ASX-listed company fined for greenwashing
The corporate regulator has issued two more infringement notices as it ramps up its enforcement action against greenwashing.
Fertoz Limited (Fertoz) has paid $37,560 to comply with two infringement notices issued by ASIC in which the latter alleged it made false or misleading statements regarding its reforestation project in the Philippines.
On 15 November 2023, Fertoz, an ASX-listed entity specialising in fertilizer mining, manufacturing and supply, made statements in a presentation published on the ASX that said that the Philippines Reforestation Project would obtain an offtake partner or receive funding for the project by the end of 2023, and begin planting the initial hectares in the respective area of the project in Q4, 2023.
According to ASIC, the statements were misleading because Fertoz had:
- Ended funding discussions with two prospective offtake partners in April and August 2023 resulting in delays in securing a funding partner and initial planting.
- Not signed any letters of intent or non-disclosure agreements or engaged in advanced discussions with new offtake partners that were at the stage of reaching completion at the end of 2023.
- Not secured any funding necessary for the progress of the Philippines Reforestation Project.
ASIC deputy chair Sarah Court said this was another example of ASIC enforcement action where it considered there to be inaccurate or misleading statements made in sustainability-related claims.
"Greenwashing continues to be in our sights and remains an enforcement priority,” Court said.
Fertoz paid the infringement notices on 21 June 2024. However, ASIC noted that payment of an infringement notice is not an admission of guilt or liability.
ASIC has previously issued 17 other infringement notices about alleged environmental, social and governance (ESG) misconduct.
It also follows ASIC's recent success in the Federal Court against the trustee of Active Super when the court found the super fund had contravened the law in connection with various misleading representations concerning its ESG credentials.
The ACCC published guidelines in July 2023 to provide guidance in this area and to mitigate the chances of greenwashing among Australian companies.
“As consumers become more environmentally conscious, businesses need to be honest and transparent when making environmental or sustainability claims so consumers are not being misled,” ACCC chair Gina Cass-Gottlieb said.
“False or misleading claims can undermine consumer trust in all green claims, particularly when consumers are often paying higher prices based on these claims.”
