Engagement

Santos has provided a comprehensive mix of short, medium and long-term greenhouse gas reduction targets which includes scope 1 & 2 emissions and demonstrated strong ambition in its Scope 3 reduction plan. The report also provided a clear pathway on how the company intends to decarbonise using carbon, capture & storage (CCS). Santos's investment in the Moomba CCS project added credibility to the strategy and supported the climate report. To achieve its scope 3 reduction goal, Santos has committed to only sell to customers from countries that have a net zero commitment or are signatories to the Paris Agreement. In addition, we note the CEO’s remuneration was linked to decarbonisation.

Nonetheless, we saw scope for better disclosure from a project perspective on how Santos could achieve its net-zero goal and how it fits in with 1.5-degree scenarios. We also communicated to management that we would like to see more disclosure on decommissioning liabilities.

Shareholder Sustainability Reporting: We considered the merits of the shareholder proposal and are supportive of the Adoption of Global Standards on Corporate Climate Lobbying – making it more comprehensive and granular, moving beyond policy-to-policy comparison, and including an analysis of each associations lobbying activities and statements.

We also consider other leading statements, including policies’ principles beyond the Paris Agreement, issues such as net-zero emissions, carbon pricing, energy efficiency, support for low carbon technology, and the energy transition. In addition, disclosures could articulate escalation strategies that  it could employ, such as communicating the differences, development of new positions, or restraint from advocacy in the concerning area.