Shareholders advocating for climate action clash with Norwegian state during Equinor's Annual General Meeting
In a recent turn of events, Jacob Ehlerth Jørgensen, head of ESG at Sampension, has criticized the Norwegian government for blocking a proposal seeking further transparency on climate disclosures from Equinor. This proposal, filed by ACCR, Folksam, and Sampension, asked Equinor's board to explain 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.
The proposal, aimed at enhancing transparency, garnered support from 19% of non-state shareholders. However, it was blocked by the Norwegian state, which holds a 67% stake in Equinor. Despite this, both Folksam and Sampension have expressed their intention to continue dialogue with the Norwegian state to discuss Equinor's climate ambitions.
Emilie Westholm, head of Responsible Investments and Corporate Governance at Folksam, and Rohan Bowater, lead analyst at Accella Research, have also expressed their disappointment and concerns. Bowater praised Equinor for not retreating as sharply from renewables as some of its peers, but warned that its renewables portfolio remains too concentrated.
Equinor's stance on climate disclosures has been a topic of debate, with the company being labelled a "transition laggard" in terms of its climate ambitions. The company's recent announcement of a 6% increase in oil production has further fuelled these concerns.
The Norwegian government's decision comes amidst challenges faced by Equinor and other clean energy companies due to regulatory changes and policy shifts, particularly in the U.S. For instance, Equinor has faced significant financial setbacks due to regulatory changes and halted projects in the U.S., such as a nearly $1 billion loss from a stalled wind project.
The Trump administration's halt on US offshore wind highlights Equinor's exposure to concentrated technology and market bets. Despite taking steps to protect shareholder returns in the short-term without fully retreating from the energy transition, progress on emissions reduction and low-carbon remains weak.
Brynn O'Brien, executive director at ACCR, has stated that the AGM should be a wakeup call for Norwegians, as Norway's use of its controlling stake in Equinor to give the company's Board a free pass on climate governance undermines its credibility as a climate leader.
The NZI Annual Conference is scheduled for October 21, 2025, at the London Stock Exchange, where these issues are likely to be further discussed. For more accurate information on the reasons behind the Norwegian government's decision to block the proposal, consulting official statements from the Norwegian government or Equinor would be necessary.
Folksam and Sampension, along with ACCR, have expressed their frustration towards the Norwegian government's decision to block a proposal that aimed to improve climate disclosures from Equinor, a business concern with significant ties to finance. Emilie Westholm and Rohan Bowater have expressed concerns about Equinor's renewables portfolio and its climate ambitions, arguing that the company's recent increase in oil production and its stance on climate disclosures make it appear as a "transition laggard" in the finance sector.
