Our approach to resilience analysis consists of two main components: assessing and managing transition risks and opportunities, and conducting physical climate risk assessments. Transition risks stem from a shift to a low-carbon economy and encompass factors such as new regulations, technological innovation, changing market dynamics, and shifting consumer preferences. We have effectively mitigated these risks by transforming our business model from fossil fuels to renewable energy, aligning our operations with a 1.5 °C climate trajectory. This proactive shift has positioned us well to capitalise on the increasing demand for renewable energy deployment.

Governance and oversight of the transition plan: Matters related to the transition plan are addressed within our sustainability governance framework. The elements of our transition plan are fully disclosed in our annual report, which is presented to shareholders for approval at the annual general meeting (AGM), providing them with an opportunity to offer feedback.

Ørsted's transition plan outlines the company's overall pathway to achieving net-zero emissions by 2040, aligned with the 1.5 °C goal of the Paris Agreement.

To manage our impacts, risks, and opportunities related to climate change, we are guided by our vision to create a world that runs entirely on green energy. As such, climate change mitigation efforts have been at the core of our operations for many years, eliminating the necessity for a stand-alone climate policy.

We continue to focus on delivering measurable change through setting internal targets, milestones, and decision-making mechanisms, tracked through relevant KPIs. The need for the development of policies will be assessed continuously to ensure the effectiveness of our efforts.

While we do not have a stand-alone climate policy, our commitment to mitigating climate change, deploying renewable energy, and promoting efficient energy systems is embedded in our sustainability commitment. Introduced in 2016, this commitment reflects a systems-based approach to addressing climate change, recognising that social and governance factors are critical to successfully delivering reliable and modern energy systems to society. This perspective is applied across our organisation and is also reflected in our 'Code of conduct for business partners'. The sustainability commitment is overseen by the Group Executive Team.

While the sustainability commitment does not outline the specific steps required to address the identified IROs, it has effectively set the direction for our first transition wave: shifting away from fossil fuels. To ensure continued alignment with our strategy and vision, we have incorporated climate-related KPIs in the remuneration framework of the Group Executive Team. In 2024, the short-term bonus programme includes metrics linked to scope 1 and 2 emissions reductions and the external climate rating from the Carbon Disclosure Project (CDP).

Incorporating climate-related considerations into the executive remuneration framework ensures that incentives are aligned with both financial performance and climate objectives. As a renewable energy company, our financial metrics inherently reflect climate performance, reinforcing the link between executive pay and our decarbonisation efforts. A key financial metric linked to executive remuneration is EBITDA. The majority of EBITDA (91%) is taxonomy-aligned, generated through activities that contribute to climate change mitigation under the EU taxonomy framework. This highlights the connection between executive remuneration and renewable energy growth, supporting our long-term decarbonisation ambition.

Our primary decarbonisation lever aligns with a key climate change-related opportunity and a positive impact: the deployment of renewable energy assets. This approach not only supports our core business model by capitalising on financial opportunities but also maximises our positive impact on climate change by increasing the availability of renewable energy. In 2024, we continued to expand our renewable energy portfolio, reaching a total of 18.2 GW of installed capacity, with a pipeline of 7.6 GW in decided (FID’ed) capacity. We reached commercial operations for several major projects: the offshore wind farms Greater Changhua 1 and 2a (900 MW), South Fork (132 MW), the solar PV assets Sparta Solar (250 MW) and Mockingbird (471 MW), the remaining part of Old 300 (73 MW), and the combined solar PV (300 MW) and battery storage (300 MW/1,200MWh) asset Eleven Mile. These projects directly contribute to increasing renewable energy capacity, supporting the growing demand for renewable electricity. We are committed to deploying renewable energy over the long term as part of our core business strategy, with our build-out ambition serving as a key milestone that underscores our focus on expanding renewable energy capacity and aligning with our long term climate ambitions. Our second decarbonisation lever includes a number of actions that address the actual negative impacts on climate change from our own operations (fossil-based energy consumption at our CHP plants, and our scope 1 and 2 emissions). We achieved a significant milestone in our decarbonisation journey by shutting down our last coal-fired combined heat and power plant in Esbjerg, Denmark. This marks a major step in reducing fossil-based energy consumption at our CHP plants and lowering our scope 1 and 2 emissions from operations, which have already been significantly lowered. Between 2018 and 2024, we have reduced our scope 1 and 2 emissions intensity by 88% and remain on track to achieve our SBTi-validated target of 93% in 2025. We continue to identify additional ways to drive down emissions within our operations. The following actions, although supplementary, are deemed relevant contributions towards our climate objective. In 2024, we deployed heavy-lift (cargo) drones (HLCD) for the first time during an operational campaign at the Borssele 1 & 2 Offshore Wind Farm to enhance maintenance efficiency. This innovation delivers significant cost and time savings while reducing GHG emissions by minimising vessel journeys and optimising operations. The use of drones allows cargo to be delivered directly to the nacelle in just four minutes per wind turbine, compared to approximately six hours using conventional methods, enabling tasks to be completed 10-15 times faster. Additionally, this approach eliminates the need to shut down turbines during delivery, reducing work disturbances and further improving efficiency. Our third decarbonisation lever focuses on reducing emissions across our supply chain. Stakeholders, including regulators, investors, and customers, are increasingly attentive to emissions across the entire value chain, making it a key area of focus for organisations seeking to align with the evolving sustainability landscape. In 2024, we initiated a project to update our company-wide decarbonisation roadmap to support our ambition of achieving net-zero emissions by 2040. This roadmap will continue to provide clear interim milestones and help identify potential new areas where immediate progress can be achieved. This approach ensures a solid foundation for long-term systematic change through measurable progress and targeted actions. Decarbonising our value chain requires close collaboration with key partners and suppliers. In 2024, we reinforced our partnership with Dillinger, Europe’s largest heavy steel plate producer. Under this agreement, Dillinger will offer Ørsted access to the first production of lower-emission steel, contingent on availability and commercial terms and conditions. The steel plates are a critical component of the offshore wind monopile foundations. Our supplier engagement and procurement strategy is an ongoing initiative without a fixed end date, evolving with the growth of our project portfolio and supplier base. This approach ensures that new suppliers in high-impact segments are systematically included in our sustainability efforts. Since the implementation of our strategy, we have nearly doubled the number of key suppliers with whom we actively engage, while also broadening the focus of our collaboration to encompass circularity in addition to decarbonisation. These efforts not only drive progress toward our 2040 net-zero target but also contribute to the resilience of supply chains. To embed sustainability matters into procurement practices, we have a dedicated organisational set-up that enables clear focus on driving sustainable procurement. In 2024, we continued our collaboration with Carbon Trust to develop a standardised carbon footprint methodology for offshore assets across the full life cycle. The methodology provides sector-specific guidance for the application of international PCF and life cycle assessment standards. Establishing an industry-wide uniform methodology will ensure a consistent approach to measuring the environmental impact of offshore wind projects throughout their entire life cycle, from material sourcing to decommissioning. By supporting such initiatives, we aim to enhance transparency and drive improvements across the industry. In addition to reducing our scope 1-3 emissions toward our 2040 net-zero target, we take further steps to finance and develop nature-based projects that contribute to climate action outside our value chain. These efforts are not a substitute for reducing our scope 1-3 emissions; rather, they complement and reinforce our commitment to achieving emissions reductions as part of our holistic approach to climate action. By supporting nature-based projects, we also advance our efforts to address a possible positive impact: carbon removal through nature-based projects, which supports broader climate action and sustainability objectives. In 2024, we have continued to advance our portfolio of nature-based carbon removal projects by planting approximately 40 million propagules in the Gambia, equivalent to around 4,000 hectares, thereby contributing further to the restoration of vital ecosystems and mitigating climate change. The project is in partnership with the Gambia Department of Parks & Wildlife Management and three local NGOs to restore mangrove populations. To ensure carbon credits contribute meaningfully to climate action, they must meet additionality, i.e. that the project would not occur without financial support, and permanence, i.e. that the mangroves remain intact. We actively support the Gambia project with a dedicated team and financial backing. Though resource-intensive and time-consuming as mangroves mature, this approach ensures project integrity.

In 2024, we have continued to advance our portfolio of nature-based carbon removal projects by planting approximately 40 million propagules in the Gambia, equivalent to around 4,000 hectares, thereby contributing further to the restoration of vital ecosystems and mitigating climate change. The project is in partnership with the Gambia Department of Parks & Wildlife Management and three local NGOs to restore mangrove populations. To ensure carbon credits contribute meaningfully to climate action, they must meet additionality, i.e. that the project would not occur without financial support, and permanence, i.e. that the mangroves remain intact. We actively support the Gambia project with a dedicated team and financial backing. Though resource-intensive and time-consuming as mangroves mature, this approach ensures project integrity.

While we do not have a stand-alone climate policy, our commitment to mitigating climate change, deploying renewable energy, and promoting efficient energy systems is embedded in our sustainability commitment. Introduced in 2016, this commitment reflects a systems-based approach to addressing climate change, recognising that social and governance factors are critical to successfully delivering reliable and modern energy systems to society. This perspective is applied across our organisation and is also reflected in our ‘Code of conduct for business partners’. The sustainability commitment is overseen by the Group Executive Team. While the sustainability commitment does not outline the specific steps required to address the identified IROs, it has effectively set the direction for our first transition wave: shifting away from fossil fuels. To ensure continued alignment with our strategy and vision, we have incorporated climate-related KPIs in the remuneration framework of the Group Executive Team. In 2024, the short-term bonus programme includes metrics linked to scope 1 and 2 emissions reductions and the external climate rating from the Carbon Disclosure Project (CDP).

Incorporating climate-related considerations into the executive remuneration framework ensures that incentives are aligned with both financial performance and climate objectives. As a renewable energy company, our financial metrics inherently reflect climate performance, reinforcing the link between executive pay and our decarbonisation efforts. A key financial metric linked to executive remuneration is EBITDA. The majority of EBITDA (91 %) is taxonomy-aligned, generated through activities that contribute to climate change mitigation under the EU taxonomy framework. This highlights the connection between executive remuneration and renewable energy growth, supporting our long-term decarbonisation ambition. Beyond financial performance, a portion of executive remuneration is linked to climate-specific considerations, including our scope 1-2 emissions intensity target. The proportion of recognised remuneration linked to these climate-specific considerations was 1.9% for the CEO, with corresponding figures for the Executive Board as follows: 1.6% for the CCO, 1.4% for the CFO, and 1.5% for the Chief HR Officer. Further details on the methodology, including how climate-related performance is factored into remuneration, can be found in our remuneration report.

Incorporating climate-related considerations into the executive remuneration framework ensures that incentives are aligned with both financial performance and climate objectives. As a renewable energy company, our financial metrics inherently reflect climate performance, reinforcing the link between executive pay and our decarbonisation efforts. A key financial metric linked to executive remuneration is EBITDA. The majority of EBITDA (91 %) is taxonomy-aligned, generated through activities that contribute to climate change mitigation under the EU taxonomy framework. This highlights the connection between executive remuneration and renewable energy growth, supporting our long-term decarbonisation ambition. Beyond financial performance, a portion of executive remuneration is linked to climate-specific considerations, including our scope 1-2 emissions intensity target. The proportion of recognised remuneration linked to these climate-specific considerations was 1.9% for the CEO, with corresponding figures for the Executive Board as follows: 1.6% for the CCO, 1.4% for the CFO, and 1.5% for the Chief HR Officer. Further details on the methodology, including how climate-related performance is factored into remuneration, can be found in our remuneration report.

Incorporating climate-related considerations into the executive remuneration framework ensures that incentives are aligned with both financial performance and climate objectives. As a renewable energy company, our financial metrics inherently reflect climate performance, reinforcing the link between executive pay and our decarbonisation efforts. A key financial metric linked to executive remuneration is EBITDA. The majority of EBITDA (91 %) is taxonomy-aligned, generated through activities that contribute to climate change mitigation under the EU taxonomy framework. This highlights the connection between executive remuneration and renewable energy growth, supporting our long-term decarbonisation ambition. Beyond financial performance, a portion of executive remuneration is linked to climate-specific considerations, including our scope 1-2 emissions intensity target. The proportion of recognised remuneration linked to these climate-specific considerations was 1.9% for the CEO, with corresponding figures for the Executive Board as follows: 1.6% for the CCO, 1.4% for the CFO, and 1.5% for the Chief HR Officer. Further details on the methodology, including how climate-related performance is factored into remuneration, can be found in our remuneration report.