Orsted
ESRS disclosure: ESRS S3 \ DR S3-2
Tags Tree
- "Provide a detailed account of whether and how the perspectives of affected communities are integrated into your company's decision-making processes or activities concerning the management of actual and potential impacts on these communities. Include, where applicable, an explanation of the methods and processes employed for such engagement."
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Question Id: S3-2_01
We aim to go above the minimum regulatory requirements regarding engagement with affected communities, as we believe these engagements are essential for securing and sustaining the social license necessary for advancing renewable energy development. To ensure that our decisions reflect the perspectives of affected communities, we engage proactively with community stakeholders and local organisations and seek ongoing dialogue with them, ensuring their voices are heard and considered in our decision-making processes. This approach is being integrated across our business functions, markets, and asset projects. Engagement occurs at various frequencies and at various stages of a project. Our aim is to initiate early dialogue during the planning phase to gather the insights and concerns of the affected communities. This takes place through e.g. our community liaison officers and project staff employing different types of interaction, such as public meetings and consultations to facilitate open communication. When we employ community liaison officers in our projects, they often come from the communities we engage with, helping us gain a profound understanding of the local contexts. We continue this dialogue through the development, construction, and operation phases of our renewable energy assets.
Report Date: 4Q2024Relevance: 90%
- Does the undertaking disclose the manner in which the perspectives of affected communities are integrated into its decision-making processes or activities concerning the management of actual and potential impacts on these communities? Specifically, does the engagement occur directly with the affected communities or their legitimate representatives, or is it conducted through credible proxies who possess insight into their situation?
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Question Id: S3-2_02
It is our responsibility to ensure that affected communities, whether directly or indirectly impacted, are considered, and that their voices are integrated into the project planning. Depending on the specific context of the project, we engage either directly with affected communities, their legitimate representatives, or credible proxies, such as local NGOs or government representatives, to gain insights into their needs and concerns.
Report Date: 4Q2024Relevance: 90%
- Provide detailed information on the processes for engaging with affected communities regarding impacts. Specify whether and how the perspectives of these communities influence your decisions or activities in managing actual and potential impacts. Include an explanation of the stage(s) at which engagement occurs, the type of engagement, and the frequency of the engagement.
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Question Id: S3-2_03
Engagement occurs at various frequencies and at various stages of a project. Our aim is to initiate early dialogue during the planning phase to gather the insights and concerns of the affected communities. This takes place through e.g. our community liaison officers and project staff employing different types of interaction, such as public meetings and consultations to facilitate open communication. When we employ community liaison officers in our projects, they often come from the communities we engage with, helping us gain a profound understanding of the local contexts. We continue this dialogue through the development, construction, and operation phases of our renewable energy assets.
Report Date: 4Q2024Relevance: 90%
- Provide a detailed account of the processes your organization employs to engage with affected communities regarding impacts. Specifically, disclose whether and how the perspectives of these communities are integrated into your decision-making or activities aimed at managing actual and potential impacts. Include an explanation of how your organization assesses the effectiveness of its engagement with affected communities, detailing any relevant agreements or outcomes that have resulted from these engagements.
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Question Id: S3-2_05
We work closely with materially affected communities to monitor issues raised and addressed while also assessing the effectiveness of these grievance channels. We currently assess the effectiveness of our mechanisms and communication channels through our ongoing dialogue with local stakeholders. We want to further improve our processes of assessing the effectiveness of these efforts and are working to establish a global method for aggregating community feedback and grievance management. This will allow us to systematically track and monitor the effectiveness of our efforts. Specifically, we aim to implement a standardised process for receiving, addressing, resolving, and providing remedies to affected communities when necessary. We plan to pilot a grievance reporting channel for a select supplier to collect workers’ grievances via a digital solution by 2025.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed account of the measures implemented to understand the viewpoints of affected communities, particularly those that are vulnerable to impacts or marginalized. Include insights into specific groups within these communities, such as women and girls, as per Disclosure Requirement S3-2.
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Question Id: S3-2_06
We see value in gaining insights into the perspectives of vulnerable or marginalised communities, including environmental justice communities, to ensure that their needs and concerns are appropriately addressed in our projects. We have actively engaged with Indigenous communities in connection with projects both in the US and Australia. Our goal is to secure FPIC for projects impacting Indigenous lands or territories, respecting their rights and their cultural, intellectual, religious, and spiritual property.
Report Date: 4Q2024Relevance: 65%
- Provide a detailed account of the processes your organization employs to engage with affected communities, specifically focusing on indigenous peoples. Include an explanation of how your organization acknowledges and respects the unique rights of indigenous peoples within your stakeholder engagement strategy. This should encompass their right to free, prior, and informed consent concerning their cultural, intellectual, religious, and spiritual property; activities impacting their lands and territories; and any legislative or administrative measures affecting them. Additionally, disclose whether and how indigenous peoples have been consulted regarding the mode and parameters of the engagement, such as in the design of the agenda, nature, and timeliness of the engagement.
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Question Id: S3-2_07
In 2024, we laid the foundation for many of the initiatives currently in progress for managing our negative impact and risks associated with failing to respect Indigenous Peoples’ rights and ensuring FPIC in our own operations. We began by developing a global guidance for social and human rights impact assessments, which will allow us to proactively manage these risks and impacts before the construction of new projects. Furthermore, we finalised our internal guidelines for free, prior, and informed consent (FPIC), a framework designed to ensure respectful and transparent engagement with Indigenous communities. These guidelines guarantee that we secure consent from Indigenous communities before initiating projects that might impact their lands or cultural heritage.
Report Date: 4Q2024Relevance: 85%
- Has the undertaking failed to adopt a general process for engaging with affected communities regarding impacts? If so, disclose this fact and provide a timeframe for when such a process will be established.
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Question Id: S3-2_08
Currently, we have not set time-bound and outcome-oriented targets that meet the criteria for effectively reducing negative impacts, advancing positive impacts, or managing material risks and opportunities related to affected communities. However, we recognise the importance of establishing robust targets to drive meaningful progress in this area. We are working to establish a clear community engagement process that will involve engaging directly with the affected communities, their representatives, or credible proxies. In the meantime, we are focused on gathering data and assessing current practices to ensure that future targets are effective and aligned with stakeholder needs.
Report Date: 4Q2024Relevance: 60%
- Has the undertaking adopted a general process for engaging with affected communities regarding impacts? If not, disclose this fact and provide a timeframe within which the undertaking aims to establish such a process.
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Question Id: S3-2_09
We are working to establish a clear community engagement process that will involve engaging directly with the affected communities, their representatives, or credible proxies. In the meantime, we are focused on gathering data and assessing current practices to ensure that future targets are effective and aligned with stakeholder needs. We are not yet fully able to monitor how effectively our policies and actions address our material sustainability-related impacts, risks, and opportunities for affected communities.
Report Date: 4Q2024Relevance: 60%
- Identify and describe any initiatives or processes your organization has implemented that primarily aim to deliver positive impacts for affected communities, while also supporting the achievement of one or more Sustainable Development Goals. Specify if these initiatives or processes are designed to address material risks and opportunities related to specific groups within your value chain workers, such as particular age groups or workers in specific factories or countries, rather than the entire workforce.
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Question Id: S3-4_18
One of our major accomplishments this year was launching the Hornsea 3 Community Fund to support local groups and organisations in North Norfolk and parts of Suffolk in the UK who work with community facilities or activities, skills and education, or environmental projects. In September 2024, the fund announced its first round of awards, as a total of GBP 249,000 was distributed to 21 local organisations selected for their potential to strengthen community well-being and resilience.
These projects include educational initiatives to enhance skills, environmental conservation efforts, and programmes aimed at improving public health and social well-being. Among the funded projects are community centres, youth initiatives, and environmental programmes focused on boosting local biodiversity. The fund is made available as part of our project to create the world’s single largest offshore wind farm, Hornsea 3, and will award a total of GBP 7 million over a targeted ten-year period.
Report Date: 4Q2024Relevance: 80%