Equinor has published its first energy transition plan, which will be submitted for an advisory vote by the company’s shareholders at its 2022 Annual General Meeting on 11 May. The plan provides an overview of how the company is progressing toward 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 company’s current strategy and ambition to deliver energy that has lower – and eventually net-zero – emissions.
“To decarbonize 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,” said Jon Erik Reinhardsen, Chair of the Board of Directors at 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,” said 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, with a trajectory consistent with the goals of the Paris Agreement and a 1.5-degree pathway.
The energy transition plan integrates key elements of Equinor’s decarbonization 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 and the Intergovernmental Panel on Climate Change.