Australia’s Watchdog Sues Second Pension Fund for Greenwashing

Australia’s corporate watchdog is suing a second pension fund over greenwashing, accusing Active Super of misleading customers about barring investments on ethical grounds.

The Australian Securities and Investments Commission alleges the A$13.5 billion ($8.8 billion) fund held 28 holdings which exposed members to securities it claimed to restrict. They included shares in gambling companies, tobacco, Russian entities, oil tar sands and coal mining.

“We know that funds seek to attract members with promises their investments will not be exposed to certain industries,” ASIC Deputy Chair Sarah Court said in a statement Friday. “Funds must have evidence to back their claims ...