(4 April 2023 – Australia) Australian regulators including the Australian Securities and Investments Commission (ASIC) and Australasian Centre for Corporate Responsibility (ACCR) are placing “greenwashing” firmly in their crosshairs.
Many enterprises have very publicly promoted their commitment to climate action in response to popular demand however regulators are increasingly targeting greenwashing which relates to publishing false or unfounded sustainability or climate action claims. Regulators are highlighting major fines and legal ramifications for promoting false sustainability information. Corporates that are “walking back” their emissions-reduction goals due to disclosure concerns are defined as “green hushing” according to the SMH’s Anna Patty.
The ACCR brought legal proceedings against Santos relating to its clean energy and Net Zero claims, ASIC launched its first civil greenwashing legal action against Mercer Superannuation and the Australian Competition and Consumer Commission (ACCC) is also investigating several firms on the back of a general greenwashing search which discovered over one in two reviewed enterprises promoted questionable environmental or sustainability claims.
“We are seeing a correction in the market after a prolonged period of greenwashing without consequence” commented ACCR Climate Lead, Harriet Kater.
“The fact that corporations are deploying greater vigilance around their disclosures and claims is positive and should not be interpreted as a backwards step. However, there are instances where companies have used greenwashing risk as a reason to not increase their ambition, which we view as a mere excuse.”