Active Super has been fined A$10.5 million (US$6.6 million) by the Federal Court for greenwashing after making misleading claims about its investments.
The Australian Securities and Investments Commission (ASIC) said the fund broke the law when it invested in securities it had claimed were eliminated or restricted by its environmental, social and governance (ESG) investment screens.
Active Super claimed in its marketing that it eliminated investments that posed too great a risk to the environment and the community, including gambling, coal mining and oil tar sands companies, and after the invasion of Ukraine, Russian investments.
But it held direct and indirect investments in companies such as SkyCity Entertainment Group Ltd (gambling), Gazprom PJSC (Russia), Shell Plc (oil tar sands) and Whitehaven Coal (coal).
ASIC Deputy Chair Sarah Court said this was a significant penalty that sent a strong message to companies that their sustainable investment claims needed to reflect the true position.
“This case demonstrates ASIC’s commitment to taking on misleading marketing and greenwashing claims made by companies promoting financial services,” Court said in a media release.
“It is our third greenwashing court outcome, and we will continue to keep greenwashing in our sights.”
Mercer Superannuation (Australia) Limited and Vanguard Investments Australia were fined $11.3 million and $12.9 million respectively last year after ASIC took legal action against them for misleading investors with their ESG claims.
Active Super managed approximately $14.7 billion in superannuation assets for 86,547 members at 30 June 2024, before merging with Vision Super on 1 March 2025.
