ESG

During 2025, greenwashing continued to be an enforcement priority for both ASIC and the ACCC. ASIC commenced one civil penalty proceeding against Fiducian Investment Management Services (Fiducian), and issued six infringement notices against alleged greenwashing, with a continued focus on the financial services and superannuation industries.¹ Allegations that Fiducian breached its responsible entity duties demonstrate a broadening of ASIC's focus to the intersection between governance and compliance failings and greenwashing.² As was the case during 2024, ASIC's greenwashing enforcement activity in 2025 also resulted in sizeable penalties, including a $10.5 million penalty in the proceeding against Active Super.³

For the ACCC, key developments included a $8.25 million penalty in greenwashing proceedings against Clorox,⁴ and the commencement of another greenwashing action against Edgewell Australia (and its US parent company).⁵ Both proceedings underline the importance of ensuring that businesses have credible evidence to support public environmental claims, and the risks of overstating environmental credentials of goods or services.

Despite a shifting landscape overseas, ESG-related soft law standards have continued to evolve into mandatory obligations in Australia, creating a challenging environment for some regulated entities operating across jurisdictions. Most notably, Australia’s climate-related financial disclosure regime commenced on 1 January 2025 for Group 1 entities,⁶ while Group 2 entities will be required to report from 1 July 2026.⁷ In March 2025, ASIC released regulatory guidance for businesses on the transition to the new regime.⁸

On the 'S' side, the Federal Government held public consultations on proposed reforms to the Modern Slavery Act 2018 (Cth).⁹ Key focus areas included tightening mandatory reporting criteria, streamlining compliance obligations, and introducing enforcement mechanisms to address non-compliance.¹⁰ New requirements for large employers to set and report on gender equality targets also came into effect from April 2025.¹¹

In the energy sector, regulators have continued to focus on protection of vulnerable customers. Last year saw substantial enforcement outcomes in a number of proceedings, including in relation to alleged overcharging of customers and breaches of life support obligations.¹² There has also been increased enforcement activity by regulators such as the ACCC and the Clean Energy Regulator that have been tasked with broader responsibilities in monitoring compliance with new legislative frameworks, such as the Guarantee of Origin Scheme.¹³ 

ASIC, ACCC, the Australian Energy Regulator (AER), Essential Services Commission (ESC),Economic Regulation Authority of Western Australia, CER, Attorney General's Department.