Orsted
ESRS disclosure: ESRS S3 \ DR S3-1 \ Paragraph 17
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- Provide a detailed account of whether and how your organization's policies concerning affected communities align with internationally recognized standards, specifically those pertinent to communities and indigenous peoples. This includes alignment with the United Nations (UN) Guiding Principles on Business and Human Rights. Additionally, disclose any instances of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises that involve affected communities. Include information on whether such cases have been reported within your operations or throughout your upstream and downstream value chain, and specify the nature of these cases, if applicable.
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Question Id: S3-1_06
We align our policies with relevant internationally recognised guidelines and standards relevant to Indigenous Peoples and other local stakeholders. For more information about the alignment of our policies with international standards, please see ESRS ‘S2 Workers in the value chain’ on page 140.
Report Date: 4Q2024Relevance: 60%
- Has your company established policies concerning affected communities that align with internationally recognized standards, such as the United Nations Guiding Principles on Business and Human Rights? Additionally, provide details on the extent to which any instances of non-compliance with these principles, the ILO Declaration on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational Enterprises have been identified within your operations or throughout your value chain. If applicable, specify the nature of these cases.
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Question Id: S3-1_07
We align our policies with relevant internationally recognised guidelines and standards relevant to Indigenous Peoples and other local stakeholders. For more information about the alignment of our policies with international standards, please see ESRS ‘S2 Workers in the value chain’ on page 140.
Report Date: 4Q2024Relevance: 60%
- Identify and disclose any material risks and opportunities that arise from impacts and dependencies on affected communities, specifying which of these pertain to particular groups within those communities, as opposed to the broader community, in accordance with ESRS 2 SBM-3.
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Question Id: S3.SBM-3_08
We have identified three key material financial risks in our operations that arise from our interactions with and dependencies on affected communities. First, local community resistance to renewable energy projects – if not proactively addressed – may lead to delays in project timelines, increased costs from operational disruptions, potential legal costs from community lawsuits, and political or reputational risks. This risk is especially significant for communities in industrialised or rural areas that depend on the same natural resources, such as land or water, or infrastructure that our operations may impact. For instance, for wind or solar projects, disputes over reduced access to land or sea space or environmental concerns, including biodiversity impacts, can hinder progress. Second, increasing requirements for local content and social impact in tender processes present a risk, as meeting these expectations requires significant engagement and resources to ensure local communities benefit from our projects. Third, securing the free, prior, and informed consent (FPIC) of Indigenous communities presents a risk, particularly in regions like the US and Australia, where Indigenous Peoples maintain strong cultural and ownership ties to their lands. Failure to ensure consent through an adequate FPIC process – due to insufficient engagement by authorities, business partners, or previous stakeholders – can result in project delays, added costs, and strained relationships that may limit future opportunities in these areas.
Report Date: 4Q2024Relevance: 90%