Corporate watchdog ASIC (Australian Securities and Investments Commission) has issued a $13,320 infringement notice to superannuation fund promoter Future Super for alleged greenwashing.
ASIC was concerned the company's Facebook post had false or misleading claims by overstating the positive environmental impact of the Fund.
The post said: "Naysayers don’t join together and move nearly $400 million out of fossil fuels."
At the time of the Facebook post, Future Super had about $400 million in total funds under management and had no basis to say that all of it was invested in fossil fuels.
The Facebook post was published on May 29, 2019, and stayed on the Fund’s Facebook page until October 2022.
ASIC deputy chair Sarah Court said the overstated positive environmental impact may mislead investors.
"This [infringement] action should send a message to the financial services industry that ASIC is continuing to focus on greenwashing broadly, in statements to the market, disclosure documents, marketing material and on social media," Court said.
"[The financial] industry using social media to promote green claims are not immune from ASIC action. We expect the industry to be able to stand by their sustainability statements and back these up with evidence."
Future Super paid the $13,320 infringement notice on April 27,2023. However, ASIC said that payment of an infringement notice is not an admission of guilt or liability.
ASIC has now issued over $150,000 in infringement notices regarding greenwashing since October 2022 as well as started civil proceedings in the Federal Court against Mercer Super for alleged greenwashing (23-043MR).
Competition watchdog ACCC is also cracking down on greenwashing claims on the internet, which found 57% of 247 businesses making 'concerning claims'.
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