Santos is adamant its climate targets are adequate and achievable, as it looks to reach net-zero Scope 1 and 2 emissions by 2040.
"We are committed to continually making progress on the aspirations and targets we have set for each of our sustainability pillars, and maturing the way in which we report," CEO Kevin Gallagher said on Wednesday.
The net-zero target is backed up by an interim target of reducing emissions by 26-30% by 2030.
The company has faced criticism for not setting targets for its Scope 3 emissions - the largest portion of its carbon footprint, however its latest report sets out some targets, although it might not be what those of greener persuasions would want to hear. Scope 3 emissions deal with the end use of a product, in Santos' case the burning of its oil and gas by customers.
It described its Scope 3 targets as reducing global emissions through growing its LNG exports by 4.5 million tonnes per annum by 2025, via displacing coal for its lower emissions gas.
By 2030 it aims to work with customers to reduce their Scope 1 and 2 emissions by 1MMtpa.
The company is on the verge of a major expansion phase, recently making final investment decision on its Barossa LNG project which aims to provide backfill to Darwin LNG.
It is also looking to sanction its Dorado oil project in Australia's North West that it shares with Carnarvon Petroleum and its Narrabri CSG project in New South Wales.
Barossa has been blasted by climate and environmental groups for its high CO2 content - with estimates putting it at around 18-19%.
Meanwhile the state and federal approval process of Narrabri saw one of the nation's largest activist campaigns launched against it, with economists and scientists blasting it as both expensive and dangerous due to the emissions it would release, though other analysts see it as a necessary supply of gas for power and industrial purposes.
Critical to its target is its ability to develop its Moomba CCS project, which will capture third party CO2 and inject into oil and gas reservoirs. It will have an initial capacity of 1.7 million tonnes per annum, which it expects to expand down the track across the empty reservoirs of the Cooper Basin.
It is also hoping to use the project to offset production of its planned hydrogen development.
Santos expects to make a final investment decision on the Moomba CCS project by September this year.
"As a major fuels producer for the Asia-Pacific region, Santos has an important global role to play in a sustainable world," Gallagher wrote in the report's forward.
"We are committed to realising a global future where temperature increase is limited to below 2C, while reliable and affordable energy continues to power domestic global markets."
Earlier this week, Santos committed to paying Gallagher a A$6 million stay-incentive to ensure he stuck around to see that the company's expansion phase to 2025 runs smoothly, it was also, unofficially, designed to stop him from replacing outgoing Woodside CEO Peter Coleman.
The Australian Centre for Corporate Responsibility urged Santos to revise its corporate strategy in line with the Paris Agreement, in the lead up to its recently agreed to vote on its climate plan at the 2022 AGM.
"Santos' recent financial investment decision on Barossa—with a CO2 content of 18-19% and no concrete plan to manage these and other processing emissions at Darwin LNG— conflicts with any credible pathway for Santos to reach net zero by 2040," ACCR director Dan Gocher said.
"The recently announced $6 million growth bonus for CEO Kevin Gallagher is equally at odds with any genuine commitment to transition Santos to net zero by incentivising development of the Narrabri Gas Project and completion of Barossa at all costs."
The company's AGM is tomorrow and the ACCR has put forward several motions which, given prior year's votes may see serious traction.
