Before we start today's general meeting, we will have a brief HSE briefing by Terje Holst.
Yes, welcome to Equinor. We would like to inform you about our emergency plans in case we need to evacuate the building. No drills or exercises are planned, so all alarms must be considered to be real. If you have to exit, then you need to leave the room immediately, follow the advice and signals of the staff, and then when you exit the building, please spread outside and wait for further information. I wish you a good annual general meeting.
Thank you. Welcome to the annual general meeting of Equinor ASA. For non-Norwegian participants, simultaneous translation to English is available, and for those present in this room, headsets with English translations are available.
If you are logged on to the Lumi AGM, you can choose English version by selecting preferred broadcast language. We will therefore now continue in Norwegian. My name is Tone Lunde Bakker. I am Chair of the Corporate Assembly and the Nomination Committee of Equinor. As you will see from the notice convening the meeting, the Board of Directors of Equinor ASA has appointed me to open today's annual general meeting in accordance with Section 5-12 of the Public Limited Liability Companies Act, PLLCA. With me on the panel, I have Chair of the Board of Directors, Jon Erik Reinhardsen, President and CEO, Anders Opedal, General Counsel and Executive Vice President, Siv Helen Rygh Torstensen, and Company Secretary and Legal Counsel, Marte Johansen Hånesand . This year, Equinor celebrates its 50th anniversary.
As you saw in the film just shown, everything we've learned during the first 50 years will be critical for the next 50. This involves technology. It's about building an industry. It's all about people, and not least, about working together towards a common goal. Before we start, I want to ask everyone to switch your mobile phones to silence mode. This year, all voting will be conducted electronically via Lumi AGM. All attending participants will then have received information on arrival concerning the electronic voting system. Shareholders who participate digitally will find Lumi AGM guidance available at equinor.com. I want to start by giving you some practical information. Items will be open for voting once we have recorded the number of shares represented. We expect to complete the recording in a few minutes to ensure registration of all those who log in.
You will then be eligible to vote on the various items being shown on your screen, which you can access by clicking on the bar chart icon. We will open all items on the agenda at the same time, and you cast your vote by pressing the button for four against or abstain on each item. You are free to change your vote on an individual item until the point where that item's vote is closed. You will then no longer be able to vote on this item. If anyone would like the floor during the general meeting, please give a signal and introduce yourself by name. Shareholders may grant the right to speak on their behalf to one advisor. Those who speak will, for health and safety reasons, be asked to kindly use the stairs next to the rostrum.
This is necessary for technical reasons and due to the direct online webcast of the general meeting. Shareholders who submitted proposals will have up to five minutes to present their motions, while others who would like the floor will have a time limit of up to three minutes to state their case. Such a time limit is necessary to ensure that all the shareholders who would like to participate have an opportunity to provide input. Shareholders who participate digitally are welcome to submit questions and comments to the items whenever they want until the item is closed. You may begin to send questions and comments to all items on the agenda now. Questions and comments from shareholders will go to Equinor's moderator team in Lumi to moderate any inappropriate language. The questions will be published when we start addressing the item in question.
Please state which item your question or comment relates to when submitting it. Shareholders will be identified by name, but not by the number of shares held. We want to point out that questions or comments received after an item is closed will not be answered. We may also group questions together and answer them jointly wherever this is practical and expedient for the general meeting. Questions related to items not on the agenda will generally not be addressed. In order to take into account a natural delay in the live broadcast stream of about 30 seconds, there will be a short pause after each item is presented. We do this to ensure that as many votes as possible are registered during the proceedings. We may also need to take short pauses to ensure that the meeting is conducted in a good manner.
In my capacity as moderator, it's my duty under Section 5-13 of the PLLCA to make a list of the shares that are legally represented at this AGM. We have the following share capital portion represented. 116,771,424 shares are represented by advanced votes. 3,040,144 shares are represented by proxy to the chair of the board. 234,222,272 are represented by instructions to the chair. We have 40 shareholders who vote for 282,745,113 own shares, and 222,183 shares by proxy.
19 shareholders are voting online, representing 17,581 own shares. In total, this adds up to 2,436,819,197 shares represented that make up 77.87% of the share capital. We now open the votes on all items, and we move to the first item, election of chair for the meeting. Please note that the vote will soon be closed, so please cast your vote now. To shareholders who missed the explanation about how to vote, you'll find this information on the login page. We also wish to point out that you are also free to vote on remaining items now.
The voting results for all items will follow from the attachment to the minutes, which will be posted on the company's website shortly after the annual general meeting. The Board of Directors proposes that a general meeting elect the chair of the corporate assembly, that is me, to chair the meeting. Are there any other proposals from the shareholders? No, that does not seem to be the case. No other questions or comments have been received, and we therefore close the vote. All right, we are done with this item, and we close the vote. DNB has now confirmed that the majority are in favor of the proposal list and that the chair of the corporate assembly has been elected to chair the meeting. Next, we move to the next item, which is the approval of the notice on the agenda.
Please note that the vote will be closed when the item has been dealt with. Section 5-10 of the PLLCA states that the general meeting shall be convened by written notice to all shareholders with a known address. Pursuant to section 5-10 (2) of the PLLCA and section 5-11 b, the notice of the meeting shall be sent out no later than three weeks prior to the meeting. The notice convening the meeting with attachments was sent to all shareholders registered in the Norwegian Central Securities Depository, VPS, on the date of the notification, pursuant to the deadline specified in the act. The notice, financial statements, and Board of Directors' annual report, as well as other attachments to the notice, are published on the company's website in compliance with 5-11 of the PLLCA and the company's articles of association.
Thus, notification has taken place in accordance with the act and the provisions of the articles of association. In my capacity as chair, I propose that after the accounts by the chair of the board and the CEO relating to items 6, 7, 9, and 10, the shareholders can present their proposals in sequence, that is item 11 through 19. Once all the proposals have been presented by the respective shareholders present who want it or read out by a representative of the company, we'll open the floor for other interventions and comments from attendees to the nine proposals from shareholders, plus items 6, 7, 9, and 10. Responses to any comments and questions via Lumi AGM will then also be given. The point of dealing with these items together is to maximize practicality and time efficiency.
Voting will still take place in accordance with the notice of the meeting. It is only interventions, questions, and comments that will be merged for the said items. This is the same method as we have employed at previous general meetings. We now move to the vote if there are no comments to this item. This doesn't seem to be the case, then we hereby close the vote. DNB has now confirmed that the resolution has been adopted by a majority of the vote cast, and the annual general meeting is declared to be legally convened and the agenda is adopted. Next item is election of two persons to co-sign the minutes together with the chair of the meeting. Please remember that the vote is closed when the item has been dealt with.
The following are nominated to sign the minutes electronically of the meeting along with the chair, Georg Fredrik Røed and Svein Skeie. Are there any other proposals from shareholders? We have not received any questions or comments, and we hereby close the vote. Something is being said off mic. The interpreters are not able to hear it. DNB has now confirmed that a majority of the votes cast are in favor of the resolution, and Georg Fredrik Røed and Svein Skeie have been elected to co-sign the minutes. We are now moving to deal with item 6, annual approval of the annual report and accounts for Equinor ASA and the Equinor group for 2021, including the Board of Directors proposal.
As we also said, interventions, questions, and comments related to item 7, 9, and 10, and shareholders proposals 11 to 19 will be dealt with in conjunction with item 6. If you wish to comment via Lumi, please state which item your message relates to, and please know that the vote will be closed when the item has been dealt with. The director's report and annual accounts with the auditor's report and the statement by the corporate assembly are included in the annual report and have been made available on the company's website. I give the floor to the Chair of the Board, Jon Erik Reinhardsen, who will account for the board's view of operations and the proposal for dividend. Item 6, the board's proposal for authorization to distribute the dividend based on approved annual accounts for 2021.
Item 7, the proposal to amend article 1 of the articles of association, item 9, the energy transition plan, item 10, and the board's report on corporate governance, item 20. The chair will also account for the board's response to the 9 shareholders' proposals, items 11 through to 19, and the floor will then be given to CEO Anders Opedal. Later, under item 21 on the agenda, the chair of the board will give a separate report on the Board of Directors' report on salary and other remuneration to leading personnel. Jon Erik Reinhardsen, the floor.
Thank you, Tone. Dear fellow shareholders, it feels good to be back at a general meeting where we once again may meet up in person. Last year's AGM was fully digitalized, and this year we have a hybrid solution. Furthermore, this AGM is held at a point in time where our world faces greater uncertainty and conflict in a very long time. We are all very much impacted by the war in Ukraine. Few of us had expected that we would see actual war play out on European soil again. Equinor made swift decisions to start the process of exiting the company's projects in Russia and stop new agreements, including the trade of oil and petroleum products. The decision was both correct and important. Presently, the company is working actively towards exiting our operations in Russia in accordance with our values and the current sanctions and legislation.
In my presentation today, I will give an account of last year's result and the work of the Board of Directors and transition plan, a proposal to amend the objects clause of our articles of association, and the board's response to the submitted shareholder proposals and the votes thereon. Let us talk about the preceding year, and I will start by talking about safety. Safety is the highest priority for the company and the Board of Directors. Last year, our serious incident frequency improved compared to 2020, but we still have too many personal injuries related to our activities. The board is therefore working closely with the administration to turn the trend. Strong collaboration with employee representatives, partners, and suppliers is key to further improve our safety performance.
In 2021, we have seen a significant increase in commodity prices compared to 2020 with a surge in natural gas prices that had a direct impact on people and societies. This serves as an important reminder on the significance of our industry, underlining the need for a reliable and affordable supply of energy through the transition. Equinor delivered strong financial results in 2021 as a result of higher commodity prices, a sustained focus on improvements, and strict capital discipline. Without our organization's ability to deliver safe, and efficient operations, and without the hard work of our employees, we would not have achieved this. We achieved a total shareholder return of 62% in 2021, bringing us to the first quartile in our peer group. The last five years, we have delivered a return of 79%, which also places us in the first quartile.
We delivered strong financial results with a net operating income of $34 billion. The return on average capital employed increased from 2%- 23% compared to the preceding year, and the adjusted production growth for oil and gas increased with approximately 3%. Adjusted earnings were $33 billion before tax and $10 billion after tax. We will maintain our focus on costs and improvements, and we have created values from higher prices with solid operations. Driven by high cash flow, we have improved our adjusted net debt ratio from 32% to below 0% in 2021. The company is bringing the solid operations and strong results with it into 2022 also.
I will now talk about the Board of Directors report and our proposal of distribution dividend, the work of the Board of Directors in 2021, and the board statement on corporate governance items, item number 6, 7, and 20. The board statement on salary and other remuneration for leading personnel is addressed under item 21. It is the company's ambition to grow the annual cash dividend in line with long-term underlying earnings. The board approves first to third quarter interim dividends based on an authorization from the general meeting. The annual general meeting approves the fourth quarter dividend and total annual dividend based on a proposal from the board.
In the course of 2021, we have increased our cash dividend from $0.15 per share in the first quarter, and as we said on the capital markets day in June last year, to $0.18 per share for the second and third quarters. In addition, we have executed our share buyback program as part of our capital distribution. For the fourth quarter of the year, the board proposes through the AGM a cash dividend of $0.20 Per share and an extraordinary quarterly dividend of the same amount. As for previous years, the Board of Directors proposes that the general meeting provides an authorization to the board to approve quarterly dividends up until the next ordinary AGM. The proposal is in accordance with the company's dividend policy.
The board also takes into consideration expected cash flow, capital expenditure plans, financing requirements, appropriate financial capacity, and the overall situation of the company. I will now move on to address the work of the Board of Directors in 2021. The corporate governance is based on openness and equal treatment of all shareholders. The mandate of the board is to ensure long-term value creation for our shareholders and safeguard the interests of our stakeholders and society at large. The board of Equinor focuses on maintaining a high standard of corporate governance in line with Norwegian and international standards of best practice. The board is independent and focuses on preventing conflicts of interest between shareholders, the Board of Directors, and the company's management. The board held eight ordinary board meetings and three extraordinary board meetings in 2021. The attendance was 100%.
The entire board, all parts of it, regularly visit several Equinor plants and office locations in Norway and globally as well. However, in 2021, the board's visits were canceled due to the COVID-19 situation, and the next board trip is planned now for 2022. Nonetheless, I in 2021, I was allowed to visit South Brooklyn Marine Terminal in the context of the US offshore wind business. The board often discusses climate-related upside and downside risks and Equinor's strategic response to these. In 2021, the board discussed climate change and the energy transition in most of the ordinary board meetings, either as an integral part of strategy and investment discussions or as separate topics. Given the launch of our updated strategy in June 2021, the work on this strategy was an important part of the board's work through the year.
I will now move on to address item number 10, which concerns Equinor's energy transition plan. Last year, Equinor announced that the company will create an energy transition plan and submit it for an advisory vote at this year's AGM. This was based upon a wish from our investors to get an overview over how the company plans to deliver on our ambition to be a net zero company in 2050. The vote will not challenge the basic principle that the responsibility for the company's strategy rests with the Board of Directors and the administration. We regard the energy transition plan as a good point of departure for dialogue with investors and other stakeholders on Equinor's operations and strategy. The company has been in extensive dialogue with shareholders since launching the energy transition plan. We have received much input and comments.
Some shareholders choose to vote against the plan on principle grounds related to corporate governance. Others will vote against it because they believe that the plan isn't going far enough, despite the fact that Equinor is at the industry forefront on this area. The energy transition plan is a new document for us, therefore, we greatly appreciate this dialogue, and we bring with us all feedback and basis for choice of vote when we continue our efforts to deliver on the strategy and our net zero ambition for 2050. We will continue this dialogue in the years going forward. The energy transition plan describes the strategy behind Equinor's energy transition. Our strategy is to deliver energy with high value creation and a steady reduction of carbon emissions.
We have a clear plan to utilize our experience, competence, and capital from the area of oil and gas in new value-creating sectors of the energy system. Our energy transition plan is based on specific measures and projects. We believe that the plan demonstrates that we have the right strategy, ambition level, and competence to be a leading company in the green shift, while at the same time continuing to deliver long-term shareholder value and competitiveness. In February, the company strengthened its ambition level by including the ambition to reduce our net operated greenhouse gas emissions by 2030 for own operated fields on a company level. We aim for 90% of this to be realized through absolute reductions.
The new ambition is in line with the goals of the Paris Agreement and the ambitions to limit global warming to 1.5 degrees Celsius. The company aims for a rapid increase of CapEx allocations to renewables and low carbon solutions. This is an important pillar in our plan. The energy transition is a global challenge. It requires a coordinated effort from authorities and industries across borders. Equinor's ambition is to be a proactive and constructive partner in the efforts to accelerate the green shift. Equinor will present its updated energy transition plan in 2025, but report on the progress on an annual basis. Now, let me briefly address item number 9, which is the proposal to amend Article 1 of the Articles of Association.
This year, the company celebrates its fiftieth anniversary, and as a consequence of the changes the company has undergone, the board found it natural to update the objects clause of the company. On this background, the board proposes an amendment to the objects clause, which has had a particular focus on oil and gas. The new amendment will use the word energy, which is in harmony with the current strategy and the company's ambition to deliver energy with reduced emissions, and in time, zero emissions. Next, I would like to address the submitted shareholders' proposals as set out in items 11 through 19. In the documents distributed prior to the AGM, the Board of Directors have responded to the proposals and explained why the board recommends that the general meeting votes against all the shareholders' proposals.
Nevertheless, I would like to expand on some of the topics in this address. The proposals of items 11 and 12 both deal with the company's climate goals. In this address, I've accounted for the company's energy transition plan. The board emphasizes that the ETP significantly overlaps the proposals from Follow This, Greenpeace, and WWF, including the importance of companies supporting the goals of the Paris Agreement and setting of short, medium, and long-term ambitions. The energy transition plan demonstrates how Equinor is aligned with the Paris Agreement and the scenarios of 1.5 degrees for our own emissions.
This plan also demonstrates how the company contributes to financing the transition and how it is ahead of society's pledges when it comes to the scenarios are well below two degrees Celsius in terms of ambitions, including emissions from the use of energy sold, that is, Scope 3. However, the board's view differs from that of Follow This, Greenpeace and WWF with respect to the question of whether energy companies should set absolute targets for Scope 3 emissions in regard to the use of energy sold. In this regard, the company believes, or the board believes that intensity-based ambitions are are important because these include both energy production and emissions. A focus on cuts in absolute emissions from the end users is likely to incentivize displacement rather than reduction of emissions. Given the demand in the market today.
In the short term, until a market for hydrogen and carbon capture and storage is established, absolute emission targets that include end-user emissions will only be achieved by selling or shutting down profitable oil and gas production, thus shifting indirect emissions from end use to other producers. Equinor's strategy in the transition is based on being a continued supplier of reliable energy with a progressively lower greenhouse gas footprint over time toward net zero in 2050. However, the company cannot operate outside of existing framework conditions with respect to policy and markets. Right now, the world is dealing with a situation where energy security is high on the agenda, particularly in Europe. In this situation, Equinor is an important and reliable supplier of energy, both oil and gas and renewables.
On this background, the Board of Directors recommends that the general meeting votes against these two proposals and vote in favor of the company's energy transition plan, which will be regularly updated in much the same way that society as such updates its ambitions and targets. Item 13 concerns a proposal from Greenpeace about a state just transition fund. About this specific proposal, we believe that Norwegian authorities are better positioned to assess whether there's a need for establishing a state just transition fund. We thus recommend that the general meeting votes against the proposal. I will move on to address the shareholders' proposals from members of Grandparents Climate Campaign and shareholder Ivar Sætre set out in items 14 to 18 and the board's recommendation.
These proposals are related to the international operations of the company, the cessation of exploration activities, a plan for the closure of the oil industry, and a transformation to sustainable energy production. Equinor is, no matter where the company operates, committed to preventing harm to the environment. The company has a risk-based precautionary approach and works in accordance with government requirements, company requirements, and good practice to follow up the environment and safety performance. We carry out environmental risk and impact assessments in planning phases before operations and, or development activities. Our work also entails impact assessments, monitoring programs, and cooperation with various research institutes to build knowledge. In Norway, Equinor still sees a significant exploration potential, especially around our existing infrastructure, and we believe that there is a need and room for this also within the framework of the Paris Agreement.
We see a potential in the production of new energy carriers such as hydrogen and ammonia based on natural gas with carbon capture and storage. It is the Norwegian authorities who must at all times assess whether and which areas should be available for activity. In accordance with our strategy, Equinor prioritizes projects with the highest value and lowest emissions also for our international portfolio. Equinor has in recent years focused its international oil and gas portfolio and has exited several countries and exited the majority of the companies operated on conventionals in the US. The company is focusing more on offshore operations, which is our core competence. We are making the portfolio more robust towards lower prices while capturing a significant upside in periods with higher prices, which we now see.
Both the board and the administration regularly evaluate the portfolio composition in relation to the company's overall strategy, the asset's economic development, and other relevant aspects, and this applies to the entire portfolio of the company. The board emphasizes the importance of complying with the principles of good corporate governance, and that the company's strategy is to be determined by the Board of Directors of the company. Based on this, the Board of Directors recommends that the general meeting vote against the proposals in items 14-18. Moving on to item 19, which is a proposal from shareholder Per Henning Lerstad that the board of Equinor outlines a specific plan for quality assurance and anti-corruption. Equinor's business will never be without risks, but the board and the company's number one priority is and will always be safe operations.
This is reflected both in the board's priorities, the company's governing documentation, and the company culture that has been developed in Equinor over many years. The board will continue to actively follow up this work also in the future, and on behalf of the company, we look forward to the dialogue we have both with the public authorities and shareholders when it comes to safety and risk management. Equinor has been engaged in projects outside of Norway for many years. In more recent years, this also includes many renewables projects. Each country and each project have its own risk profile, but business integrity risk assessment as well as risk mitigating activities are integrated in all phases of any project development in Equinor. If the risk level is too high, a project will be stopped.
In some cases, Equinor has decided to exit countries completely when the risk level has become too high. Whenever we are present in a high-risk country or project, Equinor manages that risk through various means, such as, for example, dedicated compliance personnel, strong contractual language, and commercial mechanisms to ensure compliance with the laws and regulations. Equinor has strong business integrity programs for various forms of business integrity, including anti-corruption. These programs provide, among other things, relevant training and raises awareness among all of our employees. On this background, the recommendation of the board is that the general meeting votes against this proposal. I'm now about to round off my account. On behalf of the Board of Directors, I wish to thank CEO Anders Opedal and his management team for strong delivery in a period characterized by significant volatility and instability.
At last but not least, I wish to give a heartfelt thank you to all employees for their hard work and dedication through 2021. Now I pass the floor to our CEO. Thank you for your attention.
Thank you, Chair and dear fellow shareholders. We find ourselves in the midst of an extraordinary situation that affects us all. Russia's invasion of Ukraine is altering Europe's security situation. The human toll is massive, and we see consequences far beyond Ukraine's borders. We quickly decided to stop investments in Russia and initiated the process of withdrawing from existing projects. We will do this in a way that safeguards our employees, and that are in accordance with our values. The war will have an impact on European and global cooperation going forward, and the effects of this will be visible in the energy markets for a long time. Given this backdrop, the level of tension is increasing globally, and this has consequences for food prices and energy prices, which in turn puts pressure on everyone's financial situation.
Countries become more focused on safeguarding their own interests instead of contributing toward global solutions. In addition to the war, we also face a climate crisis. The world has to reduce emissions at the same time as we see a growing global demand for energy, more renewables, more low carbon solutions, and in the short term, more oil and gas too. Short-term changes and turbulence do not change the long-term perspectives. In the past year, updated reports have been presented by the Intergovernmental Panel on Climate Change, IPCC, and other sources. The climate challenges we face have never been greater, and the need for action has never been more important. The world must cut emissions quickly and reach net zero by 2050. There will be differing opinions about how to achieve this. Equinor's strategy is our answer.
At our Capital Market Day in June of last year, we presented an updated strategy. The strategy is based on the foundation blocks we've established over many years. Always safe, high value, and low carbon. The strategy has three pillars. An optimized oil and gas portfolio, profitable growth in renewable energy, and development of new low carbon solutions such as hydrogen and carbon capture and storage. This strategy demonstrates consistency over time, but also positions the company for the future. This is a flexible strategy that will help make Equinor become a leading company in the transition towards a low carbon society. The task is by no means easy. Implementing this kind of change is not a matter of simply flipping a switch, but the result of a smooth transition.
History is full of examples of companies which have had to change strategy because their core business falls apart or becomes irrelevant. Equinor is in a very different situation. We are going to implement a transition and build a new industry at the same time as our existing core business delivers better results than ever before. This means that we will change from a strong position, and because we want to. Let me, on this note, say a few words about the past year. At last year's annual general meeting, we reported results impacted by low oil and gas prices. At the beginning of that year, we presented the 2020 net income, the worst performance in the company's history. At the beginning of this year, we presented the 2021 financial statements, the best IFRS net income ever. This volatility is largely due to heavily fluctuating energy prices.
Last year's results must be seen in this perspective. The serious incident trend as a company showed improvement at the end of 2021. It's motivating to see that the work we do every single day to improve safety has an effect. The number of serious incidents in 2021 was at its lowest level in the company's history. We will continue to build on positive achievements, but we still have a job to do, and therefore we will continue our efforts to build a stronger and more uniform safety culture across our facilities. Everyone should feel safe working for Equinor. The financial performance was robust. Adjusted EBITDA was $10 billion for 2021. The production of oil and gas increased by 3.2%.
Continued focus on improvements and capital discipline contributed to a strong free cash flow of $25 billion, and a considerable strengthening of our balance sheet. This is a team victory. High prices are important, but equally important is the rock solid effort from our employees and suppliers. They have ensured stable production at our facilities, which enables strong value creation with current prices. The pandemic continued to affect the level of activity in 2021, but the markets recovered with high prices, particularly in the second half of the year. As the chair of the board highlighted, 2021 was different from 2020. In the course of that year, we also launched initiatives that will contribute towards future value creation. The Martin Linge field came on stream following persistent effort from our organization.
This has been a demanding project in many respects, but is now producing well at a time with high gas prices. This leads us to expect that the investment will be repaid as early as by this summer. We made an investment decision on Bacalhau in Brazil, which will increase our production in the country considerably, and we have delivered on our strategy to focus on our international oil and gas portfolio. In the area of renewable and low carbon solutions, we have acquired the solar company, Wento, and a share of the battery company, Noriker Power, and we have signed an MoU on the potential development of offshore wind in countries like South Korea and Spain. Equinor has, along with our suppliers and partners, delivered world-class engineering for almost 50 years.
We contribute to development and value creation in Norway and internationally, and this is only possible if we keep a steady focus on the future, and with a willingness to take huge technological and strategic leaps. We have taken industrial positions that have contributed to societal progress for many decades, and we're now paving the way for new such advancements. For us, this is about changing for the future, while at the same time creating value for society today. As the chair of the board said, we have submitted an energy transition plan. To me, it's important to stress how this plan creates the foundation for how we can become a net zero company by 2050. The choices we make today will be critical for the green shift and for Equinor. There are three perspectives that I want to share with you here.
In Norway, Equinor will be a locomotive in the transition of the Norwegian Continental Shelf from an oil and gas province to an energy province. In Europe, we will be a predictable supplier of energy, both gas and renewables, to a continent which is currently experiencing a dramatically changed energy situation. Globally, we will be a partner who creates value for the societies we operate in and contribute to with investments in energy that the world needs. Let me go a bit into further detail. In Norway, we have presented what we call the Norway Energy Hub, a plan for the transition of the Norwegian Continental Shelf from an oil and gas province to an energy province. Norway made the right choices when we developed hydropower at the beginning of last century and the oil industry in the 1970s.
We now face a similar opportunity with a focus on renewable energy and low carbon solutions. We must seize this opportunity along with the rest of the industry and the authorities. Norway energy hub is a plan for modern-day Norway, and about how we maintain and develop Norway's position as an energy nation by using our energy resources to create jobs, value, and welfare. This transition is necessary. At the same time, we see a situation in Europe with power shortage resulting in increased prices for all. As a major energy supplier to Europe, we have turned every valve to secure and increase gas deliveries. We will continue to do so, and we will also be investing heavily in renewables projects in Norway, the UK, Germany and Poland. Never before have I received more questions about how much and how quickly we can supply energy to European customers.
Another contribution outside Norway is how actively we work with projects for hydrogen and carbon capture and storage, for example, in the U.K. Here we can help by supplying energy with low carbon emissions and enable a transition of the country's heavy industry. It enables us to contribute even beyond the boundaries of our own company's operations. In Humber, our ambition is to take a region with the highest emissions in the U.K. to a low carbon region. We also have a role to play globally. Outside Norway, Equinor's activities contribute to value creation and revenue. We are a driving force to promote solutions that will cut emissions and increase energy production where it's most needed. This applies to oil and gas particularly, but also to an increasing extent to renewable and low carbon solutions.
In the same way as in our traditional operations, there's also a need to take risk based on our experience and knowledge and expertise from Norway. We have a lot to contribute to when it comes to capital expenditure, project management, technological development and not least with regard to the ability to take risk, to mention some. We will also be relying on these capabilities when we assess future opportunities. This is necessary if we are to succeed with taking a leading role in the green shift, and we do this against a challenging backdrop. The war in Ukraine, a changing world, and an ongoing climate crisis. The rest of the world is facing a trilemma, energy trilemma. How can we jointly safeguard and predictably deliver energy with low emissions at an affordable price? We must deliver on all three to succeed, and there is some urgency here.
The energy transition plan gives an overview of how Equinor intends to ensure a value creating transition. There are great expectations to Equinor. These are expectations that we understand and will deliver on. We will be a driving force for the transition of the Norwegian Continental Shelf. We will be a predictable and forward-leaning partner for Europe, and we will contribute to the global energy transition. A more turbulent and ever-changing world, a war in Ukraine, high demand for energy and a climate crisis that's becoming ever more imminent demand that action from us all, not least from Equinor. Thank you for your attention.
Thank you very much, Anders, and thank you to both of you for your accounts. We will now move on to the shareholder proposals, and I remind you that we open up for questions and comments from the floor after all proposals have been presented, and also remind you that shareholders who participate digitally must submit their questions or comments that they may have in Lumi AGM solution. This will be published in the course of and after all shareholder proposals have been presented. Please note that we will not open up for questions and comments later for items 6, 7, 9 and 10, and shareholder proposals in items 11 through 19. For these items, there will only be voting on each item. It is also possible to vote on these items now, all the items now.
If you wish to support the proposal of the shareholder, you vote in favor of the proposal, whereas you should vote against the proposal if you wish to follow the recommendation of the Board of Directors. We now move on to item 11, which is a proposal put forward from shareholder Follow This. This proposal under item 11 was distributed with the notice of the AGM. It will be shown on the screen and will not be read out aloud. We give the floor to a representative of the shareholder who will read the supporting statement. You have five minutes. We will revert to any questions and comments regarding the item 11 and vote on the proposal. The floor is yours.
Thank you very much, dear AGM. My name is Martin Norman. I work for an Australian organization called ACCR.
Here and now I'm going to present the proposal from Follow This. For those of you who've been here before, this is a known proposal. It's been up before the AGM several times before. It's quite simply to have a clear target for Scope 1, Scope 2, and Scope 3 for the company. There's no doubt that Equinor has done a lot in the recent five, six, seven years in terms of emissions. Obviously you have a good strategy, or you're starting to eke out a suitably good strategy on how to progress.
At the same time, though, the thing is, the climate crisis that we see now, which was flagged clearly by Gro Harlem Brundtland in 1992, as an activist sort of, is something that you've known about for a long time. It's a bit sad to see that the company in 2022, still in the plans going forward, plan to increase its total emissions. Analysis done by Carbon Tracker, Global Tracker Insights, and several investors, the total emissions will increase, these analysis show.
Follow This and myself, we are convinced that setting clear Scope 3 targets for the company, as you've done, they've done in BP, that will be an important step to not just attain net zero in 2050, but to get there as quickly as possible. I think that the company has missed the target a little bit, not just Equinor, but others as well. We must reach net zero as quickly as possible. While I'm here at the rostrum, I would like to say a little bit about the Energy Transition Plan that Equinor has presented, because it's been heavily criticized, not by NGOs only, but by the financial industry internationally, and it is about exactly the same thing. There's a lot of nice words, and there are.
Things, good things are happening, but it's too little, too late. That's no doubt that we are facing a quite demanding energy situation, not only in Europe but also elsewhere, but the long-term way is along the pathway or more renewables as quickly as possible. I ask the shareholders then to not support Equinor's energy transition plan. Number 2, I ask the shareholders to support the target that the company must have in order to cut its total emissions. We are in 2022, after all, and I think that will be in the best interest of the company and the best interest of Norway and the world. I have a small prayer since you're sitting here now in front of me.
I've followed this company closely since 2007 when you bought Canadian tar sand projects. We're not going to talk much about that here now, but I've seen how good you've been at. You are good at communicating. You're good at influencing. You're good at maneuvering politically and in all manner and ways together with other companies. You're great at that. I do so wish that you would just soon start to use the same resources to make the green shift happen, as you've used on being allowed to continue to explore and drill for oil and gas. There's another thing too. You're talking a lot about emissions per energy unit.
That's important enough in itself, of course, but at the same time, we see that you open up for new exploration areas in Canada, in Argentina, very controversial projects that are not in alignment with anything which is in any climate report or in the Paris Agreement. We hope that you reconsider some of the most controversial projects. That was what I had to say. Thank you for your attention.
Thank you very much. We will continue to item 12, which is a proposal put forward by shareholders, WWF and Greenpeace. The proposal under item 12 was distributed with the notice of AGM and will be shown on the screen and will not be read out loud.
We give the floor to the representative, who will have five minutes to present the supporting statement and will revert to any questions or comments regarding item 12.
What is done with your money, it's your business, but when you use your business and you come to my country to destroy my country, then this becomes my business. It's not my words.
My name is Ragnhild Waagaard. I'm a part of the climate and energy team in WWF. These are the words of an indigenous people's leader, François Paulette. He was here. He came from the deep forests of Canada, to warn the AGM against the then Stat oil operations in tar sand. Today, we still have visitors from Canada, from populations there that are very worried about the Equinor plans for in Newfoundland. Here in Norway, there's great resistance against Wisting field.
The CEO Helge Lund back then has admitted that tar sand was a mistake. It should have never happened. It was a conscious incorrect strategy that we warned against and not many others did too for many years without the company listening. Many of the expensive decisions have yielded red figures for the company. Helge Lund is Norway's most expensive employee ever. We would like to direct the attention of today's management and Anders Opedal at the head of it to this so that you don't make the same mistakes. It's great that Equinor has put a transition really shift on the agenda, and that you have presented an energy transition plan. The problem is that it is not clear enough and it's not ambitious enough. The plan has been construed in a finicky way.
It makes it difficult to see how the emissions targets for 2030 and 2050 are to be attained. We have used members from Rystad Energy to take a look at the future plans. We see that Equinor is planning to increase the emissions from 22% before 2030. It's no serious transition plan can involve increased emissions. Equinor is not clear on how you plan to attain or reach the climate goals, whether it is to reduce the production of oil and gas or increase their renewables or buy climate credits. The climate solutions Equinor is in practice fossil business models which contributes to prolonging our dependency on fossil fuel sources.
Hydrogen based upon gas or the electrification of the shelf, which removes emission from the shelf, but it doesn't really do anything about the emissions in general. We and several other investors have questioned these two tests of the portfolio presented in the annual report of Equinor. According to Equinor, it's the price drop of 30% which will yield the biggest drop of $9 billion, while the stress test against the 1.5-degree only yields a loss of $7 million. This despite the fact that the prices in IEA's net zero scenario is $10 lower than the 30% price reduction would entail. We in WWF have stress tested Equinor's portfolio based upon figures from Rystad Energy, and we find that the company can lose $50 billion with IEA's net zero scenario.
We ask Equinor to explain to the shareholders how you have arrived at such a low assumption for potential losses connected to a lower oil price. Back to the red figures. We have taken a look at the portfolio of Equinor in a 0.5, 1.5 degree scenario. It's striking to see that hardly any new developments are profitable. You're in a situation where you end up with red figures if you are to succeed with the plan. If you don't succeed with the plan, with the climate targets, we'll have so many worries that we have to deal with that the quarterly reports of an oil company are insignificant.
If Equinor's transition to have any credibility, the emissions must be reduced and you must cancel and stop all oil and gas projects, as well as Barents Wisting and offshore in Argentina as well. Sometimes we get the impression that it seems like the management of Equinor hasn't really accepted and understood that you have an enormous power for change. Equinor is the 18th biggest oil and gas company in the world, and since 1971, Equinor has directly produced climate gas emissions corresponding to 6.3 billion tons of CO₂, which is 3.5 x the emissions from Norway the state is responsible for. The choices will define the climate challenges. The investment that you make today and tomorrow will impact the emission situation for decades to come.
It's a great responsibility to bear when you know the great consequences of the climate change. On this background, we ask for the general meeting to vote against the Energy Transition Plan and in favor of our proposal. Thank you.
Let's move to item 13, proposal from shareholder Greenpeace. The proposal under item 13 was distributed with the notice of the meeting and is being shown on the screen, so it will not be read aloud. We will now give the floor to representative for the shareholder who has five minutes for this presentation and will be reverting to any interventions for item 13 and the vote on this item.
Representing Greenpeace for the proposition 13. I hope it's okay that I'm taking it in English. You don't want to hear my Norwegian. All right. To limit global warming to a maximum of 1.5 degrees, the world must halve global greenhouse gases emissions by 2030. To succeed with that ambitious goal, the world must go through an unprecedented transition from fossil to renewable energy. The IEA and the IPCC are both clear that there is no room for new oil and gas projects if the world is to meet to limit the global warming to 1.5 degrees. Equinor, as a large oil producing company, has to be in the forefront of that transition. Equinor should, as we've suggested together with WWF, set an ambition to halve its absolute emissions by 2030.
This would include leaving financially risky projects such as the Wisting field, now looking to become the world's northernmost oil field. Instead, we read that Equinor now wants to be the company to extract the last drop of oil, greatly motivated and justified by the sudden urgent needs from Europe. Let us, however, not ignore that Europe, at the same time, is changing gear on their intention to accelerate their transition to clean energy, as the REPowerEU plan shows. This is a great opportunity for Equinor to lead the change and be in the forefront of a faster transition towards renewable energies. We believe that shareholders have an interest to abandon the risks associated with the extension of an oil era on the decline. This proposal looks at the risks associated with the extension of.
This proposal looks at the risk associated with failing to anticipate the reconversion of the oil workers who have brought Equinor to where it is now. Equinor, together with the Norwegian state as its main shareholder, has a very important social responsibility to guarantee a sustainable future to its workers. How secure is their future if Equinor takes too much time to develop renewable energy solutions? It's time to act and to show that the transition towards green job matters. Workers in the oil industry have a high level of knowledge and skills, and we often hear that this accumulation of workforce and know-how is the key to the green transition. Equinor is and wants to continue to be an attractive employer.
It is critical that Equinor prepares its workforce and does not lock workers inspired to be part of the green transition into a path of dependency, especially in time when oil prices are high. The green market is growing, and the workforce is ready. Yet, Equinor chooses now to increase its fossil fuel production and increase its greenhouse gases emissions in the coming years. We think this risks the future careers of the workforce. In order to prepare for this necessary and abrupt transition, if we believe the latest recommendation of the IPCC, Greenpeace proposes that Equinor takes the initiative to establish a state restructuring fund for employees who now work in the oil sector. The skilled workers of the industry, together with our union representatives, should be associated with this effort and lead this transition.
With the introduction of the crisis package granted to the oil companies during the corona pandemic, we saw how Equinor, among others, was able to persuade the authorities to institute advantageous measures to support their activity in challenging times. Now that petroleum incomes are at a record high for Equinor, it is time to use these extra revenues and influential channels to prepare for the future with the establishment of a state-led transition fund that can help workers throughout the coming shift. The focus should now be on further developing workers for a green and just transition. A transition that will make Equinor a relevant company in a modern energy world. Thank you.
Thank you very much. Vivilla. We will now move on to item 14, which is a proposal put forward by shareholders Even Bakke, Bente Marie Bakke, Ketil Lund, Guttorm Grundt, and Gro Nylander. The proposal under item 14 was distributed with the notice of the AGM. It will be shown on the screen and will not be read out aloud. We will give the floor to the representatives of the proposing shareholders who will read the supporting statement. You have five minutes. We'll revert to any questions and comments regarding the item 14 and the vote on the proposal.
My name is Knut Jonas Espedal. I'm going to explain the grounds of the proposal of the Grandparents Climate Campaign's proposal.
Item one, Equinor should declare the Norwegian sector of the Barents Sea as a voluntary exclusion zone because the Barents Sea is a challenging region with extreme weather conditions, and Equinor is now about to start production on the Johan Castberg production platform and to build the Wisting production platform located 300 kilometers north of Finnmark, and it's very close to the winter sea ice edge, which the distance will vary from 20-230 kilometers from the coast. It has a very active biosphere, and it's very vulnerable, has a very active aquatic life, and there's too little natural gas there. It needs therefore to be electrified with an inexpensive cable from Hammerfest, and this will impact the cost of this.
Their emergency preparedness capacity in the Barents Sea has turned out to be not good enough, which was demonstrated by the catastrophic fire at Equinor's Melkøya production plant. There's a big oil spillage in the Wisting region, it will lead to an environmental catastrophe and cause irreparable damage to Equinor's reputation and the financial stability of the company. The European Court of Human Rights has said yes to this case about, it's due to rule on the Norwegian government's right to give permits. This could violate Paragraph 112 in Norwegian Constitution. It may have a different result, though, because the EU has proposed a ban on new oil and gas exploration in the Arctic region, including prohibiting the purchase of oil and gas products from this region.
President Biden, he will bring all of the countries in the Arctic Council on making a moratorium on drilling for oil and gas in the Arctic region. We see that Equinor's activities in the Norwegian section of the Barents Sea are risky from an environmental perspective, a reputational and financial perspective as well. Of course, that if all or part of the above come true, the consequence for Equinor will be a long-term loss of reputation, reduced shareholder value, et cetera. Item two, number one here. Equinor's activities outside of Norway has not shown good enough profitability, and there's a high corruption risk in some of the countries, such as Angola, Azerbaijan, Libya, Venezuela and Nigeria and Russia too.
Equinor should rather focus on the highly profitable oil and gas business in the established Norwegian sector, excluding the Barents Sea, and accelerate further its renewables business in wind and solar power. Two, Equinor is currently experiencing strong local protests in Argentina for its seismic exploration along the Atlantic coast. This is in areas with a rich aquatic life. The situation is like comparable to the Australian protests to the Great Australian Bight exploration that Equinor had to stop in 2020. Three, as disclosed on March 12, 2022, the major Norwegian business newspaper, Dagens Næringsliv, Equinor has had during the last 20 years demonstrated inadequate due diligence, risk analysis and compliance with Norwegian company and Norwegian government rules and regulations when starting businesses in USA and developing countries with demonstrated high corruption risks.
Overall, these issues could reduce Equinor's long-term share value to its investors, damage its reputation as a company with a stated zero tolerance for corruption and as an environmentally responsible company. Three, item one here. Currently, Equinor's renewable energy investments constitute only 4% of its annual investments, while 96% is used for oil and gas investments. The plan is to increase the investment to 50% by 2030. Currently, Equinor has an installed renewable energy base of about 0.8 GW. By 2030, the plan is to have an installed base between 12-16. It's not long until 2030, but nonetheless, this is an insufficient growth considering the ongoing and accelerating energy transition to renewables. Two, Ørsted A/S is a spin-out from the Danish government-owned oil and gas company.
They have currently a wind power installed base of 13 GW and plan to increase it to 30 GW by 2030. Last year, we proposed that Equinor should also spin out their renewable energy business to create a much more valuable company, but this was voted down at the AGM. The Equinor share price has had a poorer development than the Ørsted share price. Three, CO2 emissions resulting from Equinor sales of oil and gas is about 250 million tons per year and now increasing significantly due to the energy crisis. This is about 8 x the total CO2 emissions of Norway. As far as we can see, Equinor has not so far presented a detailed net zero emissions plan in 2050.
By accelerating investments in renewable energy and reducing investments in oil and gas, the company will move faster, we believe, towards net zero emissions goal by 2050. By greatly accelerating investments in renewables, Equinor will secure long-term share value for its investors, and improve its ESG position and reach its net zero emissions goal faster. We also suggested that the current board of director chairman of the board should not be reelected, but it was redacted because it's not the AGM here that selects the chair, but it is the corporate assembly of Equinor. We will then send the proposal and justification behind it to the corporate assembly. Finally, I would like to go back in time a little bit to the AGM in 2009.
We all was presented with a proposal where Greenpeace suggested that they should cut the tar sand project, but only half, 1.5 per million voted in favor of us. Helge Lund said it was an important project, and the board nodded and in agreement, but the state's representative was quiet as a mouse. Year after year, the proposal was presented, but the board said the same thing. Primarily, Statoil is considering the financial situation. Sustainability is not so important. However, several years after this, one changes tone, it was a mistake with this oil sand. We will withdraw. It was a very expensive lesson.
It cost us thousands of millions NOK, and goodwill, and demonstrations, and it continued. The state was quiet as a mouse, and the green proposals were voted against. Changing the name from Statoil to Equinor didn't matter. We need a change of content. Now please wake up. Now you must do the right thing because we're now in 2022, and the future, what will happen? Listen to us old people. We know that the oil and gas era is soon over. You have to go for renewables now and to a much greater degree than this board has ambitions for. Higher ambitions, please. Renewables will be profitable, so we do not suggest something which is naive, but it is realistic. Remember the oil sand and what happened with it, and do remember, too.
I'm sorry, can I just. Please, it doesn't really matter if you don't completely exploit the oil fields, and leave the northern regions alone where the fish and bird live. These things should be protected. The AGM of Equinor, please listen to our words. Thank you.
Thank you very much. We will move to item 15, a proposal from shareholder Bente Marie Bakke. The proposal on the item 15 was distributed with a notice of the meeting and is being shown on the screen, so it will not be read aloud. The shareholder has five minutes, and we remind you to observe the deadline so that everyone has a possibility to make their interventions. You have the floor.
Yes. Thank you.
Dear shareholders on the screen, you see the full proposal that I'm submitting on behalf of the National Board of the Grandparents Climate Campaign. Well, there are a series of highly educated people in our generation, and an increasing number of people are actually dedicating themselves on behalf of their grandchildren's climate future. It doesn't look bright if shareholders continue to support Equinor's climate, nature, and child hostile future by continuing to explore for oil and gas. None of us could have envisaged Russia's brutal attack on Ukraine, and therefore it's positive that Equinor and Norway are now being able to export more oil and gas to Europe. That cannot justify exploring for further oil and gas on the Norwegian Continental Shelf after the war when it's over.
We don't need more fossil fuels, but we need a reduced energy consumption and a transition to renewable sources. The UN IPCC keep presenting increasingly alarming reports that fossil fuels have resulted in deadly global warming, and the situation is exacerbating. We have a nature and climate crisis combined. Russia's war against Ukraine has, on top of a tragic human toll, also resulted in war actions with huge emissions. Also the grain production in Ukraine that also supplies the whole world is also impacted. This has resulted in further demand for fossil fuels, weapon systems, aviation, and other transport sectors need more energy. Some have said that they even consider Norway to be a war profiteer.
Maybe this impression can be impaired if more money is invested in reducing the carbon footprint, conserving our nature, and also to promote small scale food production. We must remember that Equinor is the oil company of Norwegian people. Norwegian citizens own 67% of the shares, and up to 70% if we include the shares of the Folketrygdfondet, and our interest should be safeguarded by the Ministry of Petroleum and Energy and the government. As a shareholder and as a citizen, I'm left with the impression that it is the interest of the oil industry that are safeguarded, not the citizens, nor future generations. It is therefore a lot of concern when I see that Equinor and the Norwegian state has invested a great deal of Norwegian future funds on projects abroad that ruins the climate and nature.
Norway cannot accept responsibility for this large scale pollution and also that Equinor's projects in other countries increase global warming. António Guterres, the UN Secretary-General, believe that all exploration for more oil and gas must end if we are to be able to attain the Paris Agreement goals. He believe that one must consider it a criminal offense.
If we continue to actually not stand up for the climate, but Equinor doesn't care about this. The government keep awarding oil and gas licenses even in the pristine and vulnerable Arctic. According to Per-Kristian Foss, there were no inspectors there. The worst example is the Wisting field. Of course, shareholders and all sensible people must simply oppose it. If that field is put on stream, then it will continue to deliver oil for many years after the world's targeted net zero in 2050. In addition, I mean, this would be unprofitable if it hadn't been for the parliament's NOK 100,000 billion in tax relief. Equinor and the government have plans for electrification of oil production on the Norwegian Continental Shelf, cutting domestic greenhouse gas emissions in compliance with the Paris Agreement.
This should not be done by providing more petroleum platforms with power from shore. We're now experiencing a serious electricity crisis, with an all-time high prices in large parts of mainland Norway. Instead, existing petroleum platforms must be electrified through the development of offshore wind turbines. This could involve a step change for Equinor with regard to developing new renewable energy. Offshore wind for the electrification of petroleum platforms will also be positive for Norwegian industry, and these wind turbines must help increase the reliability of electricity supply for Norway and Europe when the platforms are no longer producing. We, the Grandparents Climate Campaign, we look forward to Equinor's plans for being a leader in the development of new renewable energy.
Here it's important that many of current oil workers and engineers can then transition to renewable sectors, because we know that it will not progress because of the shortages of expertise and skilled persons who can take us and Equinor into a future that will not ruin the conditions for life for our grandchildren and future generation. Thank you.
We'll continue item 16, a proposal put forward by shareholder Gro Nylander, and it was distributed with the notice of AGM, will be shown on the screen and will not be read out aloud. We give the floor to the proposing shareholder who will present for five minutes and will respond to any questions and comments regarding this item later. Thank you very much, all of you.
I'm here from Concerned Scientists Norway, from the Doctors' Climate Action, and from the Grandparents Climate Campaign. Recently, I came across a caricature that made me as a shareholder feel deeply uncomfortable, as a shareholder in Equinor, that is. It shows a couple of leaders from the oil industry are listening to a group of scientists waving tablets and graphs, trying to be heard, shouting, "You are boiling the planet." The oil people smile a little, and they answer, "We know, but it's very lucrative." Another unpleasant slogan that is regularly directed at Equinor, too, is, "There are no jobs on a dead planet." Is that how the world sees our company? Many shareholders do not appreciate that image.
We shareholders follow developments in Equinor with excitement and look forward to increased efforts in wind, solar, CCS, and the electrification of the Norwegian shelf, preferably with offshore wind. As happy as I am about Equinor's investment in renewable energy, just as disappointed am I that the investment, even the last few years, has been so miserably small. The figures for the future are quite a bit misleading, from the annual reports. A small number remains small, even if you multiply it. Given a continued constant oil and gas production in 2030, this will be approximately 10 x the size of the projected renewable production. As if I have my figures correctly.
As happy as I am to learn about these new plans, just as disappointed am I that the measures taken still promise too little, too late, according to international research and the UN's red alert. A group of Equinor shareholders is in direct contact with BlackRock. Most of you know that it's one of the world's largest investment companies and major shareholder in Equinor. BlackRock's chairman, Larry Fink, makes it clear to us that BlackRock is increasingly concerned, and they will invest in companies that are focusing on sustainability. They are increasingly concerned with ESG, environmental, social, and governance. Shareholders such as we have to consider brand reputation, but we should also consider corporate finance, of course. We do appreciate that oil has made Norway rich, but now we need to start thinking differently, because now we know.
Do not let Equinor get into the same situation as the tobacco industry in the United States, which was ordered to pay billions in compensations to health victims because the companies continued their lobbying for cigarettes after they knew how harmful tobacco can be. In the last six years, more than 1,000 oil companies allegedly that have been sued for climate-damaging activities. As a medical doctor, I perhaps know more than most people here, the unimaginable health problem this inflicts on the world's population, and change is also being noticed in Norway. Air quality, flood, landslides, drought, et cetera. It's not a part of the future. It is happening here and now. In any case, you clever boys, solar and wind are on the way to outcompeting oil and gas in terms of price.
Over the next decade or two, maybe that, Equinor may be left with stranded assets, with values and assets that nobody are interested in and products that are in little demand. All Norwegians own a small part of Equinor that delivers the best results in a long time because of the war in Ukraine, mentioned by others. It will then be reasonable that many of these billions will be used on renewables. After World War II, the Norwegian government, Nygaardsvold government, which had been in exile in London, was heavily criticized. The Speaker of the Norwegian Parliament, Carl Joachim Hambro, who have stayed in Norway during the war, he stated, "They did their best. Therein lies their excuse, and therein lies their verdict." Do not let the same be said about Equinor's activity and its operations in this climate-critical time.
In conclusion, I ask this general assembly, what good is a company if it becomes the world's richest but damages our own Earth forever? Thank you. I have one question to the Chair, since there was another person who did the same. I would like to comment and a counterproposal for item ten, the plan for energy transition. Is this the right time to do it?
Thank you. Well, it's well-known that the government has started the plan with a new ownership report, which will soon be published, and it's going to be about why and what the state should own, at the same time, how the state is to exercise its ownership.
Some shareholders regard it as quite inappropriate the board of Equinor asks the AGM to give its endorsement to the way that the board believes that the state should exercise its ownership in the company as presented by the energy transition plan. It would be peculiar if the state's representative did not vote in favor of the following counterproposal, which is the AGM ask the board to present an updated energy transition for the company after the new ownership report has been adopted by the parliament. The board's plan for energy transition should be based upon the financial and industrial preconditions that the parliament bases itself upon for the state's ownership in the company. This is a counterproposal to item ten. I hand it to the Chair.
If someone else here wants a copy, I will give it to you now. She's off mic, so the interpreter cannot hear what she's saying. The state's representative, where are you? There you are. You, you're a young man. You have the future ahead of you, she says.
Thank you. We will continue and move to item 17, a proposal from shareholder Guttorm Grundt. The proposal under item 17 was distributed with a notice and is being shown on the screen, so it will not be read aloud. I'll give the floor to the shareholder who has 5 minutes for his presentation, and I come back with other interventions.
Yes. Thank you. I mean, Equinor has currently been benefiting from the bonanza of a lifetime in the fossil market, boosting revenues to record levels and the same for profits. Shareholders should be pleased, thank the Board of Directors, and be happy to increase the bonuses of the company executives. Not everyone is pleased, because it's not only the board we should thank in that case, but President Putin and his immoral war against the people of Ukraine. This has created an unsustainable market hyped up by the war and an economic super profit that shouldn't benefit us, the shareholders, but Ukraine and its brave people. Equinor must, of course, in this situation, maintain and even increase its production of oil and gas from existing wells and facilities, but not explore for new fossil energy resources, neither offshore nor onshore, abroad or at home.
Getting those on stream will take many years and be of little use. This will not be appropriate neither for the planet nor for Equinor. According to the last report from the Intergovernmental Panel on Climate Change, the temperature will, even if the nations' emission reduction targets reported to the UN are achieved, not only exceed the 1.5-degree goal, but also the 2-degree target for global warming. The carbon emissions from Equinor's oil and gas production and sales total about 250 million tons, or 8 x the total carbon emissions in Norway. In order to be sustainable, Equinor must move the investments in to new development and production from fossil to renewable energy. Increased focus on renewable energy should not come in addition to, but replace oil and gas.
Today, Equinor's investments in renewable energy account for only about 5% of annual investments and is so slow. I have to also state one view. This is the 10th year in row that I'm standing here, or well, I'm not standing here, but promoting and submitting proposals and asking Equinor to take into account the serious future and also to progress its transition to from fossil to renewables. Every year, the board has advised the general meeting to vote against the proposal because these decisions have already been made and implemented. Still, the company hasn't come any further. It's only barely 5% of investments that are in renewables, while 95% of still go to oil and gas, exploration and production of oil and gas.
I and the Grandparents Climate Campaign is very disappointed that Equinor contributes to sabotaging the IPCC's goal without the board or the main shareholder, the Norwegian state, accept any criticism and do not succeed in changing the course. Both the change of names and the efforts seem to be more on the symbol level, symbolic than real. Therefore, you should take the step to invest where it really matters, both where it will have an important effect, and where namely that we invest in renewables and that we also benefit Ukraine, which is suffering a crisis. Against this backdrop, I ask the general meeting to support my proposal. Thank you.
We move on to item 18, Ivar Sætre's proposal. It's been distributed with the notice of the AGM.
It will be shown on the screen and will not be read out loud. Ellen Maria Skjelsbæk from Equinor Communication Department will read the supporting statement by the shareholder, and we will revert to any questions or comments regarding this item and the vote on it later.
Thank you. I'm going to read the supporting statement of Ivar Sætre. It's a proposal from shareholder that Equinor gradually divest from all international operations. In any commercial company, it should be a prerequisite that the company's owners are aware of the company's strategy and are well-acquainted with the risks associated with the business. Equinor was established to build, control, and contribute to ensuring that the petroleum activities on the Norwegian Continental Shelf were carried out for the benefit of Norwegian interests.
Since the beginning of the 1990s, activities have gradually increased outside of Norway's borders, first with the participation in international petroleum activities, and in recent years, participation in the development and production of so-called renewable energy. International operations have not been without significant losses and are associated with considerable risk. Approximately 70% of Equinor is owned by the Norwegian state, and ownership is managed by the Ministry of Petroleum and Energy on behalf of the Norwegian Parliament. Few or none in these bodies have in-depth knowledge of the business Equinor operates. Assessments of risks are mainly carried out by persons with little or no ownership interest in the company. I will now read Ivar Sætre's reply to the board's response to his proposal. Good day fellow. Axe handle is a well-known phrase from a Norwegian folk tale.
It typically describes people talking across purposes, or more specifically, a man giving an answer to a question which was never asked. The board's director's response to my proposal in item 18 is such an answer. It does not address the grounds of my proposal. My proposal raises the issue that Equinor is a company where few or none of the representatives of the main owners of the company have any understanding of or are well-acquainted about the risks and consequences associated with the company's operations, particularly abroad. This is left entirely to the company's administration and board, who have minimal ownership interests in the company. It would be interesting to hear the opinion of the habitually mute representative of the company's main owner.
It should be a prerequisite that the representatives of the main owner are well-acquainted and aware of the risks and consequences. This is the reason for my proposal. As a first step, I propose that Equinor divest from all international operations, starting with renewable energy. It was not expected that the board would endorse my proposal, but at least I have raised the issue.
Thank you. We now move to item 19, the last proposal from a shareholder, and it comes from shareholder Per-Henning Lerstad, and the proposal under item 19 was distributed with a notice. It's being shown on the screen, so will not be read aloud. I remind you that you have five minutes for your presentation, and we'll be reverting to intervention and vote. The board says that risk-free safety and anti-corruption activity has top priority in Equinor. They make reference to general provisions on the reporting accounts and other information. The board allege that if the risk level is too high, well, then the project should be exited or shelved. How high should the level of risk be? Could you be more concrete? And what specific plans, what, concrete countries do you refer to?
What is the program for business integrity, increased training, raising awareness of among employees? How is this developed? Nevertheless, the board doesn't say why public authorities repeatedly have criticized and examined and pointed out a lack of maintenance of expertise training, failure of leadership, lack of HSE risk management that has resulted in the non-conformities, fires in Norwegian facility or Equinor's facilities in Norway and abroad. Also they have postponed the required maintenance. Nor does the board respond to and explain which concrete action plans that Equinor has had for not getting involved in foreign high-risk projects during the past two decades. It has been revealed by the media, money laundering, the human rights violations in Libya, Azerbaijan, Nigeria, to mention some.
Equinor's response says no answer to major disasters abroad, lack of capital discipline, and also costs overrun, said Martin Linge and Johan Castberg, to mention some. Several authorities and audits have criticized Equinor for poor follow-up and monitoring, violation of human rights, and OECD regulations. Against this background, it is rather untenable that the board recommends to vote against the proposal to outline a more specific detailed action plan for quality assurance and anti-corruption in the company. What are the concrete learning and improvement points? Equinor's own internal audit, as earlier in 2019, criticized the anti-corruption work in parts of the company.
All parts are, of course, better served with better information, trust and reputation, with more focused financial control and monitoring that almost 100,000 shareholders in the company will benefit from. Here I refer to the moderator's comments to this item 10, and we can do that later. Yes, you can come back on item 10 or so later with interventions. I will do that. Thank you. We will now move to the interventions and comments to the CEO's report and the chairman of the board and all the other presentations. Before I let you go to the rostrum and address any interventions that have been received via Lumi AGM, I want to give a few initial comments.
Initially, I want to note that pursuant to section 515 of the Public Limited Liability Companies Act, the general meeting is not a natural forum for putting questions to or ask for comments from other shareholders, including from the state represented by the Ministry of Trade, Industry and Fisheries. Furthermore, I would also like to remind you of the fact that we have received a document from the state, where they ask for an addendum to the minutes under item 6, approval of the annual report and the board's report for financial year 2021 and under item 10, Energy Transition Plan. I wish to record these two addendums before we open the floor for further interventions. The addendum from the Ministry of Trade, Industry and Fisheries related to item 6 have the following wording.
In the ownership dialogue, the state as an owner emphasizes that the company's capital structure supports sufficient goal achievement. The state's goal as an owner of Equinor ASA is to achieve the highest possible return over time. See white paper number 8, the state's direct ownership of companies' sustainable value creation or the ownership report. The ministry refers to the high natural gas prices Equinor has realized recently, contributing to the company's very strong capitalization. We also refer to the company's own net debt ratio to capital employed ambition. As an owner, the state finds it important that this be emphasized in the decisions made by Equinor's board going forward concerning dividend and capitalization. The board is responsible for the company's capital structure, but decisions at the annual general meeting about dividends and capital changes will affect the capital structure.
This text, that is an addendum from the ministry related to item 6, will in its entirety be included in the minutes. I now move to an addendum pertaining to item 10, the Energy Transition Plan. The state as an owner is positive to the company presenting an Energy Transition Plan. This will give shareholders and the market a better-informed position from which to assess, among other things, risks, opportunities, capital allocation, positioning, and pace in the transition to a low carbon energy company towards 2050. The state, among other things, bases its voting on the company's affirmation that the long-term value creation supports the goals of the Paris Agreement and the 1.5-degree trajectory. The plan will be presented to the shareholders for advisory vote at the general meeting.
In the state's view, this means that it is the company board and the administration that are responsible for the company's strategy, including for this plan, and for initiating the necessary measures, including investments and priorities, to follow this up and to achieve the company's climate targets. The company should, in the Ministry of Trade, Industry and Fisheries view, be as transparent as possible about the status of the work during the plan period. The state, as an owner, believes that the plan should be updated more frequently than every three years in the event of significant changes in assumptions, framework conditions, market development, or good industry practice. The state, as an owner, expects the company to closely monitor the development.
Equinor's plan for the transition to a low carbon energy company should contribute to high long-term value creation for the owners. Equinor's transition may also help develop new green industries, reduce greenhouse gas emissions, and develop long-term value-generating jobs in Norway. This text that is an addendum from the Norwegian state, represented by the ministry related to items 10, will in its entirety be included in the minutes. We'll now move to other items, that is, to give interventions, or comments to the presentations you've heard. In order for everyone to have the opportunity to take the floor, we want to ask you to be brief and observe the timeframe of up to three minutes. I now ask that if you want the floor, please raise a hand. Well, there was one over there. All right.
Actually, I think I will give the floor to you. If you can move up to the rostrum, state your name and your case. All the rest of you, if you will continue to signal with your hands, we will make a note of your name, and we will call you.
Thank you very much. It is a real privilege to be here today. My name is Gretchen Fitzgerald, and I'm National Programs Director with Sierra Club Canada Foundation. I grew up in a town in Newfoundland and Labrador, about 40 kilometers away from where, as we put it, the Vikings landed about 1,000 years ago. It's always been a dream and aspiration for me to come here to Norway, and it's truly beautiful to be here. I have to be honest, I wish I didn't have to come here and ask you not to do Bay du Nord, a disastrous new oil drilling project off of my home province in Newfoundland and Labrador. Although I am here alone, I am not really alone. 126 organizations in Canada have asked for Bay du Nord to be canceled, representing hundreds of thousands of Canadians.
Bay du Nord was approved just days after the UN Secretary General declared that investments in new fossil fuel projects are moral and economic madness. There is simply no room left in the global carbon budget for Bay du Nord. The 1 billion barrels, perhaps more, that Equinor would produce from this project is equivalent to this company putting 7 million-10 million new gas-fired cars on the road every year for which it operates, which could be on the order of decades. Here in Stavanger, here in Norway, I know that's not the way you wanna go. There's electric vehicles everywhere. Please help the rest of the world not go that way as well.
I also want you to know that in addition to contributing to the climate emergency, the rules for oil drilling in my home country of Canada are much more lax than here, as are the responsibility for companies to make sure that the broader society benefits from such resources. In the case of this project, Equinor's own assessment says that it would take 18-36 days to get a capping stack on site. During that time, oil could be spilling uncontrollably into the North Atlantic, a catastrophe for fisheries and for ocean life. Noise from seismic blasting and drilling for decades would be devastating for marine mammals in the area, some of whom are threatened and endangered, including the northern bottlenose whale. I am not speaking in hypotheticals when I speak about these risks.
In 2018, your partner in this project, Husky Energy, had the biggest oil spill in the history of the East Coast of Canada. The year before that, they had a near miss with an iceberg because the company failed to unlink its from the wellhead in time. Fortunately, they did so, but it was a close call. Unlike here in Norway, we do not have a track record for requiring oil companies to show that they will not damage the environment before they drill. We do not have a good record of ensuring the benefits from drilling benefit the broader society. This is why ourselves, Sierra Club Canada Foundation, our colleagues at Équiterre, and represented by Ecojustice, the largest environmental justice organization in Canada, are announcing today that we are questioning the approval of this project in court.
We do not believe the environmental assessment for this project took many of these risks into account, and in particular, the climate risk. Today, now, in St. John's, Newfoundland, people are standing up in front of your offices asking for this project to be canceled. Also today, Norway announced an ambitious new plan to roll out offshore wind. By canceling Bay du Nord, Equinor could help protect us all from the climate catastrophe. It could also use its expertise, particularly in offshore wind, its familiarity with risky and new environments to bring on what's best and what will benefit all. First, you have to do what's right. You have to cancel this project. Please cancel Bay du Nord. Thank you.
Thank you, we pass the floor to the next person who would like to say something, that's Kjell Traa. We do remind you that please stick to three minutes, all of you who want to make a comment so that we could stay on time with our agenda. The floor is yours.
The general meeting has been asked to endorse the company's Energy Transition Plan. I believe it would be wrong to do so because the plan is based upon unrealistic goals, and also the plan is unrealistic in terms of how to achieve the goals. The Energy Transition Plan entails that to begin with, the company's CO2 emission shall be reduced by 20% in 2030, also including emissions from oil and gas sold, so-called Scope 3 emissions.
Several shareholders have asked questions about how the company will go about achieving this, particularly in regards to Scope 3 emissions. I have based my comment upon an approach in which CO2 emissions shall be compensated by the production of renewable electricity plus emission cutting measures planned by Equinor and/or the users of the company's products, and which to a significant degree will concern carbon capture and storage. Considering 2030, if we base our assumptions upon the lowest estimate for planned electricity capacity of 12 GW-16 GW and an electricity production of around 45 TWh, this renewable electricity may compensate for approximately half of the CO2 reduction in 2030. If we at the same time assume that the company's oil and gas production in 2030 will be reduced from today's 100-90 million tons of oil equivalents.
Assuming that the remaining reduction in 2030 comes from carbon capture and storage, this means that company and/or the users of companies fossil products in 2030 must store 25 million tons of CO2, corresponding to approximately half of today's Norwegian emissions. The goal for emission reductions in 2030 may be achieved in theory, but not in practice. It is unrealistic. If we move on to 2035, the reduction of emissions shall be doubled. To put it simply, the task will be twice as hard, at least, and thus even more unrealistic in practice. The goal for 2050 is net zero emissions, which means that the total emission from the company's fossil production that year shall in its entirety be compensated with CO2 reducing measures. If we assume that in 2050, the company's production of oil and gas...
Gas is reduced from today's 100 million to 50 million tons of oil equivalents, and if we once again presupposes that half of the emissions are to be compensated with wind power and solar power, this will entail an increase of installed electric power capacity from 12 GW-16 GW in 2030 to almost 40 GW in 2050. If the remainder of the emission cuts is to come from carbon capture and storage, it means that you must store more than 70 million tons of CO2 per year. All of this is meant to happen in the 28 years to come. My conclusion, based upon the above approach, is that the plan is too theoretical in nature, and probably made thus in order to please the politicians, and that it is far from what is realistically attainable.
Finally, the plans should be subject to a full reality check. Thank you very much.
Thank you, Per Henning Lerstad. Next speaker.
Uh, and the-
Yes. The Energy Transition Plan was not submitted along with the general meeting plans, and it describes a long-term
The plans, ambitions, and targets in alignment with the Paris Agreement. As pointed out by Equinor themselves, these statements made are future oriented, but they are associated with considerable risk and uncertainty. Nevertheless, I'm being referred to this plan in the board's response that consistently recommend that you vote against all shareholder proposal today. In the climate action in 2019, the Supreme Court said that you need to assess the future climate effects of oil. The control body of the Norwegian Parliament believes that this judgment implies that the state needs to prove that future oil drilling does not are not in conflict with the climate agreement or future projects.
They've said that the plans for cuts mainly apply to offshore installations in Norway, and then mainly by electrification from shore. We know that this is very politically contentious in Norway. We will have a very limited supply of energy onshore, and also to the high energy sectors. Therefore, we cannot reduce the supply of onshore power. I have personally talked to Minister of Energy, Mr. Aasland, and he wants more transparency and more trust in, and a more active and professional management of Equinor in a green company based on the sovereign wealth fund model that is world-class. I remind you of the sovereign wealth fund, and you could also then set up a restructuring fund. I mean, the representative of the state has a 67% stake.
What do they believe of this proposal from their own minister? Only 1% of today's energy produced by Equinor, and only 4% of current investments go to renewables. As the previous speaker said that it seems very unrealistic that just in the course of three years then 30% of investments by Equinor should go to renewables by 2025, and 30% by 2030. Equinor, the way we see it, has not presented a detailed action plan and overview of concrete implementation for how they can cut this in order to achieve net zero by 2050. Therefore, this plan needs to be updated every single year and put to an advisory vote, and not every three years, as suggested by the board.
Also, every year, you should report on a commitment towards making progress in alignment with the plan. Therefore, we then propose that this plan is postponed until you can further work on it until next year. One comment regarding the Wisting field. This was shelved in 2020 because of a lack of profitability. Nevertheless, the need for a new infrastructure then means that projects in the Barents Sea are more vulnerable to lower oil prices. If it drops further, then the result of the last 20 years of exploration easily end up negative. Therefore, the development of Wisting, that the investment of NOK 70 million could actually have constructed 14 big port areas, such as Heil and Lindtjern, and also electrification of Melkøya, just to mention a few.
Because the production from the Wisting Field could also result in 200 million tons of carbon emissions. That is equivalent to emissions from 50 coal-powered stations.
Thank you very much. Bjørn Asle Teige is next. The floor is yours.
Yes, dear AGM management, Bjørn Asle Teige is my name. I'm a shareholder. I'm also an employee with Equinor. I'm also a union representative, and I can say that big parts of the employees are backing the plans in item 10. I will comment upon this. We support the main features of this plan for several reasons, and I can promise the hall here that this has been discussed vigorously with the management. We have arrived at the conclusion that the plan is a good one in the long-term run, and we've chosen to back it. The strategy overall, both in relation to oil and gas, but also renewable, is supported by us. My comments will be related to the renewable part.
I would also like to comment that you who talk about the stop of oil and cuts more than 20 million barrels this year. This world is going to petrochemical industry, not for consumption. It's 10x more than what we produce. For instance, making toothbrushes or making electric cars. We need oil for much more than what you might believe. The petrochemical industry is also one which is increasing the most in terms of extracting oil for products. The chairman of the board gave weight to the fact that many of the measures were connected to the emissions, not the focus going forward. We would like the industry in Norway within renewables should increase.
We would like to create a bigger supply industry which can bring this out into the world, and that we can become greater on this in the international market. I believe that the management should take on board, that ambition should be made stronger. For many reasons, we can become a big player within energy production, and we believe that is important. We would like that we use the industrial experience that we have, and the competence and the capital, which is now significant, to grow more and to accelerate our growth to create energy. We've not talked much about the fact that population on the globe is increasing with 8 million per year. It's 15 x the population of Norway, and it's a huge challenge for the energy situation and consumption.
We can become a big player as a company in the field of well creating energy producing energy in several ways more than oil and gas. We do back the overall plan, and I actually believe that the people present here in the room should do that too. We should trust that the management together with the 20,000 employees in the company will achieve this.
Thank you. Then we have an Edvard Hanøy, the next speaker. First, Edvard Hanøy, and if there are any further speakers, you may take the floor afterwards.
Yes. My name is Edvard Hanøy. I've been 50 years on Oslo Stock Exchange, where I've been a shareholder in many companies, and with varying results. I also bought shares in 1970 when the Statoil then had its IPO. Of course, they grew quickly. Then the Ministry of Finance then said that we need to take control of the company, and they were granted a 67% stake. It's important that everyone here act as managers of Equinor, and you need to outperform us. That is your task, and I have no doubt that this is something you know.
I need to tell you plainly, the criticism voiced. I'm quite sure that there's a lot of truth in it, but I think it is important that this criticism is nuanced. I've also followed the developments in Equinor. Now I'm only a shareholder there. I want to tell all critics, I mean, we all need to be a bit critical, but I assume that we should also have trust. Some of the things that I hear, well, I mean, it seems as if they should join the management and try to do better. We mustn't forget that the state has a 67% stake in the company. They
You know, you can say and do whatever you want, but the state can intervene and say, "No, we're not doing it." Each and every one of us must be aware of this. When we talk about pollution, I mean, when we talk about pollution in Ukraine, and when we see what things look like there and how the environment is damaged, we all know who initiated the war. I mean, the person who started the war, well, I'll stop saying his name because it would be like swearing in church. This is simply not to try to actually be very positive vis-à-vis the management committee, but you've exited Russia, and you left maybe NOK 10 million investments.
I mean, there were some scores and ratings given, and Equinor was given the top rating. It's a bit interesting with this buyback issue. Anders Opedal went out and said that we hope that the share price will increase, and it probably has increased because of developments in Ukraine. I mean, I'm thinking that, all right, well, he's responsible vis-à-vis the Norwegian state, but I mean, the state will just sit back because they will not let this excellent company lose. There's no doubt that this company will also be successful in future. I have a question before I leave. Day trader. I'm a day trader. Yesterday, I bought Equinor shares on a declining price over dinner.
It suddenly increased, and then I sold, and I made 1,500 NOK from that transaction. Equinor has roughly 40% return on the investments. I have 30%, and Oslo Stock Exchange can report just above zero returns. To go back on track, what I did with my transaction, what is the use of that for Equinor? I mean, I benefit, but does it matter to you that shareholders like me? I mean, even though I made some money yesterday, then I still have shares held. Is my investment something that means that you can benefit from my investments?
I think that you will have to conclude, and we also have other names on our list of speakers. Maybe you can come back if need be.
Yes, because I...
I mean, of course, I'm focused on me making money, but I want there to be meaning and a point to it.
All right, thank you. There is a stairs on your side that you can leave the rostrum. Please use the stairs. Thank you.
Right. There was another comment. Was it Bente Marie Bakke who wanted to say something?
Yeah. Thank you very much. I wanted just to make a brief comment saying that some of the proposers here want to stop production on existing fields. We are talking about stopping the exploration activities for oil and gas in line with what the UN Secretary General says and the International Energy Agency says. Equinor, please take seriously what I'm saying.
Thank you very much. Didn't we sign you up? Right. You, you're the final speaker. The floor is yours.
Take over. Anne- Margrete Bjørnstad.
Anne- Margrete Bjørnstad is my name. I've worked for Equinor since first November 2006. I hope that the AGM can take a look at what Anders Opedal has presented and that you support what the AGM has said. That was what I wanted to say. Thank you. Thank you very much.
All right. It seems that we have received all questions and comments. We have also received two comments from Lumi participants, and I will refer them. There was also a counter proposal from Gro Nylander regarding item ten, and that's a proposal from the floor, and we will come back to that when we conduct the vote on item ten. We've also received a proposal to item ten, namely that the board presents a societal reality assessment of the Wisting field and then present it to the AGM in 2023. This is a new proposal. We can't put it to the vote today. As for this item, maybe, Anders, you have a brief comment.
Yes. As for the PDO, the plan of operation and development, well, the
It will be submitted in 2022, then it will be addressed by the government, then it will be discussed in parliament. All the topics that were mentioned in the questions against electrification will also be elucidated in the PDO that we submit, and that we submit to the parliament for discussion and for them to deal with it. I also want to say that traditionally, when we have developed field on Norwegian Continental Shelf, we have used gas, either produced gas or gas associated with the oil to electrify. We can't do that in Wisting field because there's no associated gas to operate the field, and therefore, electrification from shore is critical for that project to be developed.
This will all be highlighted and elucidated when we submit the PDO by this parliament. We have also received a question regarding diversity and the nominees to the Board of Directors. It is the board will be elected by the corporate assembly, and that will take place in 2022 and 2023.
It is possible for you to submit nominees to the corporate assembly, and you'll find guidance for how to do that on the Equinor's website. Anders, do you have a brief comment?
Yes. As for diversity and inclusion in the administration of the company and among the employees, we work systematically to ensure diversity and inclusion.
Everyone working for Equinor should feel assured that they can be themselves, and we also implement that in the recruitment processes, in also engagement surveys, and in talks, and also when we select executives. It is also important that in all contexts that employees can be frank and that small signals and indications also will come up so that they feel that they can say whatever they want to, and that they can also be part of the discussion ongoing that we need in the company. Thank you. Jon Erik will then give a brief summarizing topic that also summarizes this.
I'll talk.
Thank you very much. First, I would like to thank you all for your commitment and engagement to the general meeting, as in previous years. Particularly we see that this is centered around our energy transition. The plan is a new product, and we would like discussion and refinement of the plan and input to it. Our ambition is to show through this plan how to transition the company towards 2050. It's going to be more specific as we move along in time, and we know more. There's still much yet which is unknown around technology and society development, so we have to relate to this. As I've said, we use this plan as a basis for dialogue with investors and other stakeholders in order to get feedback.
It's easier to have an opinion on a project that already exists than saying yes or no to feedback that comes from external sources, but of course, we also bring those on board. Ahead of the general meeting, this dialogue has provided us with much important feedback and from shareholders also today. Some feel that the plan is not ambitious enough. We've heard that. Others believe that the ambitions allow us to assume a leading role, in the peer group that we belong in the energy industry, and we work regularly towards strengthening our ambitions. We have raised the bar on several areas, and we're going to do that still, when we see what is possible.
We try to be realistic, too, for what we base our activities on, and we have thorough assessments on possible measures, cost, and effect, and we will create value, in the long-term run. We have an ambitious plan towards net zero. We believe it's necessary for the company, and it will be necessary in order for, Equinor to create value in the long-term run. The energy transition plan is scheduled to be updated every three years. We hear what you say about this. Of course, if there are significant changes in circumstances and plans, we can revert to the plan and make changes before. This doesn't mean that we stand still for three years because we have a three-year plan.
We're going to report status on an annual basis, and we're going to continue to develop our ambitions and the company, vis-à-vis the market possibilities that we see. I do realize that you are impatient. We are impatient too. There are projects that we could start up, but they wouldn't be profitable for us, and this is an important thing we have to bear in mind. It's tempting to use the money that we have, but we have a discipline. We need profitability. It needs to be profitable, what we do. A couple of times people have mentioned that the shares of CapEx as of now is 45% of the total. In 2022, as far as I understand, it will be 20%.
We are in on a good pathway towards the 50% that we have mentioned for 2030. We are now in a situation with a war in Ukraine, an energy crisis in Europe, and this shows the important role of this company as a predictable supplier of energy to the European market. Removing the supply of oil and gas now would only aggravate the critical situation many countries are already facing, not only in Europe, but also in several poor countries around the world that needs energy in order to create development and growth. At the same time, we considerably increase investments in renewables and low carbon solutions. You see this in the figures that we have shown you. It increases year by year, growth investments in renewables.
Some point out that Equinor's current energy production is primarily fossil energy production, and that is correct. But this also serves to illustrate the big task that we have ahead of us, which we are ready to take on and to work with. The world will need more energy, more, much more renewable energy in the short term, but also more oil and gas in the short-term run. However, it takes time before the decisions that we make today make an impact on gigawatt hours and tons of CO2 stored. These are long development processes.
Wind power projects such as Dogger Bank, Empire Wind, Beacon Wind, and Baltyk will start production, and they will contribute to Equinor's transition. At the same time, we will expand several oil and gas projects where we find that profitable and robust in the long-term run. We are very focused on down payment in the short-term run, given the climate risk and the price development in these products. We do believe, too, that even in the most ambitious scenarios in the effort to reach the 1.5 degrees target, oil and gas will still be part of the energy mix. It is important that it is produced in a way which yields as low emissions as possible, and we believe that this is what our projects do. Unfortunately, I cannot comment upon the trading on Oslo Stock Exchange.
It's not our role, and it's not and we cannot do that. I do appreciate the support in the comment. For other comments to introductions and shareholder proposals, I refer to what was said the CEO and myself at the opening of the debate. With these words, I thank you for your attention.
Thank you, Jon Erik Reinhardsen. We'll now close the floor for questions or comments to items 6, 7, 9, and 10, and the shareholder proposals 11 through 19. Then we have been sitting here quite intensely for two and a half hours. We have nine minutes break, and we reconvene at 6:40 P.M. That's 6:40.
All right. The time is 6:41, and we see that most people are now returning in from a brief break. We thank you for coming back on time. We would like to continue proceedings and please take your seats. Thank you. That brings us back to item six and the approval of the annual accounts and Board of Directors report for 2021. I now give the floor to State Authorized Public Accountant Tor Inge Skjellevik from EY, who will read excerpts from the auditor's report for 2021. You have the floor.
Thank you. General meeting, I would like to read an excerpt of the audit report.
It's the six pages, so we don't read all, but it's included in its entirety on page 179, and we issued our opinion on March 8th, 2022. We have audited the financial statements of Equinor ASA, which comprise the financial statements of the company and the consolidated financial statements of the company as a subsidiary. It consists of the balance sheet as at December 31st, 2021, and the income statement of comprehensive income, statement of cash flows, and statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
The consolidated financial statements of the group comprise the balance sheet as at the 31st of December 2021, the income statement of comprehensive income, statement of cash flows, and statement of changes in equity for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. Key audit matters for the audit of 2021 are two. First, recoverable amounts of production plants and oil and gas assets, including assets under development. The second being estimation of the asset retirement obligation. In our opinion, the financial statements comply with applicable legal requirements.
The financial statements give a true and fair view of the financial position of the company as at 31st December 2021, and its financial performance and cash flows for the year then ended in accordance with simplified application of International Accounting Standards according to Section 3-9 of the Norwegian Accounting Act. The consolidated financial statements give a true and fair view of the financial position of the group as at 31st December 2021, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards, IFRS, as adopted by the EU. Thank you for your attention, and thank you.
As chair of the Corporate Assembly, I will now read aloud the Corporate Assembly statement on the Board of Directors' proposal.
At its meeting on 17th of March 2022, the corporate assembly reviewed the financial statements and the directors' report for 2021 for Equinor ASA and the Equinor Group, and the board's proposal for the allocation of the net income for the year in Equinor ASA. The corporate assembly supports the board's proposal for the annual accounts and the allocation of net income. The general meeting is requested to adopt the board's proposal for Equinor ASA and the Equinor Group, as well as the directors' report and the distribution of the proposed fourth quarter 2021 dividend of $0.20 per share, and an extraordinary dividend of $0.20 per share. The payment of dividend is expected to take place on the 27th of May 2022.
Please cast your vote under item 6 if you haven't already voted, as the items will be closed as soon as they are dealt with. DNB has now confirmed that the proposal has received a majority of the vote cast, and the resolution is thus adopted. We move on to the vote on item 7, which concerns authorization to distribute dividend based on the approved annual accounts for 2021. Keep in mind that the voting will soon close. I remind you that questions and comments to this item have already been heard. The proposal was distributed with the notice of the AGM. It will be shown on the screen and will therefore not be read aloud. We will now close the voting. DNB has now confirmed that a majority of the votes cast are in favor of the proposal, and it is thus adopted.
We move on to item eight, which concerns the proposal of reduction in capital through the cancellation of own shares and the redemption of shares belonging to the Norwegian government, as well as reduction of retained earnings. The proposal was distributed with the notice of the AGM and will be shown on the screen and will not be read aloud. We will now vote on this if there are no comments or other proposals to this. There doesn't seem to be any comments. We move to vote on it.
The proposal entails an amendment to the articles of association, therefore it requires the majority of two-thirds of the votes cast. DNB has now confirmed that a sufficient number of votes have been cast in favor of the proposal, and it is therefore adopted. We move on to item 9, a proposal to amend article one of the articles of association, the objects clause. I do remind you that the vote is closing soon, and we refer to the comments of the chairman of the board and CEO to this proposal earlier today. And the comments to this item have been heard. The proposal was distributed with the notice of the AGM. It will be shown on the screen and will not be read aloud. We will now close the voting.
The proposal entails an amendment to the articles of association and therefore requires a majority of 2/3 of the votes cast. DNB has now confirmed that a sufficient number of votes have been cast in favor of the proposal, and it is therefore adopted. Moving on to item 10, the company's energy transition plan, which describes the strategy for the company's energy transition. Please bear in mind that the voting closes soon. The plan is for the general meeting to carry out an advisory vote on the energy transition plan, and the board proposes that the general meeting endorses the presented energy transition plan. Reference is made to the Board of Directors and the CEO's comments to this proposal earlier today. I remind you that questions and comments to this item have been heard.
Gro Nylander, earlier today, in the AGM, she presented a counterproposal to this, proposal from the board. As chair of this meeting, we first vote over the board's proposal. The proposal was distributed with the agenda shared on the screen and will not be read aloud. We will now close the voting. DNB has now confirmed that the majority of the vote cast is in favor of the proposal, and it is then. The meeting will then endorse the company's energy transition plan. It is thus adopted. Item 11, it is shown on the screen. Remember that the voting will close soon. If you wish to support the shareholder's proposal, vote in favor of the proposal. If you wish to follow the recommendation of the board, vote against the proposal. We will now close the voting.
We have now received confirmation from DNB that the majority had voted against the proposal, and the resolution is thus not adopted. Moving on to item twelve, the proposal is presented on the screen. Please remember that the vote is soon closing. If you wish to support the shareholder proposal, vote for the proposal, but if you wish to follow the recommendation of the board, vote against the proposal. We will now close the voting. Well, DNB has now confirmed that a majority of the votes have been cast against the proposal, and that's not been adopted. We move to item 13, and the proposal from shareholder is shown on the screen. Please note that we will soon close the vote. If you wish to support the shareholder's proposal, you vote for the proposal. You vote against it if you wish to follow the board's recommendation.
We have now closed the vote. DNB has now confirmed that the majority of the votes cast are against the proposal, and the resolution is thus not adopted. We move to item 14. The proposal that was submitted is shown on the screen, and we'll soon close the vote. If you want to support the shareholders proposal, you vote for it. If you vote against it, then you follow the board's recommendation. The vote will now be closed. DNB has now confirmed that the majority of the votes cast are against the proposal, and the resolution is not adopted. We move to proposal from shareholder on item 15. It is shown on the screen. Vote will soon be closed. If you want to support the shareholders proposal, you vote for the proposal. You vote against it if you wish to follow the board's recommendation.
The vote will now be closed. DNB has now confirmed that the majority of the votes cast are against the proposal, and the resolution is thus not adopted. We now move to item 16. The proposal from shareholders shown on the screen, and we will soon close the vote. If you wish to support the shareholders proposal, you vote for it. If you vote against it, you follow the board's recommendation. The vote will now be closed. DNB has now confirmed that the majority of the votes cast are against the proposal, and it's not adopted. 17, the proposal is shown on the screen. Do remember that the vote is closing soon. If you wish to support the shareholders proposal, vote for the proposal. If you wish to follow the recommendation of the board, vote against the proposal. We are closing the vote.
DNB has now confirmed that the majority has voted against the proposal, and the resolution is thus not adopted. Item 18 next. It is shown on the screen. We will soon close the vote. If you wish to support the shareholders proposal, vote for the proposal. If you wish to follow the recommendation of the board, vote against the proposal. We are now closing the voting. DNB has now confirmed that the majority has voted against the proposal, and the resolution is thus not adopted. Moving on to item 19. The proposal is shown on the screen, and we are soon closing the voting. If you wish to support the shareholders proposal, vote in favor or for the proposal. If you wish to follow the recommendation of the board, vote against the proposal. We will now close the voting.
DNB has now confirmed that a majority of the votes cast are against the proposal, and the resolution is not adopted. The results for shareholders will, as for other votes also, be seen from the minutes, which will be posted on the website shortly after the AGM. Next item, 20, is the Board of Directors report on corporate governance. Please note that the vote will be closed when the item has been dealt with, pursuant to Section 565 of the Public Limited Liability Companies Act. The AGM shall consider the board's report on corporate governance submitted in compliance with Section 3-3b of the Accounting Act. The statement for 2021 is included in chapter 3 in Equinor's annual report, which has been made available on Equinor's website prior to the AGM.
The annual general meeting shall carry out an advisory vote regarding the corporate governance report, and the board proposes that the general meeting endorses the report. Reference is made to the chair's comments on the report earlier at today's general meeting. We now move to the vote unless there are any comments to this item. We have not received any questions or comments, and we therefore close the vote. DNB has now confirmed that the proposed resolution received the majority of the votes cast, and the general meeting thereby endorsed the board's report. We will now address item 21, the board's remuneration report for salary and other remuneration for executive personnel. Please bear in mind that we will close the vote after we've dealt with it.
In accordance with Section 6-16 b of the PLLCA and regulations of 2020, the board is to prepare a remuneration report for executive personnel, and this report is included in Equinor's annual report in chapter 3.12, which has been made available on Equinor's website prior to the general meeting. I now give the floor to the chair, Jon Erik Reinhardsen, who will brief us on it.
Thank you. Through the remuneration report that the board has presented information about the total executive remuneration. The 2021 remuneration report is in alignment with new legislation expanded with far more detailed reporting, particularly as far as EVPs are concerned. Equinor's remuneration policy and terms are well rooted in the values, human policy and strategy, and the performance-oriented framework of the company. The remuneration system are designed to attract and retain the right people.
The board attaches great importance to offering executive compensation that is competitive, but not market leading in the markets in which we operate. The remuneration policy and principles applied in 2021 were aligned with the guidelines for determination of remuneration to Equinor's Corporate Executive Committee, which was proposed by the Board of Directors and approved at the general meeting in 2021. Pursuant to Section 6-16 A of the PLLCA Act, these guidelines and policy will be valid for four years with less need for material changes that will require a new decision by the AGM. In 2021, Equinor has not made any such material policy changes, merely minor technical adjustments made to comply with the new State guidelines for executive remuneration and companies with State ownership stakes published after last year's general meeting.
The most important adjustments are a reduction in maximum average variable pay for the corporate executive committee and an extension of the lock-in period in the executive share-based incentive program, all adjustments to be effective from this year from and including 2022. Policy and reporting format for executive remuneration are subject to continuous improvement to enhance quality and accommodate shareholders' need for information. A few words on the CEO's terms. General salary increase for Mr. Opedal in 2020 was 3.5%. Well, it should be 2021 actually. Opedal's base pay was NOK 10.1 million. The CEO has a variable performance-based pay with a potential of a maximum of 50% of total base salary and a long-term incentive scheme with a share purchase of up to 30% of fixed pay.
On the basis of the CEO's performance and the said guidelines for executive remuneration, the Board of Directors have decided and granted him a variable pay for the performance year 2021 of NOK 4.9 million. In its assessment of the CEO's performance for 2021, the board has highlighted that the deliveries in key areas have been above, at, and below target. The year has also been impacted by the pandemic, but the markets have shown strong recovery. The ability to capture volatile prices have been one area of focus in the board's evaluation of the CEO. Within safety, the total serious incident frequency has improved compared to 2020 and reached the 2021 target set. This is the lowest level in SIF, the Total Serious Incident Frequency, in the company's history.
The total recordable incident frequency and number of oil and gas leakages had nevertheless a negative trend in 2021. This underlines the need for a continued strong focus on safety to improve the safety performance. The carbon intensity for the upstream portfolio improved once again compared to the previous year and ended above the target set for 2021. CapEx was delivered in line with the updated guiding provided to the market. The production efficiency saw a positive development compared with 2020, but ended somewhat below target. The forecast for organic investments for 2021 total around $8 billion, and the results at year-end were $7.9 billion. In 2021, there was continued focus on capital discipline and improvements. This has resulted in a strong portfolio, which is robust against lower prices.
The significant transformation of the organizations and the implementation of the adjustments to the strategic ambitions to better align with the company's objectives in the energy transitions were visible throughout the year. The internal general employee satisfaction saw a negative trend, indicating the importance of increasing internal focus to align the organization with the change in agenda, as well as identifying improvement areas. Relative total shareholder return ended in the first quartile and was even above the target of being better than average in the peer group. The target for the relative return on average capital employed was to be in the first quartile of the benchmark group, and this achievement was also above target for 2021. As I said, the reporting this year was expanded to comprise also the corporate executive committee more and with a far higher level of details than earlier.
Here I will highlight that the board, through its Compensation and Executive Development Committee, was consulted with the CEO's assessment of salary adjustment and similarly for the CEOs. Here our executive remuneration systems are designed to attract and retain people who are strongly motivated to deliver on the company's business strategy and able to adapt to a constantly changing business environment. Our company and industry were hit hard by the pandemic and strongly reduced prices in 2020. In 2021, we experienced that this was turned around to very strong results. This is reflected in the remuneration. For 2020 and 2021 combined, this shows that the adjustment instruments in our remuneration framework work. The threshold ensures that bonuses are reduced or not paid out when the company's financial situation warrants.
The modifier ensures that any bonus payments are clearly related to Equinor's relative performance compared with 11 other peers. The assessment of the board is that the company's remuneration systems and practice are transparent and aligned with applicable guidelines and good business practice. Thank you for your attention.
Thank you, Jon Erik Reinhardsen. According to section 564 of the PLLCA Act, with references to 6-16 b, an advisory vote shall be held for the board's remuneration report for salary to leading personnel. The board recommends that the general meeting endorses the remuneration report. We have received a document from the state represented by the Ministry of Trade, Industry and Fisheries. They ask for an addendum to the minutes on item 21. I would like to record this addendum before we open the floor for other.
The addendum suggested by the ministry has the following wording: The Ministry of Trade, Industry and Fisheries refers to the state's guidelines for the remuneration with state ownership stipulated on the MTIF website, wants to emphasize the state's expectations in the executive remuneration area, including paying due regard to the principle of moderation. The state finds it important that the remuneration of senior executives is competitive, enabling the company to succeed in recruiting and retaining good executives. At the same time, remunerations shall not be market-leading compared with the peers and shall be set with due regard to the principle of moderation. This, among other things, means that it should not be higher than necessary to attract and retain the desired expertise. It's neither in the interest of the company or owners if the company pays more remuneration, including bonus, than necessary.
When evaluating moderation, the ratio between the remuneration and other employees in the company may be relevant. The state finds it important that this ratio does not increase without a good justification. Increased differences in the remuneration between executive personnel and other employees may be ill-judged because it may be harmful to the company's reputation by contributing to unreasonable disparities in the company and society at large. It finds it important that the board pays regard to moderation in determining total remuneration.
The state as an owner emphasizes transparency associated with the executive remuneration. Therefore, transparency with regard to formulation, level, and development of remuneration, including programs are unambiguous, and also to enable owners and stakeholders to evaluate it. The state as an owner will continue the dialogue with Equinor about how the board's executive remuneration policy can be better aligned with the state's expectations in the executive remuneration area, and expects the boards to present an updated policy for the 2023 annual general meeting. This is then an addendum by the ministry which represents the Norwegian state, will in its entirety be included in the minutes. We now move to put it to the vote unless there are any other comments or questions on this item. That does not seem to be the case, and we will hereby close the vote.
DNB has now confirmed that a majority of the votes cast are in favor of the proposal, and the annual general meeting has then endorsed the board's report on remuneration. Item number 10.22, approval of remuneration for the company's external auditor for 2021. Do remember that the vote is closed once the item has been heard. The general meeting is requested to approve the auditing fees for audits in 2021 for Equinor ASA to the sum of NOK 55,981,079. We are ready for the voting unless there are any comments to this item.
Yes. This is just an observation that we've done.
Auditing is a very important topic also for us being able to check the company's activities and to understand the risks the company has through the operation it entails. We have seen we know that the climate risk is also a fundamental financial risk and clearly a material risk for a company such as Equinor. We have noticed that EU and the EY and others are better at acknowledging this, but I'm going to be very brief. We also see that there's a difference in how EY in the Netherlands, for instance, how they acknowledge the climate risk as a material risk in the audit and make it visible. We also see this in relation to Shell, so there's a big difference.
We cannot see how the fact that Equinor operates with a significantly higher oil price with comparable companies, peer companies in the long term run, how that can become visible as a material risk. Our wish is that this practice is harmonized and that it is made visible in next year's reports. Thank you.
Thank you for the comment. I see no other comments, so we will vote on this item. DNB has now confirmed that a majority has voted in favor of the resolution, and the resolution is thus adopted. We move on to item 23, which is the election of members to the Corporate Assembly. This year the period of service will expire for all shareholder-elected members of the Corporate Assembly.
As Chair of the Corporate Assembly, I will now give an account of the nominations of the Nomination Committee. The Nomination Committee has emphasized several criteria for the composition of the Corporate Assembly, including diversity and expertise and background, a balanced gender representation, and the need for renewal, combined with the need for continuity. The Nomination Committee contacted the biggest shareholders of Equinor, asking for suggestions for candidates. We've also had an electronic mailbox accepting suggestions on the Equinor homepage. The nominations on the Nomination Committee will now be shared on the screen and will not be read aloud. Excerpts from the new candidates CVs will be shared on the screen as well. The Nomination Committee nominates three new candidates for members and three new candidates as deputy members to the Corporate Assembly. Also that one existing deputy member is proposed as a new member.
The other members of the Corporate Assembly are nominated for re-election. In addition, existing member Jarle Roth is nominated as Chair of the Corporate Assembly, and Nils Bastiansen is nominated for re-election as Deputy Chair in election to be done by the Corporate Assembly itself. The candidates nominated as new members of the Corporate Assembly are Martin Vigenfjell, former Deputy Member Merete Hverven, Helge Aasen, and Liv B. Ulriksen. In addition, the following candidates are nominated as deputy members of the Corporate Assembly: Per Axel Koch, Katrine Kristiseter Marti, and Nils Morten Huseby. For further information about the candidates, reference is made to the nomination committee's recommendations made available on the Equinor homepage together with other AGM documents. All of the proposed candidates are independent from the board and the management of Equinor.
We propose that the named candidates are elected as members or deputy members of the Corporate Assembly effective as of May 12th 2022, and until the annual general meeting in 2024. I ask, are there any comments to the nomination committee's proposal? We have seen no comments or to this, so we will close the vote now. Let's see. Thank you very much. DNB has now confirmed that a majority of the votes cast are in favor of the nomination committee's proposal, and the candidates are well selected. Item 24 is the stipulation of remuneration to members of the Corporate Assembly, and please know that the vote will be closed when the item has been dealt with.
The proposal has been distributed with the notice of the meeting and is being shown on the screen, so it will not be read out. As chair of the nomination committee, I can inform you that the proposed increase in remuneration is in line with the general salary increase in society. Anyone wants to comment on the recommendation? That does not seem to be the case, and we now close the vote. Thank you. DNB has now confirmed that the resolution has received the majority of the votes cast and is now adopted. Next is item 25, the election of members to the nomination committee. The term of office expires this year for all members of the nomination committee. As chair of the committee, I will account for the recommendation.
According to the articles of association of the company, the Nomination Committee should comprise of four members who shall be shareholders or represent shareholders and be independent of the board and management. The chair and one other member should be from the shareholder elected members of the Corporate Assembly. The Nomination Committee has attached importance to several criteria in its composition of the committee, including shareholder representation, diversity of expertise and background, agenda balance, and consideration for bringing in new blood compared with the need for continuity. The Nomination Committee has contacted the major shareholders in Equinor asking for nominees for positions, including nominees for the Nomination Committee. An electronic letterbox for proposals was also set up on Equinor's website, and the Nomination Committee's proposal is now shown on the screen.
The nomination committee recommends that Jarle Roth be elected chair, and Merete Hverven and Jan Tore Førland as new members of the nomination committee, and that member Berit L. Henriksen be re-elected. See the information for new members, Merete Hverven and Jan Tore Førland are shown on the screen. The election is proposed to take effect from 12th of May 2022 and until the annual general meeting of 2024. Any comments to this recommendation? That does not seem to be the case, and we now close the vote. Thank you very much. DNB has confirmed that a majority of the votes cast are in favor of the proposal of the nomination committee and the candidates are thus elected. We move on to item 26, the determination on remuneration for the nomination committee. It's being shown on the screen.
It's been distributed from before, and it will not be read aloud. I can inform you that the Nomination Committee has proposed changes to the remuneration to the Nomination Committee members. This proposed increase too is on par with the general wage development in society. I'll ask you, are there any comments to the proposal? I can't see that there are, so we close the vote. DNB has now confirmed that a majority of the votes cast are in favor of the proposal, and the proposal is adopted. We move on to item 27. Since 2004, the company has offered a share savings plan for employees in the group. The purpose of this plan is to augment good business culture and encourage loyalty through employees becoming part owners of the company.
The long-term incentive plan was implemented in 2007 with the purpose of strengthening the alignment of top management and the shareholders' long-term interests and sustainability of the company and to retain key executives. At the annual general meeting in 2021, it was decided to authorize the Board of Directors to acquire shares in the market. This authorization expires on the date of the annual general meeting today, but not later than June 2022. It is proposed that the annual general meeting gives the Board of Directors new authorization to acquire shares in the market to continue the company's share-based incentive plans. It is further proposed that the authorization granted members May 2021 continues to apply until the new authorization has been registered in the Register of Business Enterprises.
The proposal was distributed with the notice of the AGM, will appear on the screen, and will not be read aloud. If there are any comments on the proposal from the shareholders? If not, we will move on to vote on this. We have not received any comments or questions, and the voting will therefore close now. DNB has confirmed that the proposal has received a majority of the votes cast, and it is therefore adopted. We move on to item 28, which concerns authorization to acquire Equinor ASA shares in the market for subsequent annulment. Please bear in mind that the voting will close once the item has been heard. The Board of Directors propose that the AGM grants the Board of Directors an authorization to repurchase up to 75 million own shares in the market, approximately 22.3% of the company's share capital.
In accordance with the Norwegian Public Limited Liability Companies Act, Section 9-4. The reason this is normal in such big companies, and this will benefit the shareholders because the remaining shares represent an increased ownership interest in the company. For further details about the background for the proposal, please refer to the notice of the meeting. The proposed resolution is also to be found there. It will be shared on the screen and will not be read aloud. We will vote on it unless there are any comments or questions to this item. Don't seem to be any, so we will now vote on this. Thank you. DNB has confirmed that the majority of the votes cast are for the proposal, and the resolution has been adopted. We now move to item 29.
On the 25th of May, 2021, the AGM of Equinor adopted the Marketing Instruction for Equinor ASA, what we called the Marketing Instruction, which requires Equinor to market oil and gas produced from the state's direct financial interest in the petroleum sector, the SDFI, interests together with its own oil and gas. The overall objective of the marketing arrangement is to maximize the total value of Equinor's and the state's petroleum and to ensure a fair distribution of the total value generated. To comply with this objective, a potential need for adjusting the applicable pricing and allocation principles for certain forms of natural gas trading under the Marketing Instruction, in particular by reducing the scope for sharing certain physical and financial trades where the state has been identified.
The Board of Directors support the proposal and recommend that the annual general meeting adopts as a decision that necessary adjustments to the Marketing Instruction can be made. Potential adjustments will be made by the state represented by the Ministry of Trade, Industry and Fisheries. The Board of Directors will subsequently follow up on the adjustments made by the ministry. The proposed resolution is distributed with the notice shown on the screen and will not be read aloud. We move to the vote unless there are any comments to this item. Now, that doesn't seem to be the case, and we therefore put it to the vote. Thank you. DNB has now confirmed that a majority of votes cast support the proposal and the resolution have been adopted.
At this point, we've been through all the items on the agenda, and shortly, the minutes of the general meeting will be published on the company's website. Many people are actually short of time here, but I would like to thank you. I will now exit the Corporate Assembly, where I've been a member of eight years and been chair of six years, and also been chair of the Nomination Committee. This has been a very interesting period and exciting developments, and it's been very fun and interesting to follow the company's developments. Thank you to all shareholders, to owners, and the board and the Equinor organizations for your excellent cooperation. I will be following you closely the next few years and wish you the best of luck.
I would also like to take this opportunity to thank you, Tone, for the past eight years where you have contributed to Equinor. You have already said how long it was, so I will not repeat it, but I will commend you for your professionality and your calmness during chairing these AGMs because some of them we have needed that. A warm thank you. You have also moderated and guided us through the first hybrid annual general meeting. Thank you again, and thank you for your dedication the past eight years. I know that many people have flights to catch, so I would like to catch you to thank you for your engagement. There have been many interesting proposals, and thank you all shareholders for your participation. The meeting is adjourned.