Gas giant Santos accused of greenwashing
The Environmental Defenders Office (EDO) has filed in the Federal Court in relation to the claim that natural gas is ‘clean fuel’ and that it has a ‘credible’ plan to reach net zero by 2040.
In this case the Environmental Defenders Officer is acting on behalf of the Australasian Centre for Corporate Responsibility (ACCR), and will contend that Santos’ 2020 Annual Report constitutes misleading or deceptive conduct pursuant to the Corporations Act 2001 (Cth) and the Australian Consumer Law.
This case is the first of its kind in the world to challenge the validity of a company’s actions in meeting its net zero targets. It is also the first case in Australia that highlights the issue of greenwashing in the oil and gas industry.
As one of Australia’s largest gas companies, Santos Ltd is a key contributor to the coal seam gas in Queensland and northern NSW. In 2019-20 Santos produced 7.74 million tonnes of CO2 equivalent emissions. Santos has described itself as a “clean energy” provider and has stated in its Annual Report that natural gas is in actual fact a “clean fuel”. In addition, Santos, has purported that it has a “clear and credible” pathway to obtaining net zero emissions by 2040.
The EDO is questioning the validity of such a pathway which relies so heavily on the questionable impacts of blue hydrogen. The EDO will assert that in making such statements, that Santos potentially engaged in misleading and deceptive conduct and will seek an injunction that requires Santos to correct the statements made, and for the Court to preclude Santos from engaging in “similar misleading or deceptive conduct in the future”.
This case will seek to hold gas giants accountable for the veracity of statements they make, as climate change comes to the forefront of the world’s consciousness.
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Sources:
Environmental Defenders Office: https://www.edo.org.au/2021/08/26/world-first-federal-court-case-over-santos-clean-energy-net-zero-claims/#:~:text=The%20Environmental%20Defenders%20Office%2C%20acting,net%20zero%20emissions%20by%202040