Australian watchdog sues Mercer in first greenwashing case

ASIC alleges Mercer made false and misleading statements about the sustainable nature of some of its superannuation investment options and engaged in conduct that could mislead the public.

Since announcing a crackdown on greenwashing last October, the Australian finance industry watchdog has issued more than A$140,000 in infringement notices in response to concerns about alleged greenwashing, including Tlou Energy, Vanguard Australia, Diversa Trustees and Black Mountain Energy.

But this is the first time ASIC has taken a company to court regarding greenwashing conduct, with ASIC deputy chair Sarah Court saying the move reflects ASIC’s  continuing efforts to ensure sustainability-related claims made by financial institutions are accurate.

ASIC alleges Mercer, which oversees A$27.5 billion, made statements on its website about seven ‘Sustainable Plus’ investment options offered by the Mercer Super Trust. They marketed the Sustainable Plus options as suitable for members who ‘are deeply committed to sustainability’ because they excluded investments in companies involved in carbon intensive fossil fuels like thermal coal. Exclusions were also stated to apply to companies involved in alcohol production and gambling.