ASIC hits HESTA with $37,560 penalty

Mike Taylor

Managing Editor and Publisher

6 November 2025

The Australian Securities and Investments Commission (ASIC) has imposed a $37,560 penalty on industry superannuation fund HESTA over misleading statements about carbon emissions.

Another industry fund, Prime Super also received an infringement notice and paid a $18,780 penalty.

ASIC alleged HESTA made the misleading statements in paid advertisements about its commitment to removing carbon emissions investments in that between 15 April 2021 to 18 December 2024, HESTA placed paid advertisements on the Google and Bing search platforms which stated, ‘HESTA is committed to remove all investment in carbon emissions by 2050….’

The advertisement was linked to the ‘Why Join’ page on the HESTA website.

ASIC said it was concerned that the advertisements represented that HESTA planned to remove all investment in carbon emissions by 2050 when that was not HESTA’s plan. Instead, HESTA’s target was to achieve net zero carbon emissions across its investment portfolio by 2050 which is different to removing all investments in carbon as net zero can be achieved through offsetting.

ASIC’s Deputy Chair Sarah Court said that in making the representations, HESTA overstated its commitment to reducing investment in carbon emissions.’

“Consumers relying on HESTA’s representation may have been denied the opportunity to make informed decisions about their preferred superannuation provider when HESTA gave a false impression that its commitment to reducing carbon emissions was more ambitious than it actually was.”

HESTA reported the incident to ASIC.

Prime Super paid $18,780 to comply with an infringement notice issued by ASIC in which ASIC alleged that Prime Super as the Trustee of the Prime Super Superannuation Fund (Fund) made misleading statements about the Fund’s investments.

Between 16 October 2023 and 11 June 2025, Prime Super publicly stated in its 2023 annual report that manufacturers of tobacco products were ‘excluded entirely’ from the Fund.

However, during the same period, the Fund indirectly invested in companies involved with tobacco manufacturing, including:

• Altria Group Inc
• British American Tobacco PLC
• Imperial Brands Finance PLC
• JT International Financial Services BV
• Philip Morris International Inc
• Reynolds American Inc.