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Vanguard Investments Australia

Climate warning

Vanguard Australia was found guilty in greenwashing suit

A federal court in Australia released that Vanguard Investments Australia was guilty of making misleading claims about one of its ESG funds, including failing to exclude investments in companies with fossil fuel activities from the fund as claimed in its communication materials and disclosures.

The suit against Vanguard was launched last year by Australia’s corporate, markets, and financial services regulator, the Australian Securities & Investments Commission (ASIC).
“‘As ASIC’s first greenwashing court outcome, the case shows our commitment to taking on misleading marketing and greenwashing claims made by companies in the financial services industry,” Court added.

In the suit, ASIC alleged that ESG research was not conducted over a significant proportion of the bond issuers in the fund, exposing investors to investments with ties to fossil fuels, including issuers such as Chevron Phillips Chemical and Abu Dhabi Crude Oil Pipeline, among others.

The investment manager also admitted in a hearing in court that it had made false and misleading claims about the fund.
The case will now advance to a hearing in August to consider penalties for the investment manager.

As Climate urgency becomes apparent, more and more greenwashing cases are hiding behind the screen. Unveiling those masks is imperative for preventing climate catastrophe.





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  • George Kariuki

    5 w

    This is a HUGE win against greenwashing! ASIC setting an example by taking on greenwashing in finance.

    1
    • Sarah Chabane

      5 w

      Well done! This will be a defining ruling for greenwashing

      2
      • mary Mwihaki

        5 w

        Greenwashing should be stopped by all means.

        • Munene Mugambi

          5 w

          Greenwashing not only deceives investors but also undermines efforts to combat climate change. Companies must be held accountable for misleading claims, as they jeopardize trust in sustainable investments and hinder progress towards a greener future for all. Very disappointing this

          1
          • Princess

            5 w

            Investors and consumers alike should be wary of companies that prioritize profit over transparency and environmental responsibility.

            4
            • Munene Mugambi

              5 w

              @princess_nel_268 Without thorough research and documentation, uncovering greenwashing practices can be challenging, leaving investors and consumers vulnerable to misleading claims and unsustainable investments. Vigilance and regulatory oversight are crucial to ensure accountability and transparency.

              1
            • walter lungayi

              5 w

              This highlights the importance of transparent and accurate environmental marketing. This outcome serves as a reminder of the need for responsible and authentic sustainability claims in the financial sector, reinforcing the significance of genuine commitment to environmental impact.

              4
              • Munene Mugambi

                5 w

                @walter_lungayi I'm inclined to agree. Transparent and accurate environmental marketing is essential for maintaining trust and integrity in the financial sector. This case brings to light the necessity for genuine sustainability efforts and reinforces the importance of accountability in combating greenwashing.

                1
              • Rashid Kamau

                6 w

                Greenwashing should be discouraged by all means,all those found guilty should be held accountable.

                3
                • Markus Lutteman

                  6 w

                  Important court ruling!

                  3
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