ASIC has issued its first greenwashing proceeding marking a new stage in its greenwashing enforcement activity. The proceeding is issued against Mercer Superannuation (Australia) Limited regarding allegedly misleading statements it has made about the sustainable nature of some of its superannuation investment options.

This proceeding highlights the breadth of ESG risk as one that extends beyond D&O insurance and exposures arising from capital raisings and ASX disclosures. This has implications for insurers regarding the types of products that will respond to ESG claims in circumstance where, so far, the ESG exposures are in the form of regulatory and declaratory proceedings as opposed to proceedings for damages.

In this article, we look at the key takeaways arising from this development.

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