18-03-2025
Australia's Active Super hit with $6.7 million penalty for false environmental claims
March 18 (Reuters) - Australia's Federal Court has directed superannuation fund Active Super to pay a penalty of A$10.5 million ($6.70 million) for making misleading claims about its environmental credentials, the securities regulator said on Tuesday.
Last June, the Federal Court found Active Super guilty of making misleading claims concerning its environmental, social and governance (ESG) credentials.
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In 2023, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Active Super, challenging the fund's claims that it had divested from gambling, coal mining, oil tar sands, and Russian investments.
Active Super still held direct and indirect stakes in companies such as SkyCity Entertainment Group ( opens new tab, Russian firm Gazprom ( opens new tab, Shell Plc (SHEL.L), opens new tab and Whitehaven Coal ( opens new tab, despite claims that it had rid itself of investments deemed harmful to the environment, ASIC said on Tuesday.
"LGSS benefited from its misleading conduct by misrepresenting the "ethical" nature of a significant part of its investments, which on any view enhanced its ability to attract investors to the Active Super fund," Justice O'Callaghan said referring to a trustee of Active Super.
Investment advisory firm LGSS said in an emailed response to Reuters that it was reviewing the penalty judgement and considering its options.
($1 = 1.5669 Australian dollars)
