‘Landmark’ greenwashing case against Australian gas giant Santos dismissed by federal court

The Federal Court has dismissed a high-profile greenwashing case against Australian gas company Santos, which was accused of making misleading claims about its net zero plans and portraying natural gas as a “clean” energy source. The case was brought by the shareholder advocacy group Australasian Centre for Corporate Responsibility (ACCR), which alleged that Santos engaged in deceptive conduct through its 2020 annual report, investor briefing, and 2021 climate change report. The court ruled in favor of Santos, rejecting the claims that the company’s statements violated the Corporations Act. The ACCR’s allegations centered on three main claims made by Santos: that natural gas is a clean fuel, that its hydrogen produced with carbon capture and storage qualifies as “zero emissions” and “clean hydrogen,” and that it had a credible pathway to achieving net zero emissions by 2040. Santos countered that these claims reflected its current intentions and ongoing efforts rather than definitive promises or guarantees. The company highlighted its targets to reduce emissions by 26% to 30% by 2030 and reach net zero by 2040 as part of its transparent reporting practices. Justice Brigitte Markovic dismissed the case after a 13-day hearing, ordering the ACCR to pay Santos’s legal costs. The detailed reasons for the judgment are expected to be published later. The case was seen as a significant test of how courts evaluate corporate statements on climate commitments and the boundaries of greenwashing under Australian law. Santos welcomed the decision, affirming its commitment to accurate and compliant environmental reporting. This ruling marks a setback for climate activists seeking to hold companies accountable for their environmental claims and may influence future litigation related to corporate climate disclosures. It also underscores the ongoing debate over the role of natural gas and hydrogen in Australia’s energy transition and the legal scrutiny of corporate sustainability narratives.