(Updates to add a statement from ACCR's co-chief executive in the fifth and sixth paragraphs)

The Federal Court of Australia dismissed the Australasian Centre for Corporate Responsibility's (ACCR) lawsuit against Santos (ASX:STO), according to a Tuesday order by the court.

In 2021, the ACCR alleged that Santos breached the provisions of the Corporations Act 2001 and the Australian Consumer Law by engaging in misleading or deceptive conduct.

In the Federal Court, the ACCR challenged Santos' claims that natural gas provides "clean energy" and that it has a "credible and clear plan" to achieve "net zero" emissions by 2040.

The court has also ordered ACCR to pay the company's costs of the proceedings.

In a statement on Tuesday, Brynn O'Brien, co-chief executive of ACCR, said the result was "disappointing" and that the finding was "complex."

O'Brien added that the ACCR will take time to review it carefully before considering its next steps and options.