Norwegian energy company Equinor agreed to align its business strategy with the goals of the Paris Agreement, said a joint statement with its investors, led by UBS Asset Management and HSBC Global Asset Management.
Under the agreement Wednesday, the corporation will publish updated climate-related targets in 2020 as well as set out new goals beyond 2030 for its business activities to ensure global temperature increases are kept below 2 degrees Celsius.
In addition to publishing new targets in 2020, Equinor will annually report the overall estimated carbon intensity of energy products and services it sells and explore how it can facilitate decarbonization throughout the company's production and distribution processes.
In line with reporting standards set by Task Force on Climate-related Financial Disclosures, Equinor will also update investors on the progress as well as regularly review its climate-related targets and key performance indicators, the investors and Equinor agreed.
Equinor plans to also link remuneration for executives and employees to its climate-related targets once the targets are defined in 2020.
"Equinor and investors have together defined an ambitious pathway which will see the company play an even more active role in the transition to a lower carbon economy," said Valeria Piani, strategic engagement lead at UBS Asset Management said in a news release. "We are very pleased to have reached this agreement with the company and will continue our collective engagement with them as they deliver on these crucial commitments."
Thomas O'Malley, global head of corporate governance at HSBC Global Asset Management, added in the news release: "We welcome the important commitments Equinor has made as part of our collective engagement. Climate change is a significant challenge, and the company's commitments on scenario analysis, strategy and reporting will help provide transparency to shareholders."