The Australian Securities and Investments Commission (ASIC) has reiterated its commitment to addressing greenwashing in the superannuation industry since launching court action against Mercer Super.
Speaking at the Conference of Major Super Funds, ASIC commissioner, Danielle Press, said this was an important area of focus for the regulator, for “reliable disclosure practices are vital to a well-functioning market”.
“The findings of a recent ASIC survey showed that consumers take ESG credentials into account when making investment choices,” she said.
“Consumers and investors should be able to make informed decisions about financial products with trust and confidence. This includes when they are looking at sustainability focused offerings in superannuation.”
Last month, ASIC had commenced civil penalty proceedings in the Federal Court against Mercer Super for allegedly making misleading statements regarding the sustainable nature of its investment options.
It was the first time ASIC has taken an Australian entity to court regarding alleged greenwashing conduct.
Press elaborated: “We are alleging that sustainable investment options offered by Mercer Superannuation exposed investors to industries that the fund said were excluded from the offering, such as coal, alcohol production and gambling.
“The super industry should take note: if financial products make sustainable investment claims, these claims need to reflect the true position of the product.
“If investments in certain industries like fossil fuels are said to be excluded, this promise must be upheld.”
Another key priority for the regulator in 2023 was whistleblowing, which was an obligation under the Corporations Act for super trustees and a key part of a transparent, accountable, and safe work culture, she stressed.
Earlier this month, ASIC released a 23-page report detailing findings from a 2022 review of whistleblower programs developed by seven sample firms, including AustralianSuper, ANZ, and Netwealth.
According to Press, such reviews were crucial to ensure whistleblowers could raise an issue within their workplace without being victimised.
Some of the good practices identified by ASIC in corporate whistleblower programs included informing and training personnel involved in receiving or handling disclosures; embedding senior executive accountability for the program; and creating frameworks to entrench effective director oversight.
“We will continue to review entities’ whistleblower policies and arrangements for handling whistleblower disclosures,” Press stated.
“We encourage entities to consider how to scale and tailor the good practices in the report to suit their organisation.”
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
A “concerning” number of Aussies don’t know what they pay in super fees, a young super fund has said.
Add new comment