The Australasian Centre for Corporate Responsibility has filed an appeal against the Federal Court's recent dismissal of its landmark greenwashing lawsuit against oil and gas giant Santos (ASX:STO).
The move seeks to challenge the ruling handed down by Justice Brigitte Markovic, which found that Santos’ claims regarding its decarbonisation pathways and "clean energy" strategies were not misleading or deceptive under Australian consumer law.
The original litigation, initiated by the ACCR in 2021, was widely regarded as a global test case for corporate climate accountability.
However, Justice Markovic's judgment concluded that the company's representations were based on reasonable grounds at the time they were made.
ACCR CEO Brynn O'Brien argued that the ruling establishes a concerning legal precedent that fails to align with the transparency required by modern financial markets.
"In our view, the judgment sets the bar for corporate communication about climate commitments well below market and investor expectations," O'Brien stated.
The ACCR maintains that the current ruling shifts an unreasonable burden onto investors to interrogate the complex assumptions, emerging technologies, and inherent uncertainties that underpin corporate net-zero pledges.
By escalating the matter to the Full Bench of the Federal Court, the ACCR aims to clarify the legal obligations of carbon-intensive companies when promoting their environmental credentials.
At the time of reporting, Santos' share price was $7.76.