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Active Super fined $10.5m in gambling greenwashing case
The Federal Court of Australia has imposed a $10.5 million penalty on Active Super for violating ethical investment claims by investing in gambling companies while misleadingly marketing itself as an ethical investment option.
Key Points
- Active Super was fined for maintaining investments in gambling entities despite stating such sectors were excluded.
- The Australian Securities and Investments Commission (ASIC) uncovered these misleading claims during their investigation.
- Active Super also held stakes in coal and oil companies, contrary to their stated environmental commitments.
- This case marks ASIC’s third successful action against ‘greenwashing’.
- Justice O’Callaghan highlighted the serious nature of the contraventions, affecting investors’ trust.
Why should I read this?
This article underscores the increasing scrutiny on ethical investment claims and the consequences of misleading marketing practices. It highlights ongoing regulatory actions against companies misrepresenting their environmental, social, and governance (ESG) commitments, which is crucial for investors seeking transparency in their investment choices.
Source: Active Super fined $10.5m in gambling greenwashing case
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