Santos has emerged victorious in a Federal Court case brought against it by the Australasian Centre for Corporate Responsibility (ACCR). The activist shareholder group alleged that Santos breached corporations and consumer laws by making misleading claims about its “clean energy” initiatives. The case, which has garnered international attention, was dismissed in a ruling delivered on Tuesday. Santos is an Australian oil and gas producer committed to supplying essential energy safely, reliably and sustainably. The company also explores and develops natural gas and liquefied natural gas (LNG) for domestic and international markets.
The ACCR’s lawsuit was the first globally to challenge the validity of a company’s stated path to achieving net zero emissions. The group’s allegations centred around three key claims made by Santos. These included representations that Santos is a producer of “clean energy” and that natural gas is a “clean fuel,” as well as claims that hydrogen produced by Santos from gas with carbon capture and storage (blue hydrogen) is “clean” and “zero emissions.” The ACCR also challenged Santos’ assertion that it had a clear and credible pathway to achieving net-zero emissions by 2040.
Justice Brigitte Markovic announced the dismissal of the case in the Federal Court. However, the detailed reasons underpinning her decision will not be publicly released until February 23. The court heard arguments over a period of three weeks spanning October, November, and December 2024. The specifics of the arguments and evidence presented during these hearings will likely be crucial in understanding the basis for the court’s decision once the full judgement is available.
The dismissal of the case marks a significant win for Santos, while the ACCR will likely review the full decision when it is released to assess its options. The case has been closely watched by corporations and environmental groups alike, as it touches on crucial issues of corporate responsibility and environmental claims.
