The Federal Court has ordered Active Super to pay $10.5 million for making misleading claims about its green credentials.

The penalty follows a ruling against the super fund last June in proceedings lodged by the Australian Securities and Investments Commission.

ASIC deputy chair Sarah Court said: “This is a significant penalty that sends a strong message to companies making sustainable investment claims that those claims need to reflect the true position.

“This case demonstrates ASIC’s commitment to taking on misleading marketing and greenwashing claims made by companies promoting financial services.

“It is our third greenwashing court outcome, and we will continue to keep greenwashing in our sights.”

The court ruled that from February 1 2021 to June 30 2023, Active Super invested in securities that it had claimed were eliminated or restricted by environmental, social and governance screens. The securities were held by Active Super both directly and indirectly.

In ASIC’s first greenwashing case, the Federal Court last year ordered Mercer Superannuation to pay an $11.3 million penalty after it admitted making misleading statements about the sustainable nature and characteristics of some of its investment options. 

See the Active Super decision here.