Orsted
ESRS disclosure: ESRS E1 \ DR E1-1 \ Paragraph 16 b
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- Provide a detailed account of the decarbonisation levers identified and the key actions planned within your transition plan for climate change mitigation. This should include references to your GHG emission reduction targets and climate change mitigation actions, as specified in Disclosure Requirements E1-4 and E1-3. Additionally, elucidate any changes anticipated in your product and service portfolio, as well as the adoption of new technologies within your operations or across the upstream and/or downstream value chain.
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Question Id: E1-1_03
Ørsted's transition plan includes key decarbonisation levers and identifies strategic actions that have driven the transformation of the business model towards renewable energy. The plan supports broader policy priorities, including the European Union’s 2050 climate neutrality goals. Ørsted targets reductions in scope 1 and 2 GHG emissions. In 2024, they closed Esbjerg Power Station, their last coal-fired CHP plant, advancing decarbonisation efforts. They aim for a 93% reduction in scope 1 and 2 GHG emissions intensity by 2025 and progress towards a 96% reduction by 2030. The interim scope 1-3 GHG emissions intensity target outlines a reduction trajectory of ~77% by 2030. Ørsted is also focusing on renewable energy capacity growth and the phase-out of coal, with a target to meet their 2025 target of a 99% share of energy generation coming from renewables.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed explanation of your company's capacity to modify or adapt its strategy and business model in response to climate change over the short, medium, and long term. This should include an assessment of your ability to maintain access to finance at a reasonable cost of capital, the potential to redeploy, upgrade, or decommission existing assets, the capability to shift your products and services portfolio, and the initiatives to reskill your workforce. This disclosure should align with the resilience analysis results as required under paragraph 19 (c) and should address the anticipated financial effects from significant physical and transition risks, as well as potential climate-related opportunities, in accordance with Disclosure Requirement E1-9 and ESRS 2 SBM-3.
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Question Id: E1.SBM-3_07
We have demonstrated the ability to adapt our strategy and business model to address climate change by aligning projects and their associated financing with the EU taxonomy for sustainable activities. This approach ensures that financing is directed toward sustainable initiatives, supporting the transition to a low-carbon economy while maintaining access to affordable financing.
Additionally, we work closely with key stakeholders to support this alignment, reinforcing our capacity to redeploy resources and decommission assets effectively as part of our long-term strategy. We remain dedicated to a robust understanding of climate-related risks. To support this, we plan to re-run the full climate risk assessment for our asset portfolio in 2025, incorporating updated methodologies. This approach ensures our climate-related risk management practices remain thorough, efficient, and aligned with the observed level of risk.
While we are committed to driving a just transition to renewables, we recognise that various factors, including macroeconomic conditions and technological advancements, influence the pace of progress. To mitigate these risks and capitalise on opportunities, we advocate for political support and initiatives that foster stable macroeconomic conditions, ensuring the continued deployment of renewable energy.
Report Date: 4Q2024Relevance: 65%