Norway's KLP requests further development of Equinor’s green transition plan

Norweigan pension company KLP has asked for further development of Equinor’s green energy transition plan, which was presented at its annual general meeting earlier this month.

KLP praised the company’s ambitions and willingness to adapt towards a low emission society, but asked Equinor for clarification of key elements before the plan can be supported.

Aiming to promote long-term and sustainable value creation in the companies it invests in, KLP looks to influence the companies through active ownership where dialogue and voting at general meetings are the most important instruments.

Furthermore, KLP has committed to net-zero emissions for its investments in 2050 aiming to be in line with the goals set out in the Paris Agreement by imposing requirements on companies that they hope will contribute to companies reaching targets for net-zero emissions.

KLP intends to recognise Equinor’s ambition of net-zero greenhouse gas emissions by 2050, in line with the Paris Agreement and a path towards 1.5 degrees global warming, which underlines the restructuring plan.

However, KLP wanted clarification of Equinor’s plans for developing oil and gas production, and how related total emissions from production and use (Scope 1, 2 and 3) are expected to be reduced in the short, medium and long term.

KLP was also interested in seeing a clearer framework for the use of offsets as compensation for own emissions.

As presented as an overall reduction in 'net carbon intensity', KLP said it is “difficult to distinguish” the company’s plans for any further investments in oil and gas production from investments in renewable energy production and the purchase of offsets, something that KLP said requires clarification for their endorsement.

KLP has said it looks forward to continuing the dialogue with Equinor on this important work.

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