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. The plan is substantiated by science-based targets, includes key decarbonisation levers, and identifies strategic actions that have driven the transformation of our business model towards renewable energy and will continue to shape our ongoing transition.

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.