Black Mountain Energy fined for ‘greenwashing’

Hand uses green marker to colour in smoke pouring from chimney (environmental claims)
Image: Shutterstock

Energy company Black Mountain Energy has paid $39,960 to comply with three infringement notices issued by ASIC in relation to ‘greenwashing’ claims—alleged false or misleading sustainability-related statements—made to the Australian Securities Exchange (ASX) between December 23, 2021, and September 8, 2022.

ASIC deputy chair Sarah Court said, “ASIC issued eight infringement notices for alleged greenwashing in 2022 and has started the year with further action against a listed company. ASIC will continue to closely monitor sustainability claims and take action where we consider representations cannot be substantiated or are factually incorrect.”

The infringement notices were issued in relation to statements contained in three ASX announcements made by Black Mountain Energy claiming:

Related article: ACCC slaps first ‘greenwashing’ fine on energy firm

  • Black Mountain Energy 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.

The specific reasons for ASIC’s concerns are set out in the three infringement notices which have been published on the Credit and ASIC Act infringements notices register.

ASIC has issued infringement notices in response to concerns about alleged greenwashing against Tlou Energy Limited, Vanguard Investments Australia and Diversa Trustees Limited.

Previous articleFRV reaches financial close on Walla Walla Solar Farm
Next articleCritics slam “weak” Safeguard Mechanism reforms