Equinor says it is on track to hit sustainability goals

Norway's state-controlled Equinor has made progress on its emissions reduction targets, reporting modest declines on the year across its scope 1, 2 and 3 emissions and its carbon intensity levels.

Equinor cut its scope 1 and 2 emissions in 2022, by 5.8pc on the year and by 31pc against its baseline of 2015, to 11.4mn t/CO2 equivalent (CO2e). It has retained its target of a 50pc reduction by 2030. Its scope 3 emissions dropped by 2.4pc on the year in 2022, to 243mn t/CO2e.

The company's net carbon intensity fell to 6.9kg CO2/bl of oil equivalent (boe) last year, edging down by just 0.1kg CO2/boe compared with 2021. It is targeting a 20pc cut by 2030 and a 40pc cut by 2035, from a 2019 baseline.

The reduction is in line with expectations, Equinor said, and it estimates the majority of progress will take place post-2025, with its acceleration of renewables and carbon capture and storage (CCS) deployment. The company stored 500,000 t/CO2 in 2022, up from 300,000 t/CO2 in 2021. It has cumulatively stored 26.3mn t/CO2 since 1996, when Norway's Sleipner project started up.

Equinor holds a number of licences for appraisal or storage of CO2, including in the UK and Norwegian sectors of the North Sea. It plans to reach CO2 transport and storage capacity of 5mn-10mn t/yr by 2030 and 15mn-30mn t/yr by 2035, although it stepped away from the planned Polaris CO2 storage site in February.

The company reported carbon costs of $1.02bn in 2022 for its operated assets, though this is the cost before tax, it noted. Equinor reported its equity share of installed renewables capacity of 600MW in 2022, against a target of 12-16GW for 2030. Renewables generation stood at 1.65TWh last year, 62pc of the company's total power generation.

In assessing its business against climate risks, the firm noted that its offshore Mexico assets currently carry the greatest climate-related risk, while its renewables installations in South America see the greatest change in exposure towards 2050.

And when tested against various climate scenarios, the value of its portfolio could grow by as much as 41pc — against the IEA's stated policies scenario — or fall by 22pc when tested against the IEA's net zero by 2050 pathway. This is largely dependent on oil and gas demand, Equinor said.

Equinor has reported in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The company plans to be net zero by 2050.

By Georgia Gratton