh@thomsonreuters.com;))