Equity holders argue Equinor's business strategy contradicts Paris agreement principles prior to Annual General Meeting
In a significant development, Sarasin & Partners, a prominent investment manager, has announced its divestment from Equinor, citing concerns over the Norwegian oil and gas giant's strategy for sustainable economic growth. This move could signal a larger trend of investors moving away from companies that are not aligned with climate goals.
The annual general meeting of Equinor, scheduled for today, 14 May, will see shareholders, including Equinor's majority owner, the Norwegian Ministry of Trade, Industry and Fisheries, vote on a resolution challenging Equinor's planned expansion of oil and gas exploration and production.
The resolution, filed by Sampension, Folksam, and the ACCR, calls on Equinor's board to explain how it reconciles the company's planned increase in fossil fuel output with the expectations of its majority shareholder.
Equinor's decision to abandon its pledge to allocate more than 50% of gross capital expenditure to renewables and low-carbon solutions by 2030 has raised eyebrows. Instead, the company has weakened its energy transition plan, announcing plans to increase oil and gas output by 10% between 2025 and 2027.
However, as of mid-2025, there is no direct public evidence that shareholder resolutions specifically challenging Equinor’s oil and gas expansion plans in light of the Paris climate goals have gained traction or led to major changes at Equinor. Instead, Equinor appears to be pursuing a balanced strategy that includes ongoing oil and gas production alongside investments in decarbonization technologies such as carbon capture and storage (CCS) and renewables.
Equinor continues to conduct a sizable share buy-back program, reflecting a focus on shareholder capital efficiency and returns, supported by strong cash flow. This signals confidence in continuing oil and gas operations alongside growth in low-carbon investments.
The company is advancing its Northern Lights CCS project, expanding CO2 storage capacity to 5 million tons per year, positioning this initiative as a key pillar of its decarbonization strategy aligned with climate goals and EU policies.
Natasha Landell-Mills, head of stewardship at Sarasin & Partners, stated that Equinor's refusal to reduce emissions puts long-term shareholder capital at risk. Investors Denmark's Sampension and Sweden's Folksam have also raised concerns about Equinor's strategy and its alignment with the Paris climate goals.
Jacob Ehlerth Jørgensen, head of ESG at Sampension, has expressed concern about Equinor's increased fossil fuel ambitions. The previous status of Equinor as a "leader in the green transition" has been called into question due to its recent decisions, which contradict its previous climate strategy that outperformed peers such as Shell and BP.
Sarasin & Partners' divestment from Equinor is a significant move, given its size and previous investment in the company. The investment manager, managing around £18.5bn, had previously held a £9.5m stake in Equinor, making it once one of the company's top 20 shareholders. Sarasin & Partners sold its remaining £3m stake, marking a clear departure from its previous support for Equinor's climate strategies.
As the annual general meeting approaches, the spotlight is on Equinor to address these concerns and demonstrate its commitment to a sustainable future. The decisions made at this meeting could shape Equinor's path forward and set a precedent for other companies navigating the delicate balance between economic growth and climate responsibility.
- The divestment by Sarasin & Partners, a leading player in environmental and financial markets, could indicate a broader trend of investors pulling away from companies misaligned with climate objectives, such as those in the oil and gas sector like Equinor.
- The resolution filed by Sampension, Folksam, and ACCR at Equinor's annual general meeting seeks to probe how the company can increase fossil fuel production while meeting expectations from its majority shareholder regarding climate goals.
- In light of increased concern from investors like Sarasin & Partners and Sampension, Equinor's focus on both oil and gas production and investments in decarbonization technologies like CCS and renewables may not be enough to dispel doubts about its commitment to climate change mitigation strategies.
