News: STO UPDATE 2-Santos Chair Keith Spence survives push for ouster

(Adds HESTA comment in paragraph 4, background in paragraph 9)

April 11 (Reuters) - Santos (STO) Chairman Keith Spence managed to retain his position on the board of the Australian oil and gas producer, despite facing a push for removal from some shareholders over an inadequate response to climate concerns.

Nearly 94% of shareholders voted for a resolution to re-elect Spence, who was appointed as chairman of the company in 2018.

Santos also got a favourable majority vote for its remuneration report, with only 9% shareholders opposing it.

HESTA voted to remove Spence "based on his lack of engagement with and response to investor concerns," the superannuation fund said.

"Votes for director re-elections at Santos were among the lowest 10%-15% of comparable results at ASX 50 companies over the past five years, but the vast majority of big investors are failing to ensure genuine climate risk management," activist investor group Market Forces said.

Market Forces had urged investors to vote against Spence's re-election, citing the company's "inadequate response to climate concerns and its misguided oil and gas growth plans".

Activist investor Australasian Centre for Corporate Responsibility (ACCR) had also filed a members' statement against Spence's re-election, accusing him of failure in maximising "shareholder value".

"While investor support for Spence was resilient today, there is a limit to investor patience," ACCR said.

Santos' bigger rival Woodside Energy (WDS) also faces a possible shareholder vote against the re-election of Chairman Richard Goyder at the upcoming annual general meeting on concerns over its climate strategy.