(31 October 2022 – Australia) Listed energy group Tlou Energy is the first company to be charged with compliance action by the Australian Securities and Investment Commission (ASIC) for greenwashing.
Based in Brisbane and developing gas-fired power, solar and hydrogen projects in Sub-Saharan Africa and Botswana, the corporate regulator handed down four infringement notices and a fine of A$53,280 to Tlou Energy in relation to allegedly misleading sustainability-related statements.
The infringements represent the first time ASIC has enforced greenwashing penalties relating to misleading or misrepresenting environmental, social or governance (ESG) reporting. ASIC was concerned that Tlou either did not have a reasonable basis to make the representations, or that the representations were factually incorrect stressing the payment did not represent an admission of guilt or liability.
ASIC announced a crackdown on greenwashing in 2022, warning that several listed companies, super funds and managed funds were also being investigated over their sustainability claims. The Australian Competition and Consumer Commission (ACCC) is also targeting false sustainability claims, announcing it would analyse company websites to detect deceptive ESG claims.
“As entities promote sustainability and green practices, they also have to ensure they can support those statements. Companies must make sure their communication to shareholders, members and the broader market is accurate and has a reasonable basis” said ASIC Deputy Chair, Sarah Court.
“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” Court added.