Stewardship
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Focus on Methane Engagement Methane is a powerful greenhouse gas, estimated to account for as much as 30% of the global warming we’re experiencing today. It’s a short-lived climate pollutant that is 86 times as potent a greenhouse gas as carbon dioxide over a 20-year period, but it doesn’t stay in the atmosphere for as long as CO 2 does. This means that methane has not only had a huge impact on global warming to date, but also that reductions offer a critical near-term opportunity, as reductions achieved today will be felt in as little as 10 years.
The engagement Since 2022 we have been leading a collaborative engagement on methane with selected partners and clients with more than 3.7 trillion euros in assets under management. In 2024 we con - tinued engagement with 65 oil and gas companies and utilities companies on the disclosure and mitigation of their methane emissions. The primary ask is for the companies to achieve near-zero methane emissions backed by the Oil and Gas Methane Part- nership 2.0 (OGMP 2.0) Gold Standard reporting. The OGMP 2.0 aims to deliver a 45% reduction in the industry’s methane emissions by 2025 and a 60-75% reduction by 2030. Methane is a powerful greenhouse gas, estimated to be con- tributing to 30% of global warming today. Reducing methane emissions is critical for our investee companies to achieve a 1.5-degree pathway and we believe that reducing methane emissions from oil and gas in the next decade is one of the most cost-effective forms of climate risk mitigation.
Our results in 2024 We saw substantive results from our engagement efforts in 2024. Five companies in the engagement group joined the OGMP 2.0 in 2024: Chevron, Exxon Mobil, OMV, Pertamina and Woodside. 36 Another eight companies in the engagement group – Aker BP, Chesapeake Energy (now Expand Energy, Coterra Energy, Diamondback Energy, EOG Resources, INPEX, Pioneer Natural Resources and Petrobras – were on the Gold Standard pathway in 2024 based on a credible implementation plan. Equinor achieved Gold Standard reporting for operated assets. As part of a holistic approach, the engagement workstream has been complemented by policy engagement with Environment and Climate Change Canada and interaction with leaders from oil and gas companies and utilities at industry events in Amster- dam, New York and Toronto as ways to effectively advocate for industry-wide methane mitigation. Nordea Asset Management also contributed to the Institutional Investors Group on Climate Change (IGCC): “Addressing methane emissions from fossil fuel operations” to support investors to address methane risks in their portfolios.
36) Reference to companies or other investments mentioned should not be construed as a recommendation to the investor to buy or sell the same but is included for the purpose of illustration.
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