Equinor just became the latest European energy company to cave to investor pressure over climate change.
The Norwegian state producer joins major oil companies Total, Royal Dutch Shell and BP, as well as coal mining and commodities giant Glencore, in taking steps to make their businesses more green.
While none of the companies have immediate plans to slash their production of fossil fuels, they have taken steps to increase transparency over emissions and invest in clean energy.
The flurry of activity suggests that pressure applied by investors is having an effect in Europe. But activist shareholders face a much tougher task in the United States, where oil companies show little appetite for change.
The risk for American energy companies is that they could end up being more exposed to an eventual crackdown on carbon emissions.
Equinor, which used the name Statoil until 2018, said Wednesday that it will align its strategy with the goals of the Paris climate agreement and link executive bonuses to climate targets.
The Norwegian firm will also review its lobbying activities, investment portfolio and strategy to ensure they align with the 2015 accord, which seeks to reduce carbon emissions and thereby limit temperature rises to well below 2 degrees above pre-industrial levels.
Equinor agreed to the changes following talks with Climate Action 100+, a group of 300 investors with over $33 trillion in assets under management that is pressuring energy companies to ditch fossil fuels.
The investor coalition has already scored several victories in Europe.
Shell and BP (BP) have both announced in recent months that they will link compensation for some employees to hitting climate targets. Glencore (GLCNF) has agreed to cap coal production after talks with Climate Action 100+.
Total (TOT), the French oil and gas company, has established short-term climate change goals and a broader plan to reduce the carbon intensity of its products and operations.
