Unisuper faces greenwashing allegations after quietly cutting environmental standards in half for “sustainable” investment fund

Australia’s UniSuper is under fire for allegedly misleading its members about the environmental credentials of one of its investment options. The superannuation giant, which manages $158 billion for 670,000 members, has been accused of greenwashing after it significantly reduced the environmental criteria for its Global Environmental Opportunities fund while continuing to market it as a sustainable investment choice.

The controversy centers on UniSuper’s decision to halve the environmental requirements for the fund, which is still promoted as a portfolio “selected on the basis of environmental considerations.” Critics argue that this substantial reduction in green standards undermines the fund’s sustainability claims and potentially misleads members who specifically chose this option for its environmental focus.

UniSuper has defended the changes, stating they were implemented “to expand the investible universe” – essentially allowing the fund to invest in a broader range of companies that may not meet the original strict environmental criteria. However, a formal complaint has been filed with the Australian Securities and Investments Commission (ASIC), alleging that UniSuper failed to properly inform its members about these significant changes to the fund’s environmental standards.

This case highlights growing concerns about greenwashing in Australia’s superannuation industry, where funds increasingly offer sustainable investment options to meet rising member demand for environmentally responsible investments. The complaint raises important questions about transparency and whether investment managers are adequately communicating material changes to their sustainability criteria to members who have specifically chosen these funds for their environmental benefits.