Australia’s corporate watchdog the ACCC has fined an energy company for ‘greenwashing’, or exaggerated claims regarding environmentally friendly investments, making it the regulator’s first time to crack down on such a misconduct, Reuters reported.
The Australian Securities and Investment Commission had imposed a fine of $53,280 on Tlou Energy over statements that the electricity produced by the company would be carbon-neutral, and that its gas-to-power project would be “low emissions”.
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‘Greenwashing’ is a practice of misrepresenting the extent to which an investment or a financial product is environment-friendly and sustainable.
Tlou Energy said it did not break any rules, but still agreed to pay the fine.
ACCC deputy chair Delia Rickard said the commission was actively targeting ‘greenwashing’ this year, warning businesses who make false or misleading claims undermine consumer trust and confidence in the market.
“Unfortunately, the ACCC is hearing growing concerns that some businesses are falsely promoting environmental or green credentials to capitalise on changing consumer preferences,” Rickard said.
“Broad terms like ‘environmentally friendly’, ‘green’, or ‘sustainable’ have limited value and may mislead consumers, as they rarely provide enough information about what that exactly means in terms of the product or service consumers are considering purchasing.
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“It is important that businesses can back up the claims they are making, whether through reliable scientific reports, transparent supply chain information, reputable third-party certification, or other forms of evidence. Where we have concerns, we will be asking businesses to substantiate their claims,” she said.
“The ACCC won’t hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims.”
