News: STO UPDATE 1-Santos shareholders reject activist's oil, gas wind-up resolution

• Santos, Woodside face oil, gas wind-up resolution
• Market Forces sees progress as vote doubles for oil, gas wind-up
• Santos sees hydrogen, CCS eliminating its carbon emissions

(Adds Santos chairman comments, background on climate resolutions)

Investors in Santos (STO) overwhelmingly opposed a resolution that would have pushed the company to spell out moves to wind down its oil and gas operations to help curb global warming, according to proxy votes shown at the annual meeting.

Shareholders in rival Woodside Petroleum (WPL) will vote on the same resolution, proposed by activist group Market Forces, later on Thursday.

"Santos does not intend to close down its oil and gas operations as doing so would be against the interests of shareholders and would not be consistent with global climate and human development goals," Santos Chairman Keith Spence said at the annual meeting, held online.

More than 86% of the proxy votes cast ahead of Santos' annual meeting were against the resolution, with 13.28% in favour.

Market Forces, nevertheless, took heart from the votes in favour of its resolution.

"With today's vote almost doubling the previous record set for a fossil fuel wind up resolution, all coal, oil and gas producers must take note: investors are increasingly willing to demand drastic action to align with global climate goals," Market Forces campaigner Will van de Pol said.

Although the votes were disclosed, its resolution was not put to a vote as it required shareholders to approve a move to amend the company's constitution first. Proxy votes were 94.4% against amending the constitution.

Santos and Woodside initially also faced climate resolutions from the Australasian Centre for Corporate Responsibility (ACCR), working with British hedge fund manager Chris Hohn's Say on Climate campaign.

ACCR withdrew its resolutions after both companies agreed to put their climate reporting to a vote at their annual meetings in 2022.

In contrast to Europe's oil majors, Santos and Woodside are not chasing renewable energy, but instead are looking to develop hydrogen production and plan to offset their carbon emissions through tree planting or carbon capture and storage (CCS).

"Hydrogen with CCS will ultimately eliminate our emissions, and that's our plan," Spence told shareholders.