1

Climate roadmap
Creating a low carbon advantage
We will develop our business in support of
the climate ambitions of the Paris Agreement

We believe a low carbon footprint will make us more competitive in the future. We also
believe there are attractive business opportunities in the transition to a low-carbon
economy. Equinor wants to be a part of this transformation in order to fulfil our purpose of
turning natural resources into energy for people and progress for society.

Changing our name from Statoil to Equinor, in May 2018, reflects our purpose and strategy
presented in February 2017 - always safe, high value, low carbon. Embedded in the
strategy is a new set of principles to guide our decision-making. One of these principles is
that we should leverage our low carbon advantage.

Our Climate roadmap describes how we plan to achieve this and how we will develop our
business, supporting the ambitions of the Paris Climate Agreement.

It is a platform – and an invitation – to work with us to realise our vision of “Shaping the
future of energy”.

Eldar Sætre, CEO and President

Table of contents
We are Equinor 6
Sustainability is embedded in our strategy and performance 8
Our climate roadmap: A strategy to create a low carbon advantage 10
Energy transition - a call for action 12

Building a high value and lower carbon oil and gas portfolio 15
Reducing our own emissions 16
Continuous improvement of our facilities 17
An industry leader in carbon intensity 18
A long term perspective on improving our business 20
Minimising methane emissions 22
Natural gas – part of the climate solution 23
Building on our oil and gas competence 25

Creating a material industrial position in new energy solutions 27

Scaling up investments 28
Building a profitable new energy business 29
Expanding within offshore wind 30
Investing in low-carbon research and technology 32
Long term potential: CCS as enabler for hydrogen production 33

Accountability and collaboration to amplify climate action 35

Changing how we work 36
Stress testing and flexibility  37
Delivering together 38

Throughout this booklet, bbl refers to "barrels of oil" and boe, refers to "barrels of oil equivalent".
We are Equinor
A broad energy company
 7

OUR PURPOSE
Turning natural resources into
energy for people and progress for society

OUR VISION
Shaping the future of energy

O U R S T R AT E GY
Always safe, high value, low carbon
Sustainability is embedded in our strategy and performance

Always safe High value Low carbon

Serious incident frequency 1 Break-even, Upstream

Next generation portfolio 2 CO2 intensity 2017 5

1.9 21 USD/bbl 9 kg CO /boe 2

1.4 Free cash flow positive below 3 CO2 emission reductions 2017 5

1.1
1 50 USD/bbl 10% of 3 million target
0.8
0.7
0.6 0.6 0.6 2017 efficiency improvements 4 Installed capacity offshore wind 2017

2009 2010 2011 2012 2013 2014 2015 2016 2017

1.3 bn USD 750 MW
1. Serious incidents per million hours worked
2. Equinor- and partner-operated projects, sanctioned since 2015 or planned for sanction, with start-up by 2022. Volume weighted
3. Organic free cash flow, excluding considerations from announced transactions
4. Additional 2017 effects, total 4.5 bn USD in cost savings compared to 2013
5. Equinor operated portfolio. 100% basis.
 9

Our strategy – always safe, high value, low carbon – positions us as

an energy company committed to long term value creation in a
low carbon future.

Equinor is providing millions of people with energy every day. We are

developing from an oil and gas company to a broad energy company.

We will actively shape our portfolio to create high value with a lower carbon
footprint: so that Equinor remains fit for the future towards 2030 and
beyond. We do this in two ways: First, we are building a high value oil and gas
portfolio with a lower carbon footprint, by ensuring that the most competitive
hydrocarbons are produced as efficiently as possible. Second, we are
building a material industrial position in new energy solutions.

We believe that this long-term perspective will make us more competitive,

while supporting the ambitions set out in the Paris climate agreement. We
embrace the energy transition as an opportunity for sustainable growth.
Maintaining our position as an industry leader in carbon efficient oil and
gas production while growing renewables and low carbon energy solutions
will help Equinor to thrive in the energy transition – and at the same time
position us to ensure a competitive advantage in a low carbon world.

Equinor supports the Sustainable Development Goals (SDGs). Our Climate

roadmap entails Equinor’s contributions to SDG 7 Clean and Affordable
Energy and SDG 13 Climate Action. Effective partnerships and collaborations
(SDG 17) will play a central role in the delivery of this agenda.
Our climate roadmap:
A strategy to create a
low carbon advantage
 11

Build a high value and lower carbon oil Create a material industrial position in Accountability and collaboration to
and gas portfolio new energy solutions amplify climate action

CO2 emission reductions of 3 million We expect around 15-20% of our Portfolio stress-testing and transparent
tonnes per year by 2030 1 investments to be directed towards new reporting
energy solutions in 2030, assuming we can
Upstream portfolio carbon intensity of access and mature profitable projects. Climate embedded in strategy,
8kg CO2 /boe decision-making and incentives
Up to 25% of research funds to new energy
solutions and energy efficiency by 2020

1. We aim to achieve, by 2030, annual CO2 emissions that are 3 million tonnes less than they would have been, had no reduction measures been implemented between 2017 and 2030.
Energy transition - The world needs affordable and reliable energy to supply growing demand. At the same
time it needs to reduce greenhouse gas emissions. The decoupling of energy use from
a call for action emissions represents a fundamental challenge to all of us.

Renewables are becoming competitive without subsidies in many markets. According to our
The world needs energy Energy Perspectives report, new renewables are set to represent up to 6-19% of the energy
mix by 2050, compared with less than 2% today 1. This is a business opportunity for Equinor.
producers that can deliver at
low cost, with lower emissions. Oil and gas will continue to make up a sizeable part of the energy mix in 2050. Sectors such
as heavy transport, aviation, industry, petrochemicals and heating and cooling in buildings
will continue to rely on oil and gas for decades to come. Natural gas as a replacement for
coal in power generation is a critical part of a credible low-carbon strategy. The natural
gas we currently supply to Europe is helping countries reduce emissions.

These are the reasons why we continue to explore for and invest in oil and gas projects.
Without new investment, production from global oil and gas fields currently in operation
would decline at around 3-6% per year 1, which would not be sufficient to meet future
demand. As not all oil and gas resources will be developed, Equinor is exploring to find
the most competitive barrels, shaped by production cost, energy prices, technology and
carbon intensity.

There are many uncertainties in the transition to low carbon energy. Game-changing
technologies, stricter climate policies and new entrants may disrupt the energy industry.
We cannot predict the future, but we do know that nothing prepares us better than our
ability to adapt.

1. Equinor Energy Perspectives, June 2018

 13

The world needs lower CO2 emissions Succeeding with energy transition is critical
World CO2 emissions. (Billion tonnes) World energy demand per fuel. (Billion toe 1)

50 30

2015 2050
40

20
+30%
30 +25%

-6%
20
10
Cumulative
10
CO2 emissions in
Renewal 2016-2050:
816 Gt
0 0
Ref Ren Riv
1990 2010 2030 2050
Coal Nuclear New renewables
Oil Hydro
Reform Renewal Rivalry Gas Biomass

Source: IEA (history), Equinor (projections) 1. Tonnes of oil equivalent

 15
Building a
high value and lower carbon
oil and gas portfolio
Reducing our As a large producer of oil and gas, Equinor emitted approximately 15 million tonnes of
CO2 equivalents from our operated portfolio in 2017 (100% basis). We have implemented
own emissions emission reduction measures summing up to about 1.8 million tonnes CO2 per year by 2016
compared to emissions in 2008, largely through better energy management, technical
design and flaring reductions.
We aim to achieve CO2 emission
We are now accelerating our initiatives to achieve reductions amounting to a further
reductions of 3 million tonnes
3 million tonnes of CO2 per year by 2030, compared to estimated emissions in 2017 1.
per year by 2030 and to To achieve our goals, we will systematically pursue energy efficiency measures,
eliminate routine flaring. electrification and other low-carbon energy sources at our installations. We need big
leaps that will come from new technologies, but we also need many small steps initiated
by our employees and in collaboration with our business partners. These are driven
by adopting the right attitude to ensure smart operational improvements that reduce
emissions and drive energy efficiency.

In Norway we do not have routine flaring in our operations. We have set a company-wide
upstream flaring intensity target of 0.2% by 2020 for our operated assets. This was set in
2012 as part of our commitment to the Sustainable Energy for All Initiative. Our aim is to
stop routine flaring in our operations by 2030 at the latest, in line with the World Bank Zero
Flaring by 2030 initiative.

Currently Equinor’s upstream flaring intensity for our operated assets is around 0.2% of
hydrocarbons produced 2, aligned with our 2020 target. This is significantly lower than the
industry average of 1.3%. 3
1. We aim to achieve, by 2030, annual CO2 emissions that are 3 million tonnes less than they would have been, had no reduction
measures been implemented between 2017 and 2030. This includes the Norwegian Konkraft target amounting to 2 million tonnes of
CO2 per year by 2030 compared to 2020.
2. 2 tonnes gas flared per thousand tonnes of hydrocarbon produced.
3. 13 tonnes gas flared per thousand tonnes of hydrocarbon produced, IOGP 2016 data.
 17

Continuous
improvement of
our facilities

> 300
Energy efficiency projects
since 2008

3 million tonnes
Annual CO2 emission reductions
by 2030

3-4 years
Average payback time
An industry leader in We believe there is a significant correlation between cost and carbon intensity – and
minimising both is crucial to ensuring that our portfolio is resilient as we move towards a
carbon intensity low-carbon future.

We intend to reduce the carbon intensity of our oil and gas portfolio by prioritising high
We will reduce the carbon value exploration and development projects with a lower carbon footprint.
This shift helps us to reduce the business risk associated with climate change. Oil sands
intensity of our upstream oil
and extra heavy oil do not have a place in our strategy.
and gas portfolio from
10 to 8kg CO2 /boe by 2030. We aim to remain an industry leader in carbon efficiency: emitting as little carbon as
possible from each barrel produced. The carbon intensity of our operated upstream
production is currently around 10kg CO2 per barrel of oil equivalent (boe), compared with
an industry average of 17kg CO2 /boe 1. We have already set ourselves an upstream target
of reducing that to 9kg CO2 /boe by 2020. We are now pursuing a broader ambition to
reduce it to 8kg CO2 /boe by 2030.

The 2030 ambition is based on production and emission forecasts, sensitivity testing and
emission reduction targets for each business area. This is an ambitious target. We have
a portfolio with many ageing fields, particularly in Norway, and the carbon intensity of a
field increases as it gets older, since more energy is required to produce smaller amounts
of oil and gas. Although our emission reduction ambition is challenging, we believe that
sustaining our carbon leadership will strengthen our competitiveness.

1. Source: International Association of Oil and Gas Producers (2017), Environmental Performance Data 2016. Based on operatorship.
 19

Upstream CO2 intensity Upstream flaring intensity

Kg CO2 /boe Tonnes gas flared per thousand tonnes
of hydrocarbon produced

20 18 20
17 17
15
14
15 15
13

10 10
11
10 10
9
4
5 5 3 3
2

0 0
2014 2015 2016 2017 2020 2030 2014 2015 2016 2017 2030

Industry average Equinor average Industry average Equinor average

Source: IOGP/Equinor Source: IOGP/Equinor

A long term perspective 1997 2004
on improving our business Kyoto support Endorsing the
voluntary standard
for gas flaring
1991 reduction
CO2 tax Norway

1996 2000
Sleipner CCS First CO2
reduction target

Photo by Fabio Santaniello Bruun. Aerial shot of a road near river and green leafed trees.
 21

2008 2016 2017 2030

Commitment on Annual emission Climate embedded into strategy 8kg CO2 /boe
industry leadership in reductions of 1.8 million
carbon efficiency tonnes CO2 since 2008 Launch of Climate roadmap Reduce 3 million
tonnes/year
Target to reduce CO2 intensity 9kg CO2 /boe
emissions in Norway 15-20% of CAPEX
2015 650 000 homes in new energy
powered by offshore wind
Commitment to support
the Paris Agreement

Climate stress testing

2020
25% of R&D on low carbon
and energy efficiency
Minimising Methane is the second most important greenhouse gas contributing to human induced
climate change. It has a much shorter lifetime in the atmosphere than CO2 1. While gas
methane emissions releases significantly less CO2 than coal when combusted, methane emissions during
production and distribution reduce its advantage. Minimising methane emissions is
therefore essential.
Methane emissions in the gas
A review of Equinor’s reported emissions and third party studies 2 in 2017 showed that
value chain from Norway to
methane emissions in the gas value chain from Norway to Europe are around 0.2% of
Europe are below 0.3% of gas gas delivered to the market. At this level, the climate benefit of gas compared to coal is
delivered to the market. indisputable. For the upstream and midstream part of the value chain of piped gas to
Europe which we control, the methane leakage rate is very low – only 0.02% 3.

Emissions related to distribution to the final consumer represent around 80% of the
total value chain emissions and the uncertainty in the numbers are high. That is why we
are working with industry associations and initiatives, including the Oil and Gas Climate
initiative (OGCI), to obtain higher quality data.

Measuring and reducing methane emissions from our US onshore operations is a key
priority. In 2017 the methane emissions from these operations were around 0.08%, which is
under 10% of the US industry average 4.

1. A global warming potential that is 25 times higher than CO2 in a 100 year perspective is commonly used, aligned with the IPCC
Fourth Assessment Report (AR4).
2. Exergia (July 2015); DBI (October/December 2016); Markogaz (February 2016)
3. M-515 (2016): Cold venting and fugitive emissions from Norwegian offshore oil and gas activities – summary report
4. NETL (April 2018), Industry partnerships and their role in reducing natural gas sully chain greenhouse gas emissions.
 23

Greenhouse gas intensity of Natural gas –

Norwegian piped gas is significantly
lower than average
part of the climate solution
% methane
Upstream &
leakage
Midstream

Downstream

Total

0.0 0.2 0.4 0.6

Equinor Average Europe, NGVA

Sources: Equinor, NGVA/Thinkstep 2017, NETL 2018

During energy Gas provides A significant,

production, gas stable base load reliable provider
emits only half of to support new of natural gas
the CO2 of coal 1 renewables to Europe

We use infrared cameras and laser technology on 1. Source: National Energy Technology Laboratory (NETL). 2010.
drones to enhance our efforts.
 25

Building on our
oil and gas competence
We believe our oil and gas competence can be
leveraged to create business opportunities in the
transition to a low-carbon economy. We have a
strong safety culture; capabilities to deliver large
and complex projects; experience from maritime
operations and maintenance; and focus on
technology and innovation.
 27

27
Creating a material
industrial position in
new energy solutions
Scaling up investments We are scaling up investments in new energy solutions, to gradually complement our oil
and gas portfolio. That makes sense industrially, because we can use our competence from
large, offshore industrial projects to create value in new areas. And it makes sense financially,
because we see potential for profitable opportunities with an acceptable risk profile.
We expect around 15-20%
of our investments to be We currently focus on offshore wind, using our offshore experience to develop large-scale
directed towards new energy offshore wind parks. We have so far invested approximately USD 2.3 billion in offshore wind
solutions in 2030, assuming projects. Our wind farms are on track to deliver electricity to a million homes in Europe.
we can access and mature We expect our offshore wind portfolio to expand. Costs are decreasing while efficiency is
profitable projects. increasing through larger wind turbines, better design and streamlined operations. We believe
that our offshore wind projects will, over time, become commercial without support schemes.

With Hywind Scotland, the world’s first floating wind farm, Equinor is unlocking the vast
potential of floating offshore wind. We believe it’s the next wave in renewable energy, as we
can reach larger depths—further away from shore, which is ideal for our innovative solution,
Hywind. As much as 80% of the of the total potential for offshore wind power is believed to be
in deep waters.

We are also exploring opportunities in solar power. So far, we have made investments in
solar projects in Brazil and Argentina.

Additionally, through our Equinor Energy Ventures fund, we plan to invest around USD 200
million in new energy solutions over the next 3-6 years.
 29

Carbon capture, and storage (CCS)

Investment in CCS is vital to reduce
Building a profitable
emissions from oil and gas and other new energy business
sectors. Equinor has been a pioneer in
CCS. We have captured and stored more
than 23 million tonnes of CO2 to date. Now
we are trying to develop new business
models to make CCS commercially viable.

Equinor is leading studies on behalf of

the Norwegian authorities to develop Indicative capex potential
full-scale CCS in Norway. The concept USD million per year
includes capturing CO2 from onshore
industry, transporting it by ships and
injecting and permanently storing it
1000-2000 meters below the seabed.

1500
-
750 750
-
500 500

2016 2017-2020 2020-2025

Expanding
within offshore wind
We operate three wind farms off the coast of the UK, and we are
engaged in further large-scale wind projects offshore the UK,
Germany, and the US. We’re also pioneering innovation in floating
offshore wind solutions for deeper waters.
Hywind is at the forefront of this exciting new market.

Bottom fixed 1 Floating 1

Sheringham Shoal Dudgeon Arkona Hywind demo Hywind Scotland Batwind

In production In production In development In production In production Installed

316 MW 402 MW 385 MW 2.3 MW 30 MW 1 MW

1. Figures: Installed capacity, 100% basis.
 31

Bottom fixed 2 Floating 2

Dogger Bank Empire Wind Baltyk II & III Hywind Tampen Expanding global position
UK USA Poland Norway

3.6 GW 1-2 GW 1.2 GW 88 MW UK/Ireland, France, US West

Coast, Japan

2. Figures: Installed capacity, 100% basis. Non-sanctioned.

Investing in Leveraging our R&D and innovation capabilities will be key to developing new
energy solutions at an acceptable cost. We are focusing on options to maintain the
low-carbon research competitiveness of oil and gas in a low-carbon future, with efforts in the area of storage
and technology and utilisation of CO2 , decarbonisation of natural gas through hydrogen value chains,
and low carbon fuel transportation solutions. We are also exploring synergies between
renewables and oil and gas value chains.

We expect to devote up to By 2020, we expect to be devoting around 25% of research and development expenditure
25% of research funds to new to new energy solutions and emission reduction efforts. Currently, around 18% of our R&D
energy solutions and energy spending addresses energy efficiency, carbon capture & storage and renewables.
efficiency by 2020. We are also looking into early stage opportunities for converting gas to hydrogen, while
capturing and storing the CO2 , as a potential way to help our customers in the power and
heating sectors to meet their climate targets. It is still early days for hydrogen, but we see this
as an exciting opportunity for natural gas in the future. Currently, we are involved in a project
in the Netherlands, looking at opportunities for converting a power plant run on natural gas
to one run on hydrogen - which is decarbonised natural gas.

We are also working with the City of Leeds to look into the possibility of converting the gas
distribution network so that the city can heat their homes and cook their food on hydrogen
instead of natural gas. We believe liquid hydrogen can help decarbonize the heavier parts
of transportation, such as shipping.
 33

Long term potential: CCS as enabler for hydrogen production

CO 2 Capture Transport Permanently stored

Capture from Compressed CO2 received and temporarily stored. H 2 - Hydrogen
industrial plants. CO2 transported Export via pipeline offshore.
Compressed and by ship. Permanently stored in reservoir for power
temporarily stored. (1000-2000 meters below sea bed).
generation

for heat

for maritime
CO
2

transport

H2
CO2
CO
2

Natural
gas
 35

35
Accountability and
collaboration to amplify
climate action
Changing Climate risk and portfolio resilience
Our business needs to be resilient to the multiple risks – both upside and downside –
how we work posed by the response to climate change. These include potential stricter climate
regulations, changing demand for oil and gas, technologies that could disrupt our market,
as well as physical effects of climate change.
We have embedded climate
Climate-related risk and opportunities and the strategic response to these are discussed
into our strategy, incentives, frequently by our corporate executive committee and board of directors.
reporting and decision-
making. We have targets in We use internal carbon pricing, scenario analysis and sensitivity analysis to assess risk. We
monitor technology developments and changes in regulation and assess how these might
place to measure progress
impact the demand for oil and gas, the cost of developing new assets and opportunities
and incentivise performance for low-carbon technologies.
across the entire company
– starting at the top. Climate To keep our portfolio robust, we have introduced investment principles that take climate
aspects into account. We require all potential projects to be assessed for carbon intensity
performance (CO2 intensity) and emission reduction opportunities, at every phase – from exploration and business
is a key performance indicator development to project development and operations. For investment analysis, we apply an
and influences executive pay. internal carbon price of at least USD 50 per tonne.

We stress test our project portfolio against the International Energy Agency (IEA) energy
scenarios by replacing our own oil, gas and carbon price assumptions with those of the
IEA scenarios, and assessing the impact on the net present value (NPV) of our portfolio.
In our assessment, we see very little stranding of assets. This is because our portfolio has
a high share of projects with a relatively low break even poit and low carbon intensity. We
also have significant capex flexibility going forward, enabling us to adapt our portfolio to
changing circumstances.
 37

Stress testing and flexibility

2017 Portfolio stress test CO2 costs Capex flexibility
NPV impact on base case included in all investment decisions Forecast investments in 2025 by maturity,
share of total

New policies
scenario 20%

Current policies
scenario 42%

Sustainable
development -13%
scenario

-20% 0% 20% 40% Share of production subject to CO2 tax Producing Development
Sanctioned New business opportunitites

Equinor's portfolio value is robust to Using a minimum CO2 price of 50 USD 60% of forecast capex in 2025 related to
stress tests. 1 per tonne activities not yet sanctioned

2/3 of existing production subject to

CO2 tax 2

1. Changes in the value of Equinor’s project portfolio when replacing internal planning assumptions for prices of oil, gas and CO2 with those from the IEA, as per its ‘World Economic Outlook 2017’ report
2. Equinor operated, 100% basis.
 We are committed to working with peers, suppliers, customers and governments to find
Delivering together innovative and commercially viable ways to reduce emissions across the oil and gas value chain.

In the "Oil and Gas Climate Initiative" (OGCI) we have teamed up with peer companies
We engage with business to help shape the industry’s climate response. To spur technology development, we are a
partners and society as we partner in the 1 billlion USD OGCI Climate Investments.

work together to find solutions In 2017, we joined the "Task Force on Climate-related Financial Disclosures (TCFD) Oil
for the low carbon future. and Gas Preparer Forum", to identify efficient and feasible ways to implement the TCFD
recommendations. The Forum’s report was launched in 2018.

To enhance our work on reducing methane emissions, we have joined the "One Future
Coalition", the "Climate and Clean Air Coalition Oil and Gas Methane Partnership" and the
"Guiding Principles on Reducing Methane Emissions Across the Natural Gas Value Chain".

We are exploring ways to work with companies that use our products, since over 90% of the
total emissions from oil and gas comes from their use rather than their production. Our pilot
projects on hydrogen and CCS are examples of this. Through our green logistics programme,
we collaborate with suppliers to reduce the emissions from our maritime operations.

We work with governments and other organisations to support carbon pricing and
complementary climate and energy policies. Through these measures, we encourage fuel
switching from coal to gas, growth in renewables, the deployment of CCUS and other low-
carbon solutions, as well as promote efficient production, distribution and use of energy
globally. Since 2000, we have been committed to long-term sustainable value creation in
line with the principles of the United Nation’s Global Compact (UNGC). Equinor is a founding
patron in the UNGC Action Platform for Sustainable Ocean Business.
 39

To succeed, we want all our employees

to feel empowered to make their
contribution through technological,
commercial and operational
innovations.We also want to work
together with our business partners,
governments, research institutions and
non-governmental organisations to
maintain the momentum of change.
Our Climate roadmap is a platform
– and an invitation – to work with us
to help shape the future of energy.