<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>An Australian super fund has been hit with a $10.5 million penalty for greenwashing.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Federal Court found Active Super, formerly known as Local Government Superannuation Scheme, misled members and potential members by saying it had eradicated investments in gambling, coal mining and oil tar sands.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The fund also claimed to have eliminated Russian investments following the country's invasion of Ukraine.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/court-puts-a-temporary-hold-on-releasing-records-related-to-the-deaths-of-gene-hackman-and-his-wife/86371b7a-7259-49ce-af85-df26e4e20c1c" target="_blank"><strong><span>'Possibly shocking': Court twist in death of Gene Hackman and his wife</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Justice David O'Callaghan found that between February 2021 and June 2023, Active Super actually held investments in these types of assets, including coal miners Whitehaven Coal and Coronado Global Resources.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He rejected Active Super's argument that consumers would differentiate between direct investments and those held in pooled funds.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The case represents a win for the corporate regulator, the Australian Securities and Investments Commission (ASIC), which has been cracking down on companies making false or misleading statements about their green or ethical credentials, a practice known as greenwashing.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/active-super-fined-superannuation-fund-fine-greenwashing/44d0470d-76ab-4ea7-9d45-9f5aeb678211" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A total penalty of $10.5 million will need to be paid within 30 days of receiving the notice and Active Super will need to pay ASIC's legal costs, Justice O'Callaghan ordered on Tuesday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Members will also need to be made aware of the matter.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/search-for-us-student-in-dominican-republic-intensifies-with-witness-account/24304920-4390-4bc3-afcc-131d314c3e7a" target="_blank"><strong><span>Search for US student in Dominican Republic intensifies with witness account</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Justice O'Callaghan said the super fund benefited by misrepresenting its ethical credentials, making it more attractive to investors and enhancing its reputation.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"As a result, investors lost the opportunity to invest in accordance with their investment values," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>False or misleading statements were made on the company's website, emails to members, media interviews and throughout various public reports and documents.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple App Store</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a><strong><em><span>.</span></em></strong></div></div>