Tlou Energy is the first Australian firm to be fined for lying about its environmental credentials. A corporate watchdog says claims that its sub-Saharan African gas and electric power projects are carbon neutral and low emissions are ‘factually incorrect’.
If the latest legal ongoings in Australia are anything to go by, it could be getting difficult for energy companies to hide behind greenwashing tactics.
The front page of Aussie-based Tlou Energy’s website promises ‘cleaner energy for Botswana & Southern Africa’, but a bit of further digging by the Australian Securities and Investment Commission (ASIC) is calling their bluff.
In a statement, the corporate body said, ‘ASIC was concerned that Tlou either did not have a reasonable basis to make the representations, or that the representations were factually incorrect.’
This has led to the energy firm being the first to be issued a fine of AUS $53,280 for greenwashing. ASIC is adamant that it won’t be the last.
Tlou Energy stated that all the electricity produced in its sub-Saharan Africa projects would be carbon neutral and that it had received official environmental approval.
It went further to say that Tlou had the capability to generate large quantities of electricity from solar and that its gas-powered energy would be low emissions, but corporate regulators at ASIC couldn’t find sufficient evidence to support any of these claims.
All of these inconsistencies are what led the energy firm has become Australia’s first to be fined for greenwashing.
ASIC has stated that Tlou Energy’s payment of the fine isn’t an admission of guilt. But it is slightly telling that the firm agreed to cough up the money, despite denying it had broken any rules.
Australia’s energy enigma
Despite being rich in biodiversity – think coral reefs, kelp forests, deserts, mountains, and forests – Australia’s government has been particularly stubborn about taking action to mitigate the climate crisis.
Australian ministers, like those from India, China, and Japan, kept their hands in their pockets as leaders from more than 40 nations penned a commitment to phasing out coal at COP26.
This blatant refusal led to an outcry from environmentalists around the world, especially as coal accounted for a whopping 40 percent of the growth in global emissions last year.
While disappointing, Australia experiences serious financial gain from burning and selling fossil fuels. In fact, coal mining makes up 10 percent of the nation’s gross domestic product.
Australian coal mine
To the surprise of absolutely no one who has been keeping up with the planet’s wellbeing, most political leaders have the interest of the national economy at heart.
For that reason, we can’t always expect dollar-concerned governments to assess the ethical and environmental practices inside energy companies. A sad reality, but it’s true.
This is what makes the work of external investigative bodies like ASIC so important.
ASIC’s deputy chair Sarah Court said that companies making vast claims about sustainability ‘must ensure they can support those statements and have a reasonable basis for doing so.’
A fair warning, as ASIC is on a mission to step up its anti-greenwashing agenda, with a number of active investigations already pending.
These projects are examining any potential misleading or deceptive statements by major Australian companies.
In other words, if you’re saying your energy is eco-friendly, we’re gonna need to see the receipts
Deputy Editor & Content Partnership ManagerLondon, UK
I’m Jessica (She/Her). I’m the Deputy Editor & Content Partnership Manager at Thred. Originally from the island of Bermuda, I specialise in writing about ocean health and marine conservation, but you can also find me delving into pop culture, health and wellness, plus sustainability in the beauty and fashion industries. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.
Less 20-somethings are getting married today than ever. As Gen Z ditches wedding rings, it begs the question: what has changed?
There’s little I love more than the sweet sound of an orchestra playing a doting love song, as a couple makes it down the aisle, ready to make the ultimate commitment and say: ‘I do’. Yet nowadays, it seems like my generation is more inclined to say ‘I don't’...
Companies in the Global North are increasingly purchasing carbon credits to offset their emissions, while projects across Africa are encouraging farmers to adopt climate friendly practices that can generate those credits.
The process is theoretically simple. Farmers plant trees or adopt other practices that help to sequester carbon dioxide directly from the atmosphere. This is then measured and sold to companies as credits to help them offset their own impact...
Staff and students at the University of Kent were devastated by a fatal outbreak of meningitis last week, which left two people dead and more than 10 hospitalised.
The incident has thrown a community into chaos, as students begin to worry about those they’ve come into contact with and University staff try to manage the outbreak. Hundreds of young people have since begun queuing for antibiotics, while in-person exams...
A recent move by the UK government may alter the educational routes of thousands of young people in the Global South, especially those from areas experiencing conflict.
Recently, the Home Secretary, Shabana Mahmood, announced a plan by the British government to stop issuing study visas to students from various countries in the Global South. These include Cameroon, Sudan, Myanmar, and Afghanistan. If everything goes as planned, the policy...
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
0 comments
