Equinor has published its first Energy transition plan, which will be submitted for an advisory vote by shareholders at the company’s 2022 Annual General Meeting 11 May. The plan provides an overview of how the company is progressing towards its 2050 net zero ambition through short-term actions and medium-term ambitions.
Equinor also proposes to amend its object-clause, which currently has a sole focus on petroleum. The new wording will introduce “energy”, which is in line with the current strategy and the company’s ambition to deliver energy that has lower – and eventually net-zero – emissions.
“To decarbonise society, we need to be effective agents of change in the energy transition. We have set a clear direction to apply our experience, competence and the financial muscle from oil and gas to new value creating sectors of the energy system. We are pleased to present the plan to our shareholders and look forward to continued dialogue on the necessary decarbonization journey,” says Jon Erik Reinhardsen, Chair of the Board of Directors in Equinor.
“Our Energy transition plan is based on actions. We believe it demonstrates that we have the right strategy, ambition level, capabilities and track record to be a leading company in the energy transition while ensuring long-term shareholder value creation and competitiveness,” adds Anders Opedal, CEO and President of Equinor.
In February the company strengthened its ambition level by including a net group-wide emission reduction of operated scope 1 and 2 emissions by 50% by 2030. Equinor aims to achieve 90% of this ambition through absolute reductions This demonstrates that the company is taking action to reduce emissions under its operational control in line with a trajectory consistent with the goals of the Paris Agreement and a 1.5-degree pathway.
Equinor’s strategy is to continue to create long-term value while supplying reliable energy with progressively lower emissions. The Energy transition plan integrates key elements of Equinor’s decarbonisation strategy with existing actions and ambitions. It includes information on capital allocation, policy engagement, risk and performance frameworks, and other enablers to deliver on the company’s ambitions. The plan builds on Equinor’s many years of experience, its strategy and strong track-record.
Equinor has developed the plan in close collaboration with key stakeholders and it draws on investor group frameworks, including the Climate Action 100+ Net Zero Company Benchmark. The plan is informed by climate science and scenarios from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).
The energy transition is a massive, shared, global challenge that will require coordinated action. Equinor is committed to being a proactive and constructive partner with governments as they put in place the necessary policy frameworks for the market to move towards a lower carbon energy system.
The plan was made public 22 March 2022. Progress on the energy transition plan will be reported annually.