Australian federal court dismisses landmark greenwashing case against gas giant santos

In a significant setback for climate activists and corporate accountability advocates, Australia’s Federal Court has dismissed a groundbreaking greenwashing lawsuit against energy company Santos. The case, filed by the Australasian Centre for Corporate Responsibility (ACCR), challenged the gas giant’s environmental marketing claims and represented one of the most high-profile attempts to hold fossil fuel companies legally accountable for their climate messaging.

The ACCR accused Santos of misleading investors and the public through its promotional materials that described the company as a producer of “clean energy” and highlighted ambitious “net zero” emission targets. The shareholder advocacy group argued these claims were deceptive given Santos’s core business of extracting and selling natural gas, a fossil fuel that contributes to greenhouse gas emissions when burned.

Tuesday’s court ruling represents a major legal victory for Santos and potentially sets a precedent that could influence similar greenwashing cases across Australia and internationally. The decision deals a blow to environmental groups who have increasingly turned to the courts as a strategy to challenge corporate climate claims they view as misleading or inadequate.

The case was closely watched by both environmental advocates and corporate lawyers as a test of how Australian courts would handle disputes over company environmental marketing. While this particular legal challenge has failed, it highlights the growing scrutiny fossil fuel companies face regarding their public statements about climate action and environmental responsibility.