Oil and gas giant Santos is being sued for making empty promises about reducing its environmental footprint. The claimant in the case? None other than one of its shareholders, the Guardian reported.
What's happening?
According to the outlet, Santos has put forward a plan to significantly reduce its planet-warming emissions by 26% to 30% by 2030. It also claimed to have a plan for reaching zero emissions by 2040, in part by relying on polluting natural gas, which it dubbed "clean" energy.
In the lawsuit, these plans are accused of being baseless, with no tangible actions from Santos to make them possible or realistic. This practice — saying one eco-friendly thing while doing or planning the opposite — is also known as greenwashing.
The group accusing Santos is The Australasian Centre for Corporate Responsibility, an organization that buys strategic shares in energy companies like Santos. That way, it can try to push the oil, coal, and gas industries toward the goals of the Paris Climate Agreement.
Why is this lawsuit important?
The ACCR's lawsuit is not just an interesting strategy for holding a company accountable by investing in it. Initially filed in 2021, the case is also believed to be the world's first for a greenwashing dispute related to net-zero goals, per the Guardian.
The 13-day trial is expected to finish on November 15 after arguments have been heard from both sides.
"We'll be submitting that Santos lacked reasonable grounds for making these statements," Noel Hutley, the ACCR's legal representation, told the outlet.
Hutley also told the court that Santos' roadmap for making its plans come true were "little more than a series of speculations … cobbled together in a matter of weeks," per the Guardian.
As for Santos, the defendant argued its emissions commitments were only targets, not promises nor predictions. It also said that calling natural gas a "clean" energy source was in reference to it being a transition fuel away from bigger polluters, such as coal.
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What would be the impact if ACCR wins?
One way or another, the matter will be decided soon. If ACCR wins, Santos will be formally caught in the act of greenwashing, and must release transparent communication around its operations that clearly show environmental impacts. It would also be prohibited from making other deceptive policies going forward.
That would all be a win for consumers, who miss out on the benefits of clean energy — including the savings — when companies greenwash.
There's one more victory at stake: the legal precedent of a company losing a greenwashing lawsuit. If established, it could help the ACCR and other groups continue to fight for a safer, cooler planet full of companies who mean what they say.
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