Equinor Puts Transition Plan to a Vote

Equinor will allow shareholders to vote on its energy transition plan starting next year. The Norwegian state-controlled giant is the latest European producer to give investors a chance to weigh in directly on its plan. The vote is advisory only, meaning it will be up to the Equinor board to ultimately approve or reject the plan. The document will be renewed every three years but the company will update its progress annually. Total was the first company to allow shareholders an advisory vote on its transition plan and Royal Dutch Shell has a similar referendum scheduled for its annual meeting in May (IOD Apr.15'21). These represent just the latest moves in a growing effort by companies to engage with shareholders and activists who are pressuring oil companies to show how they can mitigate the risks of climate change and remain relevant through the energy transition. Like its European peers Equinor has pledged to attain net-zero carbon emissions by 2050. It claims that its operations offshore Norway produce some of the lowest carbon-intensity oil in the industry due in part to its plans to run platforms on electricity generated from hydroelectric dams. It is also expanding into offshore wind.