The Australasian Centre for Corporate Responsibility (ACCR) is calling into question Santos’ emissions reduction targets, released today.
Commenting on Santos’ targets, Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“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. Santos has merely committed to “work with its customers” to reduce these emissions rather than setting an absolute target.”
“In April, more than 40% of Santos’ shareholders called on the company to set Paris-aligned targets across its entire value chain, including Scope 1, 2 and 3 emissions. This announcement fails to deliver on those shareholder expectations.
“Rather than shift away from fossil fuels, Santos plans to significantly grow production in the years ahead through the Barossa, Narrabri, Timor Sea and Northern Territory projects. This is despite writing off another $1.1 billion in asset values earlier this year.
“Santos has said it will reduce operational emissions through a combination of carbon offsets, operational efficiency and carbon capture and storage (CCS). If Santos is serious about CCS, it must support a price on carbon.
“Offsets do not reduce emissions, and the easiest way to reduce emissions is not to emit them in the first place.”
ACCR’s climate program aims to accelerate the energy transition to a low carbon economy in line with the Paris Agreement. We engage with listed companies on their climate risk disclosure and the need to set emissions reduction targets consistent with the Paris Agreement, and we also push for reviews by listed companies of their industry associations’ climate policy advocacy.