2024 to see ASIC continue its greenwashing crackdown

The corporate regulator has outlined its philosophy in dealing with greenwashing and the by-product of greenhushing, having already reported around 35 of such interventions since undertaking this strategic priority in the last year.

ASIC has announced its enforcement priorities for 2024, which include two new points relating to the superannuation industry.

The latest annual RIAA report has found concerns or mistrust around greenwashing by investment managers almost tripled this year, with 62 per cent citing it as a deterrent to responsible investment growth.

While some fund managers overstate their ESG credentials and others remove their sustainable outcomes entirely, it is transparent communication that will be critical to avoid greenwashing allegations, according to the firm.

ASIC is looking to make examples of firms when it comes to greenwashing and taking a forthright position when asking them for changes, according to two lawyers who have dealt with the regulator on the matter.