‘Capital at risk’ -Sarasin & Partners divests from Equinor over climate concerns
Investment manager Sarasin & Partners has sold its shares in Norwegian oil firm Equinor, citing concerns over the firm’s transition strategy
Sarasin & Partners, which manages some £18.5bn on behalf of private clients, charities and other institutions has at its peak in March 2024 held 9.5m shares in the oil giant and was listed as one pf the top 20 investors on Equinor’s site. It has since scaled back its holding to £3m shares in December and hold the remainder of its shares in January, a spokesperson told Net Zero Investor.
The firm co-filed a shareholder resolution alongside Danish Sampension, West Yorkshire Pension Fund and Dutch Achmea Investment Management last year, asking Equinor to uphold its commitment to the Paris Agreement and explain how new oil and gas exploration was consistent with these targets. However, the resolution was rejected by shareholders. The Norwegian state holds a majority stake of 67% in the firm.
Sarasin, which started to invest in Equinor in 2021 said that the firm had once been “a leader in the green transition.”
"With the Norwegian state as the controlling shareholder and signatory to the Paris Climate Agreement, Equinor had a unique opportunity to align its long-term capital creation with a shift away from fossil fuels" Sarasin said in a letter to the board published today.
But the oil giant announced last month that it would half its investment in renewable energy generation from $10bn to $5bn and was instead ramping up its oil and gas production.
Commenting on the divestment, Natasha Landell-Mills, head of stewardship at Sarasin & Partners said Equinor’s refusal to reduce its emissions “puts long-term shareholder capital at risk, both directly and through the harmful impacts Equinor’s strategy has for sustainable economic growth.”
While she welcomed what she described as “open and professional interactions with the board” she also called out the Norwegian government’s backing of Equinor’s U turn. “We now believe the Board, with apparent government backing, is prioritising short-term returns over long-term sustainable capital creation” she criticised.
Norway is currently facing a period of change after a coalition between the Eurosceptic Centre Party and the Labour Party collapsed in January, it is now governed by the Labour party with a General Election due in September 2025.
Equinor’s next AGM is due on to be held on 14 May.
