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.
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.
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.
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.
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.
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.
“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."
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.
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.
“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.”
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.”
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.
