Activist group ACCR sues Santos for greenwashing in a landmark case

November 1st, 2024

The landmark case filed by the Australasian Centre for Corporate Responsibility (ACCR) accusing Santos of greenwashing has been brought to the Federal Court of Australia.

In the world’s first ever court case to challenge the legitimacy of a company’s net zero emissions plan, ACCR alleges that Santos engaged in misleading or deceptive conduct regarding statements made in its 2020 Annual Report.

ACCR argues the global energy company’s statements breached the Corporations Act 2001 and the Australian Consumer Law. It also claims that Santos’ statements in its 2020 Investor Day Briefing and 2021 Climate Change report amount to greenwashing.

In all three reports, Santos stated it has a clear and credible pathway to reduce its Scope 1 and 2 greenhouse gas emissions by 26-30% by 2030, from its 2019 baseline, and to achieve net-zero Scope 1 and 2 emissions by 2040.

However, ACCR alleges that Santos failed to disclose its intention to increase greenhouse gas emissions through expected oil and gas growth and exploration opportunities beyond 2025.

In addition, it argues that Santos failed to disclose that is net zero plans rely on several undisclosed or unreasonable qualifications and assumptions, raising doubts about whether Santos can asset that it has a clear and credible plan to reach its net-zero target.

The 2020 Annual Report also included statements that Santos is a producer of clean energy, and that natural gas is a clean fuel.

ACCR accuses Santos of misleadingly implying that natural gas extraction and energy generation have no significant environmental impact by failing to disclose the substantial carbon dioxide and methane emissions released during these processes.

All three reports assert that blue hydrogen, which is hydrogen produced from natural gas with carbon capture and storage, is clean and has zero emissions. However, Santos failed to disclose that blue hydrogen product will increase its Scope 1 and 2 emissions, according to ACCR.

The case began on October 28 and is due to conclude on November 15.

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