Australian court sanctions Vanguard greenwashing

Australian court sanctions Vanguard greenwashing | Investment Executive

In March, a court ruled that Vanguard made false or misleading statements about an ethical investment fund, including significant limitations in its index screens, inadequate application of these screens, and inclusion of issuers violating ESG criteria. The court deemed Vanguard s misconduct serious, as it capitalized on market demand for ethical investment funds and enhanced its reputation. ASIC sought a A$21.6 million penalty, but the court applied a 25% discount due to Vanguard s cooperation, resulting in a penalty of A$16.2 million. Vanguard accepted the ruling, stating the penalty would not be borne by its investors and that it has since improved its procedures and training to prevent future misconduct. The court s decision, the highest for greenwashing conduct, emphasizes the importance of accurate information in sustainable investment and serves as a deterrent to others in the market. ASIC s deputy chair highlighted the threat greenwashing poses to the integrity of the Australian financial system and stressed the need for companies to accurately represent their products environmental and ethical credentials.

Source: investmentexecutive.com
Published on 2024-09-25

Artificial Intelligence ( AI ) Takes a Lot of Energy »

Greenwashing

Related news