Australian Court Dismisses Climate Case Against Santos

Charles Kennedy

Tue, February 17, 2026 at 2:44 PM GMT+9 3 min read

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Santos Limited has secured a legal victory after the Full Federal Court of Australia dismissed a climate-related case challenging aspects of its past disclosures and ordered costs in the company’s favor.

The case, brought by the Australasian Centre for Corporate Responsibility (ACCR), targeted statements made in Santos’s 2020 Annual Report, 2021 Climate Change Report, and a 2020 Investor Day presentation. At issue were elements of the company’s 2040 Net Zero Roadmap and related climate commitments, with ACCR arguing that certain representations were misleading.

In its ruling, the Court dismissed the claims in full, marking a significant outcome in the evolving landscape of climate litigation against oil and gas producers in Australia.

The Federal Court’s decision effectively affirms Santos’s position that its climate-related disclosures met legal standards at the time they were made. The Court also awarded legal costs to Santos, underscoring the company’s successful defense.

Santos reiterated its commitment to “transparent, accurate and compliant reporting,” noting that its Climate Transition Action Plan has evolved since the initial publication of its 2040 Net Zero Roadmap. The company emphasized that it had consistently stated that its transition strategy would adapt in line with technological, market, and regulatory developments.

More than 85% of voted shares supported Santos’s Climate Transition Action Plan at its most recent Annual General Meeting, reflecting strong shareholder backing for its climate strategy in the advisory “Say on Climate” vote.

Central to Santos’s defense of its climate roadmap is the Moomba Carbon Capture and Storage (CCS) project in South Australia. The company had previously committed to developing the project and to working with governments to establish a carbon capture and storage regulatory framework.

Moomba CCS has been operational since September 2024 and is designed to inject up to 1.7 million tonnes per year of CO2 equivalent into depleted hydrocarbon reservoirs for permanent storage. Santos describes the facility as one of the largest and lowest-cost CCS projects globally.

The company has framed Moomba as tangible evidence that its earlier commitments have translated into operational emissions-reduction infrastructure, positioning CCS as a core pillar of its decarbonization strategy while maintaining hydrocarbon production.

The ruling comes amid intensifying scrutiny of ESG disclosures across the energy sector, particularly around net-zero claims and transition plans. Globally, activist investors and advocacy groups have increasingly turned to courts to challenge what they characterize as “greenwashing” in corporate climate strategies.

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Australia has become a focal point for such litigation, with regulators and courts testing the boundaries of climate-related financial disclosures. For oil and gas producers, legal clarity around forward-looking statements and transition pathways is emerging as a material risk factor.

For Santos, the decision removes a legal overhang that had the potential to affect investor sentiment, particularly as the company continues to advance carbon management projects and LNG expansion plans. The endorsement of its Climate Transition Action Plan by shareholders, combined with the operational launch of Moomba CCS, strengthens its argument that its net-zero pathway is grounded in deployable technology rather than aspirational targets.

With climate accountability cases continuing to proliferate worldwide, the outcome of this case may serve as an important reference point for other energy companies facing similar legal scrutiny over climate disclosures.

By Charles Kennedy for Oilprice.com

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