Equinor AGM pitches Norwegian state against climate-conscious shareholders

Norwegian oil firm Equinor faced a significant shareholder rebellion, with nearly a quarter of its shareholders (24%) voting against its 2025 Energy Transition Plan and 19% of non-state shareholders voting in favour of a proposal to increase transparency on climate disclosures.

However, the Norwegian state, which holds a 67% stake in the oil firm through the Ministry of Trade, Industry and Fisheries used its majority shareholder position to back Equinor’s energy transition strategy and block a proposal for further transparency on climate disclosures.

The proposal on disclosures, filed by ACCR, Swedish insurer Folksam and Danish pension manager Sampension – asked Equinor’s board to explain how it assesses the inconsistency between the company’s planned oil and gas production increase and the Norwegian State’s expectation that Equinor operate in line with the Paris Agreement’s goals.

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Responding to the voting results, long-term asset owners expressed disappointment with the Norwegian government’s refusal to back enhanced disclosures. “We are of course disappointed that the Majority shareholder is not supporting the resolution” said Emilie Westholm, head of Responsible Investments and Corporate Governance at Folksam. “However we are hoping to continue the dialogue with the Norwegian state - shareholder to shareholder - to further discuss Equinor's climate ambitions” she added.

Jacob Ehlerth Jørgensen, head of ESG at Sampension said it was difficult to understand the Norwegian government’s stance to block further transparency. “This is a very concerning step away from Norway’s ambition to pursue the transition, when Equinor is clearly moving in the wrong direction” he criticised.

“This is too important to step away. We will continue to engage with the Norwegian state as Equinor’s majority shareholder and encourage other shareholders in Equinor to come to the table as well” he added.

Transition strategy tensions

Institutional shareholders had also raised concerns about Equinor’s transition strategy as the company announced a 6% increase of its oil production, despite earlier pledges to cut back on its output.

Commenting on the firm’s transition strategy, Rohan Bowater, lead analyst oil and gas at Accella Research praised that the firm has not retreated as sharply from renewables as some of its peers but warned that its renewables portfolio remained too concentrated: “The Trump administration’s halt on US offshore wind highlights how exposed Equinor remains to concentrated technology and market bets.”

“Equinor is taking steps to protect shareholder returns in the short-term without fully retreating from the energy transition, but progress on emissions reduction and low-carbon remains weak and leaves Equinor firmly in the transition laggard camp” he added.

Analysing the wider public ramifications of the AGM, Brynn O’Brien, executive director at ACCR, said: “This should be a wakeup call for Norwegians. Norway does not and will not have credibility as a climate leader while it uses its controlling stake in one of the world’s largest oil and gas companies to give that company’s Board a free pass on climate governance.