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Super trustee targeted by ASIC for alleged greenwashing
Superannuation trustee Diversa Trustees has received an infringement notice from the Australian Securities and Investments Commission (ASIC) regarding alleged greenwashing.
Diversa was the issuer of superannuation product Cruelty Free Super (CFS), as trustee for Professional Super, a sub-fund of the Tidswell Master Superannuation Plan.
ASIC was concerned regarding investment screens on the CFS website which may have been false as they claimed to prevent investment in companies involved ‘polluting and carbon intensive activities’, ‘financing or support of activities which cause environmental and social harm’ and ‘poor corporate governance’.
While some of these were implemented, they were done so on a more limited basis than the CFS website suggested, ASIC said.
ASIC deputy chair, Sarah Court, 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."
ASIC stated Diversa paid $13,320 in compliance with the infringement notices on 22 December, 2022 and that payment of an infringement notice was not an admission of guilt or liability.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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