The Federal Court has dismissed a landmark greenwashing case against Australian gas producer Santos, which alleged the company misled the public on its plans to achieve net zero carbon emissions.
The lawsuit was launched in 2021 by the Australasian Centre for Corporate Responsibility (ACCR), which alleged Santos had breached Australian law by engaging in misleading or deceptive conduct when it said it had a clear pathway to reduce emissions by 26%-30% by 2030 and reach net zero by 2040.
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It also challenged Santos’ claims it was a producer of “clean energy”, that natural gas was a “clean fuel” and that hydrogen it produced from natural gas through carbon capture and storage (CCS) was “clean” with “zero emissions”.
ACCR asked the court to declare that Santos engaged in misleading or deceptive conduct, prevent the company from doing so in the future, and require the company to correct its statements.
However, Judge Brigitte Markovic dismissed the case and ordered ACCR to pay Santos’ costs. Judge Markovic’s reasons for the ruling will be published on February 23.
ACCR’s co-chief executive Brynn O’Brien said the group would take time to review the decision before considering its next steps.
“This was a landmark case that paved the way for others around the world to challenge corporate net zero claims in court,” O’Brien said in a statement.
“It has been a David versus Goliath battle and Goliath won this round.”
Santos also issued a statement, saying, “Santos welcomes the decision by the Full Federal Court of Australia in the case of the Australasian Centre for Corporate Responsibility v Santos Ltd.
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“The Court has determined to dismiss the case and award costs to Santos. Santos is committed to transparent, accurate and compliant reporting. The case against Santos related to certain aspects of its 2020 Annual Report, 2021 Climate Change Report and 2020 Investor Day presentation, including disclosure of its 2040 Net Zero Roadmap at that time.
“Since the publication of the Roadmap, Santos has developed a Climate Transition Action Plan that continues to evolve, as we have consistently said it would do with the progression of technology, markets, and public policy over time.”
