Investment giant Vanguard Australia has been fined for "greenwashing" over investments meant to exclude cigarette and tobacco sales.
Official outlines of three Vanguard International Shares Select Exclusions Index Funds claimed they excluded investment in companies involved in significant tobacco sales.
While the exclusion applied to companies that manufactured cigarettes and tobacco products, it did not apply to those involved in the sale of tobacco, according to the corporate regulator.
Australian Securities and Investment Commission (ASIC) determined claims which appeared in the Product Disclosure Statement (PDS) were "liable to mislead the public" and issued Vanguard with three fines totalling $39,960.
The company has paid the fines.
Greenwashing is the practice of misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable or ethical, ASIC says.
Vanguard said it self-reported the issue to ASIC after discovering an "inadvertent error" in the PDS.
"Vanguard has acknowledged the error and fully cooperated with ASIC in relation to this matter," a spokesperson said.
"The PDS issue was promptly addressed by Vanguard shortly after it was identified. The relevant webpages and fact sheets were accurate in describing the exclusionary screens."
The fines are part of a broader crackdown on greenwashing by ASIC.
Energy company Tlou Energy was fined $53,280 in October for false or misleading sustainability-related statements made to the Australian stock exchange in 2021.
ASIC said it was investigating a number of listed entities, super funds and managed funds in relation to their green credentials claims.
"Greenwashing is not limited to environmental claims but extends to misleading ethical propositions," ASIC deputy chair Sarah Court said in October.
"Entities which seek to promote ethical investing must ensure their statements are accurate and able to be substantiated."
