(Reuters) – Australia’s corporate watchdog 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.
The Australian Securities and Investment Commission had imposed a fine of A$53,280 ($34,600.03) 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”.
‘Greenwashing’ is a practice of misrepresenting the extent to which an investment or a financial product is environment-friendly and sustainable.
Tlou Energy said on Thursday it did not break any rules, but still agreed to pay the fine.
($1 = 1.5399 Australian dollars)
(Reporting by Tejaswi Marthi in Bengaluru; Editing by Sherry Jacob-Phillips)
