---
title: ASIC Reaffirms Red Light for Greenwashing
description: The Australian financial regulator has again warned firms operating in Australia about their continued enforcement focus on greenwashing.
---

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# [ASIC Reaffirms Red Light for Greenwashing](https://www.regtrail.com/resources/asic-reaffirms-red-light-for-greenwashing)

 Written by [RegTrail](https://www.regtrail.com/resources/author/regtrail) | Nov 8, 2023 6:25:00 AM

This week the Deputy Chair of ASIC, the Australian financial regulator, again reaffirmed its enforcement focus on greenwashing (click [here](https://asic.gov.au/about-asic/news-centre/articles/red-light-for-greenwashing/)), this time via an article published in a local trade journal. Salient points form the article include:

- Enforcement actions in response to greenwashing misconduct range from warning letters, infringement notices and civil penalty proceedings in the Federal Court,
- ASIC selects enforcement matters that are likely to have a broad reach, so that they have a deterrent effect beyond the issue that they are prosecuting in order to “send a compliance message to the sector”;
- Future enforcement focus will target:

1. Net zero statements and targets;
2. Use of terms such as ‘carbon neutral’, ‘clean’ or ‘green’;
3. The scope and application of investment exclusions and screens.

- ASIC is unlikely to have concerns where public statements are made that assert aspirational environmental positions with a sound basis and which are supported by business plans and investments to substantiate these goals;
- Where the above statements become problematic is when they are made in marketing campaigns designed to encourage investment or promote products to consumers, with a lack of substance to back up those assertions or substantiate how the transition will be achieved;
- ASIC aims to assist the market with published guidance (click [here](https://asic.gov.au/regulatory-resources/financial-services/how-to-avoid-greenwashing-when-offering-or-promoting-sustainability-related-products/)) on how to avoid greenwashing together with a summary of the issues they identified in their surveillance work in this area;
- New laws are on the horizon in the form of mandatory climate reporting which will require significant additional and new compliance obligations;
- Greenwashing will continue to be a priority for ASIC – this will be a central part of their 2024 enforcement priorities due to be announced soon at the ASIC Annual Forum in Melbourne.

###  RegTrail Insights

**ASIC’s comment about the “deterrent effect” of their enforcement actions should be noted. It is well established that regulators actively seek to make examples of high-profile “prizes” – large energy and commodity trading firms are not exempt from this group and should maintain the utmost vigilance about green claims being made external to the organisation.**

[View full post](https://www.regtrail.com/resources/asic-reaffirms-red-light-for-greenwashing)

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