Investors Challenge Equinor's Paris Agreement Alignment
A group of investors, managing a combined $1.3 trillion, has raised concerns with Norway's Financial Supervisory Authority (FSA) about Equinor ASA's climate disclosures. They urge the FSA to review Equinor's statements regarding its alignment with the Paris Agreement.
The investors, representing a significant portion of global assets, have written to the FSA expressing doubts about Equinor's fossil fuel expansion plans. These plans include increasing oil and gas production, with major projects set to operate beyond 2050, which they believe diverges from the Paris Agreement's goals.
The coalition questions how Equinor can claim alignment with a 1.5°C pathway while disclosing potential write-downs of around $4 billion under such a scenario. They have asked the FSA to assess the accuracy and fairness of Equinor's disclosures, as required by new ESMA guidelines for funds using 'climate' or 'sustainable' labels. These guidelines mandate that at least 80% of assets must be invested sustainably and comply with Paris alignment criteria.
The FSA, typically overseen by the Compliance Officer or the Head of Climate-related Financial Reporting, has the authority to impose fines for misleading information.
The investors' concerns could impact Equinor's eligibility in Paris-aligned investment funds across Europe if the FSA finds it not to be Paris aligned. The FSA is now expected to review Equinor's disclosures and assess their accuracy and fairness regarding Paris Agreement alignment.
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