Court Dismisses Groundbreaking Climate Lawsuit Against Santos

An Australian court dismissed a lawsuit against Santos, filed by the Australasian Centre for Corporate Responsibility, claiming Santos misled the public on its net zero emissions targets. The ruling, watched globally, highlights the burden on investors to scrutinize companies' climate commitments.

In a landmark decision, an Australian court has dismissed a lawsuit against gas producer Santos, which was accused of misleading the public over its net zero carbon emissions plans. The lawsuit was initiated in 2021 by the Australasian Centre for Corporate Responsibility (ACCR), marking the first case of its kind to challenge a company's net zero claims.

With global pressure mounting on companies to establish ambitious carbon neutral goals, the Federal Court case was closely observed for its potential impact on corporate accountability regarding climate targets. The ACCR argued that Santos had violated Australian corporations and consumer laws by deceptively claiming it had a clear path to reducing emissions by 26%-30% by 2030 and achieving net zero by 2040.

Despite ACCR's efforts to have the court declare Santos' actions as deceptive, the court dismissed the case and ordered ACCR to cover Santos' legal costs. ACCR co-chief executive Brynn O'Brien expressed disappointment, noting the decision puts the onus on investors to meticulously verify companies' climate-related statements.