(Reuters) – Australian gas producer Santos Ltd on Wednesday set out new 2030 emission targets in its annual climate report, at a time when energy firms are encountering heightened scrutiny over their commitment to combat climate change.
Santos set new targets for reducing carbon emissions from its operations by 2030, targeting a 30% reduction in absolute emissions and a 40% reduction in emissions intensity.
The company also set a “scope 3” target to reduce customer emissions by 1.5 million tonnes of carbon dioxide equivalent per annum under its plan to become a net-zero emissions energy and fuels business by 2040.
Scope 3 includes emissions generated up and down the company value chain, including by suppliers and customers.
Investors in Santos, however, overwhelmingly opposed a resolution last year that would have pushed the company to spell out moves to wind down its oil and gas operations to help curb global warming, according to proxy votes at the annual meeting in April last year.
The company said on Wednesday it plans to use carbon capture and storage technology to accelerate the economic feasibility of hydrogen as a clean fuel.
Santos, however, reckons emissions aren’t likely to peak before 2030 and won’t significantly fall until later that decade at the earliest. Australia’s federal government has a similar approach, ascribing 70% of its emissions-reduction goals to technologies that might not kick in for 20 years or don’t yet exist.
(Reporting by Riya Sharma in Bengaluru; Editing by Shounak Dasgupta)
