Cooper CEO David Maxwell said while it is "highly desirable" to have a world running solely off renewables and zero fossil fuels, "we are not there yet". 

"It is unrealistic to dismiss the complexities of the transition. This is why a clear pathway is critical," he said. 

The company first declared itself carbon neutral in October last year ahead of its annual general meeting, as it was able to fully offset its financial year 2020 emissions from the Sole gas field in the Gippsland Basin. 

It said it is investing in carbon offsets generated from Biodiverse Carbon's Coorong project, located southeast of Adelaide. The project uses 60 hectares of environmental plantings to generate Australian Carbon Credit Units. 

In June, it was awarded carbon neutral certification from Climate Active, a partnership between the Australian government and businesses aiming to independently certify companies' emission reduction efforts. 

The report also noted it was awarded the 2020 South Australian Premier's Award in Energy and Mining for exceptional performance. It also voluntarily aligns its climate change related disclosures, including its emissions, with the Task Force on Climate Related Financial Disclosures principles. 

Maxwell referred to AEMO scenarios, noting as the National Energy Market relies more on renewables; gas will still be needed to provide firming to the grid. 

"It also supports Australia's critical minerals which are essential for clean energy technologies," he said. 

The company has faced criticism from climate and environmental groups for its carbon-neutral claims, who say that its scope 3 emissions make up the largest part of its carbon footprint. 

On an equity share basis, scope 1 and 2 emissions in FY21 came to roughly 3800 tonnes of CO2 equivalent, according to the report, all of which was offset — however, its scope 3 emissions totalled 962,000Tco2e. 

Cooper said it offsets its "controllable" scope 3 emissions, which it defines as embedded energy and business travel.

In the report, Cooper said it is "actively investigating with our customers what cost-effective measures might be pursued to partially offset or mitigate downstream Scope 3 emissions".

"This includes progressing a carbon-neutral gas product certification," it said. 

"The company is committed to maintaining this position as far as reasonably and economically practical for the foreseeable future" it said. 

Cooper Energy shares are up 1.8% at 28c.