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Highlights
- ASIC has issued four infringement notices to Tlou Energy for making misleading sustainability and clean energy claims.
- The Australian energy business has paid AU$53,280 in fine; but denied the allegations.
- ASIC outlines managing greenwashing and dubious sustainable finance claims as its key priority.
Australian Securities & Investments Commission (ASIC) has issued its first penalty for corporate greenwashing, slapping a fine of AU$53,280 on Tlou Energy Limited. The corporate watchdog said that the ASX-listed Tlou had paid the penalty for four infringements for making alleged false or misleading sustainability-related statements to the ASX 16 February 2021 and 20 October 2021. Tlou is developing power projects in parts of Africa.
ASIC explains greenwashing as an unsubstantiated claim or practice of mispresenting a company’s financial product or investment strategy to be environment-friendly, sustainable, and ethical.
ASIC believed that the company either lacked a solid foundation for the statements or that they were factually inaccurate. This investigation has been ongoing since 6 September 2022, the company stated in an ASX announcement on 9 September 2022.
How Tlou Energy responded?
As per the company’s ASX announcement, Tlou has complied with the four infringement notices and paid the penalty of AU$53,280. However, the company has refuted the accusations of greenwashing. But it paid the fee to put the matter to rest so it can continue to concentrate on the growth of Tlou's power projects.
This is the first time that ASIC has imposed a fine for greenwashing, which is a possible effort for establishing a precedent for further enforcement of the law. After the completion of this enquiry, ASIC informed Tlou that it would not be pursuing any additional enforcement actions.
A glance at the trigger statements
The triggering statements in Tlou’s two ASX announcements that made ASIC issue the infringement notices are as below:
- Tlou will produce carbon-neutral electricity.
- The company can produce a specified amount of electricity from solar power and has received environmental approval.
- Tlou’s Lesedi gas-to-power project will have low emissions.
- The Australian energy company is just as invested in growing its gas-to-power project as it is in creating clean energy through the utilisation of renewable resources.
Commenting on this development, Sarah Court, Deputy Chair, ASIC, said:
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Data Source- ASIC media release dated 27 October
