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· Posted on
February 21, 2024

ASIC barks at Mercer Superannuation for allegedly misleading investors on sustainable products

ASIC has taken Mercer Super to court for a bad case of 'greenwashing'.

What's the key learning?

  • Mercer Super claimed that its sustainable fund excluded investments in companies involved in carbon intensive fossil fuels, but it actually invested in 15 stocks from this sector - think: AGL Energy, BHP, and Glencore.
  • With increased demand for sustainability-related financial products comes increased risk of misleading marketing.
  • Four in five Australians expect their money in super, banks and other investments to be invested responsibly.

👉 Background: ASIC is the Australian Securities and Investment Commission. Its goal is to promote a fair and transparent financial system for all- so ASIC tries to stick up for consumers when things are a little bit hairy.

👉 What happened: Now, ASIC has taken Mercer Super to court because it alleges that Mercer Super was involved in a bad case of ‘greenwashing’.

👉 What else: Supposedly Mercer Super claimed that its sustainable fund excluded investments in companies involved in carbon intensive fossil fuels. Buuuuuut it had actually invested in 15 stocks from this sector - think: AGL Energy, BHP and Glencore.

What's the key learning?

💡With increased demand for sustainability-related financial products comes increased risk of misleading marketing.

💡Four in five Australians expect their money in super, banks and other investments to be invested responsibly, according to the Responsible Investment Association Australasia.

💡But when your super fund tells you its investing sustainably, you kinda expect that it is true to its word. And if it’s not, the watchdog is gonna come barking.

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