An energy company has been fined in ASIC’s first action taken over corporate greenwashing. 

ASX-listed energy company Tlou Energy has paid $53,280 in fines for four infringement notices over alleged false or misleading sustainability-related statements made to the market a year ago.

It is the first action by the Australian Securities and Investments Commission (ASIC) in its new fight against greenwashing - where companies misrepresent a financial product or investment strategy as being environmentally friendly, sustainable or ethical. 

ASIC deputy chair Sarah Court has warned that if companies promote sustainability and green practices, they must ensure their communication is accurate and reasonable.

“ASIC is currently investigating a number of listed entities, super funds and managed funds in relation to their green credentials claims,” Ms Court said.

“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 infringement notices were issued in relation to statements and images contained in two ASX announcements made by Tlou which claimed that:

  • electricity produced by Tlou would be carbon neutral;

  • Tlou had environmental approval and the capability to generate certain quantities of electricity from solar power;

  • Tlou’s gas-to-power project would be ‘low emissions’; and

  • Tlou was equally concerned with producing ‘clean energy’ through the use of renewable sources as it was with developing its gas-to-power project.

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

Tlou claims it did not contravene any provisions of the Corporations Act or the Australian Securities and Investments Commission Act, but 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”.

Tlou paid the infringement notices on 25 October, 2022. Payment of an infringement notice is not an admission of guilt or liability.