New “green” labels risk making super greenwashing worse

A Super Consumers Australia story today warns that if the Government pushes ahead with a loose labelling scheme for “green” super products, it could be harder for Australians to know where their retirement savings are invested.

The Treasurer is now considering new laws for financial products like super to be labelled “sustainable”. These laws would define what terms like “sustainable” mean, and set minimum investment thresholds – but could allow 30% of investment assets to not align with the sustainability goal.

Super Consumers CEO Xavier O’Halloran said a subpar labelling regime risks lowering the bar for evidence, and making greenwashing harder to detect and enforce.

“People should be able to trust that ‘green’ or ‘sustainable’ super products actually match their values, but too often they don’t,” O’Halloran said.

“We’re concerned these proposals could undermine the effectiveness of existing anti-greenwashing laws. ASIC has shown it can take action, and now is not the time to weaken the rules.”

O’Halloran said the focus must remain on protecting consumers, not making life easier for super funds’ marketing teams.

“We are calling for any proposed new labelling system to be grounded in rigorous consumer testing and clear, enforceable standards, not vague principles that leave people in the dark.”

Super Consumers Australia is urging the Government to prioritise strong enforcement of existing laws and ensure any new framework improves standards and transparency, rather than creating loopholes.

“This system needs to work for the millions of Australians whose retirement savings are on the line. That always has to be the first priority.”