Sarasin & Partners Divests from Equinor Over Climate Strategy Backslide

Sarasin & Partners has fully divested its holdings in Norwegian energy firm Equinor, citing a failure to align with the climate targets outlined in the Paris Agreement. Once seen as a potential leader in the energy transition, Equinor has, according to Sarasin, retreated from its earlier commitments, prompting the investor to withdraw its support.

The decision follows Equinor’s recent strategic pivot, including a reduction in renewable energy targets and lobbying efforts to expand oil and gas production. Sarasin, a co-leader in climate negotiations with the company, criticized the oil major’s direction, stating, “Instead of leading the transition, Equinor has followed other oil and gas majors in rolling back its efforts.”

Despite Equinor’s involvement in high-profile climate initiatives—such as the Northern Lights carbon capture project with Shell and TotalEnergies—Sarasin argued the company’s climate alignment claims are “not credible.” In a letter to Equinor Chairman Jon Erik Reinhardsen, Sarasin noted, “It is clear from public statements that Equinor assumes it could become aligned if the world transitions more quickly, but this is a fundamentally different position from actually supporting such a pathway today.”

Equinor responded by defending its approach, citing slower-than-expected global progress in the energy transition. “Our ambition is to be a leading company in the energy transition but as the energy transition is moving slower than expected, we must adapt,” a spokesperson stated.

Sarasin’s exit also marks its withdrawal from the Climate Action 100+ initiative in relation to Equinor, reducing investor pressure on Europe’s largest supplier of natural gas. The firm, previously among Equinor’s top 20 shareholders, completed its divestment in January.