Stewardship
26
Focus on Methane Engagement
Methane is a powerful greenhouse gas, responsible for roughly 30% of today’s global warming. Although it is 86 times more potent than carbon dioxide over a 20 year period 34 , it remains in the atmosphere for far less time. This makes methane a major driver of near term warming, while also offering a crucial opportunity: emissions reductions made today can deliver meaningful climate benefits within about a decade.
The engagement Since 2022, Nordea Asset Management has led a collaborative engagement on methane across equity and fixed income hold- ings together with approximately 20 partners and clients repre- senting more than €3.7 trillion in assets under management. In 2025, we continued engagement with more than 60 oil and gas, utilities and waste management companies on the measure- ment, disclosure and mitigation of methane emissions. Our core expectation remains that energy companies commit to achieving near zero methane emissions supported by OGMP 2.0 Gold Standard reporting, the most credible global frame- work for transparent methane measurement, reporting and tar- get setting. Ten companies in the engagement achieved align- ment with the gold standard pathway on the basis of credible implementation plans in 2025. Equinor achieved Gold Standard reporting for operated assets 35 . Building on strong momentum from 2024, we further broad- ened our engagement activities in 2025. We convened a dedi- cated utilities sector workshop in New York, bringing together operators, investors and technology experts to strengthen methane management practices in the sector and encourage
alignment with OGMP 2.0. We also initiated our work with the waste management sector through a field trip to a renewable gas facility in Texas and initiated engagement with three waste management companies to on opportunities for improved methane measurement and reduction across their operations. Our policy engagement efforts were similarly strengthened. In 2025, we engaged with policymakers on the implementation of the EU methane regulations, provided input to the US Environ- mental Protection Agency’s reconsideration of the greenhouse gas reporting framework, and advocated for improved meth- ane related disclosure requirements for oil and gas and coal operations under the SASB Standards revision process. These activities complemented our continued engagement with Envi- ronment and Climate Change Canada and our participation in relevant industry and standard-setting forums. Our collaborative engagement efforts continue to be recognised externally. In 2025, Nordea Asset Management was shortlisted for the International Corporate Governance Network’s Steward- ship Excellence Award, reflecting our leadership in advancing methane transparency and encouraging meaningful emissions reductions across key sectors.
34) Source: International Energy Agency. 35) Reference to companies or other investments mentioned should not be construed as a rec- ommendation to the investor to buy or sell the same but is included for the purpose of illustration.
Made with FlippingBook Online newsletter maker