Following Equinor’s AGM on 14 May, we are pleased to say that over 30% of non-state affiliated shareholders supported our resolution.
However, we are also disappointed that the government of Norway did not. In the end, Equinor is 67% owned by the state, so will act according to the government’s instruction.
This outcome is particularly surprising given the clear commitment by the Norwegian government to require alignment with the Paris Agreement in those companies that it holds stakes. The government's white paper on responsible ownership makes this clear. It also underlines that the state should promote alignment with the Paris Agreement through AGM action alongside direct engagement. Chapter 8 of the white paper states:
“Active use of voting rights is particularly relevant in the event of poor goal attainment in the company over time or significant deviations from the State’s expectations,….”
As we set out in our shareholder resolution, the government published its expectations that Equinor align its strategy with the goals of the Paris Agreement at Equinor’s 2023 AGM:
The state voted in favor of Equinor's energy transition plan at the general meeting in 2022, based on the company being clear that the long-term value creation supports the goals of the Paris Agreement, cf. the state's statement at the annual meeting last year.
Since the 2023 AGM, Equinor has moved further from a 1.5°C pathway with their updated fossil fuel production and capex plans to 2035.
Our resolution was drawn up to support the government’s expectations and yet they voted against it.
Looking ahead, we can only hope that the government will use the opportunity of the forthcoming update to Equinor’s energy transition plan, due to be put to a shareholder vote at the 2025 AGM, to ensure the necessary pivot away from expanding new fossil fuel reserves. Equinor has a huge opportunity to lead the transition – it is running out of time to take it. As long as we are shareholders, we are committed to respectfully and robustly pressing the board to act.
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