ASIC issues infringement notices to energy company for greenwashing

In March last year, the Australian Competition and Consumer Commission said it would be cracking down on ‘greenwashing’ by closely scrutinising environmental and sustainability claims made by businesses as one of its compliance and enforcement priorities for 2022/23.

In October, ASIC made its first formal enforcement action for ‘greenwashing’ and issued penalties against ASX-listed company, Tlou Energy Limited (Tlou). 

ASIC has now taken action for greenwashing against listed energy company Black Mountain Energy Limited (BME).

BME has paid $39,960 to comply with three infringement notices issued by ASIC in relation to concerns about alleged false or misleading sustainability-related statements made to the Australian Securities Exchange (ASX) between 23 December 2021 and 8 September 2022.

Deputy chair, Sarah Court, said ASIC issued eight infringement notices for alleged greenwashing in 2022 and has started the year with further action against a listed company.

“ASIC will continue to closely monitor sustainability claims and take action where we consider representations cannot be substantiated or are factually incorrect,” she said.

The infringement notices were issued in relation to statements contained in three ASX announcements made by BME that claimed that:

• BME was creating a natural gas development project with ‘net-zero carbon emissions’
• The greenhouse gas emissions associated with Project Valhalla would be net zero

ASIC was concerned that BME either did not have a reasonable basis to make the representations or that the representations were factually incorrect.

BME paid the infringement notices on 3 January 2023. Payment of an infringement notice is not an admission of guilt or liability.