Australian Regulator Emphasizes Focus On Greenwashing Claims

In a speech delivered at the Australian Finance Review's ESG summit on June 5, 2023, the Australian Securities and Investments Commission's (ASIC) Chair, Joe Longo, warned companies that greenwashing is an ongoing concern for the regulator. Longo also highlighted the ASIC's focus on the practice of not reporting or underreporting ESG credentials or initiatives due to uncertainty around emerging reporting frameworks – so-called "greenhushing."

While Australia is yet to enact legislation specific to greenwashing, the ASIC greenwashing enforcement actions to date have been conducted under existing securities laws, which contain general, broad prohibitions against misleading and deceptive statements and conduct. ASIC has published guidelines for companies on how to avoid greenwashing under existing securities law, identifying four main categories of "problematic behavior:" unfounded net zero statements and targets; misleading terms like 'carbon neutral', 'clean' or