Climate Change Reports:
Our climate change objective is to deliver on the dual ambitions of limiting greenhouse gas emissions and supplying affordable, reliable and cleaner fuels to domestic and global markets.
We pursue our objective and targets with reference to the UN Sustainable Development Goals, in particular Goal 7: Affordable and clean energy and Goal 13: Climate action.
Santos seeks to be a global leader in the transition to cleaner energy and clean fuels, by helping the world decarbonise to achieve Net Zero in an affordable and sustainable way. At the same time, we recognise the importance of price stability and supply security to ensure a just transition, especially for the world’s most vulnerable communities.
Reporting our progress on addressing the climate challenge
Since 2018, Santos has published annual climate change reports that align with the recommendations of the G20’s Task Force on Climate-related Financial Disclosures (TCFD). The latest 2022 Climate Change Report outlines Santos’ climate transition strategy and action plan as we work to become a net-zero emissions energy and fuels business by 2040, in step with the goal of the UN Paris Agreement on climate change.
Read more in the 2022 Climate Change Report here.
Our journey to net-zero emissions by 2040
Our 2021 activities
Our strategy focuses on natural gas as a reliable transition fuel source and the development of technologies including CCS, and clean fuels, such as hydrogen, as foundations for our decarbonisation pathway. To deliver on our objective, targets and Policy positions, Santos has a Climate Transition Action Plan. The Plan focuses efforts in the following areas:
- Operational efficiencies: Initiatives including energy efficiency, reduced fuel use and flaring, electrification and renewables integration designed to reduce the Scope 1 and 2 emissions of our operations
- CCS: Step-change technology that will reduce emissions and pave the way for new revenue streams from future clean fuels and carbon solutions
- Carbon solutions: Opportunities to reduce emissions and generate offsets for Santos and customers
- Clean fuels: Leveraging CCS as a platform for clean fuels such as hydrogen on a demand-led basis
- Supply chain collaboration: Working with customers to cultivate demand for lower-carbon fuels.
The Climate Transition Action Plan is underpinned by the disciplined allocation of capital to fund delivery of our climate transition initiatives and a commitment to a sustainable and just transition for our people and the communities where we operate.
Santos achieved accelerated delivery of two of its 2025 climate-related targets in 2021 and is on track to achieve the third.
Following our strong performance toward the achievement of these 2025 targets and 2021 merger with Oil Search, we updated and strengthened our 2030 emissions reduction, emissions intensity and clean fuels targets.
Scope 1 and 2 emissions reduction:
Santos’ priority is to avoid and minimise emissions from our operations by improving our operational efficiency. To deliver on our targets we are focused on a range of initiatives across three elements of our Climate Transition Action Plan: operational efficiencies, CCS and carbon solutions. These are outlined in detail in our 2022 Climate Change Report.
Operational efficiencies and strategic investments have enabled Santos to reduce the emissions intensity of our portfolio by 20 per cent from 2016-17 levels. While the merger with Oil Search in 2021 increases Santos’ absolute emissions, it has decreased our emissions intensity and we continue to focus on our decarbonisation targets.
Carbon capture and storage: Step-change technology
CCS is a critical technology to meet the goals of the Paris Agreement. Santos has a CCS hub strategy across our core asset areas with the potential to create more than 30 million tonnes per annum of CO2 storage capacity, with line of sight to 10 million tonnes per annum of storage capacity by 2030. Santos’ assessment and investment in step-change technology has been, and continues to be, focused on CCS.
In 2021, Santos achieved our 2025 step-change emissions target by making final investment decision on the Moomba CCS project. Santos has invested over $24 million (equity share) in developing the Moomba CCS project. Moomba CCS will be one of the world’s largest and lowest-cost CCS projects, storing up to 1.7 million tonnes of CO2 per annum at a lifecycle cost of less than $24 per tonne. Costs are expected to decrease with scale and previous studies have concluded that the Cooper/Eromanga Basins have the potential to store more than 20 million tonnes of CO2 per annum.
 Equity share, pre-merger. Santos’ 2019-20 emissions include post-ConocoPhillips ABU West asset acquisition equity of the Bayu-Undan asset for the full financial year.
 Prior to the Oil Search merger and in period from 2016-17 to 2020-21, from 65 ktCO2e/mmboe to 52 ktCO2e/mmboe. The merger with Oil Search is consistent with the company’s efforts to reduce emissions intensity across our portfolio. While the merger occurred after this time, the Scope 1 and 2 emissions intensity of the combined entity in the 2020-21 period would have been 47 ktCO2e/mmboe.
 IEA Energy Technology Perspectives, Special Report on Carbon Capture Utilisation and Storage – CCUS in Clean Energy Transitions: https://iea.blob.core.windows.net/assets/181b48b4-323f-454d-96fb-0bb1889d96a9/CCUS_in_clean_energy_transitions.pdf
Climate Transition Action Plan
The decarbonisation initiatives set out in our Climate Transition Action Plan provide a pathway for Santos to achieve our climate change targets and grow our business through Carbon Capture and Storage and clean fuels projects.
Santos’ carbon mitigation hierarchy is avoidance first, followed by reduction and offsetting.
The Climate Transition Action Plan sets out how we envisage materially reducing emissions within our operational control and delivering value for shareholders through the energy transition by offering carbon solutions and partnering across our supply chain to produce cleaner energy and clean fuels that will reduce our customers’ emissions.
*This Climate Transition Action Plan is designed to be read in conjunction with the explanatory text available here.
Our focus is on continued implementation of our Climate Transition Action Plan as detailed in our 2022 Climate Change Report. This includes:
Further delivery of energy efficiency projects such as increased integration of renewables and batteries into our power mix, deploying new process technologies such as LoHeat™ and capturing and recovering gas that is currently flared or vented.
Advancing our CCS hub strategy across our core asset areas. In particular, working with both the Australian and Timor Leste governments to progress the development of the Bayu-Undan CCS project that entered front end engineering design in March 2022.
Continuing to expand our portfolio of high-quality nature based-solutions and the development of new technologies, including CarbonAssist™ direct air capture technology with CSIRO.
Clean fuels hubs
Furthering studies that involve using CCS technology to accelerate the development of affordable clean fuels that support the acceleration of a future hydrogen economy.
Supply chain collaboration
Continuing to work with our suppliers to support and drive their operational efficiencies and emission reduction activities and with our customers to build demand for cleaner energy.
Where relevant, continuing to implement sustainable development plans, underpinning work with communities to transition successfully to post-project environments.
Collaborating with CSIRO on step-change emissions reduction technology
Find our more in our 2022 Sustainability Report.
Santos has a policy position to report annually on the company’s climate change governance, strategy, risk management and targets and metrics in a transparent manner aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
This is Santos’ fifth Climate Change Report referencing these disclosure recommendations. EY has provided assurance over disclosures in relation to the TCFD, recommendations presented in this report, including the assumptions and approach supporting the scenario analysis. The Assurance Statement can be found on page 63 of Santos’ 2022 Climate Change Report.
The Board of Santos has ultimate responsibility for the approval and oversight of strategy. This includes approval of our Climate Change Policy and oversight of its implementation. Board members bring a diversity of skills and experience, including consideration of climate change risks.
The Board has a process to ensure directors are kept informed on climate change issues via input from the senior leadership of the company as well as through independent advice when considered appropriate. The Environmental, Health, Safety and Sustainability Committee (EHSS Committee) supports the Board in overseeing Santos’ climate change program and performance.
Management, under the leadership of the Chief Executive Officer, is responsible for delivering the strategic direction and goals approved by the Board. These include implementation of climate-related targets and policy positions, identification and management of risks and opportunities, and reporting on these topics to the Board directly and/or through the relevant Board Committees. Santos has also established the role of Executive Vice President ESG. Reporting to the Chief Executive Officer, the role is an Executive Committee role with accountability for oversight of climate targets and climate-related matters across the company, including setting standards, monitoring and auditing performance across the business, maintaining a risk register, and internal and external reporting.