Black Mountain Energy pays ASIC greenwashing fine as Kimberley floods
The Australian Securities and Investments Commission (ASIC) has taken action against the listed energy company Black Mountain Energy Limited (BME) for greenwashing.
ASIC sent three infringement notices to BME, and the company paid a total of $39,960 to fix the problems. The notices were issued in response to concerns regarding alleged false or misleading sustainability-related statements made to the Australian Securities Exchange (ASX) between the dates of December 23, 2021 and 8 September 2022.
"ASIC issued eight infringement notices for alleged greenwashing in 2022 and has started the year with further action against a listed company," said Sarah Court, Deputy Chair of the Australian Securities and Investments Commission (ASIC”
The Australian Securities and Investments Commission (ASIC) is going to keep a close eye on all of the sustainability claims that are made, and it is going to take action whenever it believes that a representation cannot be substantiated or is factually incorrect.
The infringement notices were sent out in relation to statements that were made by BME and included in three announcements that were made to the ASX. These statements claimed that
The natural gas development project that BME was working on was designed to have "net-zero carbon emissions," and
There would be no net increase in greenhouse gas emissions as a result of Project Valhalla.
ASIC was worried that BME didn't have a good reason to make the claims or that the claims were false. Alternatively, ASIC was concerned that the representations were misleading.
The news that the Australian Securities and Investments Commission has held gas corporation Black Mountain Energy accountable for “greenwashing ” while the region is experiencing record flooding has been welcomed with open arms by the Environs Kimberley conservation group, which has its headquarters in Broome.
Environs Kimberley Director Martin Pritchard said that while it is pleasing that Black Mountain Energy has been issued infringement notices and forced to pay a fine for its repeated greenwashing claims, he is disappointed at the small penalty. This is especially the case considering that it comes in the midst of record flooding in the Kimberley, which has been made worse by the burning of fossil fuels like gas.
It's great to see ASIC holding them accountable for ridiculous greenwashing claims made without evidence, but the penalty is disappointing, according to Mr. Pritchard.
"Companies like Black Mountain Energy are proposing fracking projects in the Kimberley that would contribute to worsening climate change by flagrantly ignoring warnings that there can be no new coal and gas projects from the conservative International Energy Agency. It is good to see ASIC holding them accountable for ridiculous greenwashing claims made without any”, He said
“We don't think it will ever be possible for Black Mountain Energy's plans to frack to have net zero emissions and still be good for business.” He added
The town of Fitzroy Crossing is being hit hard by a flood event in Broome and the Kimberley region that is breaking records.
“We know that this type of extreme weather is being exacerbated by climate change, which is itself driven by the burning of fossil fuels like gas. The town of Fitzroy Crossing has been severely impacted as a result of this flood event, “ Mr. Pritchard says.
He said this presents WA Premier Mark McGowan and his ministers with yet another opportunity to eliminate the danger posed by fracking in the Kimberley. They are aware that the gas fracking industry would destroy the $500 million tourism industry, which is based on the internationally renowned region's famous natural and cultural landscapes.
The Kimberley community has shown that there is no social licence for the controversial gas industry, particularly with the worsening climate change crisis and extreme weather like floods and heatwaves. The campaign to stop fracking in the world-famous tourism region has been going on for more than ten years, and the community has shown that there is no social licence for the industry.
The infringement notices were paid on January 3, 2023, by BME. But paying a notice of infringement is not the same as admitting guilt or liability.