POWERED BY MOMENTUM MEDIA
Sustainability claims in super on ASIC’s radar
The Australian Securities and Investments Commission (ASIC) has reiterated its commitment to addressing greenwashing in the superannuation industry since launching court action against Mercer Super.
Speaking at the Conference of Major Super Funds, ASIC commissioner, Danielle Press, said this was an important area of focus for the regulator, for “reliable disclosure practices are vital to a well-functioning market”.
“The findings of a recent ASIC survey showed that consumers take ESG credentials into account when making investment choices,” she said.
“Consumers and investors should be able to make informed decisions about financial products with trust and confidence. This includes when they are looking at sustainability focused offerings in superannuation.”
Last month, ASIC had commenced civil penalty proceedings in the Federal Court against Mercer Super for allegedly making misleading statements regarding the sustainable nature of its investment options.
It was the first time ASIC has taken an Australian entity to court regarding alleged greenwashing conduct.
Press elaborated: “We are alleging that sustainable investment options offered by Mercer Superannuation exposed investors to industries that the fund said were excluded from the offering, such as coal, alcohol production and gambling.
“The super industry should take note: if financial products make sustainable investment claims, these claims need to reflect the true position of the product.
“If investments in certain industries like fossil fuels are said to be excluded, this promise must be upheld.”
Another key priority for the regulator in 2023 was whistleblowing, which was an obligation under the Corporations Act for super trustees and a key part of a transparent, accountable, and safe work culture, she stressed.
Earlier this month, ASIC released a 23-page report detailing findings from a 2022 review of whistleblower programs developed by seven sample firms, including AustralianSuper, ANZ, and Netwealth.
According to Press, such reviews were crucial to ensure whistleblowers could raise an issue within their workplace without being victimised.
Some of the good practices identified by ASIC in corporate whistleblower programs included informing and training personnel involved in receiving or handling disclosures; embedding senior executive accountability for the program; and creating frameworks to entrench effective director oversight.
“We will continue to review entities’ whistleblower policies and arrangements for handling whistleblower disclosures,” Press stated.
“We encourage entities to consider how to scale and tailor the good practices in the report to suit their organisation.”
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
