We have set decarbonisation goals, including net-zero Scope 1 and Scope 2 equity share emissions targets, and a long-term aspiration to store more carbon than we emit (Scope 1, 2 and equivalent Scope 3 emissions).
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 focussed on our three horizon strategy: backfilling, sustaining and decarbonising Santos’ existing operations, continuing to build and grow through disciplined development of upstream resources, infrastructure and a commercial third-party carbon management business, and investing in the potential technologies needed to develop the low carbon fuels of the future as markets evolve.
Our material topics
- Climate change
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 Scope 1 equity share net emissions by 2040 and net-zero Scope 2 equity share net emissions by 2050. Through selective investment in emerging technology, we are addressing the final horizon of our strategy, which is aiming to prepare 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 2025.
Read more on our approach to climate, strategy, risks and opportunities, our Climate Transition Action Plan (CTAP), targets and metrics in the Sustainability Report (mandatory) in the 2025 Annual Report and our Climate Strategy Update 2025.
We recognise the impact of climate change on our business is likely to extend beyond the boundary of our operated assets.
As part of ongoing engagement with suppliers and customers, Santos has commenced screening of the climate-related risks facing our value chain stakeholders. This assessment includes climate risks for our upstream and downstream activities, as well as within our joint venture partners.
Additionally, climate issues, including but not limited to consideration of emissions reduction targets, updates on emissions performance management, and approval of annual climate reports, are on the agenda of the Board of Directors at least annually.
Physical climate risks
Santos has a context-specific plan to adapt to physical climate risks for both our existing and new operations. It is embedded in our operational delivery based on identified location-specific physical climate risks.
Refer to our Annual Report page 93 for a list of specific physical risks for individual assets and operating regions. Refer to pages 91-94 for details on how assets and operating regions develop specific plans to respond and adapt to climate risks relevant to their operations.
As one example, design components of Santos’ Pikka phase 1 project were evaluated using the high-emissions scenario from Santos’ physical climate scenario analysis. This included extreme precipitation and extreme cold considerations during design and construction, potential temperature rise contributing to permafrost thaw and a decrease in extreme cold temperatures impacting work conditions and duration.
As a result of its climate adaption plan, several potential physical climate change considerations contributed to certain project design decisions, including:
- Heat transfer from gravel infrastructure to the underlying permafrost minimised by design of gravel roads, well spacing, well conductor insulation with thermosyphons to maintain frozen ground conditions; and
- Flood events minimised by design and location of gravel facilities, drainage and infrastructure.