Black Mountain Energy fined $40k for ‘greenwashing’

Aspiring Perth-based oil and gas company Black Mountain Energy has been fined almost $40,000 for "greenwashing" its sustainability statements on the stock market. 

The company paid $39,960 for three infringement notices issued by the Australian Securities and Investments Commission for alleged false or misleading sustainability-related statements made to the ASX.

The first statement was made just three days after the company was listed on the ASX in December 2021.

Black Mountain Energy’s flagship project, Valhalla, is in the Canning Basin, in the state’s north, where it reportedly acquired 688,000 hectares of prospective tight gas acreage.

The company claimed it was creating a natural gas development project with net-zero carbon emissions.

"BME had not progressed any specific works related to its net zero aim and had not allocated funding for such works," according to the December 2021 ASIC infringement. 

BME also claimed its Valhalla project west of Fitzroy River would have net-zero carbon emissions and greenhouse gas emissions from the project would be net-zero. 

ASIC deputy chair Sarah Court said the securities regulator was concerned BME did not have reasonable basis to make the representations or that they were factually incorrect.

"ASIC issued eight infringement notices for alleged greenwashing in 2022 and has started the year with further action against a listed company," she said.

"ASIC will continue to closely monitor sustainability claims and take action where we consider representations cannot be substantiated or are factually incorrect."

BME confirmed on the ASX today that it had paid the infringement notices on January 3.

“The company has elected to pay the penalty of $39,960 on a no-admissions basis,” it said.

ASIC also issued infringements to Diversa Trustees Limited and Vanguard Investments Australia for alleged "greenwashing" statements in December last year.