Statoil shelves oil sands project

Shareholder advocacy |

Positive development in pursuit of energy production with lower carbon footprint

Statoil announced plans in September 2014 to put its foray into the Canadian oil sands on hold for at least three years, due in part to shareholder advocacy dialogue held with the large Norwegian oil company with Everence and other concerned investors (led by another investor, Boston Common Asset Management).

The heavy oil extracted from oil sands is more carbon-intensive than conventional oil – and its production emits significant greenhouse gases. Since 2013, Everence has participated in conversations with Statoil regarding carbon asset risk – urging Statoil to withdraw from the oil sands through its votes in favor of shareholder resolutions requesting withdrawal. Throughout 2014, Everence participated in several dialogues with the company to discuss carbon asset risk and, particularly, its oil sands operations.

This announcement from Statoil is a positive development in the company’s stated goal of pursuing energy production with a lower carbon footprint. In addition, Statoil also provided a detailed model response to the original investor inquiry, and indicated openness to meeting with shareholders about climate change concerns and its business model.