Organic Insights Magazine - Spring 2023

LOCAL, FRESH, ORGANIC, SUSTAINABLE 6 16 4 23 OUT AND ABOUT CELEBRATING MES SAGE FROM THE CHA IR DISPELLING THE MYTHS OF “GREEN WASHING” The Australian Securities and Investment Commission (ASIC) have announced a review of “greenwashing” claims by superannuation and investment companies, with the purpose of improving governance and accountability of environmental claims. Greenwashing is the practice of making and misleading claims, and that company’s should ensure their disclosure around 25

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a product, policy, or service appear to be more environmentally friendly or less environmentally damaging than it really is. The Responsible Investment Association Australasia (RIAA) surveyed consumers, revealing that 86 per cent of Australians expect their superannuation or other investments to be invested responsibly and ethically. These investors are motivated by personal values, but 62 per cent of those surveyed also believe that ethical or responsible super funds perform better in the long term. Managed investment and superannuation funds have responded by offering investment products that claim to target environmental, social, and corporate governance (ESG) considerations. (Previous Chair’s reports in Organic Insights have described ESG). ASIC have taken legal action against Mercer Super for its ‘misleading’ Sustainable Plus fund, which claimed to exclude fossil fuel companies, but continued to invest in traditional energy, coal mining and resources interests. ASIC reminded Boards that The Corporations Act contains penalties for false

environmental risks and opportunities of their products to accurately reflect ESG investment practice. In October/November 2022 the Australian Competition and Consumer Commission (ACCC) also conducted an internet sweep of environmental and sustainability marketing claims, finding that 57 per cent of 247 business viewed had made concerning claims about their environmental credentials. The highest proportion of concerning claims were in the cosmetic, clothing, footwear, and food and drink sectors. Speaking to The Financial Review, ACCC ever, making purchasing decisions on environmental grounds. Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false or misleading claims. This conduct harms not only consumers, but also those businesses Deputy Chair Catriona Lowe said, “Consumers are now, more than

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