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Australia's market watchdog has taken its first action over corporate "greenwashing" as regulators vow to crack down on exaggerated environmental claims.
- Tlou Energy has paid $53,280 after being issued four infringement notices over statements made to the market last year
- The company said its electricity would be carbon-neutral and it could generate certain quantities of electricity from solar power
- ASIC says tackling greenwashing and dubious claims around sustainable finance are key priorities going forward
ASX-listed energy company Tlou Energy has paid fines totalling $53,280 after being slapped with four infringement notices for alleged false or misleading sustainability-related statements made to the market a year ago.
The Australian Securities and Investments Commission has highlighted greenwashing — where companies misrepresent a financial product or investment strategy as being environmentally friendly, sustainable or ethical — and dubious claims around sustainable finance as key priorities.
ASIC deputy chair Sarah Court warned on Thursday that if companies promote sustainability and green practices, they must ensure their communication to shareholders and the broader market is accurate and has a reasonable basis.
"ASIC is currently investigating a number of listed entities, super funds and managed funds in relation to their green credentials claims," Ms Court said on Thursday.
"Companies are on notice that ASIC is actively monitoring the market for potential greenwashing and will take enforcement action, including court action, for serious breaches."
The ASIC infringement notices were issued for a series of ASX announcements by Tlou.
The energy firm claimed its electricity would be carbon-neutral and that it had both environmental approval and the capability to generate certain quantities of electricity from solar power.
Tlou also claimed its gas-to-power project would be low emissions, and said it was as equally concerned with producing "clean energy" through renewable sources as it was with developing the gas project.
In a statement posted on its website, the company said it did not accept that it had contravened any provisions of the Corporations Act or the Australian Securities and Investments Commission Act, but had agreed to pay the infringement notices "to bring this matter to an end and focus the company's resources on development of its power projects".
Consumer watchdog deputy chair Delia Rickard recently warned against misleading claims that could undermine trust as Australians become increasingly interested in purchasing sustainable products.
"The ACCC won't hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims," she said earlier this month.
AAP/ABC