ASIC - Australian Securities & Investments Commission

Vanguard Fined $12.9 Million for Misleading ESG Claims Vanguard Investments Australia has been fined $12.9 million by the Federal Court for misleading claims about their environmental, social, and governance (ESG) exclusionary screens applied to the Vanguard Ethically Conscious Global Aggregate Bond Index Fund. ASIC found that Vanguard falsely claimed to exclude bond issuers from certain industries, including fossil fuels, although approximately 74% of the securities were not properly screened. Vanguard admitted the misrepresentations, which enhanced its reputation and investor attraction. This penalty, the largest for greenwashing to date, underscores the importance of accurate ESG-related disclosures and serves as a deterrent to others.