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Generative AI
Artificial intelligence (AI) raises many intellectual property (IP) issues.
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Australia | Publication | June 2022
As we have previously reported (see here), the law on sustainability-related disclosures is an evolving area and increasingly a topic of concern in the face of regulatory enforcement and class action risk. Significant international developments have included the establishment of the International Sustainability Standards Board and the recent proposal by the US SEC for new environment social and governance-related (ESG) disclosure rules for investment funds and advisers (read our article here). Hot on the heels of this announcement, ASIC has released a new Information Sheet (INFO 271: How to avoid greenwashing when offering or promoting sustainability-related products) to help superannuation and managed funds avoid “greenwashing” in promoting or offering sustainability related products. See here for the Information Sheet.
Broadly, ASIC describes greenwashing as the practice of misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable or ethical. It has emerged as a consequence of an increase in investor demand for sustainability related investments and ASIC’s Information Sheet is its latest response to the inherent risks. While the Information Sheet is intended to explain existing obligations under the law as opposed to mandating new requirements, issuers would be well advised to focus on ASIC’s areas of emphasis. In addition, the principles outlined are relevant not only to funds but other financial products that incorporate sustainability-related considerations.
The Information Sheet reminds issuers that “greenwashing” can trigger the general prohibitions against misleading and deceptive conduct contained in the Corporations Act and ASIC Act. Particular risks arise in relation to representations made about future matters that are not supported with reasonable grounds. The example given is where an entity states that a carbon emission target will be reached by a certain date. This type of future-looking statement may be deemed misleading if there are no reasonable grounds for the representation.
Issuers are also reminded as to their disclosure obligations when preparing a product disclosure statement (PDS). These obligations include:
The Information Sheet sets out nine questions for issuers to self-assess their sustainability related representations:
Key takeaways for superannuation and managed funds include:
Issuers will be well-advised to consider carefully their disclosure and marketing practices in connection with the new Information Sheet. In particular and in advance of the coming months where many PDSs will be updated as part of an annual cycle, this could be the time for a health check on sustainability disclosures in case any uplift is needed to meet ASIC’s areas of focus. In the meantime, Australia awaits further laws in this space as international developments continue.
Publication
Artificial intelligence (AI) raises many intellectual property (IP) issues.
Publication
The European Court of Human Rights (ECtHR or the Court) recently ruled in Verein KlimaSeniorinnen Schweiz & Ors v. Switzerland (Application No. 53600/20) that Switzerland had breached the European Convention of Human Rights (the Convention) by not taking sufficient action against climate change. In particular, it found a breach of the right to respect for private and family life contained in Article 8 of the Convention, based on Switzerland’s failure to mitigate the impact of climate change on the lives, health, well-being and quality of life of its citizens. It also ruled that Switzerland had breached the right to a fair trial in terms of Article 6, in that the domestic courts failed to examine the merits of the applicants’ complaints, including the scientific evidence. In this article we consider the key features of this landmark judgment, which has wide ramifications for Member States of the Convention.
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We are delighted to announce that Al Hounsell, Director of Strategic Innovation & Legal Design based in our Toronto office, has been named 'Innovative Leader of the Year' at the International Legal Technology Association (ILTA) Awards.
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