In a groundbreaking legal challenge, oil and gas company Santos is facing accusations of “greenwashing” from the Australasian Centre for Corporate Responsibility (ACCR), a shareholder in the company.
The case, which began in Australia’s federal court, is the first of its kind globally to test whether a company’s environmental claims can be held to account under corporate and consumer law.
The ACCR alleges that Santos misled investors by claiming a feasible plan to reduce emissions by up to 30% by 2030 and achieve net zero by 2040.
According to ACCR’s counsel, Noel Hutley SC, Santos’ net-zero commitments were based on “speculative” calculations without a concrete plan.
ACCR challenges Santos’ green claims in court, seeking accountability for alleged misleading emissions reductions and “clean fuel” assertions.Hutley further argued that Santos’ labeling of natural gas as a “clean fuel” and blue hydrogen as “zero emissions” was misleading, claiming that internal documents indicate the company knew hydrogen production would raise emissions—a detail omitted in Santos’ reports and net zero roadmap.
Representing Santos, Neil Young KC countered that the company’s net zero roadmap presented an aspirational target, not a guarantee, and investors would understand the speculative nature of future hydrogen and carbon capture developments.
Young emphasized that the company considers natural gas as a “cleaner” alternative to coal, underscoring its role as a “transition fuel” in reducing emissions.
The ACCR, which holds shares in Santos to promote climate action aligned with the Paris Climate Agreement, is asking the court to prevent Santos from making misleading claims in the future.
They are also requesting a corrective notice to address what they claim are exaggerated representations of environmental sustainability.
This high-stakes trial, expected to conclude by mid-November, highlights growing scrutiny of corporate climate claims and could set a precedent for environmental accountability in the oil and gas industry.