Australia is unique globally in having two regulators actively enforcing greenwashing: the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC). With ASRS mandatory disclosures now live, the intersection of disclosure obligations and greenwashing enforcement creates a new risk landscape for Australian entities.
ASIC: Financial Sector Focus
ASIC has taken civil penalty proceedings against multiple fund managers for misleading sustainability claims. Key actions include proceedings against Mercer Superannuation ($11.3M penalty), Active Super ($10.5M), and Vanguard ($12.9M). ASIC’s INFO 271 sets out expectations for sustainability-related product disclosure.
For ASRS reporting entities, the risk is clear: if your climate disclosures (particularly net zero claims, transition plans, and Scope 3 estimates) are inconsistent with your underlying strategy, investment decisions, or operational reality, ASIC may pursue enforcement action.
ACCC: Consumer and Corporate Claims
The ACCC has made greenwashing a compliance and enforcement priority since 2022. Its Eight Principles for environmental and sustainability claims require that claims be accurate, evidence-based, and not misleading. The ACCC has pursued enforcement against entities making unsupported “carbon neutral”, “clean energy”, and “sustainable” claims.
The ASRS Intersection
ASRS disclosures create a public record of your climate position. If your marketing materials, investor presentations, or product claims diverge from your ASRS disclosures, both ASIC and ACCC have grounds to investigate. This means your disclosure team and your marketing team must be aligned.
Risk Mitigation Checklist
- Ensure all public climate claims are consistent with ASRS disclosures
- Review marketing materials against ACCC Eight Principles before publication
- Document the evidence base for all environmental claims
- Train marketing and communications teams on greenwashing risk
- Establish an internal review process for sustainability claims
- Consider the Anti-Greenwashing Compliance course for your team
How RSustain Helps
RSustain provides advisory on aligning ASRS disclosures with broader corporate communications to minimise greenwashing litigation risk. Book a free scoping call to discuss your exposure.
RSustain UK provides advisory services only. We do not provide statutory assurance or verification.