The Financial Services Council (FSC) has published a Guidance Note for the funds management industry setting expectations for the industry when setting net zero targets, labelling investment products, and fulfilling their legal obligation to disclose climate-related risks.
The Guidance sets out principles for Australian fund managers to ensure climate-related disclosures to consumers are accurate and backed by clear evidence.
It covers:
- Setting net zero targets for investment portfolios, particularly in assessing emissions in portfolios;
- Important considerations when labelling funds to avoid climate greenwashing;
- Reporting climate risk in line with the Taskforce on Climate Related Financial Disclosures.
The guidance provides practical steps to assist funds to act in accordance with leading practice.
The guidance refers to APRA’s CPG 229 Climate Change Financial Risks and the Australian Securities &
Investment Commission (ASIC)’s INFO 271 ‘How to avoid greenwashing when offering
or promoting sustainability-related products’, which provides guidance on avoiding misleading and deceptive conduct and fulfilling disclosure obligations.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
