Major LNG Producer Challenged on Clean Claims in Landmark Case

One of the world’s first legal challenges over corporate greenwashing kicked off in an Australian court, with an activist shareholder group claiming natural gas producer Santos Ltd. misled investors on its climate targets.

The Australasian Centre for Corporate Responsibility said Monday in the Federal Court that Santos breached local laws with claims in 2020 and 2021 reports that it would reduce scope 1 and 2 emissions by 30% by 2030, zero out those emissions by 2040 and that its natural gas is a “clean fuel.”

The Adelaide-based company, a major producer of liquefied natural gas for buyers in Asia, didn’t ...