Equinor ASA | Present a strategy for real business transformation to sustainable energy production

Status
54.00% votes in favour
AGM date
Previous AGM date
Proposal number
11
Resolution details
Company ticker
EQNR (previously Statoil)
Lead filer
Undisclosed filer
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
Norway
Resolved clause
The board will present a strategy for real business transformation to sustainable energy production, thus
reducing shareholder risk and protecting shareholder value. The strategy is assumed to be based on the
following intermediate objectives:
1. Full phasing out of all exploration activity and exploratory drilling for fossil energy resources by 2023
2. Full phasing out and sale of oil and gas business abroad by 2025
3. Reinvestment of all freed-up assets from business abroad in the development and production of
renewable energy nationally and globally for the purpose of attaining an energy balance in the
company’s production by 2030.
The strategy, including environmental impact assessment, to be presented to the 2022 annual general
meeting.
Supporting statement
Equinor reported a regrettable record loss in 2020, with a net income after tax of negative USD 5.5 billion,
equivalent to NOK 46 billion. The loss is of course impacted by the effects of the Corona pandemic, but
not just that. The company also sold its assets in the Bakken shale gas field in the US with a record loss, in
the same way as the company also divested its assets in the tar sand project in Canada in earlier years
with a big loss. We just have to admit that Equinor, as opposed to its profitable ventures on the Norwegian
continental shelf, has had an exceptionally negative return on its business operations abroad. If we had
invested the money in securities funds instead of the operations overseas, we would have been NOK 900
billion richer, i.e. the equivalent of half a Norwegian fiscal budget, according to professor Øystein Noreng.
There have been plenty of warnings against the uncritical ventures abroad in recent years from some of
us shareholders, but unfortunately all in vain. In addition, the company is struggling with faltering reputation
after corruption scandals both in Iran and Angola.
It is therefore extra disappointing to learn that the board of directors, in spite of the company’s big losses
and other negative experience from operations abroad, still is all in favour of extending the oil business
with big investments in another new country in a different part of the world. In addition, the investment is
not made in the company’s core activity offshore, but again a risky venture onshore, this time in oil shale in
Argentina. Large-scale oil production here will in addition reduce Argentina’s possibilities to comply with the
Paris Agreement.
Equinor’s new focus abroad on large offshore wind power projects may also involve a certain risk, but
the company’s oil and gas production from fossil sources is not sustainable, neither for the company, nor
for future generations. As a responsible energy company Equinor must change course and secure the
company’s future and shareholder value. Increased focus on renewable energy must not come in addition
to, but replace oil and gas.

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