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