Equinor: a case study on the trouble with greening oil and gas companies

illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below:

🗞️ Driving the news: Equinor (see sustainability performance), Norway's national oil company, aims to increase its oil and gas production while committing to net zero emissions by 2050 
• This ambition has drawn scrutiny from investors and highlighted broader issues regarding the alignment of oil companies with the Paris agreement

🔭 The context: Despite transitioning from Statoil and pledging to diversify energy sources, Equinor remains heavily invested in fossil fuels, with recent plans for new offshore oil projects 
• Investors, particularly Sarasin & Partners, challenge Equinor’s strategy and its compatibility with the Paris climate goals

🌍 Why it matters for the planet: Equinor's significant capital allocation to oil and gas reflects the complex balance between maintaining economic growth and achieving climate targets 
• This scenario underscores the broader tension within the energy sector regarding sustainable transformation

⏭️ What's next: The upcoming shareholder meeting on May 14 will be crucial for Equinor, as a resolution will be voted on to align its strategy more closely with the Paris agreement 
• This comes amid evolving standards for climate targets and the need for accelerated industry and government actions

💬 One quote: "This is a bit of a litmus test" (Natasha Landell-Mills, head of stewardship at Sarasin)

📈 One stat: Equinor plans to increase its fossil fuel production by over 5% by 2026, despite its net zero ambitions

See on illuminem's Data Hub™ the sustainability performance of Equinor (270 MtCO₂e) and its peers Aramco (1.6 GtCO₂e), Eni (230 MtCO₂e),  ExxonMobil (530 MtCO₂e), Shell (470 MtCO₂e), and TotalEnergies (385 MtCO₂e).

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