Landmark Climate Case Against Santos Dismissed in Australia

An Australian court has thrown out a lawsuit against gas producer Santos, which was accused of misleading the public on its net zero carbon emissions strategy. The lawsuit, initially filed by the activist group Australasian Centre for Corporate Responsibility in 2021, was considered groundbreaking globally in scrutinizing a company's vow to achieve carbon neutrality.

This case in the Federal Court of Australia was closely monitored for its potential to influence legal measures against corporate climate pledges. The ACCR charged Santos with violating Australia's corporations and consumer laws by falsely claiming a clear path to reduce emissions significantly by 2030 and achieve net zero by 2040. Additionally, the group disputed Santos' assertions about its clean energy label, questioning the cleanliness of natural gas and hydrogen produced through carbon capture and storage.

Nevertheless, Judge Brigitte Markovic dismissed the case, with detailed reasons to be issued on February 23. ACCR's co-chief executive Brynn O’Brien expressed disappointment at the outcome, viewing it as a setback for efforts to hold corporations accountable. The ruling places a greater responsibility on investors to thoroughly examine corporate climate commitments. Santos did not immediately provide a statement.