Pension funds from Sweden, Denmark and at home in Norway have expressed disappointment that voting at Equinor’s annual general meeting (AGM) did not do more to keep the Norwegian state-controlled energy firm aligned with global climate goals.
At the AGM on Wednesday in Stavanger, the company’s updated energy transition plan – which provides for increases in oil and gas production – was approved and none of the 10 proposals from shareholders were adopted.
They included a call from Sampension in Denmark, Folksam in Sweden, alongside the Australasian Centre for Corporate Responsibility (ACCR), for the Equinor board to assess whether the planned oil and gas production increase was consistent with the expectations of the majority shareholder – the Norwegian state, which holds a 67% stake.
Sampension’s head of ESG, Jacob Ehlerth Jørgensen, reacted to the outcome of the AGM, telling IPE: “It is discouraging and difficult to understand that Equinor’s majority shareholder, the Norwegian state, has blocked our request for more transparency on Equinor’s alignment with global climate goals.”
“This is a very concerning step away from Norway’s ambition to pursue the transition, when Equinor is clearly moving in the wrong direction,” he noted.
“This is a very concerning step away from Norway’s ambition to pursue the transition, when Equinor is clearly moving in the wrong direction”
Jacob Ehlerth Jørgensen, Sampension’s head of ESG
Using its shareholding to change Equinor’s path was one most powerful actions the Norwegian state could take, in real emissions terms, to mitigate climate change, he said, adding: “This is too important to step away.”
“We will continue to engage with the Norwegian state as Equinor’s majority shareholder and encourage other shareholders in Equinor to come to the table as well,” he continued.
Emilie Westholm, head of responsible investment at the Swedish pensions and insurance group Folksam, told IPE: “We are, of course, disappointed that the majority shareholder is not supporting the resolution.”
“However, we are hoping to continue the dialogue with the Norwegian state – shareholder to shareholder — to further discuss Equinor’s climate ambitions,” she said.
Ahead of the AGM, Norwegian municipal pension provider KLP had said it would not support Equinor’s proposal for an updated energy transition plan.
Arild Skedsmo, senior analyst for responsible investments at KLP Kapitalforvaltning – the NOK1.15trn (€100bn) pension group’s asset management arm – told IPE today that, as well as voting against the plan, KLP had also commented on it and its position directly to Equinor’s board and management.
“Equinor has a dominant state owner who rarely votes against the board’s recommendations, so we didn’t expect a majority for our view,” he said, but added that the situation was a bit unusual, because KLP perceived the state’s expectations – as described in the ownership statement — to be quite similar to KLP’s position.
“It’s unclear how the state will follow up on this when they’re giving full support to the board’s proposal,” he said.
According to Skedsmo, aside from the Norwegian state votes, nearly 25% of votes were cast against the board’s recommendation.
“This is relatively high, but of course it’s disappointing there aren’t even more private investors clearly stating this isn’t good enough,” he noted.
In January, Sarasin & Partners – which had made an unsuccessful Paris-alignment proposal at Equinor’s 2024 AGM alongside a Sampension arm, the West Yorkshire Pension Fund and Achmea Investment Management – divested its shareholding.
But Skedsmo said KLP believed it had greater influence by maintaining ownership and dialogue rather than by selling out of Equinor.
“KLP has a continuous and good dialogue with the company’s board and management where we raise our concerns about the company’s climate transition,” he said.
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