Between February 2021 and June 2023, Active Super, formerly known as Local Government Super, misled customers by falsely amplifying its environmental credentials. Despite claims of sustainable practices, the fund maintained investments in prohibited sectors, including Russian enterprises following the invasion of Ukraine. The Federal Court imposed a $10.5 million fine, highlighting the importance of accurate disclosures in ESG practices. ​The Australian

Missing Controls:

• Lack of ESG Investment Verification: No independent verification of sustainability claims.
• Weak Compliance and Disclosure Policies: Misleading statements about investment practices went unchecked.
• No Regular ESG Audits: Investments were not periodically reviewed for compliance with sustainability pledges.
• Poor Stakeholder Communication: Investors were misled about where their funds were allocated.

How D360 Can Help:
Implement ESG due diligence frameworks to verify sustainability claims.
Establish automated compliance monitoring tools for investment portfolios.
Conduct independent ESG audits to prevent misleading disclosures.
Develop transparent ESG reporting standards aligned with global regulations.