Australia’s Federal Court has ordered superannuation fund Active Super to pay an Australian USD 10.5 million ($6.70 million) penalty for misleading claims about its environmental credentials, the securities regulator announced on Tuesday.
In June last year, the court ruled that Active Super had made deceptive statements regarding its environmental, social, and governance (ESG) commitments.
The Australian Securities and Investments Commission (ASIC) sued Active Super in 2023, disputing the fund’s claims of divesting from gambling, coal mining, oil tar sands, and Russian investments.
Despite asserting it had eliminated harmful investments, Active Super continued to hold direct and indirect stakes in companies like SkyCity Entertainment Group (SKC.NZ), Russian energy giant Gazprom (GZAVI.MM), Shell Plc (SHEL.L), and Whitehaven Coal (WHC.AX), ASIC stated on Tuesday.
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Justice O’Callaghan noted that LGSS, a trustee of Active Super, gained an advantage by misrepresenting the ethical nature of its investments, which likely boosted its appeal to investors.
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