The Australian Securities and Investments Fee has revealed a report disclosing how and why it has taken motion towards greenwashing, detailing all 35 interventions it has made in response to its greenwashing surveillance actions from July 1, 2022, to March 31, 2023.
Greenwashing, one in all ASIC’s enforcement priorities for 2023, has been outlined by the company watchdog because the “observe of misrepresenting the extent to which a monetary product or funding technique is environmentally pleasant, sustainable, or moral.”
The most recent ASIC report additionally recognized the growing ranges of representations on environmental, social, and governance credentials by listed firms, managed funds, and superannuation funds.
All 35 ASIC interventions adopted the discharge of the regulator’s “Tips on how to keep away from greenwashing” data sheet in June final yr.
“The place we’ve seen probably deceptive disclosures, we’ve taken regulatory motion,” stated Karen Chester (pictured above), ASIC deputy chair. “Our interventions vary from securing well timed corrections, issuing public infringement notices by means of to commencing civil penalty proceedings.
“All 35 of our interventions are aimed squarely at selling honest and clear markets in order that retail traders and monetary customers are nicely knowledgeable and never misled on the ‘inexperienced credentials’ of investments and listed firms. We have now ongoing surveillances and a number of other investigations underway and anticipate additional regulatory motion.”
From July 1, 2022, to March 31, 2023, ASIC intervention resulted in 23 corrective disclosure outcomes, 11 infringement notices issued, and the graduation of civil penalty proceedings in a single case.
“In disclosing how and why we intervened, alongside the corrective outcomes of our actions, we hope to additional inform the market on the way to keep away from greenwashing,” Chester stated.
The report additionally detailed the character of the issues through which ASIC has intervened, on the subject of:
- internet zero statements and targets
- use of phrases similar to “carbon impartial,” “clear,” or “inexperienced”
- fund labels
- scope and utility of funding exclusions and screens
ASIC inspired issuers and advisers to think about the report, alongside Info Sheet 271, when getting ready sustainability-related disclosures to make sure they’ve cheap grounds and adjust to the legislation.
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