We have set decarbonisation goals, including net-zero equity Scope 1 and equity Scope 2 emissions targets, and a long-term aspiration to store more carbon than we emit (Scope 1, 2 and 3 equivalent).
We advocate for the critical role natural gas will play in the energy transition in moving towards a lower carbon future.
Our approach to climate is integral to our company strategy and delivering long-term value to shareholders. This strategy is focused on backfilling and sustaining existing infrastructure, decarbonising Santos and third-party operations and investing in the technologies needed to develop the low carbon fuels of the future as markets evolve.
Our material topics
- Greenhouse gas emissions
- Climate adaptation resilience and transition
Our approach
Santos continues to invest in our core assets to deliver the critical fuels the world needs to meet global energy demand into the 2040s[1]. Our products are essential to support energy security and economic development.
At the same time, we are working hard to reduce Scope 1 and 2 emissions associated with these critical fuels, in line with our target of net-zero equity Scope 1 emissions by 2040 and net-zero equity Scope 2 emissions by 2050. Due to slower than expected progress towards grid decarbonisation, we have extended the timeframe applicable to our Scope 2 target[2]. Through selective investment in emerging technology, we are addressing the final horizon of our strategy, which is preparing the company to supply low carbon fuels as market and customer demand evolves. Our Climate Transition Action Plan (CTAP) sets out our response to the climate-related risks and opportunities in our business.
[1] IEA World Energy Outlook 2024
[2] Scope 2 emissions are determined by the local energy grids from which we draw electricity supply. According to government projections, these energy grids are not expected to be fully decarbonised by 2040,1 with risks and challenges related to planning approvals, availability of a skilled workforce, supply chain constraints and expansion of transmission lines, among other factors.2 As a result, Santos has revised our Scope 2 net-zero emissions target from 2040 to 2050. This change aligns with the Net Zero targets of the majority of jurisdictions where we operate. We remain committed to decarbonising our operations and our Scope 2 emissions, which make up six per cent of our 2024 Scope 1 and 2 equity emissions, and will decarbonise at the pace of the energy grids where we operate. Santos intends to identify opportunities to secure renewable-generated electricity for our operations, where economically feasible, and will continue to monitor whether this target can be achieved earlier. For more information on our emissions reduction targets and our progress towards these targets, refer to our Climate Report (page 68).
Read more on our approach to climate, strategy, risks and opportunities, our Climate Transition Action Plan (CTAP), targets and metrics in the Climate Report in the 2024 Annual Report and our Climate Transition Action Plan.