Santos Wins Greenwashing Lawsuit, Court Dismisses ACCR Case
Gas company Santos successfully defended a greenwashing lawsuit filed by the Australasian Centre for Corporate Responsibility (ACCR) in federal court on Tuesday. The court dismissed the case and ordered ACCR to pay Santos's costs. Detailed reasons for the decision are set to be published on February 23.
The federal court dismissed the greenwashing lawsuit against Santos and ordered the ACCR to pay costs.
Allegations and Defense
The ACCR, represented by the Environmental Defenders Office, accused Santos of breaching the Corporations Act through misleading or deceptive conduct. These claims were based on statements found in the company's 2020 annual report, an investor briefing, and a 2021 climate change report.
Key allegations against Santos included:
- Claiming to be a producer of “clean energy” and that natural gas was a “clean fuel.”
- Describing hydrogen produced with carbon capture and storage as “zero emissions hydrogen” and “clean hydrogen.”
- Stating it had a clear and credible pathway to net zero by 2040.
Santos countered that the ACCR's case overlooked its preparatory work. The company asserted its climate targets—to reduce emissions by 26% to 30% by 2030 and achieve net zero emissions by 2040—represented a statement of "present intention" rather than a "promise or prediction." Santos also referenced its Moomba Carbon Capture and Storage project, which it stated has been operational since September 2024.
Broader Implications
The 13-day trial in 2024 served as a precedent-setting case for how courts evaluate corporate statements regarding net-zero transitions.
Reactions
Santos issued a statement welcoming the ruling, reaffirming its commitment to transparent and compliant reporting. The company noted that its climate transition plan continues to adapt with technological and policy advancements.
Brynn O’Brien, co-chief executive of the ACCR, expressed disappointment and indicated the organization would review the judgment. She described the case as landmark, highlighting its role in inspiring challenges to corporate net-zero claims globally. O'Brien also noted that the case brought attention to how Santos's plans were developed for market advantage.