Santos won the greenwashing fight, but corporate Australia still faces a climate legal war
While many corporates will be breathing a sigh of relief after Santos successfully defended its net zero plan in court, experts warn activists may use other legal methods to pressure big businesses on climate.
The landmark defeat of greenwashing allegations against ASX oil and gas major Santos will give Australian corporates crucial guidance on the flexibility they can take in their net zero claims. But legal experts warn the ruling is unlikely to kill off climate themed lawsuits against big businesses.
Federal Court Justice Brigitte Markovic’s reasons for rejecting the lawsuit, published on 23 February, were eagerly awaited amid Australia’s multi-year phase-in of mandatory sustainability reporting obligations, which have received little judicial guidance to date.
Markovic dismissed the Australasian Centre for Corporate Responsibility (ACCR) case, which was the world’s first test of net zero claims when it was brought in 2021, and found that the gas giant had not misled investors in company reports on climate change.
She said Santos had ”a realistic roadmap” to net zero by 2040 even if it was based on a “long-term target that predicts what Santos can do if markets, technologies and regulatory regimes emerge as anticipated”.
