Orsted
ESRS disclosure: E1.SBM-3_05
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- Provide a detailed explanation of the time horizons applied in your resilience analysis, ensuring alignment with the climate and business scenarios used to determine material physical and transition risks, as well as in setting GHG emissions reduction targets. This disclosure should correspond to the requirements outlined in paragraphs AR 11 to AR 12 and should be consistent with the information reported under Disclosure Requirement E1-4.
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Question Id: E1.SBM-3_05
For the purposes of meeting financial materiality assessment requirements, we have also considered the following time horizons: short term (covering the current reporting year and the next year), medium term (from the end of the short-term period to five years), and long term (more than five years). Applying these horizons did not lead to any changes in the results of the assessment. It is important to note that, in the context of climate change, these time horizons are relatively short term and may not fully reflect the scale of risks that develop over extended periods.
Our physical climate risk assessment analyses data based on the remaining operational lifetimes of our assets, which extend up to 35 years. This period is considered medium term in climate projections, as significant climate changes are not typically observed in the short term. The long-term horizon, defined as 2060 onwards, is not applicable under our current methodology, as all existing assets are scheduled for decommissioning before that time.
Report Date: 4Q2024Relevance: 85%