ASIC (Australia Securities and Investments Commission) has filed suit against Active Super (LGSS Pty Limited), alleging “misleading conduct and misrepresentations to the market relating to claims it was an ethical and responsible superannuation fund.”
According to ASIC, Active Super claimed to invest in assets that did not pose a risk to the environment and the community when it, in fact, the company invested in tobacco, oil, coal, gambling, and more.
ASIC states that Active Super also claimed that they had added Russia to their list of excluded countries following the invasion of Ukraine.
ASIC Deputy Chair Sarah Court issued the following statement:
‘There is much competition among super funds for new members, and we know that funds seek to attract members with promises their investments will not be exposed to certain industries. When making these claims super funds must have evidence to back their claims and ensure they are not promising exclusions that they cannot guarantee.”
ASIC alleges that Active Super held 28 holdings, including tobacco firm Amcor, Coal miner Coronado Global, gambling company Skycity, and others.
ASIC alleges that Active Super made ESG or Environment, Social, and Governance, misrepresentations on its website, disclosure documents, and on Facebook, Instagram, and LinkedIn.
ASIC is seeking declarations, pecuniary penalties, adverse publicity orders and an injunction against Active Super from the Court. This is ASIC’s third greenwashing lawsuit.