Santos is being taken to court over claims it has been ‘greenwashing’ its clean energy credentials. 

Shareholder activist group the Australasian Centre for Corporate Responsibility (ACCR) has launched a Federal Court case accusing Santos of engaging in misleading or deceptive conduct in its “clean energy” claims and net zero plan.

The allegations originally related to Santos’ 2020 annual report, but have since been expanded to include comments made during a Santos investor day briefing and in its 2021 Climate Change Report.

The ACCR says it is the first time the veracity of a company's net zero emissions target has been challenged in this way. 

“The climate crisis requires everyone to take credible action … there is no room for exaggerating claims about decarbonisation in this moment,” ACCR executive director Brynn O'Brien says. 

“Investors have an expectation of accurate information going into the market, investors are making billion-dollar investments in companies on the basis of information they put out.

“So optimism is one thing, but misleading the market is another. It is our allegation that Santos, in these statements, has engaged in misleading or deceptive conduct.”

Santos has not commented publicly on the matter. 

Meanwhile, financial regulator ASIC says it is keeping a close eye on the climate change commitments being made by corporate Australia.

“There has been a proliferation of investment products and companies appealing to consumers with sustainable or 'green' investments and 'net zero' emission promises,” ASIC chair Joseph Longo said in a recent speech. 

“If you make net zero claims, you must have substance behind those claims.

“Aspiration on its own is not enough - the bar is set much higher.

“We want to ensure that firms moving towards net zero do so with integrity — fostering trust and practising transparency.”