ASIC makes 35 interventions against greenwashing

The Australian Securities and Investments Commission (ASIC) has released an update on its recent greenwashing actions which includes a report detailing the 35 interventions in response to its greenwashing surveillance activities between July, 2022 and March, 2023.

The regulator said all interventions followed the release of its information sheet on “How to avoid greenwashing” in June last year.

At the same time, the report found an increasing levels of representations on environmental, social and governance (ESG) credentials by listed companies, managed funds and superannuation funds.

ASIC deputy chair, Karen Chester, explained interventions ranged from securing timely corrections, issuing public infringement notices through to commencing civil penalty proceedings.

From 1 July 2022 to 31 March 2023, ASIC intervention resulted in:

• 23 corrective disclosure outcomes
• 11 infringement notices issued, and
• in one case, the commencement of civil penalty proceedings

“All 35 of our interventions are aimed squarely at promoting fair and transparent markets so that retail investors and financial consumers are well informed and not misled on the ‘green credentials’ of investments and listed companies,” Chester said.

“We have ongoing surveillances and several investigations underway and anticipate further regulatory action.”

The nature of matters where the regulator had intervened included

• net zero statements and targets
• use of terms such as ‘carbon neutral’, ‘clean’ or ‘green’
• fund labels, and
• scope and application of investment exclusions and screens.

ASIC released in August, 2022, its corporate Plan 2022-26: Focus 2022-23, which outlined its strategic priorities for the years 2022-26 and a plan of action for the year 2022-2023.

One of these strategic priorities was to “support market integrity through proactive supervision and enforcement of governance, transparency and disclosure standards in relation to sustainable finance”.

It also identified greenwashing as an enforcement priority for 2023.