Santos Ltd is the second largest listed oil and gas company in Australia.
ACCR has engaged with Santos (ASX:STO) for several years on its climate change commitments, and direct and indirect advocacy that conflicts with the Paris Agreement’s goals. ACCR has also filed resolutions calling for Santos to adopt Say on Climate reporting and improve its climate-related lobbying and decommissioning practices.
In late 2021 the company, one of the largest emitters in Australia, significantly expanded its portfolio through a merger with Oil Search, and is actively investing into a growth strategy for its oil and gas assets.
In August 2021, ACCR filed proceedings in the Federal Court, challenging Santos’ claims that natural gas provides “clean energy” and that it has a “credible and clear plan” to achieve “net zero” emissions by 2040.
Santos’ current capex heavy production growth strategy is not the optimal strategy to maximise shareholder returns, with a capital return strategy offering more value and less risk.
ACCR research finds a capital return strategy - share buybacks - offers higher value than delivering the portfolio of selected unsanctioned projects, with lower risk and fewer emissions.
From early 2021, with Chair Keith Spence at the helm, Santos has made a series of strategic decisions aimed at growth which have resulted in chronic share price underperformance.
ACCR is commenting on the Federal Court decision in Munkara vs Santos, in relation to the legal challenge by Tiwi Traditional Owners to Santos’ approval to lay its Barossa gas export pipeline.
Whilst the confirmation of early stage discussions between Woodside and Santos has seen an explosion of commentary and speculation, it is important that cool heads prevail and to acknowledge that there are significant headwinds against a deal.
The failure of the Australian LNG industry to deliver shareholder value requires scrutiny from investors as the industry seeks to progress new projects.
Recent lobbying by the oil and gas industry claiming Australia’s offshore oil and gas regulation system is “broken” is a distraction from company failings and a threat to First Nations’ rights to consultation.
ACCR filed a Further Amended Originating Application and Further Amended Concise Statement in its proceedings against Santos over alleged greenwashing.
ACCR is commenting on the results of Santos’ 2023 Annual General Meeting, where sizeable votes were recorded against all three directors facing re-election.
ACCR is commenting commenting on the statement and photos from a Santos whistleblower claiming that an oil spill from the Varunus Island Gas Plant appears to have resulted in the death of dolphins.
ACCR is responding to remarks from Santos’ Strategic Adviser External Affairs, Tracey Winters, at the Senate inquiry into oil and gas exploration and production in the Beetaloo Basin.
The Australasian Centre for Corporate Responsibility (ACCR) has filed shareholder resolutions asking Santos (ASX:STO) to cease advocacy of its industry associations and disclose decommissioning liabilities.
ACCR has filed shareholder resolutions with Santos Limited (ASX:STO) and Woodside Petroleum Ltd (ASX:WPL), calling on both companies to improve their disclosures on decommissioning liabilities, and to cease direct and indirect advocacy for oil and gas expansion.
The vast majority of planned Santos and Oil Search projects are inconsistent with a safe climate and are vulnerable to asset stranding in the face of escalating global decarbonisation efforts.
Acting on behalf of ACCR, lawyers from the Environmental Defenders Office (EDO) will claim that Santos is engaging in misleading or deceptive conduct in potential contravention of both corporate and consumer law.
The Santos and Oil Search merger demonstrates that neither company is serious about taking climate action, and that their only goal is to maximise oil and gas production at a time when climate chaos is raging across the northern hemisphere.
Santos has made little mention of climate change in its merger proposal announcement, claiming it can easily shift to hydrogen-based fuels - yet shows absolutely no pathway to this claim.
“The recently announced $6 million growth bonus for CEO Kevin Gallagher is equally at odds with any genuine commitment to transition Santos to net zero by incentivising development of the Narrabri Gas Project and completion of Barossa at all costs."
We welcome the move by Santos (ASX:STO) to adopt the Say on Climate initiative and provide shareholders with a non-binding vote on the company’s Climate Change Report at next year’s AGM.
An annual Say on Climate will provide shareholders with a non-binding advisory vote on Woodside's plan to reduce emissions and its performance against that plan.
“The Say on Climate framework will provide shareholders with the opportunity to send a clear signal to the board about whether the company is effectively managing the risks of climate change.”
ACCR has filed a Shareholder Resolution to Santos (ASX: STO) asking for an annual vote on the adoption of a Climate Report consistent with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the Climate Action 100+ Net-Zero Company Benchmark as developed by institutional investors.
“Santos’ new climate targets ignore its biggest problem: the emissions from the oil and gas it sells to customers (Scope 3). Scope 3 emissions account for approximately 80% of Santos’ carbon footprint.”
The proposed Narrabri fracking project will imperil Australia’s commitments to the Paris Agreement and its high cost of production will likely see it stranded before the reserves are exhausted.
BHP, Origin Energy, Santos and Woodside are behind efforts to dirty up the Clean Energy Finance Corporation (CEFC) by allowing it to invest in gas projects.
