Equinor has today become the latest oil major to strengthen its low carbon strategy and ramp up its support of the Paris Agreement in response to growing pressure from investors.

The Norwegian oil and gas giant issued a joint statement in conjunction with the Climate Action 100+ group of institutional investors, which is leading calls for carbon intensive firms globally to develop strategies that minimise stranded asset risks and are broadly in line with the goals of the Paris Agreement.

The statement reiterates Equinor's commitment to "play an active role in society's decarbonisation" and sets out a number of new policies designed to "demonstrate further industry leadership in support of the goals of the Paris Agreement".

Echoing recent announcements from rival oil and gas giants such as Shell and BP, the company confirmed it had agreed with investors to review existing climate-related targets up to 2030 and set new targets beyond 2030; better align remuneration for executives and employees with updated short, medium and long-term climate-related targets and ambitions; and undertake a comprehensive review of industry association memberships that hold an active position on climate and energy policy so as to disclose any material inconsistencies and potential actions by the first quarter of 2020.

It also pledged to report in line with the recommendation of the Taskforce on Climate-related Financial Disclosures (TCFD), including stress testing to assess new material capital expenditure investments against a 2C scenario, and report overall estimated carbon intensity of energy products and services provided and explore additional approaches to drive decarbonisation along the company's value chain and the end use of products.

However, the company stopped short of committing to binding emissions targets that extended beyond its operational emissions. Speaking to the FT, Eldar Sætre, chief executive at Equinor, said the company could not take responsibility for emissions generated by its customers. "This is really outside of our control," he said.

The company also confirmed it would continue to invest in fossil fuels, alongside its increasing investments in clean energy sources. "To thrive in the energy transition, we aim to maintain our position as an industry leader in carbon efficient oil and gas production, continue to grow in new energy solutions and play an active role in society's decarbonisation," it said in the joint statement.  "We see our low carbon strategy as a competitive advantage which creates long term value for our shareholders."

The move was welcomed by members of the Climate Action 100+ group who are optimistic the combination of new internal decarbonisation targets and incentives and stress testing of investment plans against the Paris Agreement will help drive the company's transition towards a clean energy future - a transition underlined by its recent rebranding from Statoil to Equinor.

"Equinor is one of an emerging group of oil and gas majors that understand the need to act on climate change to secure their place in a cleaner global economy," said Stephanie Pfeifer, a member of the global Climate Action 100+ Steering Committee and CEO, Institutional Investors Group on Climate Change (IIGCC). "Building on the welcome steps it has already taken, investors will continue to work with Equinor on fully aligning its business with the goals of the Paris Agreement. They also expect others in the sector to follow its lead or face the consequences of ignoring some of their largest shareholders."

Speaking as one of the leads of the Climate Action 100+ investor dialogue with Equinor, Valeria Piani, Strategic Engagement Lead for UBS Asset Management, said the group values "in depth engagement discussions with companies which help drive both long-term value and sustainable innovation addressing the risks and opportunities presented by climate change".

"Equinor and investors have together defined an ambitious pathway which will see the company play an even more active role in the transition to a lower carbon economy," she added. "We are very pleased to have reached this agreement with the company and will continue our collective engagement with them as they deliver on these crucial commitments."

Mark van Baal of the Follow This campaign group, which has filed a shareholder resolution with Equinor calling for it to develop a more ambitious decarbonisation strategy, told the FT oil majors had to start coming forward with carbon targets that covered the full lifecycle of their products if they really wanted to support the Paris Agreement.

"An oil and gas company without emission targets for its products, can never commit to the Paris Climate Agreement," he told the paper.