How Will This End? Lessons (So Far) From The ACCR v Santos Greenwashing Case

The Federal Court (the Court) recently handed down its judgment in Australia’s first greenwashing case, testing net-zero assertions made by companies. It found representations regarding “clean energy” and statements made as to Santos Ltd’s targets for net-zero were not misleading. The Court dismissed the Australasian Centre for Corporate Responsibility (ACCR)’s claim and awarded costs against it.

ACCR has since filed an appeal, stating the judgment warrants clarification as it sets the bar for corporation communication about climate commitments “well below market and investor expectations”. 

Summary of the decision

The ACCR, a shareholder advocacy group, alleged that global energy company Santos made misleading and deceptive representations regarding their plan to (1) reduce greenhouse gas (GHG) emissions by 2030 (2030 Target) and (2) achieve “net zero” Scope 1 and 2 GHG emissions by 2040 (Net Zero Roadmap or Roadmap) (together, Targets) in contravention of sections 18 and 33 of