Greenwashing penalties are skyrocketing as regulators get serious. We break down the enforcement wave and what companies and directors need to know to stay compliant.
Since November 2022, the Australian Securities Investments Commission (ASIC) has included in its enforcement priorities, a focus on greenwashing and misleading conduct involving environmental and sustainability claims. ASIC considers greenwashing to be ‘the practice of misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable or ethical.’[1] Whilst there is no offence specifically for greenwashing, ASIC derives its powers from a number of provisions in the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act) which prohibits false or misleading statements relating to financial products.
Authors:
McKenzie Moore, Partner
Email: MMoore@piperalderman.com.au
Oendri Neogi, Special Counsel
Email: oneogi@piperalderman.com.au
Kirsty McGinlay, Associate
Email: kimcginlay@piperalderman.com.au
Zachary Haynes, Law Clerk
Email: zhaynes@piperalderman.com.au