Equinor AGM: voting non-state shareholders revolt as 32% support climate proposal

The Australasian Centre for Corporate Responsibility​ (ACCR) is responding to the results of the Equinor ASA Annual General Meeting (AGM), at which:

• An estimated * 32.1% of non-state votes cast (6.46% of total votes) were cast FOR Resolution 15 - a resolution calling for Equinor to update its strategy and capex plans to align with the Paris Agreement, and specify how any plans for new oil and gas reserve development are consistent with the Paris goals.^[1]
• Resolution 15 was filed by Sarasin & Partners LLP, Sampension, Achmea Investment Management and West Yorkshire Pension Fund.
• Nordic funds Nordea, KLP and Storebrand joined Robeco, MN, Railpen and others in voting to support Resolution 15.
• An estimated* 16.4% of non-state votes cast (3.22% of total votes) were cast FOR Resolution 14 - a resolution calling for Equinor board’s nominations committee to ensure a board composition where at least half of the board members have good competency on the energy transition and sustainability.^[2]
• Resolution 14 was filed by WWF Norway and Greenpeace Nordic.

Commenting on the results, Martin Norman, Investor Engagement Lead, ACCR, said:

“Equinor’s non-state investors are extremely concerned that the company lacks the ability and willingness to align with global temperature goals. They have made that clear with today’s unprecedented vote against Equinor management’s recommendation.

“This should be a wake-up call for Equinor’s board and management. The pressure on them to deliver real reductions in emissions will only increase from here.

“The Norwegian government – Equinor’s majority shareholder – has already made it clear the company needs to implement Paris-aligned targets and measures in the short- and long-term, and now a large number of its remaining shareholders have shown they expect a similar strategic shift.

“ACCR research shows if Equinor stops exploring new oil and gas reserves, and halts new projects outside of Norway, it can avoid 67% of the emissions from its unapproved projects.

“Our analysis finds Equinor’s exploration restricts capital availability for projects that support the energy transition, and is unlikely to generate positive free cash flow until the 2050s – when it will be too late. Additionally, its unapproved international oil and gas projects are neither Paris-aligned nor low-cost relative to other major global fossil fuel projects.

“Opposition to Equinor’s expansion projects is building around the world. Today, we saw speeches from community members opposing Equinor’s projects off the coast of Scotland, Argentina and Canada. This level of serious community opposition should not be downplayed.

“Equinor’s projects outside of Norway expose the company to elevated financial, reputational and increasingly even legal risks. They should not be pursued.”

Background

*Estimates of non-state shareholder votes have been calculated:

• on the basis of an 88.59% voting turnout, and
• the assumption that Equinor’s two largest shareholders, the Government of Norway (67%), and Folketrygdfondet (the Norwegian Government Pension Fund Norway) (3.6%), voted against both resolutions 14 and 15, and
• ownership stakes for the aforementioned shareholders remain the same as reported in the most recent 2023 annual report.

Please note: the voting results have been updated from earlier estimates.