Investor Exits Equinor Over Climate Strategy Discontent

Sarasin & Partners have divested their Equinor stock, citing misalignment with climate goals. Despite initial promise, Equinor's strategy fell short of the Paris Agreement standards. The disillusionment stems from Equinor's lobbying for fossil fuels and failure to fulfil renewable commitments. Equinor maintains its commitment, citing adaptation to market challenges.

Sarasin & Partners, one of the asset managers involved in leading climate discussions with Equinor, has decided to divest its holdings in the oil major due to dissatisfaction with Equinor's climate policies. The firm accused Equinor's board of not realigning its strategy with global warming targets outlined in the Paris Agreement.

The British company initially saw potential in Equinor as a leader in the energy transition. Nonetheless, by March 2024, Sarasin & Partners expressed their disapproval in a letter to Equinor, pointing out the oil company's failure to adapt its strategies according to the Paris accord, and critiqued its push for increased oil and gas production.

Equinor defended its actions, stating that while they are committed to the energy transition, market conditions dictate the pace of change. Despite their efforts in emissions reductions and investments in decarbonization, they disagreed with Sarasin over methodologies used by Climate Action 100+ but remain open to dialogue with the initiative.

(With inputs from agencies.)