ACCR Company Engagement Santos Ltd
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:
- 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.
- 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.
- 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.
- 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.
