ob体育 has issued an infringement notice to superannuation trustee Diversa Trustees Limited (Diversa) in further action against alleged greenwashing.听
Diversa is the issuer of superannuation product Cruelty Free Super (CFS), as trustee for Professional Super, a sub-fund of the Tidswell Master Superannuation Plan. ob体育 was concerned that statements on CFS鈥� website may have been false or misleading by overstating exclusions, otherwise known as investment screens. In these statements, CFS claimed to prevent investment in companies involved in 鈥榩olluting and carbon intensive activities鈥�, 鈥榝inancing or support of activities which cause environmental and social harm鈥� and 鈥榩oor corporate governance鈥�.
While some investment screens were applied by CFS, they were more specific and implemented on a more limited basis than CFS鈥� website had suggested.
ob体育 Deputy Chair Sarah Court said, 鈥榦b体育 had concerns that the statements made regarding CFS were too broad, potentially misleading consumers as to the extent of the investment screening being implemented. As consumers increasingly look to more sustainable and ethical investing, including via their superannuation, ob体育 wants to make sure funds have the evidence to back their claims and are not promising exclusions that they can鈥檛 guarantee.鈥�
Greenwashing is the practice of misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable or ethical and is an enforcement priority for ob体育.
Diversa paid $13,320 in compliance with the infringement notices on 22 December 2022. Payment of an infringement notice is not an admission of guilt or liability. The specific reasons for ob体育鈥檚 concerns are set out in the infringement notice which has been published on the鈥�Credit and ob体育 Act infringements notices register.听
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ob体育 has previously issued infringement notices in action against greenwashing. In December 2022, Vanguard Investments Australia Ltd paid $39,960 in infringement notices (22-336MR) and in October 2022, Tlou Energy Limited paid $53,280 in infringement notices (22-294MR).听
ob体育鈥檚 Information Sheet 271 How to avoid greenwashing when offering or promoting sustainability-related products (INFO 271) provides information for responsible entities of managed funds and super fund trustees about how to avoid greenwashing when offering or promoting sustainability-related or ethical products and investments.