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A review of the current Equinor board from open sources shows that the board's experience is dominated by oil and gas, particularly exploration and product/project engineering. Other industry expertise and experience among the current board members includes industrial manufacturing, military, mining, maritime and shipping, finance and other energy. Also in Equinor's Safety, Sustainability and Ethics Committee, oil and gas industry experience is dominant among the committee members.
Equinor has an ambition of becoming a broad energy company, but is not delivering on the transition. In 2023, less than 1 percent of its energy production came from renewable sources, with over 80 percent of its investments directed towards oil and gas. Equinor's annual report reveals that emissions from the company's value chain have increased by 7 million tons over the past year, and they are falling short of their targets for reducing emissions from their own production.
The proposal asks for changes in the board composition to ensure that at least 50 percent of the board members have good competency on the energy transition and sustainability, in line with the company's goal of increasing renewables to 50 percent by 2030.
Equinor’s board have responded to the proposal calling for it to be dismissed. Read more on their page.
Proposal for Equinor’s AGM 2024 from shareholders WWF Verdens naturfond and Greenpeace Norden
In accordance with the Public LimitedLiability Companies Act, III. Notice and information to shareholders in connection with general meetings § 5-11. A shareholder’s right to have matters dealt with by the general meeting, we hereby request that the following draft resolution is included in the agenda for discussion and vote at the company’s upcoming AnnualGeneral Meeting on 14th May 2024.
● The nomination committee in Equinor ASA shall nominate candidates for future board appointments that ensures a board composition where at least 50 percent of the members of theboard have good competency on the energy transition and sustainability.
In the state budget for 2024, the Ministry ofTrade, Industry and Fisheries (NFD) announced that this year they would prioritize, under the main initiative 2.10 - Active state ownership, to"work to ensure that the companies have competent and well-functioning boards", including:
"The board is responsible for the management of the company. One of the state's most important tasks as an owner is to contribute to the composition of competent and well-functioning boards. Relevant expertise is the main consideration in the state's work on board composition. The board of each company should have relevant competency that enables it to assess risks and opportunities related to economic, social and environmental conditions, and thus contribute to goal achievement. Given this competency, the state shall emphasize capacity and diversity" (Prop. 1 S (2023-2024)).
Equinor's own energy transition plan calls foran increase in renewable investments in the coming decade. Having a board composition with strong competency in energy transition, environment and sustainability is key if Equinor is to succeed in transitioning from being an oil and gas company to becoming a broad energy company. Both to ensure that the investments made in renewable energy benefit the company and shareholders in the long term, but also to ensure that sufficient consideration is given to the climate risk, including the financial risk, that Equinor's continued exposureto oil and gas entails.
A review of the current Equinor board from open sources shows that the board's experience is dominated by oil and gas, particularly exploration and product/project engineering. Other industry expertise and experience among the current board members includes industrial manufacturing, military, mining, maritime and shipping, finance and other energy. Also in Equinor's Safety, Sustainability and Ethics Committee, oil and gas industry experience is dominant among the committee members.
Equinor has adopted ambitions for energy transition and sustainability, but the company has not identified how the current board composition benefits this work. Equinor has not documented its board members' competence in energy transition and sustainability in its own documents.
Several shareholders have also pointed out that the current energy transition plan is not satisfactory. Prior to last year's annual general meeting, 18 Norwegian and international investors sent an open letter to Prime Minister Jonas Gahr Støre criticizing Equinor's energy transition plan. They pointed out that the company's plans are not in line with what science has proven necessary to achieve the 1.5 degree target.
In an addendum to a shareholder proposal (Item 9 to Equinor ASA's AGM on 10th May 2023),which asked Equinor to cut its emissions in line with the 1.5 degree target, the NFD noted that they expect Equinor's board to follow up on the expect actions in the ownership white paper that the companies should implement targets and measures in line with the Paris Agreement for both indirect and direct emissions.
The undersigned shareholders believe that the composition of the current Equinor board does not take into consideration theNFD's requirements for relevant competence or reflect the planned transition of Equinor in line with the 1.5 degree target. This is the background for our proposal where we ask for changes in the board composition to ensure that at least 50 percent of the board members have good competency on the energy transition and sustainability, in line with the company's goal of increasing renewables to 50 percent by 2030.
Oslo 11th april 2024
Greenpeace Norden
www.greenpeace.no
+47 22 20 51 01
Sandakerveien 24 C, inngang E1,
0473 Oslo
On behalf of shareholder Greenpeace
Frode Pleym
WWFVerdens naturfond
www.wwf.no
+47 93 00 52 59
PB 6784 St. Olavs plass 1
0130 Oslo
On behalf of shareholder WWF Verdens naturfond
Karoline Andaur