The Australian Securities and Investments Commission (ASIC) has made 47 regulatory interventions to address greenwashing misconduct during the 15-month period up to 30 June 2024, according to a new report.

Report 791, titled 'ASIC’s interventions on greenwashing misconduct: 2023–2024' details findings, recommendations and good practice examples from ASIC's surveillance activities from 1 April 2023 to 30 June 2024, including the commencement of two Federal Court proceedings and over $123,000 in infringement notice payments. The actions are aimed at stamping out misleading and deceptive conduct in relation to sustainable finance-related products and services.

ASIC also progressed the civil penalty proceeding against Mercer Superannuation (Australia) Limited, which concluded with an $11.3 million penalty. ASIC's regulatory interventions related to insufficient disclosure on the scope of ESG investment screens and investment methodologies, underlying investments that are inconsistent with disclosed ESG investment screens and investment policies, and sustainability-related claims made without reasonable grounds or without sufficient detail.

ASIC's greenwashing surveillance activities covered a broad range of sectors, including listed companies, managed funds, superannuation funds and the wholesale green bond market. ASIC urges entities to consider the findings and recommendations in this report as well as Information Sheet 271 and Report 763 to reduce the risk of greenwashing.

ASIC acknowledges the significant changes ahead with the proposed introduction of mandatory climate-related financial disclosure requirements for large businesses and financial institutions. The Bill proposing this legislation has now passed the Senate. Once it receives Royal Assent, information will be made available on the ASIC website. ASIC will take a pragmatic and proportionate approach to the supervision and enforcement of this new regime.

'Investors and consumers are entitled to accurate and reliable information so they can make informed and confident investment decisions. Greenwashing claims mislead investors and consumers, and undermines confidence," said ASIC Commissioner Kate O'Rourke. "Where we've identified greenwashing misconduct, ASIC has intervened to protect investors and consumers, and to maintain market integrity.'

"Our surveillance indicates there is ample room for improvement and we strongly encourage product issuers and their advisers to focus on the quality of disclosures and the data underpinning them." O'Rourke added. "Sustainability-related information, like any other, should be accurate, based on reasonable grounds and be easily understood by investors."