Australia's market watchdog has taken its first action over corporate "greenwashing" as regulators vow to crack down on exaggerated environmental claims.
ASX-listed energy company Tlou Energy has paid $53,280 after being slapped with four infringement notices on alleged false or misleading sustainability-related statements made to the market a year ago.
Australian Securities and Investments Commission deputy chair Sarah Court warned if companies promote sustainability and green practices, they must ensure they can support those statements.
ASIC has highlighted greenwashing - where companies misrepresent a financial product or investment strategy as being environmentally friendly, sustainable or ethical - and sustainable finance as a key priority.
Ms Court urged companies and their advisers to ensure their communication to shareholders and the broader market is accurate and has a reasonable basis.
"ASIC is currently investigating a number of listed entities, super funds and managed funds in relation to their green credentials claims," she said on Thursday.
"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 ASIC infringement notices were issued for a series of ASX announcements by Tlou.
The energy firm claimed its electricity would be carbon neutral and that it had both environmental approval and the capability to generate certain quantities of electricity from solar power.
Tlou also claimed its gas-to-power project would be low emissions and said it was equally concerned with producing "clean energy" through renewable sources as it was with developing the gas project.
Consumer watchdog deputy chair Delia Rickard recently warned against misleading claims that could undermine trust as Australians become increasingly interested in purchasing sustainable products.
"The ACCC won't hesitate to take enforcement action where we see that consumers are being misled or deceived by green claims," she said this month.
