We recognise the importance of tackling the impacts of our legacy business, as locked-in emissions pose a significant transition challenge if left unaddressed. To guide progress toward our net-zero goals, we have set an absolute emissions reduction target for scope 3 emissions from gas sales, aiming to reduce emissions by ~67% by 2030 (baseline 2018) and by ~90% by 2040. To mitigate potential risks associated with locked-in emissions, we focus on measurable performance and avoiding additional locked-in emissions by not entering into new gas sourcing agreements that would contribute to additional locked-in emissions.

Physical climate risks are managed through our 'Enterprise risk management (ERM) framework', supported by dedicated teams. This framework provides a high-level, principle-based structure for addressing all risks to which Ørsted may be exposed. The ERM framework sets the standards for individual risk frameworks across the organisation, ensuring that risks are identified and managed in line with the appetite for risk.