The Australasian Center for Corporate Responsibility (ACCR) lost Tuesday a case before Australia’s Federal Court in which it accused Santos Ltd of deceptive climate claims.
The litigation parties acknowledged the ruling in separate online statements Tuesday. However, “the reasons for that ruling will not be published until Monday 23 February”, the ACCR said.
In August 2021 the ACCR, which describes itself as a non-profit research and shareholder advocacy organization, sued Santos alleging the Adelaide-based natural gas-focused producer had breached the Corporations Act and the Australian Consumer Law.
The ACCR has said the case primarily contested Santos’ “representations” that it was a “clean energy” producer and that gas is a “clean fuel”. The case also assailed company representations that hydrogen produced by Santos from gas abated by carbon capture and storage is “zero emission-hydrogen”. The case also contested Santos’ net-zero strategy.
“This was a landmark case that paved the way for others around the world to challenge corporate net zero claims in court”, ACCR co-chief executive Brynn O’Brien said Tuesday.
“While the court found that Santos’ conduct was insufficient to breach the law, the case has shone a powerful spotlight on how Santos’ plans were developed and used to secure market advantage”, O’Brien added.
“Evidence given by Santos’ own witnesses exposed reverse-engineering of emissions numbers and materials to meet top-down CEO demands. This is troubling behavior and should reinforce investor concern about leadership and cultural issues within the company.
“The ruling puts the burden on investors to scrutinize every statement, every number and every assumption provided by companies in relation to climate commitments”.
“This court case was not about punishing climate ambition, it was about standing up for market integrity and ensuring that investors are given all the information necessary to confidently assess emissions targets and net zero plans”, O’Brien said.
“Today’s result is disappointing. The finding is complex, with over 250 pages of reasons, and it has taken over a year for the judge to make her ruling. We will take time to review it carefully before considering next steps and our options”.
Santos responded to the ruling by saying it is “committed to transparent, accurate and compliant reporting”.
Santos said that since the publication of its roadmap to net zero by 2040, one of its publications questioned by the ACCR, the company “developed a Climate Transition Action Plan that continues to evolve, as we have consistently said it would do with the progression of technology, markets and public policy over time”.
Santos noted that last year, shareholders representing over 85 percent of voted shares backed its Climate Transition Action Plan.
A Santos spokesperson said in the statement posted on the company’s website, “Santos said in 2020 that we would develop the Moomba Carbon Capture and Storage project, we said we would work with governments to get a CCS methodology and regulatory framework in place to support its development – and we did”.
Rigzone emailed Santos for comment on the ACCR statement.
To contact the author, email jov.onsat@rigzone.com
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