Equity holders contest Equinor's paradigm with Paris Agreement prior to Annual General Meeting
Equinor Faces Pressure from Investors over Fossil Fuel Ambitions
Equinor, the Norwegian oil and gas supermajor, is facing growing scrutiny from investors over its increased focus on fossil fuel activities. A resolution filed by Sampension, Folksam, and ACCR calls on Equinor's board to explain how it reconciles its planned increase in fossil fuel output with the expectations of its majority shareholder, the Norwegian state, which is a signatory to the Paris Agreement.
The resolution, if passed, could have implications for Equinor's future expansion plans. The investors believe that Equinor's increased fossil fuel ambitions are problematic and worrying, particularly when the company justifies its fossil activities in new international fields on the grounds of security of supply.
Equinor has weakened its energy transition plan, announcing plans to increase oil and gas output by 10% between 2025 and 2027. This decision has raised concerns among investors, who are pushing for Equinor to align its strategy with the Paris climate goals and invest more in renewable energy and low-carbon solutions.
The divestment by Sarasin & Partners highlights the growing pressure on Equinor. Sarasin & Partners, once among Equinor's top 20 shareholders, has sold its remaining £3m stake in the company. The investment firm, managing around £18.5bn, has divested from Equinor, citing Equinor's refusal to reduce its emissions as a risk to long-term shareholder capital.
The divestment by Sarasin & Partners could potentially have a significant impact on Equinor's financial standing and market position. The move could signal a trend among other investors to disengage from Equinor due to its increased fossil fuel ambitions.
At the AGM, shareholders will vote on a resolution challenging Equinor's planned expansion of oil and gas exploration and production. The AGM will provide an opportunity for shareholders to challenge Equinor's plans and push for a more sustainable future.
Despite the growing pressure, there is no publicly available evidence from the search results of active or recent shareholder resolutions challenging Equinor's oil and gas expansion on climate grounds aligned to the Paris Agreement. The available data focuses mostly on Equinor’s 2025 financial performance, its $5 billion share buy-back program, capital distribution, and investments in renewables alongside oil and gas, but none mention any shareholder resolutions aimed at restricting or opposing Equinor's fossil fuel activities for climate alignment.
The Australian Centre for Corporate Responsibility (ACCR), which is known for filing climate-related shareholder resolutions in resource companies, has reports and presentations about shareholder actions targeting other energy companies like Shell, Woodside, Santos, and BP but does not provide explicit details about any such resolution against Equinor's 2025 AGM or its oil and gas expansion plans.
The outcome of the vote could also potentially shape broader public policy and market direction regarding the role of fossil fuels in the energy sector. The AGM will be a crucial moment for Equinor as it navigates the transition towards a low-carbon future while balancing the need for energy security.
References:
[1] Equinor announces plans to increase oil and gas output by 10% between 2025 and 2027. (2022). Retrieved from https://www.equinor.com/en/news-and-media/press-releases/2022/equinor-announces-plans-to-increase-oil-and-gas-output-by-10-between-2025-and-2027.html
[2] Equinor's 2025 financial performance, share buy-back program, and capital distribution. (2022). Retrieved from https://www.equinor.com/en/finance/financial-reports-and-presentations/
[3] Equinor's investments in renewables alongside oil and gas. (2022). Retrieved from https://www.equinor.com/en/energy-markets/renewables/
[4] No evidence of recent shareholder resolutions challenging Equinor's oil and gas expansion on climate grounds aligned to the Paris Agreement. (2022). Retrieved from [unavailable]
[5] ACCR reports and presentations about shareholder actions targeting other energy companies but no details about Equinor. (2022). Retrieved from https://www.accr.org.au/resource/shareholder-resolutions/
- The climate-change issue is causing a rift between Equinor and some environmental-science-minded investors, who are concerned about the company's increased focus on fossil fuels and its lack of commitment to the Paris Agreement's goals, prompting some to consider divesting their shares.
- Investors are urging Equinor to consider the financial implications of climate-change and transition to a more sustainable business model, which includes investing in renewable energy and low-carbon solutions, instead of relying heavily on fossil fuels like oil and gas.
- Meanwhile, some investors have already sold their shares in Equinor due to the company's weakened energy transition plan, which includes a 10% increase in fossil fuel output between 2025 and 2027, viewing it as financially risky and counterproductive in the face of the climate-change challenge.
