Morningstar Hit With Greenwashing Fine From Australian Regulator

Australia’s financial markets regulator fined a local branch of Morningstar Inc. for allegedly misleading investors about the environmental, social, and governance characteristics of a fund.

The Australian Securities and Investments Commission said Friday that one of the financial services firm’s international funds was exposed to controversial weapons investments even though the fund’s ESG policy said such investments would be excluded. The regulator fined Morningstar A$29,820 ($19,866).

The Australian regulator has taken action on greenwashing claims against other businesses. In October 2022, the commission fined Brisbane-based Tlou Energy Ltd. over allegedly misleading statements, including a claim that electricity produced by Tlou ...