Pension funds have called on Equinor’s directors to justify plans to increase production in light of expectations from its majority shareholder that the oil and gas firm would operate in line with the Paris Agreement. A resolution filed by Sampension of Denmark and Sweden’s Folksam will be voted on by shareholders in Equinor – 71% owned by the state of Norway – at its 2025 AGM on 14 May. At the firm’s 2023 AGM, Norway’s Ministry of Trade, Industry and Fisheries said it expected Equinor to set targets and implement measures to reduce greenhouse gas emissions in line with the Paris Agreement. The resolution was co-filed by the Australasian Centre for Corporate Responsibility (ACCR), which also backed a campaign against the re-election of BP Chair Helge Lund – on grounds of a lack of consultation over weakened climate commitments – supported by almost a quarter of shareholders. Investors said they were also concerned about the inadequate returns generated by Equinor’s international oil and gas operations, which also conflict with Norway’s goals for the firm to deliver the highest possible returns over time in a sustainable manner. “This resolution draws attention to the fundamental inconsistencies between Norway’s expectations and Equinor’s oil and gas expansion plans,” said Emilie Westholm, Head of Responsible Investments and Corporate Governance at Folksam.”As a net zero investor, we hope this resolution will bring more clarity on Equinor transition work, including how it aims to achieve its long-term net zero target.” Earlier this year, UK-based asset manager Sarasin & Partners said it was divesting from Equinor after four years of encouraging the firm to accelerate its net zero transition plans.
