UniSuper accused of greenwashing after quietly reducing environmental element of investment option

The Guardian World

by Petra Stock

February 20, 2026

AI-Generated Deep Dive Summary

A major Australian super fund, UniSuper, has faced accusations of greenwashing after it continued to market an investment option as "sustainable" despite significantly reducing its environmental criteria. The Global Environmental Opportunities (GEO) portfolio was previously promoted as being "selected on the basis of environmental considerations," but internal changes effectively halved its focus on environmental factors. Critics argue that members were not adequately informed about this shift, raising concerns about transparency and misleading marketing. UniSuper defended the change by stating it aimed to "expand the investible universe" and allow for more opportunities in areas like renewable energy and electric vehicles. However, a complaint filed with the Australian Securities and Investments Commission (Asic) claims that members were not properly informed about the revised approach, which allegedly diluted the portfolio's environmental focus. This has sparked criticism from sustainability advocates and investors who feel misled by the fund's branding. The case highlights broader concerns about the accuracy of sustainability claims made by financial institutions. While UniSuper maintains that its intention was to enhance long-term growth opportunities, critics argue that such changes undermine trust in sustainable investment products. Environmental, Social, and Governance (ESG) investing has gained significant traction globally, with many investors seeking out options aligned with their values. If major institutions like UniSuper fail to uphold these standards, it could erode confidence in the ESG framework and lead to calls for greater regulatory oversight. The controversy also underscores the importance of clear communication between financial institutions and their clients. As ESG investing grows in popularity, transparency about investment strategies and criteria becomes increasingly critical. If members are not fully informed about changes to their investments, it raises ethical questions about whether their expectations are being met. This case serves as a cautionary tale for other financial institutions to ensure that their marketing aligns with their actions and that clients are kept informed of any significant shifts in investment strategies. Ultimately, the situation at UniSuper highlights the challenges of balancing growth opportunities with sustainability goals. While expanding the investible universe may be a valid objective, it must not come at the expense of misleading investors or undermining trust in ESG investing. Asic's investigation into the matter could set a precedent for how financial institutions are held accountable for their environmental claims, potentially influencing industry practices moving forward. For now, the case remains a

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Originally published on The Guardian World on 2/20/2026