Shareholders advocating for climate action clash with Norwegian state at Equinor's annual general meeting
In a recent Annual General Meeting (AGM), Equinor, the Norwegian multinational energy company, faced criticism from institutional shareholders over its energy transition strategy. The strategy, which aims to balance economic interests, energy security, and an incremental emission reduction approach, has been met with mixed reactions.
The Trump administration's halt on US offshore wind highlights the risks associated with concentrated technology and market bets, a concern that is particularly relevant for Equinor. The company's transition strategy, while designed to protect shareholder returns in the short-term, has been criticised for its weak progress on emissions reduction and low-carbon initiatives.
A key point of contention is Equinor's weakened climate targets. The company has shifted from fixed emissions intensity reductions to more ambiguous targets, reduced its renewable energy capacity targets, abandoned a capital expenditure commitment for low-carbon projects, and intends to increase oil and gas production by over 10% from 2024 to 2027. These moves indicate a retreat from a 1.5°C aligned net zero pathway, a concern shared by institutional investors like Candriam, who voted against Equinor’s Energy Transition Plan in May 2025.
Despite this pressure, the Norwegian state, which holds a 67% stake in Equinor, has chosen to support the company's strategy. This decision likely reflects Norway’s economic reliance on oil and gas revenues and strategic interests in maintaining fossil fuel production capacity.
The rejection of enhanced climate-related disclosures from Equinor, despite pressure from institutional shareholders, underscores a gap between shareholder activism and state policy goals. Emilie Westholm, head of Responsible Investments and Corporate Governance at Folksam, expressed hope for continued dialogue with the Norwegian state regarding Equinor's climate ambitions. Jacob Ehlerth Jørgensen, head of ESG at Sampension, criticised the Norwegian government's stance to block further transparency.
The proposal for enhanced disclosures, 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 was supported by 19% of non-state shareholders, but was ultimately blocked by the Norwegian state.
Brynn O'Brien, executive director at ACCR, described the AGM as a wakeup call, stating that Norway lacks credibility as a climate leader while using its controlling stake in Equinor to give the company's Board a free pass on climate governance.
Rohan Bowater, lead analyst oil and gas at Accella Research, praised Equinor for not retreating as sharply from renewables as some peers, but warned that its renewables portfolio remains too concentrated.
The NZI Annual Conference, scheduled for 21.10.2025 at the London Stock Exchange, will likely provide a platform for further discussions on Equinor's energy transition strategy and its alignment with climate goals.
Equinor's strategy, which focused on protecting shareholder returns and increasing oil and gas production, received criticism from institutional investors for its weak progress on emissions reduction and low-carbon initiatives, highlighting the contrast between shareholder activism and state policy goals. The proposal for enhanced disclosures, filed by ACCR, Folksam, and Sampension, asking Equinor's board to explain the inconsistency between its planned oil and gas production increase and the Norwegian State's expectation that Equinor operate in line with the Paris Agreement's goals, was supported by 19% of non-state shareholders but was ultimately blocked by the Norwegian state, adding to concerns about the company's commitment to business finance and sustainable practices.
