ASIC maintains ‘greenwashing’ focus

Mike Taylor

Managing Editor/Publisher, Financial Newswire

9 January 2023

The Australian Securities and Investments Commission (ASIC) has reinforced that it will be maintaining its focus on “greenwashing” as it moves into 2023, kicking off the new year with the imposition of a penalty on energy company, Black Mountain Energy Limited.

With the regulator having already taken action against fund managers in 2022, it said last week that would be closely monitoring sustainability claims and taking action where necessary.

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

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

Black Mountain Energy paid $39,960 to comply with three ASIC infringement notices relating to what the regulator claimed were false and misleading sustainability-related statements.

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

• BME was creating a natural gas development project with ‘net-zero carbon emissions’, and
• 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.