Equinor Agrees to New Climate-Change Actions
April 24 2019 - 6:27AM
Dow Jones News
By Dieter Holger
Norwegian oil-and-gas giant Equinor ASA (EQNR.OS) has adopted
new climate-change policies following pressure from investors.
Next year, the company will publish targets to reduce its
greenhouse-gas emissions beyond 2030 and will report annually on
its progress. It will also assess how its portfolio will perform in
a future where global warming is below 2 degrees Celsius, in line
with the Paris Agreement; strengthen the link between executive pay
and its targets; and consider ending its membership of industry
associations working to stall government action on climate change,
Equinor said.
"The actions we announce today make us even more competitive in
the energy transition, and support the goals of the Paris
Agreement," said Eldar Saetre, president and chief executive
officer at Equinor.
The decision follows pressure from investors led by the asset
management arms of UBS Group AG (UBS), HSBC Holdings PLC (HSBA.LN)
and StoreBrand ASA (STB.OS). The asset managers are members of
Climate Action 100+, a group of more than 300 investors
representing more than $33 trillion in assets who have engaged with
oil companies.
"Climate change is a significant challenge and the company's
commitments on scenario analysis, strategy and reporting will help
provide transparency to shareholders," said Thomas O'Malley, global
head of corporate governance at HSBC Global Asset Management.
Equinor is the latest European oil-and-gas major to bow to
investors as concerns mount over how energy companies address the
warming climate. Last year, Royal Dutch Shell PLC (RDSA.LN) agreed
to set more targets to reduce its emissions, while this year, BP
PLC (BP.LN) agreed to a shareholder resolution requiring it to
describe how the company's strategy is consistent with the Paris
Agreement.
American oil majors have been more resistant to adopting
ambitious climate-change business practices, although their
investments in clean energy have picked up in recent years.
Global oil-and-gas production needs to fall around 20% by 2030
and around 55% by 2050 to meet the Paris Agreement, according to a
United Nations climate-science panel. However, oil-and-gas
companies are expected to spend $4.9 trillion over the next decade
on the exploration and extraction of new oil fields, which comes
into conflict with the agreement, according to a report out this
week from Global Witness, a nonprofit focused on human rights.
"There is an alarming gap between the plans of oil and gas
majors and what the latest science shows is needed to avoid the
most catastrophic and unpredictable climate breakdown," said Murray
Worthy, senior campaigner at Global Witness and the author of the
report.
Write to Dieter Holger at dieter.holger@dowjones.com;
@dieterholger
(END) Dow Jones Newswires
April 24, 2019 06:12 ET (10:12 GMT)
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