Another leading consultant, the ISS, said Santos` investment and emissions data did not comply with the Paris agreement. « Investors could benefit from additional information on how the company is able to manage its greenhouse gas emissions, align them with the Paris targets and manage the associated risks, » he said. The center moved two resolutions. First, that Santos has set targets that correspond to the objectives of the Paris Agreement for its direct emissions and indirect emissions of « Scope 3 » emitted by consumers of its products, and second, that it verify its membership in an industrial association. Applications received 43% and 46% support at the annual general meeting of Santos, took place online Friday because of the coronavirus pandemic. Emma Herd, chief executive of the Investor Group on Climate Change, said oil and gas companies have been told for years that investors expect them to tackle climate change in accordance with the Paris agreement. Santos` board of directors had asked investors to adopt climate decisions and insisted that the current target of reducing emissions by 5% by 2025 and its ambitious goal of achieving net emissions of zero by 2050 should be « clearly » compatible with the Paris climate agreement, namely to keep global warming below 2 degrees. In addition, natural gas will reduce global emissions by replacing coal-fired electricity and providing the reliability needed to support the transition to more intermittent renewable energy sources. « This result is very promising for the general meeting season in Europe, where Shell and Equinor are facing the same demand for bets on all issues (Scope 1, 2 and 3), » added Mark van Baal, founder of Follow This, the Dutch non-profit organisation that presented the proposals to the two European oil heavyweights.
Mr Spence told the meeting that the resolutions were rejected, but it is clear that climate change is an important issue for our shareholders. Santos, one of Australia`s largest oil and gas companies, has been hit by an unprecedented breakthrough by investors against climate change, with nearly half of its shareholders calling for a commitment to tougher emissions reduction targets and an immediate overhaul of its associations with fossil fuel lobbyists.