Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate action
• Biodiversity
• Local community impact
• Supply chain decarbonization
• Sustainable biomass
• Human rights
• Diversity and inclusion
• Safety
• Responsible tax
• Information security

Environmental Achievements

• Reduced carbon intensity of energy generation and operations by 87% since 2006, reaching 58 g CO2e/kWh in 2020. On track for 98% reduction by 2025.
• Reached 90% share of green energy generation.
• Reached 100% third-party certified sustainable biomass procurement.
• Achieved best-ever safety performance with a TRIR of 3.6 (27% decrease since 2019).

Social Achievements

• Improved overall employee satisfaction score to 78.
• Maintained position in top 10% among peer companies for employee satisfaction.
• Launched company-wide inclusion of diversity insights survey.
• Established partnerships for skills development with educational institutions in multiple countries.

Governance Achievements

• Ranked 2nd most sustainable company globally by Corporate Knights.
• Awarded highest possible MSCI rating for four consecutive years.
• Awarded highest possible CDP rating for two consecutive years.
• Obtained Global Compact LEAD status.

Climate Goals & Targets

Environmental Challenges

• Decarbonizing supply chains.
• Balancing sea usage with renewable energy infrastructure deployment and managing biodiversity impacts.
• Creating shared value with local communities.
• Offsetting residual emissions.
• Sourcing sustainable biomass.
• Managing human rights issues in new supply chains.
• Enabling inclusion of diversity.
• Increasing recyclability of renewable energy technologies.
• Sourcing minerals and metals sustainably.

Mitigation Strategies

• Launched supply chain decarbonisation programme, engaging key suppliers.
• Developed a stronger, more programmatic approach to biodiversity management.
• Developed a systematic approach to local community engagement.
• Developing strategies for carbon removal.
• Implementing strict sustainability criteria for biomass sourcing.
• Strengthening due diligence and stakeholder engagement.
• Implementing inclusion of diversity initiatives.
• Collaborating on blade recycling solutions.
• Working with suppliers to ensure responsible sourcing of minerals and metals.

Supply Chain Management

Supplier Audits: 26 of 28 top strategic suppliers reported data to CDP in 2020.

Responsible Procurement

• Code of Conduct for business partners
• Requirement for 100% green electricity use by 2025
• Guidelines for sustainable biofuels

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable energy market

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)

Ørsted's activities contribute to increasing renewable energy and reducing greenhouse gas emissions.

Sustainable Products & Innovation

• Offshore and onshore wind farms
• Solar PV farms
• Power-to-X solutions

Awards & Recognition

• Corporate Knights' Global 100 index (2nd place)
• MSCI AAA rating
• CDP global leader on climate action
• EcoVadis Platinum Medal

Environmental Metrics

ESG Focus Areas

• Science-aligned climate action
• Biodiversity
• Circular resource use
• Minerals and metals
• Sustainable biomass
• Local communities
• Human rights
• Inclusion of diversity
• Employee safety, health and well-being
• Employee development and satisfaction
• Responsible business partners
• Good business conduct
• Responsible tax practice
• Sustainable finance
• Information and cyber security

Environmental Achievements

• Reduced the GHG intensity of energy generation and operations by 87% since 2006 to 58 g CO2e/kWh in 2021.
• 100% of own power consumption covered with green certificates.
• Completed coal-to-biomass conversion programme on six of seven CHP plants in Denmark.
• Reduced total volume of hazardous waste by 85% from 2020 to 2021.
• Committed to a ‘zero blades to landfill’ target in 2021.
• Phased out coal from six of seven CHP plants in Denmark by replacing it with certified sustainable biomass.

Social Achievements

• Launched several initiatives to focus on employees’ mental and physical health, including the Howdy well-being monitoring app and MOVE health initiative.
• Aligned, globalised, and increased headcount in Learning & Talent Development and Diversity & Talent teams.
• Ran second virtual Global Learning Week.
• Increased openings on high-potential programmes.
• Began piloting a new career framework.
• In Taiwan, funds from Ørsted’s Offshore Wind Industrial Development Fund (IDF) made it possible to train over 170 local people in welding and safety.

Governance Achievements

• Updated code of conduct for business partners.
• Established a new ESG Supplier Due Diligence Steering Committee.
• Piloted a worker interview approach focusing on migrant workers.
• Helped develop a self-assessment questionnaire standard for the wind industry.
• Implemented onboarding training for new employees in Procurement.
• Completed onboarding of US Onshore procurement function in the RPP.
• Updated due diligence procedure for biomass suppliers.
• Issued a sustainability-linked revolving credit facility (RCF).

Climate Goals & Targets

Environmental Challenges

• Supply chain emissions for renewables and phasing out fossil fuel-based activities.
• Accelerating the deployment of renewable energy technologies.
• Coal continues to be the most widely used fuel for power generation globally.
• Biodiversity impacts and change in ecosystems.
• Circular use of resources and water scarcity.
• Minerals and metals for green energy deployment.
• Biomass sustainability.
• Local community impact and job creation.
• Human rights due diligence.
• Diversity and equal opportunity.
• Business partner due diligence, and labour rights for contractors.
• Business ethics and transparency.
• Responsible tax.
• Sustainable finance.
• Cyber security.

Mitigation Strategies

• Set a science-based target of reducing emissions intensity in energy generation and operations by at least 98% from 2006 to become carbon-neutral in 2025.
• Reduce emissions from supply chain and wholesale buying and selling of natural gas (scope 3) in line with SBTi's 1.5°C pathway.
• Deploy offshore and onshore renewables.
• Phasing out coal from combined heat and power (CHP) plants.
• Explore and develop solutions to produce renewable hydrogen.
• Commit to ensuring that all projects commissioned from 2030 must have a net-positive impact.
• Transitioning to become a company with a circular economy.
• Engaging with key suppliers based on the OECD Guidelines.
• Only source sustainable biomass certified by independent, third-party certification bodies.
• Systematic engagement to create shared benefits with local communities.
• Identify salient human rights risks through a human rights impact assessment.
• Build an organisation where diversity, equity, and inclusion accelerate global growth.
• Responsible Business Partner Programme (RPP).
• Zero tolerance of bribery, corruption, and kickbacks.
• Transparent tax reporting.
• Exclusively deploy green and sustainable financing.
• Risk-based approach to information and cyber security.

Supply Chain Management

Supplier Audits: 75 risk screenings and 32 CoC assessments conducted in 2021

Responsible Procurement

• Responsible Business Partner Programme (RPP); Code of Conduct for business partners; ESG Supplier Due Diligence Steering Committee; worker interview approach; self-assessment questionnaire standard for the wind industry.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UNGC, OECD Guidelines, EU Taxonomy, Paris Agreement, Greenhouse Gas Protocol, IPCC Sixth Assessment Report

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 12
• SDG 14
• SDG 15
• SDG 3
• SDG 8
• SDG 10
• SDG 11
• SDG 16

Programmes contribute to various SDGs as detailed in the report.

Sustainable Products & Innovation

• Renewable hydrogen; Power-to-X solutions; sustainable biomass.

Awards & Recognition

• Head of Tax ranked best in-house tax director in EMEA; ranked best company in Denmark on tax transparency and governance.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Capital
• Safety
• Supplier Due Diligence

Environmental Achievements

• Green share of energy generation increased by 5 percentage points to 92%
• Scope 1 and 2 greenhouse gas intensity decreased by 19% to 48 g CO2e/kWh
• Scope 3 emissions decreased by 30%
• Coal consumption decreased by 8%

Social Achievements

• Total recordable injury rate (TRIR) decreased by 57%
• Launched a new safety campaign named ‘Be aware, take care’

Governance Achievements

• 28% increase in the number of risk screenings
• Number of code of conduct (COC) desktop assessments doubled

Climate Goals & Targets

Environmental Challenges

• Continued challenges in the solar panel supply chain leading to delays in solar farm commissioning
• Increased revenue from gas sales activities due to high gas prices, impacting EU taxonomy-eligible revenue

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 105 risk screenings, 22 extended risk screenings, 472 KYC screenings, 12 COC desktop assessments, 29 HSE desktop assessments, 1 HSE site assessment, 108 physical vessel inspections

Responsible Procurement

• Responsible Business Partner Programme (RPP)
• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy, SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Greenhouse Gas Emissions
• Safety
• Employee Well-being
• Biodiversity

Environmental Achievements

• Scope 1 and 2 greenhouse gas intensity decreased by 14% to 42 g CO2e/kWh.
• Scope 3 emissions decreased by 54%.
• Coal consumption decreased by 12%.

Social Achievements

• Overall improvement in safety performance, with a 7% reduction in the total recordable injury rate (TRIR) to 2.6.
• Total employee turnover decreased by 0.4 percentage points, and voluntary employee turnover decreased by 0.8 percentage points.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Deteriorating contractor safety performance with an increased number of contractor lost-time injuries.
• Lower offshore and onshore wind speeds and availability impacting generation.
• Temporary lower sustainable biomass-based generation due to a fire at Studstrup Power Station.

Mitigation Strategies

• TRIR reduction plans continued, with additional actions implemented to address safety performance issues.
• Not disclosed
• Studstrup Power Station returned to normal biomass operation in Q2 2023.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Lower wind speeds

Transition Risks

• Lower power prices and spreads impacting thermal generation.

Opportunities

• Increased offshore wind-based power generation.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed