ASIC takes greenwashing action against Black Mountain Energy
Black Mountain Energy has paid $40,000 to comply with three infringement notices for allegedly making misleading statements about its sustainable natural gas project.
Listed energy company Black Mountain Energy Limited has been hit with infringement notices for greenwashing.
According to ASIC, the company which touts itself as developing unconventional drilling approaches for smarter natural gas extraction in WA, has paid $39,960 to comply with three infringement notices issued by the regulator.
ASIC said the notices were in relation to concerns about “alleged false or misleading sustainability-related statements made to the ASX between December 23, 2021 and 8 September 8, 2022.
“ASIC issued eight infringement notices for alleged greenwashing in 2022 and has started the year with further action against a listed company, ASIC deputy chair Sarah Court said.
“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 which claimed that it 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 said it was concerned the company “either did not have a reasonable basis to make the representations, or that the representations were factually incorrect”.
It said Black Mountain Energy paid the infringement notices on Tuesday, noting payment of an infringement notice is not an admission of guilt or liability.
In its statement, the micro-cap ASX-listed business emphasised it had elected to pay the penalty “on a no-admissions basis”.
“The infringement notices specify that if the company pays the penalty, then it will not be
regarded as having contravened the relevant provision of the ASIC Act, and no proceedings
(whether criminal or civil) will be brought against the company by the Commonwealth or
ASIC for the alleged contravention or an offence constituted by the same conduct (unless
the notice is subsequently withdrawn and any penalty paid refunded),” Black Mountain Energy said.
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