(Bloomberg) -- Equinor ASA is the latest large oil company to bow to a major investor group that is pushing corporations to take more robust action on climate change.
The Norwegian state oil giant has agreed to align its business model with the goals of the 2015 Paris climate accord, and will review its corporate lobbying policy and the carbon intensity of its products, the company said in a statement. It will also link executive pay to climate-related targets.
The action was taken after several investors from a coalition called Climate Action 100+ pushed Equinor to take a bigger role in tackling global warming. Climate Action 100+ members oversee more than $33 trillion and have motivated fossil fuel companies, including Royal Dutch Shell Plc and BP Plc, to make concessions around climate.
“We see our low carbon strategy as a competitive advantage which creates long-term value for our shareholders,” CEO Eldar Saetre said in the statement. “The actions we announce today make us even more competitive in the energy transition, and support the goals of the Paris Agreement.”
The lead investors negotiating with Equinor included UBS Asset Management, HSBC Asset Management and Norwegian fund manager Storebrand.
Read more: Climate Group With $32 Trillion Pushes Corporate Transparency
The Oslo-based oil company is already one of the more progressive in its industry around climate change. At a conference in Florence in January, CEO Eldar Saetre said the business was living in an echo chamber, and that it needed to do more to lower emissions. It also plans to increase investments in renewable energy even as it plans to expand its oil and gas production.
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