Ahead of Norwegian oil company Equinor’s AGM on 14 May in Stavanger, two institutional investors have co-filed a resolution challenging the firm’s plans for oil and gas expansion.
Danish Sampension and the UK’s West Yorkshire Pension Fund have co-filed a resolution which requests the oil firm to clarify how its exploration of new oil and gas fields aligns with its ambitions to become Paris-aligned.
Euan Miller, managing director at West Yorkshire commented: “WYPF is committed to achieving net zero emissions for our investments by 2050 and we want to see real-world transition from the companies that it invests in.”
“With regards to the fossil-fuel sector in particular, as responsible and engaged investors, we wish to make clear that WYPF does not support further development and that we expect to see tangible progress being made by these companies.”
The resolution, also supported by Sarasin & Partners LLP and Achmea Investment Management, is one of the few climate resolutions for oil and gas companies to make it onto the agenda for this year’s AGM season. Oil firms are increasingly relying on no-action requests and legal threats to prevent discussions on climate change at shareholder meetings.
However, the Norwegian state remains by far the largest shareholder in Equinor, holding 67% of all shares, which limits the ability of independent investors to exercise stewardship.
Equinor announced in January that it was awarded 18 production licences in the North Sea, 13 in the Norwegian Sea, and 8 in the Barents Sea.
The firm's expansion plans come despite a 2021 warning from the International Energy Agency that net zero by 2050 targets could only be met if no new oil and gas licences were granted.
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