Sarasin & Partners had been a shareholder in Equinor on behalf of our clients since 2021. In January 2025, following years of constructive engagement, we exited our position. We have written to Equinor’s Board to explain our reasons for selling, and are making our letter public today as we believe the points we raise may be of interest to others.
When we initiated our shareholding, we – like many others – saw Equinor as a potential leader in the energy transition: a company with a set of ambitions that would set a standard for the industry. 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.
Despite statements of supporting a 1.5°C pathway, in our view Equinor has not revised its strategy to deliver on these. At Equinor’s May 2024 Annual General Meeting, the Board opposed our Shareholder Resolution calling for more determined action to align its capital expenditure plans with its climate commitment[1]. Since then Equinor has followed other oil and gas majors in rolling back its efforts.
We believe this puts long-term shareholder capital at risk, both directly and through the harmful impacts Equinor’s strategy has for sustainable economic growth.
We are furthermore troubled by Equinor’s statements that its strategy aligns with a 1.5°C pathway[2]. In reality, it is clear to us that what Equinor means is that it could become aligned if the world transitions more quickly – a fundamentally different position from actually supporting such a pathway today.
Public discourse is shaped by such claims – if Equinor is perceived as Paris-aligned, it fosters complacency rather than bolder action. As evidence of climate change worsens, accurate and transparent disclosures are vital.
In the end, our commitment is to protect and enhance our clients’ capital through responsible long-term stewardship. While we have welcomed the open and professional interactions we have had with the company, we now believe the Board, with apparent government backing, is prioritising short-term returns over long-term sustainable capital creation.
[1] Resolution 15 filed in 2024 by Sarasin & Partners LLP, Kapitalforeningen Sampension Invest, West Yorkshire Pension Fund and Achmea Investment Management: https://cdn.equinor.com/files/h61q9gi9/global/cea004fe98f242583c5020eee01ff78c5845c9de.pdf?shareholders-proposal-and-supporting-statement-item-15-agm-2024-equinor.pdf
[2] https://www.equinor.com/investors/annual-reports-archive; https://cdn.equinor.com/files/h61q9gi9/global/f8b1baf5bdf062f5f6e73b4e88a338df6d7d40ef.pdf?shareholder-proposals-and-board-response-to-equinors-agm-2024.pdf
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