The Federal Court of Australia recently fined Active Super
A$10.5 million for "greenwashing" following findings that
it made false or misleading representations about its green and
Environmental, Social and Governance (ESG)
credentials.
Australian Securities and Investments Commission v LGSS Pty
Ltd (No 3)1
Background
Active Super, formerly known as the Local Government
Superannuation Scheme, is a regulated superannuation fund and LGSS
Pty Ltd (LGSS) is its trustee.
In August 2023, the Australian Securities and Investments
Commission (ASIC) commenced proceedings against
LGSS for alleged contraventions of sections 12DB(1)(a) and 12DF(1) of the Australian Securities and
Investments Commission Act 2001 (Cth) (Act)
for making false or misleading representations, and engaging in
conduct liable to mislead the public in relation to investments
made by Active Super from 1 February 2021 to 30 June 2023.
