‘Landmark’ greenwashing case against Australian gas giant Santos dismissed by federal court | Santos
Gas company Santos has successfully defended a landmark greenwashing case in which it was accused of making misleading claims about its net-zero emissions plans and being a producer of “clean” energy.
In a blow to climate activists, the federal court on Tuesday dismissed a lawsuit brought by shareholder advocacy group the Australasian Center for Corporate Responsibility (ACCR).
ACCR, represented by the Environmental Defenders Office, claimed the gas company had breached the Corporations Act by engaging in misleading or deceptive conduct in its 2020 annual report, investor briefing and 2021 climate change report.
At the center of these claims were Santos’ three main claims: that Santos was a “clean energy” producer and that natural gas was a “clean fuel”; The hydrogen produced by carbon capture and storage is “zero-emission hydrogen” and “clean hydrogen”; and that it has a clear and credible path to reach net zero by 2040.
Santos argued that the ACCR lawsuit ignores years of work ahead of its 2020 investor briefing, annual report and 2021 climate change report.
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He told the court that climate targets – to reduce emissions by 26% to 30% by 2030 and achieve net zero emissions by 2040 – were the “current intention” and “not a promise or a prediction”.
Judge Brigitte Markovic dismissed ACCR’s case at a brief hearing on Tuesday and ordered the organization to pay Santos’ costs. The reasons for the decision will be published on February 23.
The case, heard over 13 days in 2024, was a test of how courts evaluate statements made by companies about how they are managing the transition to net zero.
Santos welcomed the decision and said they were “committed to transparent, accurate and compliant reporting.”
The company said in a statement Tuesday afternoon that it has developed a climate transition plan that continues to evolve “as technology, markets and public policy advance over time” since the release of the net-zero road map.
“Santos said in 2020 that we would develop the Moomba Carbon Capture and Storage project, and we said we would work with governments to establish a CCS methodology and regulatory framework to support its development, and we have done that,” a Santos spokesperson said.
“Moomba CCS has been operating since September 2024.”
ACCR holds shares in fossil fuel companies like Santos and is trying to force them to meet the goals of the Paris climate agreement.
ACCR co-chair Brynn O’Brien said the organization was disappointed and would now consider the “complex” decision and its more than 250 pages of reasoning.
“This was a landmark case that paved the way for others around the world to challenge corporate net zero claims in court,” he said.
“This was a David versus Goliath battle, and Goliath won this round.
“Although the court found that Santos’ conduct was not sufficient to violate the law, the case shed a strong light on how Santos’ schemes were developed and used to secure market advantage.”
O’Brien said the case was about “defending market integrity and ensuring investors are given all the information necessary to evaluate emissions targets and net zero plans with confidence” and was not aimed at “punishing climate ambition”.
Santos was asked for comment.
