Australian gas producer Santos Ltd released its new 2030 carbon emission targets in its annual climate report, targeting a 30 per cent reduction in absolute emissions and a 40 per cent reduction in emissions intensity.
Santos also set a “scope 3” target to reduce customer emissions by 1.5 million tonnes of carbon dioxide equivalent per annum under its plan to become a net-zero emissions energy and fuels business by 2040.
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Investors in Santos, however, overwhelmingly opposed a resolution last year that would have pushed the company to spell out moves to wind down its oil and gas operations to help curb global warming, according to proxy votes at the annual meeting in April last year.
Instead, Santos said it planned to use carbon capture and storage (CCS) technology to accelerate the economic feasibility of hydrogen as a clean fuel.
Market Forces released a scathing response to Santos’ new targets.
“Buried on page 40 of Santos’ new Climate Change Report is a damning chart, showing the value of the company’s oil and gas portfolio would drop by around half under the International Energy Agency’s Net Zero by 2050 scenario,” Market Forces’ Will van de Pol said.
“Santos projects this fall could be offset by opportunities in carbon capture and storage (CSS) and hydrogen and ammonia (produced from gas with CCS, rather than truly clean fuels produced from renewable energy).
“However, the only way for Santos to properly manage the massive downside risk facing its oil and gas business as the world moves to meet the climate goals of the Paris Agreement is to drop its plans to spend billions on oil and gas growth projects and instead manage down production in line with global climate goals.
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“Santos claims to support the climate goals of the Paris Agreement. But its plans to spend billions on increasing oil and gas production completely undermine this claim, and will actually see the company’s overall emissions increase over the next decade.”
Market Forces has filed a shareholder resolution to be voted on at Santos’ May 3 AGM, calling on the company to manage down oil and gas production in line with a net zero by 2050 pathway. Market Forces is also calling on investors to vote against Santos’ Climate Change Report and against the reelection of director Peter Hearl, who chairs the board’s Environment, Health, Safety and Sustainability Committee.
