ASIC reviews greenwashing in ESG funds
The Australian Securities and Investments Commission (ASIC) is conducting a review into ‘greenwashing’ of funds in the environmental, social and governance (ESG) space.
ESG funds in Australia held over $3 billion in assets under management, according to Calastone, most of which was in active Australian equity ESG funds.
Speaking to the Australian Institute of Company Directors, ASIC chair Joe Longo, said the regulator was reviewing the promotion of funds which claimed to be offering ESG alignment.
Greenwashing was described as a form of marketing deceptively used to make funds or products seem more green they actually were.
Longo said: “ASIC is conducting a review to establish whether the practice and promotion of managed investment and superannuation funds that offer ESG or ‘green’ products are actually aligned.
“Boards should be mindful that prohibitions in the Corporations Act on misleading and deceptive conduct, and false and misleading statements, apply in relation to financial products such as securities and interests in funds.
“Accordingly, we encourage boards to look out for any greenwashing- and to ask whether their company’s disclosure around environmental risks and opportunities, or their promotion of ESG-focused products, accurately reflects their practices in this area.”
AUTHOR
Laura Dew
Recommended for you
While returns and fees are the top priority for older Australians when it comes to their superannuation, more than one in 10 are calling for access to tailored financial advice.
Determinations by the FSCP since the start of 2025 are almost double the number in the same period of 2024, with non-concessional contribution cap errors and incorrect advice among the issues.
Whether received via human or digital means, financial advice is reportedly leading to lower stress and more confidence, according to Vanguard.
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
