Definitions of ESG products and investments should be legislated
8 August 2022 at 11:00 am
Senior ASIC executive says government should make the call on labels and definitions for environmental, social, and governance investments.
Definitions of ESG products and investments should be set by legislation, a senior executive leader at the Australian Securities and Investment Commission (ASIC) has argued at the recent Australian Council of Superannuation Investors (ACSI) conference.
As reported by FS Superannuation, Claire LaBouchardiere said, “ASIC is taking note of how regulators in other definitions are addressing greenwashing and definitions of sustainable investments, and pointing to the recent issuance of Information Sheet 271 on the topic.”
She went on to add, “our view is that that’s probably a call for government as to whether we do have particular definition or labels”.
“Our information sheet is really about the existing obligations around misleading and deceptive and trying to foster that clarity of disclosure,” LaBouchardiere said.
Sheet 271 is an ASIC information sheet that outlines what constitutes greenwashing and how to avoid it.
When Sheet 271 was released earlier this year Estelle Parker, executive manager of programs for the Responsible Investment Association Australasia (RIAA), called it “a warning shot” for potential dubious investors in the ESG space.
