Corporate watchdog fines major super fund for greenwashing

Superannuation giant HESTA has been fined for alleged misleading advertisements about its carbon emissions investments.

The super fund has paid $37,560 for two infringements issued by the financial regulator over greenwashing claims.

HESTA placed paid ads on Google and Bing between April 2021 and December 2024, claiming it “is committed to remove all investment in carbon emissions by 2050”.

People who clicked on the link were taken to the fund’s “why join” page on its website.

The Australian Securities and Investments Commission fined the organisation over concerns the ads indicated HESTA planned to remove all investments in carbon emissions by 2050, despite that not being the case.

The retirement fund’s target was to achieve net-zero carbon emissions across its investment portfolio by 2050, which is different to removing all investments in carbon as net zero can be reached through offsetting.

The investment service, which is the primary super fund for health and community services workers, has more than 1.05 million members and manages almost $100 billion in assets.

HESTA overstated its commitment to reducing investment in carbon emissions when it made those online representations, ASIC deputy chair Sarah Court said.

“Consumers relying on HESTA’s representation may have been denied the opportunity to make informed decisions about their preferred superannuation provider when HESTA gave a false impression that its commitment to reducing carbon emissions was more ambitious than it actually was,” she said.

The fund self-reported the incident to the regulator and paid the fines in November.

Payment of an infringement notice is not an admission of guilt or liability.

A HESTA spokesperson has apologised to members and partners for “falling short” of their high standards and said the incident was isolated to this online advertising and “made in error”.

“HESTA is committed to providing clear, accurate and transparent communication to members regarding how we are addressing climate change as a material financial risk,” they said in a statement.

Environment advocacy group Market Forces has supported members in raising concerns about HESTA’s greenwashing in recent years.

“HESTA is facing serious consequences for greenwashing after years of getting away with failing to live up to its claims of climate leadership,” the group’s Australian campaigns head Brett Morgan said.

“Despite these infringements, HESTA continues greenwashing by failing to effectively use its position as a shareholder to demand an end to Santos and Woodside’s dangerous oil and gas expansion plans.”

The corporate watchdog has previously fined other retirement funds for alleged greenwashing, including Morningstar, Future Super, Diversa Trustees Limited, Northern Trust Asset Management and Melbourne Securities Limited.

Source: AAP