ASIC accuses Australian superannuation trustee of greenwashing

The Australian Securities and Investment Commission (ASIC) has issued a greenwashing-related infringement notice against Diversa Trustees Ltd. Diversa is the issuer of Cruelty Free Super (CFS), a superannuation product that claims to avoid investments in companies that harm the planet, people or animals. To achieve this target, the fund says it applies “ethical investment screens” to filter the investment universe. ASIC has argued that claims regarding these screens were “false or misleading”. Sarah Court, ASIC’s deputy chair, said: “ASIC 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, ASIC wants to make sure funds have the evidence to back their claims and are not promising exclusions that they can’t guarantee.” Although not an admission of liability or guilt, Diversa paid $13,320 in compliance with the ASIC notice. ASIC has issued similar notices against Vanguard Investments Australia, Tlou Energy Ltd and Black Mountain Energy Ltd.