In a nation-first, Australia’s corporate watchdog has fined solar and gas firm Tlou Energy $53,280 (US$34,625) for “greenwashing” and claiming its electricity production was carbon neutral.
Greenwashing is the practice of misrepresenting the extent to which a product, service, or investment fund is environmentally friendly, sustainable, or ethical.
The practice can be carried out across a range of industries, whether it is fund managers combining green and fossil-fuel investments into one product to ensure overall returns remain strong or in this instance, energy companies claiming their operations are carbon neutral when they are not.
“As entities promote sustainability and green practices as part of their value proposition, they must ensure they can support those statements and have a reasonable basis for doing so,” said Sarah Court, deputy chair of the Australian Securities and Investment Commission (ASIC)….