Santos Ltd is one of the largest oil and gas producers in Australia.
Santos Ltd (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.
In 2022, ACCR added shareholder engagement on its decommissioning liabilities.
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.
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.
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.
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.
“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."
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.
“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.”