Australia Financial Industry Body Sets Anti-Greenwashing Expectations for Fund Managers
The Financial Services Council (FSC), Australia’s financial services industry’s standards and policy setting body, announced the release of new climate-related guidelines for investment managers to set targets, report on risk, and avoid greenwashing.
The primary purpose of the guidelines is to set common baseline expectations for the industry’s approach to net zero claims, disclosure of climate-focused investment features, and reporting on climate-related risk.
The publication also provides guidance for investment managers for labelling of funds that claim to address climate risk, in order to avoid greenwashing by misrepresenting the sustainability attributes of the funds. The guidance includes expectations for the disclosure of funds’ objectives and sustainability-related investment approaches.