ACCR Company Engagement Santos Ltd

Santos Limited is one of the leading independent oil and gas producers in the Asia-Pacific region.

Santos Limited (ASX:STO) is the second largest listed oil and gas company on the ASX. In late 2021 the company significantly expanded its oil and gas portfolio through a merger with Oil Search. ACCR has been engaging with Santos for several years on its climate change commitments, and direct and indirect advocacy that conflicts with the goals of the Paris Agreement.

In August 2021 ACCR filed proceedings in the Federal Court, challenging Santos’ claims that natural gas provides “clean energy” and that it has a “credible and clear plan” to achieve “net zero” emissions by 2040.

Santos Annual General Meeting - 3 May 2022

Key votes and ACCR focus at Santos’ 2022 annual general meeting are:

  1. Say on Climate: Santos 2022 Climate Change Report

At the 2022 AGM, Santos is providing shareholders with a Say on Climate by holding an advisory vote on its climate transition plan.

ACCR will not undertake detailed analysis of this plan due to the proximity of the subject matter to our proceedings against Santos in the Federal Court, in which we argue that Santos has engaged in misleading and deceptive conduct by claiming it has a clear and credible plan to achieve net zero emissions by 2040. Read our investor update.

  1. Shareholder resolution - climate-related lobbying

Santos has a terrible record of advocacy that has limited the establishment of State and Federal climate policy and promotes the continued expansion of oil and gas extraction.

Consequently, ACCR has filed a shareholder resolution on climate-related lobbying, seeking that Santos cease all private and public advocacy, both direct and indirect, that contradicts the conclusions of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) on 1.5°C alignment, including advocacy relating to the development of new oil and gas fields.

The resolution text and supporting statement can be found here. ACCR’s investor briefing on this shareholder resolution will be published in the coming weeks.

  1. Shareholder resolution - decommissioning

Decommissioning is an evolving risk area for Australian oil and gas companies and their investors about which company disclosures are limited.

ACCR has filed a second shareholder resolution seeking enhanced disclosure of decommissioning provisions, including a list of infrastructure that may be decommissioned in the medium-term, audited asset-level provisions, disclosure of major assumptions and analysis of asset life under different oil and gas demand scenarios, including the IEA Net Zero Scenario.

The resolution text and supporting statement can be found here. ACCR’s investor briefing on this shareholder resolution will be published in the coming weeks.

  1. Peter Hearl - Chair of the Environment, Health, Safety and Sustainability Committee

Due to Santos’ oil and gas expansion plans and failure to set absolute Scope 3 targets, ACCR will be calling on investors to vote against the re-election of the Chair of Santos’ Environment, Health, Safety and Sustainability Committee, Peter Hearl.

ACCR’s investor briefing will be published in the coming weeks.

Updates

  1. Media release

    JFE Holdings Shareholders Welcome Company’s New Climate Commitments

    Man Group, Storebrand and ACCR welcome the announcement of enhanced climate commitments by JFE Holdings (“JFE”), one of Japan’s leading steelmakers.

  2. Media release

    First institutional investor group-led climate shareholder proposals filed in Japan

    US$3 trillion investor group encourages J-Power to scale up climate commitments

  3. Media release

    Santos shareholders revolt on climate, rubber-stamp lobbying

    ACCR is commenting on the results of the Santos (ASX:STO) annual general meeting.

  4. Media release

    Santos confirms gas-fired recovery is all about exports

    ACCR is responding to remarks from Santos’ Strategic Adviser External Affairs, Tracey Winters, at the Senate inquiry into oil and gas exploration and production in the Beetaloo Basin.

  5. Research

    Investor briefing: Shareholder Resolutions to Santos Ltd on climate-related lobbying and decommissioning

    Supporting brief to our shareholder resolutions to Santos Ltd on climate-related lobbying and decommissioning.

  6. Research

    Investor update: Santos Ltd (ASX:STO) Say on Climate

    ACCR's position on the Santos Ltd (ASX:STO) Say on Climate vote at its 2022 AGM.

  7. Shareholder Resolution

    ACCR Shareholder Resolutions to Santos Ltd on climate-related lobbying & decommissioning

    The Australasian Centre for Corporate Responsibility (ACCR) has filed shareholder resolutions asking Santos (ASX:STO) to cease advocacy of its industry associations and disclose decommissioning liabilities.

  8. Media release

    ACCR demands more transparency on decommissioning, calls for an end to pro-oil & gas lobbying

    ACCR has filed shareholder resolutions with Santos Limited (ASX:STO) and Woodside Petroleum Ltd (ASX:WPL), calling on both companies to improve their disclosures on decommissioning liabilities, and to cease direct and indirect advocacy for oil and gas expansion.

  9. Media release

    Santos and Oil Search merger compounds stranded asset risk

    The vast majority of planned Santos and Oil Search projects are inconsistent with a safe climate and are vulnerable to asset stranding in the face of escalating global decarbonisation efforts.

  10. Media release

    Australasian Centre for Corporate Responsibility files landmark case against Santos in Federal Court

    Acting on behalf of ACCR, lawyers from the Environmental Defenders Office (EDO) will claim that Santos is engaging in misleading or deceptive conduct in potential contravention of both corporate and consumer law.

  11. Media release

    Santos and Oil Search merger climate vandalism of the highest order

    The Santos and Oil Search merger demonstrates that neither company is serious about taking climate action, and that their only goal is to maximise oil and gas production at a time when climate chaos is raging across the northern hemisphere.

  12. Media release

    Santos’ bid for Oil Search proves net zero target is just greenwashing

    Santos has made little mention of climate change in its merger proposal announcement, claiming it can easily shift to hydrogen-based fuels - yet shows absolutely no pathway to this claim.

  13. Media release

    Santos’ CEO bonus at odds with Paris Agreement

    “The recently announced $6 million growth bonus for CEO Kevin Gallagher is equally at odds with any genuine commitment to transition Santos to net zero by incentivising development of the Narrabri Gas Project and completion of Barossa at all costs."

  14. Media release

    Santos’ Barossa project is a carbon bomb

    Institutional investors are demanding credible transition plans. Santos continues to fail on this measure.

  15. Media release

    Santos adopts ‘Say on Climate’

    We welcome the move by Santos (ASX:STO) to adopt the Say on Climate initiative and provide shareholders with a non-binding vote on the company’s Climate Change Report at next year’s AGM.

  16. Briefing note

    Investor briefing: Shareholder Resolution to Santos Ltd to adopt Say on Climate reporting

    An annual Say on Climate will provide shareholders with a non-binding advisory vote on Woodside's plan to reduce emissions and its performance against that plan.

  17. Media release

    Say on Climate launches with resolutions to Santos and Woodside

    “The Say on Climate framework will provide shareholders with the opportunity to send a clear signal to the board about whether the company is effectively managing the risks of climate change.”

  18. Shareholder Resolution

    ACCR Shareholder Resolution to Santos Ltd to adopt Say on Climate reporting

    ACCR has filed a Shareholder Resolution to Santos (ASX: STO) asking for an annual vote on the adoption of a Climate Report consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Climate Action 100+ Net-Zero Company Benchmark as developed by institutional investors.

  19. Media release

    Santos targets ignore the elephant in the room

    “Santos’ new climate targets ignore its biggest problem: the emissions from the oil and gas it sells to customers (Scope 3). Scope 3 emissions account for approximately 80% of Santos’ carbon footprint.”

  20. Media release

    BHP dumps QRC; Origin and Santos should do the same

    “BHP has proven the value of ACCR’s shareholder resolution—some industry associations simply won’t change unless there are financial consequences”.

  21. Santos, Narrabri

    Narrabri gas project: investors now last line of defence

    The proposed Narrabri fracking project will imperil Australia’s commitments to the Paris Agreement and its high cost of production will likely see it stranded before the reserves are exhausted.