Orsted
ESRS disclosure
Tags Tree
- Provide a detailed account of the roles and responsibilities of your administrative, management, and supervisory bodies. Specifically, describe management's involvement in governance processes, controls, and procedures utilized to monitor, manage, and oversee impacts, risks, and opportunities. Include information on whether dedicated controls and procedures are employed for managing these aspects and, if applicable, explain how they are integrated with other internal functions.
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Question Id: GOV-1_13
The Group Executive Team steers and approves the strategic direction on sustainability and is accountable for oversight and performance on material sustainability IROs. Ørsted’s Chief Commercial Officer (CCO) has the overall responsibility for ensuring that the business delivers on our sustainability targets and actions, in line with our sustainability ambition.
Report Date: 4Q2024Relevance: 65%
- Provide a detailed account of the roles and responsibilities of the administrative, management, and supervisory bodies, including senior executive management, in overseeing the establishment of targets concerning material impacts, risks, and opportunities. Additionally, explain the mechanisms in place for monitoring progress towards these targets.
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Question Id: GOV-1_14
The Group Executive Team discusses material sustainability IROs twice a year. They approve our strategic direction and targets on sustainability, including links to our corporate strategy, and are accountable for our performance ambitions on sustainability topics. The Group Executive Team discusses and reviews the DMA ahead of the Board of Directors’ approval as well as performance on material sustainability matters and progress towards targets.
Report Date: 4Q2024Relevance: 65%
- Provide a detailed account of the methods employed by the administrative, management, and supervisory bodies to ascertain the availability or development of appropriate skills and expertise necessary for overseeing sustainability matters.
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Question Id: GOV-1_15
As a whole, the Board possesses expertise across our material sustainability IROs. Based on the seven ESRS topics that have been assessed as material to Ørsted through our DMA, we have mapped the Board’s sustainability competencies to ensure that they have the relevant expertise to oversee material sustainability matters.
Report Date: 4Q2024Relevance: 60%
- Provide a comprehensive description of the methods employed by the administrative, management, and supervisory bodies to ascertain the availability or development of appropriate skills and expertise necessary for overseeing sustainability matters. This should include details on the sustainability-related expertise that these bodies, collectively, either directly possess or have the capability to leverage, such as through access to external experts or training programs.
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Question Id: GOV-1_16
As a whole, the Board possesses expertise across our material sustainability IROs. Based on the seven ESRS topics that have been assessed as material to Ørsted through our DMA, we have mapped the Board’s sustainability competencies to ensure that they have the relevant expertise to oversee material sustainability matters.
Report Date: 4Q2024Relevance: 65%
- Provide a detailed account of how the administrative, management, and supervisory bodies ascertain the availability or development of appropriate skills and expertise necessary to oversee sustainability matters. Include an explanation of how these skills and expertise are connected to the company's material impacts, risks, and opportunities.
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Question Id: GOV-1_17
As a whole, the Board possesses expertise across our material sustainability IROs. Based on the seven ESRS topics that have been assessed as material to Ørsted through our DMA, we have mapped the Board’s sustainability competencies to ensure that they have the relevant expertise to oversee material sustainability matters.
Report Date: 4Q2024Relevance: 85%
- Provide detailed information regarding whether, by whom, and how frequently the administrative, management, and supervisory bodies, including their relevant committees, are informed about material impacts, risks, and opportunities. Additionally, disclose the implementation of due diligence, as well as the results and effectiveness of policies, actions, metrics, and targets adopted to address these issues.
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Question Id: GOV-2_01
Our sustainability governance enables us to deliver on sustainability matters. In 2024, we redesigned our sustainability governance. The new set-up ensures clear executive accountability for our sustainability matters and stronger ownership of material sustainability impacts, risks, and opportunities throughout Ørsted. The new governance was approved by our Group Executive Team in 2024 and will be fully implemented in 2025.
The Board of Directors is the highest governing body for sustainability. The Board ultimately approves the strategic direction and targets, oversees our performance on material sustainability impacts, risk, opportunities (IROs), and approves the double materiality assessment (DMA) results annually.
The Audit & Risk Committee reports to the Board of Directors. The committee is responsible for the integrity and statutory compliance of Ørsted’s CSRD reporting. The Audit & Risk Committee meets six times a year and annually reviews our CSRD reporting, including the DMA results, before the Board of Directors approves it.
The Group Executive Team steers and approves the strategic direction on sustainability and is accountable for oversight and performance on material sustainability IROs. Ørsted’s Chief Commercial Officer (CCO) has the overall responsibility for ensuring that the business delivers on our sustainability targets and actions, in line with our sustainability ambition. Our Chief Financial Officer (CFO) is responsible for our sustainable finance reporting, including our CSRD reporting.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed account of how your administrative, management, and supervisory bodies evaluate impacts, risks, and opportunities in the context of overseeing your company's strategy, major transaction decisions, and risk management processes. Include an explanation of whether trade-offs related to these impacts, risks, and opportunities have been considered.
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Question Id: GOV-2_02
The Group Executive Team discusses material sustainability IROs twice a year. They approve our strategic direction and targets on sustainability, including links to our corporate strategy, and are accountable for our performance ambitions on sustainability topics. The Group Executive Team discusses and reviews the DMA ahead of the Board of Directors’ approval as well as performance on material sustainability matters and progress towards targets.
The Group Executive Team has always considered material sustainability matters when overseeing our corporate strategy, and going forward, the IROs resulting from our DMA will further inform their decision-making and support that the IROs are consistently considered in decisions, ranging from what we source to how we develop, construct, operate, and decommission our projects. The material IROs addressed during the year are described in the topical ESRS chapters under the actions section.
Report Date: 4Q2024Relevance: 85%
- Provide a comprehensive list of the material impacts, risks, and opportunities that have been addressed by the administrative, management, and supervisory bodies, or their relevant committees, during the reporting period.
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Question Id: GOV-2_03
We develop, construct, and operate our renewable energy assets in an environmentally and socially sustainable way. We work continuously to integrate sustainability into our strategy and business model and to respond to the main challenges and opportunities ahead of us and in our industry.
We have three strategic sustainability priorities – decarbonisation, biodiversity, and community impact – which play an enabling role in our commercial and project delivery. These priorities were confirmed by the result of our 2024 double materiality assessment (DMA) and reflect where strategic value is gained in our business model by creating positive impacts on nature and society.
At the same time, we acknowledge the aspects of our strategy and business model that bring vulnerabilities and risks. Renewable energy requires significant amounts of natural resources, such as steel, with negative impacts on climate and the environment. The build-out also affects people and local communities.
We therefore focus our efforts on making sure that we mitigate negative impacts while creating positive impacts by decarbonising societies, helping to protect nature, and making sure the build-out brings benefits to people, workers, and local communities.
Report Date: 4Q2024Relevance: 60%
- How do the governance bodies of your undertaking ensure that an appropriate mechanism for performance monitoring is in place, particularly when overarching targets are the focus of administrative, management, and supervisory bodies, and detailed targets are the focus of management? Provide information on the sustainability matters addressed and the information provided to these bodies, especially if no measurable outcome-oriented targets have been set.
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Question Id: GOV-2_04
The new governance integrates responsibility into the line organisation in Ørsted to ensure a focused set-up with a strong mandate to execute on sustainability topics. The new accountable persons in the Group Executive Team are individually accountable for driving progress on the assigned sustainability topic according to roadmaps, including defining key actions and allocating resources to secure progress on targets and ambitions. They will be supported by supportive decision forums as well as internal experts from the support functions on sustainability topics.
Supportive decision forums: The Decarbonisation Core Group and the Biodiversity & Community Impact Core Group will support the accountable persons in the Group Executive Team in delivering on our strategic sustainability priority areas. The two new groups will kick off in 2025 and consist of the Group Executive Team accountable person and senior leaders from functional areas with a clear role in delivering on the material sustainability matters. The groups have a tactical responsibility and decide on new sustainability initiatives needed to deliver on our ambitions and targets, guide implementation in the organisation, and act on IROs. The core groups will meet two-three times a year or pending need.
Report Date: 4Q2024Relevance: 85%
- Does the undertaking have incentive schemes and remuneration policies linked to sustainability matters for members of its administrative, management, and supervisory bodies? If so, provide detailed information regarding these schemes and policies, as required by Disclosure Requirement GOV-3.
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Question Id: GOV-3_01
Part of the remuneration paid to the CEO is based on climate-related KPIs.
Report Date: 4Q2024Relevance: 60%