Australasian Centre for Corporate Responsibility v. Santos

Summary:

On August 25, 2021, Australasian Centre for Corporate Responsibility (ACCR), a shareholder advocacy NGO, sued Australian oil and gas company Santos over its claims that it provides clean energy natural gas and has a plan for net zero emissions by 2040. According to news reports, ACCR raised two major claims. First, ACCR alleges that Santos' claims that natural gas is "clean fuel" that provides "clean energy" misrepresents the true effect of natural gas on the climate, including the large releases of CO2 and methane during extraction and burning. Second, Santos’ claims that it has a clear and credible plan to achieve net zero emissions by 2040 are misleading. ACCR alleges that Santos plans to expand its natural gas operations and their plan depends on undisclosed assumptions about the effectiveness of carbon capture and storage processes. The suit alleges that these misrepresentations are in violation of Australian consumer protection and corporations laws.

At Issue: Whether an oil and gas company's representations that natural gas is a clean fuel and that the company has a credible net zero emissions plan were misleading.