The corporate watchdog has accused retail superannuation giant Mercer of misleading members about the sustainability of its investments in a landmark greenwashing case.
It is the first time the Australian Securities and Investments Commission has taken a company to court alleging greenwashing, after both it and the consumer watchdogASIC alleged Mercer Superannuation, which oversees $27.5 billion in assets, misled members of its Sustainable Plus fund by claiming it excluded companies that were involved in carbon intensive fossil fuels but then heavily invested in 15 stocks from the sector including AGL Energy, BHP, Glencore and Whitehaven Coal.
Mercer marketed the sustainable option as suitable for members who are “deeply invested to sustainability” and peddled these exclusions, which ASIC alleged broke laws against misleading consumers.such as this amid growing consumer concern around social and environmental issues. “If financial products make sustainable investment claims to investors and potential investors, they need to reflect the true position. If investments in certain industries like fossil fuels are said to be excluded, this promise must be upheld.”
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