<
https://reneweconomy.com.au/investment-giant-faces-fine-in-first-greenwashing-action-brought-by-asic/>
"Investment giant Vanguard could be forced to pay fines approaching its entire
annual profit after admitting to misleading investors in a landmark
greenwashing case.
The Federal Court ruled in March Vanguard Investments Australia broke consumer
laws by making misleading claims about ethical exclusions applied to one of its
index funds.
Vanguard self-reported the breach and was pursued by the Australian Securities
and Investments Commission in the first greenwashing action brought by the
watchdog to result in a finding of liability.
ASIC is seeking a penalty of $21.6 million, after a discount is applied for
Vanguard’s co-operation in the matter, while the company is arguing for a
substantially lesser amount.
During a court hearing on Thursday, Vanguard barrister Philip Solomon KC told
the court either figure could comprise most, if not all, of the company’s net
annual profit.
“We’re not suggesting that these are not serious contraventions requiring a
substantial penalty,” he said.
Vanguard’s yearly profit’s ranged from about $10 million in 2018 to as much as
$50 million in 2020, the court was told.
ASIC barrister Meg O’Sullivan KC said employees at Vanguard had been aware of
potential issues with how companies were being screened for ethical exclusion
but had failed to take action.
“Vanguard is obviously a very large organisation; its parent company is
obviously very large as well,” Ms O’Sullivan said.
“(The court) has to consider the level of penalty that will have the necessary
sting.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
