Corporate pension fund Mercer Superannuation misled members by investing in coal and other fossil fuels, along with alcohol and gambling stocks, in a fund that promoted its sustainable credentials, the corporate regulator has alleged. The Australian Securities and Investments Commission has started legal proceedings against Mercer in its first court action over alleged “greenwashing”, a term that describes misleading claims made about a product’s environmental and sustainable credentials. This was despite Mercer marketing the investment option as suitable for members who are “deeply committed to sustainability” because the fund excluded investments in companies involved in carbon-intensive fossil fuels. “If financial products make sustainable investment claims to investors and potential investors, they need to reflect the true position. “Mercer has cooperated with Asic throughout its investigation, and will continue to carefully consider Asic’s concerns with respect to this matter,” the fund said.
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