Equinor ASA - ESG Overview Report, 2021

Environment, Social and Governance (ESG) at Equinor ASA

The policies that impact the environment, social, governance, which are made by the companies, involving the consumers and the governments, is shaping the current trend in investments in an unprecedented manner.

Being a key leader in the energy industry, Equinor, is motivated by the idea of sustainability and has built itself around it in the aspects of Environment, Social, and Governance, focusing on the three pillars and striving to promote eco-friendly sources of energy among its customers with environmentally friendly methods of operations. In regard to this, Equinor had made policies that define its core ethical values of governance, striving to make a positive impact in all three areas of ESG and also focused on closely aligning with the United Nations’ Sustainable Development Goals (UN SDGs).

The exploitation of natural resources and the need for sustainable and renewable energy sources, has led Equinor to adapt to sustainable technologies and policies.

ESG Trends

Equinor ASA is trying to create a positive impact in the environment, social and governance spheres by making effective policies and strategies. Being one of the key companies in the energy industry, it has created an impact in terms of ESG.

The company has aimed to create a stand in the energy market, by adopting low carbon emissions technologies and achieving a net zero target by 2050. In the process, the company has reduced Scope 1 and Scope 2 emissions from the energy generation processes significantly and aimed to reduce the current emissions by 40% by 2035. The company has made a climate change policy based on the Paris Agreement and the policy focuses on addressing the risks and challenges pertaining to climate change.

Equinor ASA has recorded a Total Recordable Injury Frequency of 2.4% and with a Serious Injury Frequency of 0.4% in 2021. The company has made policy frameworks as to promote safety amongst the employees, where it uses management systems to track and assess the risks, helping in preventing major accidents at work, and promoting the safety of the employees.

Equinor ASA has focused on the social challenges in terms of ESG, such as gender diversity and inclusion and pay disparity amongst the genders. The workforce in the company as of 2021 was reported to be made up of 33% of the female workforce and the remaining 67% being male workforce which is still far from gender parity.  

Furthermore, Equinor ASA has incorporated policies regarding the code of ethics, which mandates the employees of the corporation to engage and adhere to the ethical code. The company has mandated all the employees to complete training in ethics and compliance and mandates all the employees to go through an ethics refresher training program annually, reflecting the core ethics of the company.

The code also mandates the members of the supplier chain to adhere to the policy to reduce the ethical challenge. The policy also focuses on anti-bribery and corruption, striving to eradicate and stick to the ethical policy strictly, thereby promoting the UNSDG goals of institutions for peace and justice (SDG16).

Future of the Equinor ASA

Equinor ASA has generated a revenue of USD 90.9 billion in 2021. Being one of the key leaders of the energy industry, Equinor has made initiatives and policies that create a positive impact on the environment and society in parallel, and these policies reflect the core values of Equinor ASA.