The Australian corporate regulator has launched its first greenwashing case against super fund manager Mercer, which employs 500 workers in Wollongong.
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ASIC alleges that Mercer made misleading statements about the sustainable nature and characteristics of some of its superannuation investment options.
The allegations target the 'Sustainable Plus' product, which was targeted at members who are "deeply committed to sustainability".
ASIC alleges that the fund would use members' savings to invest in coal miners, including Glencore, Whitehaven and BHP, alcohol producers such as Budweiser, Carlsberg and Treasury Wine and gambling firms such as pokie machine manufacturer Aristocrat Leisure and Crown Resorts - which has been involved in rolling corruption scandals.
ASIC alleges that this amounted to Mercer making false and misleading statements and engaging in misleading conduct.
In a statement, Mercer said it was cooperating with ASIC throughout the investigation.
"Mercer will continue to carefully consider ASIC's concerns with respect to this matter," the spokeswoman told AAP in a statement.
"It would be inappropriate to comment further as the matter is now before the courts."
Mercer recently unveiled its new offices in the Wollongong CBD, as the first major tenant at the Lang's Corner office tower.
The company moved its 500 strong-Illawarra workforce into the building last year, having previously been located at Coniston.
The Illawarra workforce was previously employed by government-owned superannuation services firm Pillar, before the business was privatised in 2016.
Mercer has its head Australian office in Melbourne.
Mercer, owned by US professional services giant Marsh McLennan, will face ASIC in the Federal Court, with a first date for case management yet to be set.
ASIC deputy chair Sarah Court said businesses were on notice for making green claims that were not delivered.
"There is increased demand for sustainability-related financial products, and with that comes the growing risk of misleading marketing and greenwashing," Ms Court said. "If financial products make sustainable investment claims to investors and potential investors, they need to reflect the true position. If investments in certain industries like fossil fuels are said to be excluded, this promise must be upheld."
- with AAP
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