Climate Transition Action Plan

As part of Santos’ Annual Report materials, we have released our 2025 update on our climate strategy and Climate Transition Action Plan (CTAP) which details our progress and key climate commitments.

It takes into account feedback from shareholders and outlines how we are managing the risks and opportunities of the energy transition and describes the action we are taking towards our net-zero targets.

We have invested real dollars in real projects that are now leading to real emissions reduction.

Since our targets baseline year of 2019-20, we have achieved a 42 per cent reduction in our equity share Scope 1 and 2 emissions, exceeding our 2030 emissions reduction target.

We are confident that our climate strategy will enable Santos to generate shareholder value by supplying the energy needs of today while seeking to develop the low carbon fuels and carbon reduction solutions of tomorrow.

All information on this page should be read in conjunction with our Climate Strategy Update 2025 and our 2025 Annual Report.

2025 Climate Transition Action Plan

Our CTAP outlines our current potential decarbonisation initiatives Santos is pursuing to achieve our Scope 1, Scope 2, commercial carbon storage growth and methane targets. It also provides a potential pathway to develop and deliver commercial carbon management services, lower carbon energy and low carbon fuels in the future.

Since 2023, we have invested over $690 million in CTAP activities. This real investment in real projects is now leading to real emissions reduction. Since 2019-20 (our target baseline year), we have achieved a 42 per cent reduction in our equity Scope 1 and 2 emissions, exceeding our 2030 emissions reduction target.

Refer to page 6 of the Climate Strategy Update 2025.

Approach to Paris Agreement goals

Santos is setting its targets and undertaking actions to contribute to UN Paris Agreement Goals as set out below.

Refer to Climate Strategy Update 2025 and 2025 Annual Report references noted above for further information.

Refer to page 11 of the Climate Strategy Update 2025.

Santos has undertaken analysis of how our Scope 1 and 2 net emissions targets generally compare against emissions trajectory scenarios that third parties have modelled which limit global warming to well below 2 degrees Celsius, a goal of the Paris Agreement. While Santos does not intend to represent any specific alignment of compatibility of its targets with these third-party below 2 degree scenarios (noting that those scenarios depict global gross emissions against a variety of energy sources), comparing our historic and targeted emissions[1] with such scenarios provides us with further general understanding of progress toward our climate goals.

The analysis used a range of below 2 degrees Celsius emissions scenarios developed by leading energy and climate institutions, including the IEA, S&P, Network for Greening the Financial System (NGFS), BP and Shell,[2] and sought to focus on emissions trajectories relevant to Santos’ operations. Our historic and targeted emissions were analysed using 2024 as the baseline year and were compared against these modelled scenarios.[3]

[1] Emissions reduction targets as per our climate targets on page 4 of the Climate Strategy Update 2025. The 2040 emissions reduction forecast represents the target of net-zero Scope 1 emissions plus a forecast of Scope 2 emissions through to the target of net-zero in 2050 based on portfolio forecast data accounting for electricity usage and forecast changes in grid intensity.

[2] Analysis also considered scenarios published by IPCC but were not included as it is not sufficiently current to reflect present-day conditions.

[3] While this chart aims to show a comparison of our historic and targeted emissions with third-party below 2 degree scenarios, Santos does not intend to represent any specific alignment or compatibility of its targets with those scenarios, noting that those scenarios depict global gross emissions against a variety of energy sources. The third-party emissions trajectories analysed are inclusive of all global emissions, including those which would be considered Santos Scope 3. Santos does not have control over Scope 3 emissions as they are the Scope 1 and 2 emissions of other entities, and as such we have not included our Scope 3 emissions in this analysis. In 2025, Scope 3 emissions (equity share) comprised approximately 88 per cent of our total Scope 1, 2 and 3 emissions (equity share). There remains uncertainty around below 2 degrees Celsius pathway scenarios as the science of climate change continues to evolve. Santos has utilised the most up-to-date third-party pathways available as at the date of the report to conduct our analysis, however we acknowledge that 1.5 degrees Celsius pathway scenarios are subject to many assumptions and uncertainties and emissions trajectories analysed were generally aligned as closely as possible to Santos’ operational context, including data interpolations as required where emissions trajectories did not align to the baseline year of 2024. However, limitations on external provider data availability and granularity may result in only partial comparability with Santos’ emissions reduction targets.

Carbon capture and storage

With the world requiring more energy,[1] if we are serious about our climate targets, abating emissions from hydrocarbons has to be part of the decarbonisation solution.

In scenarios where warming is limited to 1.5 degrees Celsius, more than half of assumed gas demand by 2050 is abated through CCS.[1]

CCS is the process of capturing CO2 and storing it safely underground. It is considered to be a key pillar of decarbonisation by the International Energy Agency (IEA).[1]

CCS is one of the technologies with real potential to abate emissions at scale available today and there is no better example than our Moomba CCS project.

Moomba CCS phase 1

Santos’ Moomba gas plant’s infrastructure has been repurposed to extend the life of the asset, which has been producing gas for 50 years, to potentially also store carbon for the next 50 years.

Phase 1 of Santos’ Moomba CCS project successfully commenced injection in September 2024. It is currently one of the largest and lowest-cost projects globally.

In October 2025, Moomba CCS received its first Australian Carbon Credits Units (ACCUs). The issuance of 614,133 ACCUs is the single largest issuance by the Clean Energy Regulator. A further 293,739 ACCUs were issued prior to the end of 2025.

Refer to page 8 of the Climate Strategy Update 2025.

[1] IEA 2025, World Energy Outlook 2025.

Low carbon fuels

Santos is exploring concepts and technologies to support the potential delivery of low carbon fuels. It is a customer-led opportunity to supply products that reduce both Santos’ and our customer’s emissions. Santos has completed early engineering studies on a synthetic gas facility in the Cooper Basin with a number of partners looking at commerciality of producing low carbon synthetic gas from hydrogen and captured carbon dioxide for export to Japan.

Santos is also evaluating acreage in the Cooper Basin for a geothermal pilot project. Geothermal power in the Cooper Basin has the potential to support further decarbonisation of Santos’ assets and enable future low carbon fuels productions.