{"id":36415,"date":"2017-05-05T14:26:01","date_gmt":"2017-05-05T04:26:01","guid":{"rendered":"http:\/\/nofibs.com.au\/?p=36415"},"modified":"2019-04-16T13:31:07","modified_gmt":"2019-04-16T03:31:07","slug":"santos-chairman-admits-business-plan-assumes-4c-globalwarming-reports-takvera","status":"publish","type":"post","link":"https:\/\/archive.nofibs.com.au\/santos-chairman-admits-business-plan-assumes-4c-globalwarming-reports-takvera\/","title":{"rendered":"Santos Chairman admits business plan assumes 4C #globalwarming reports @takvera"},"content":{"rendered":"
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Outside Santos AGM in Adelaide Photo: Wilderness Society\/twitter<\/p><\/div>\n

It was revealed at Santos AGM in Adelaide on 4 May 2017 by Chairman Peter Coates that the company business plan is based upon a 4 degrees temperature rise scenario from climate change. This is at odds with commitments outlined in a statement on climate risk disclosure in April to investors.<\/p>\n

Santos Chairman Peter Coates replies to a question on climate scenarios for Santos business plan at Santos AGM in Adelaide (Listen to the audio<\/a> at Market Forces<\/em>): <\/p>\n

“The pathway that we adopt is the … 4 degree pathway. It’s the one that the world energy agency, the IEA, business as usual…it’s the comparison with the IEA business as usual forecast on carbon emissions. As you know the 2 degree scenariowhich you are referring to, there has been no nationally determined commitments to it, there is no NDC to the 2 degree scenario and even the 4 degree scenario is not funded. I think what we are doing is very, very sensible and consistent with good value.”<\/p><\/blockquote>\n

Investors failed to pass a resolution calling for more disclosure from Santos over the risks climate change poses to its business. Here is the text of the resolution:<\/p>\n

“Resolution 2 \u2013 Strategic Resilience for 2035 and Beyond That in order to address our interest in the longer term success of the company, given the recognised risks and opportunities associated with climate change, we as shareholders of the company request that routine annual reporting includes further information describing: (a) Governance: the roles of the board and management in the oversight, assessment and management of climate-related risks; (b) Strategy: the climate related risks and opportunities and asset portfolio resilience of the company\u2019s businesses, operational strategy and financial planning to various climate scenarios, including both 1.5\u00b0C and 2\u00b0C pathways; (c) Risk Management: how climate-related risks are incorporated into the company\u2019s risk management framework; (d)Metrics and Targets: the targets used by the company to manage climate-related risks and performance against those targets; (e) Public Policy: the company\u2019s public policy positions related to climate change, including those of industry bodies of which it is a member.”<\/p>\n

Santos had issued a statement on climate change disclosure a fortnight ago, which seemed to reassure investors, however with this latest statement that Santos business model is aligned with dangerous climate change of 4 degrees Celsius and not in keeping with Paris Agreement climate commitments, maybe investors need to understand the whitewash going on by the Santos board with the statement. <\/p>\n

The statement on climate change risk disclosure<\/a> issued in April to head off the climate risk disclosure resolution at the AGM says in part:<\/p>\n

“As a global stakeholder in the energy business we recognise our social and environmental responsibility to pursue strategies that address the issue of climate change. We are responding to t.his challenge in variety of ways….” <\/p>\n

including… <\/p>\n

“Informed by science: we recognise the global two degree Celsius target and the scale of the global transition required. We recognise the consensus from international climate scientists that the global climate is changing and that human activity contributes significantly to this trend. In Paris, all countries agreed to limit temperature increases to well below 2 degrees (and pursue efforts to limit temperature increases to 1.5 degrees) and achieve net zero greenhouse gas emissions in the second half of this century” <\/p>\n

and… <\/p>\n

“Align business strategy with Paris Climate Change Agreement: our natural gas portfolio strategically aligns with the transition to a low carbon economy….” <\/p>\n

Community NGO Market Forces<\/em> commented:<\/p>\n

“Somehow, their climate change statement, which contained no new commitments on climate risk disclosure won over investors, which include AustralianSuper and many other major superannuation funds, directed by the Australian Council of Superannuation Investors.<\/p>\n

“We wonder how they feel now. Conned? Mystified? We hope so, because whether or not they have been taken for a ride by Santos, or just strong-armed into backing down, their credibility on supporting climate risk disclosure has just evaporated.”<\/p><\/blockquote>\n

The Guardian asked<\/a> Climate Council and ANU emeritus professor Will Steffen for his reaction:<\/p>\n

\u201cabsolutely appalling. [A 4C pathway] really is a worst-case scenario. This is not some minor climatic blip we need to deal with. It\u2019s a completely different climate system.\u201d<\/p><\/blockquote>\n

Indeed, Superannuation Funds like Australian Super who remain invested in fossil fuel companies to engage with the company hoping to direct them to more sustainable business models, should take note of how Santos treated investors in this instance. <\/p>\n

Australian Super did not act in the long term interests of their superannuation clients in voting against Resolution 2 which demanded greater climate risk transparency from the company. <\/p>\n

\n

@market_forces<\/a> @PilligaPush<\/a> @AustralianSuper<\/a> @SantosLtd<\/a> That was a nasty thing to do @australiansuper<\/a> increased transparency on climate risk vital for members interests @AODProject<\/a><\/p>\n

— John Englart EAM (@takvera) May 4, 2017<\/a><\/p><\/blockquote>\n