CEO Statement on Business and Climate Change and the Paris Negotiations

Climate change is affecting our businesses and the communities in which we operate. We recognise that we have a role to play, and we want to play our part.

As a global stakeholder in the energy business we recognise that one of our key social and environmental responsibilities is to pursue strategies that address the issue of climate change.

Climate change is affecting our businesses and the communities in which we operate. We recognise that we have a role to play and we want to play our part. We represent a diverse group of companies from the energy, resources, retail, infrastructure, technology, consumer goods, property, services, banking and finance sectors.

Together we employ over 620,000 people across 175 countries. Between us we provide products and services to the majority of Australians. We also emit around 12 per cent of Australia’s national greenhouse gas emissions. We have come together because we acknowledge that climate change will continue to have serious implications for our customers, the community and the economy. These are risks we need to manage.

Investing in Australia’s response to climate change will deliver significant economic, social and environmental benefits for us all. We support the Australian government’s commitment to limit global warming to less than two degrees Celsius above pre-industrial levels, alongside other nations within an international agreement. Australia needs to play its fair part in global action.

The Intergovernmental Panel on Climate Change concludes that to achieve this goal we must achieve zero net emissions of greenhouse gases before the end of the century. We support the bipartisan objective that international negotiations in Paris deliver a positive outcome to put the world on the path to limiting global temperatures to less than two degrees Celsius.

We all acknowledge that achieving this will be challenging for Australia and all countries. But agreeing on a goal and a pathway to achieving this is critical and should not be delayed. The longer we wait, the harder it will be and the more it will cost us. Australia is a significant exporter of energy and also has plentiful clean energy resources. We are a leader in technology and innovation. We are also vulnerable to climate impacts and we have a strategic interest in managing climate change.

As businesses, we support the decoupling of economic and emissions growth. We all recognise the need for a responsible transition to decarbonised, sustainable economic development. Our companies are reducing our emissions, investing in technology and innovation, preparing for physical impacts and working across industry and the community to build a strong global response to climate change.

For business, this is about good Board governance, prudent risk management and positioning competitively for the future. We will continue to invest in an effective business response. We remain committed to working with other companies, investors, community stakeholders and governments to support a successful outcome in Paris.

We pledge to continue to support the ongoing development and implementation of effective international frameworks and effective domestic policy responses.

David Knox - former Managing Director and CEO, Santos

Andrew Vesey - Managing Director and CEO, AGL

Andrew Mackenzie - CEO, BHP Billiton

Geoff Culbert - President and Chief Executive, GE Australia, New Zealand and Papua New Guinea

Susan Lloyd-Hurwitz - CEO and Managing Director, Mirvac

Clive Stiff - Chairman and CEO, Unilever

Brian Hartzer - Managing Director and CEO, Westpac Group

 

Save | Switch | Store

Looking to the future, we realise that our vision to deliver energy to customers in Australia and Asia will require different skills and new thinking. But our history gives us an advantage: we can build on the lessons of the past and be open to new ways, new ideas and new frontiers with a confidence based on our successes over the past 60 years.

We envisage a fully integrated low-carbon strategy that leverages our existing natural gas portfolio with existing and emerging technologies. Access to clean reliable energy is integral to almost every facet of our lives. We all use energy. Our strategy will position Santos to meet this growing energy demand in a low-carbon environment.

Our low carbon technology integration strategy is being progressively delivered and has three core elements: save, switch, and store.

This strategy will deliver fuel savings, reduce our greenhouse gas emissions, and ultimately create new business opportunities.

Save

Technology and innovation are the driving forces behind our day-to-day operations at Santos. It means we are focused on developing this industry to become safer and more sustainable every day.

Our energy efficiency program is delivering annual energy saving of 4.6PJ (235ktCO2e).

For example, our waste heat recovery project at Moomba has delivered energy savings of 840TJ per year by optimising process efficiencies.

Switch

We are identifying opportunities to switch higher carbon energy to lower carbon at our operating sites.

Our total installed capacity of renewable energy for self-generation is 473kW, and is estimated to generate 725,600kWh of electricity per year.

Our solar photovoltaic installation at Scotia is estimated to reduce fuel use by 47,000 litres of diesel per year.

Store

Santos continues to investigate geological and biological carbon sequestration options.

With our significant infrastructure position in the Cooper Basin we are well positioned to review and, when feasible, implement carbon capture and storage.

We have also implemented several vegetation projects that are delivering multiple environmental benefits including biodiversity, water reuse, and carbon sequestration.