ESG Policy Update-Australia

Australian Update

Warnings Issued About Active Investment Greenwashing

As reported by the Australian Financial Review, Australian Securities and Investments Commission (ASIC) has warned that superannuation funds who justify investments into fossil fuel companies by claiming to use their power as shareholders to advocate for lower emissions may be greenwashing. In the past year, analysis conducted by Market Forces Australia demonstrated that AustralianSuper increased its holding in Woodside but allegedly failed to use its additional influence to push for climate change action.

A number of superannuation funds are active investors and seek to influence companies through direct engagement, voting activities and involvement in class actions. Often active shareholder engagement can be more effective at encouraging companies to "go green" rather than divestment. Nevertheless, some members are calling superannuation funds out on their stewardship activities, claiming