The Australian corporate regulator said only responsible transparent disclosure can fight greenwashing, insisting that greenwashing is eroding the confidence of investors in the ESG market.
ASIC deputy chair Karen Chester said the solution lies in implementing a mandatory climate change-related disclosure regime “based on the global baseline being developed by the International Sustainability Standards Board”.
Although the Australian Securities and Investments Commission (ASIC) has supervisory interventions, the regulator is insisting that a more concrete answer to ending greenwashing is necessary.
“While these interventions are proportionate remedies, a more enduring antidote to greenwashing lies in comparable high-quality disclosure to meet investor information needs,” Chester said.
“Global standards to this end will soon be within our reach. Sustainable finance (and by default combating greenwashing) is today a whole of ASIC regulatory priority,” she added.
ASIC’s investigation found businesses were presenting net zero statements and targets that did not have any reasonable basis or were factually incorrect. It also found that businesses were using inaccurate labelling or vague terminology, using terms like carbon neutral, clean or green without a sufficiently reasonable basis. It also found businesses were overstating the scope of a sustainability-related investments.
Future-proof your business
Regulators are clamping down on businesses with misleading environmental claims.
How can you ensure your business can survive the scrutiny and prevent greenwashing?
The Australian corporate regulator made it clear: the key is transparent data. Statistics and figures are crucial to show your progress in reaching net zero.
How can businesses present these figures?
ClearVUE.Zero is an industry-leading technology that provides undeniable data about your emissions reductions. Our sustainability experts at ClearVUE.Business work hand-in-hand with you to uncover hotspots to lower carbon, costs and consumption without deterring your operations.