Orsted
ESRS disclosure
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- Provide a comprehensive disclosure of the current financial effects of your company's material risks and opportunities on its financial position, financial performance, and cash flows. Additionally, identify any material risks and opportunities that present a significant risk of material adjustment to the carrying amounts of assets and liabilities within the next annual reporting period, as reported in the related financial statements.
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Question Id: SBM-3_08
When scoring sustainability risks and opportunities, we assessed the potential 'magnitude' of possible financial effects on, for example, revenue, CAPEX or OPEX, which constitutes one part of the score, and the 'likelihood of occurrence', which constitutes the other part. The possible financial effects of the individual risks and opportunities were assessed through sustainability-matter-specific scenarios, operationalised through stress tests. Mitigation measures put in place are reflected in either the magnitude or likelihood of the assessed scenarios.
Report Date: 4Q2024Relevance: 60%
- Provide a comprehensive disclosure of the anticipated financial effects of your company's material risks and opportunities on its financial position, financial performance, and cash flows over the short-, medium-, and long-term. Include the reasonably expected time horizons for these effects and detail how your company expects its financial position, financial performance, and cash flows to evolve over these periods, considering your strategic approach to managing these risks and opportunities.
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Question Id: SBM-3_09
For risks and opportunities, we consolidated the score by assigning weights over the short-, medium-, and long-term horizons. The weights were evenly distributed or adjusted to emphasise either the short term or medium and long term.
Report Date: 4Q2024Relevance: 50%
- Provide a comprehensive disclosure regarding the resilience of your organization's strategy and business model in relation to its capacity to address material impacts and risks, as well as to capitalize on material opportunities. Include both qualitative and, where applicable, quantitative analyses of this resilience. Detail the methodologies used in conducting these analyses and specify the time horizons applied, as outlined in ESRS 1, Chapter 6 on Time Horizons. When presenting quantitative data, you may use single amounts or ranges.
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Question Id: SBM-3_10
Our approach to resilience analysis consists of two main components:
- Assessing and managing transition risks and opportunities, which include macroeconomic, political, technological, and market developments associated with the global shift to a low-carbon economy.
- Conducting physical climate risk assessments to evaluate how climate-related hazards (chronic and acute), including extreme weather events and long-term climate changes, may impact our operations.
Report Date: 4Q2024Relevance: 65%
- Provide a detailed account of any changes to the material impacts, risks, and opportunities compared to the previous reporting period, as per Disclosure Requirement SBM-3, which pertains to the interaction of these elements with your strategy and business model.
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Question Id: SBM-3_11
Some scenarios were assessed quantitatively. In cases where a quantitative assessment was not possible or insufficient, qualitative assessments were used to supplement or inform the magnitude of the risk or opportunity. This approach was necessary due to the complexity of defining exact values for potential sustainability scenarios.
Report Date: 4Q2024Relevance: 60%
- Provide a detailed specification of the impacts, risks, and opportunities that are addressed by the ESRS Disclosure Requirements, distinguishing them from those addressed through additional entity-specific disclosures, in accordance with Disclosure Requirement SBM-3 concerning material impacts, risks, and opportunities and their interaction with the strategy and business model.
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Question Id: SBM-3_12
In our DMA, we have identified and assessed our impacts on the environment and society as well as the sustainability-related financial risks that we are exposed to and the opportunities we leverage. In total, 40 impacts, risks, and opportunities (IROs) have been assessed as material, comprising of 7 positive impacts, 23 negative impacts, 8 risks, and 2 opportunities.
Report Date: 4Q2024Relevance: 65%