Provide a detailed account of the significant impacts, risks, and opportunities identified through your materiality assessment. Include information on where these elements are concentrated within your business model, own operations, and throughout your upstream and downstream value chain, as per Disclosure Requirement SBM-3.

Question

Accepted Answer

Our material sustainability-related impacts, risks, and opportunities (IROs) across our full value chain include:
Positive impacts:
Renewable energy deployment (E1)
Local jobs and educational opportunities (S3)
Negative impacts:
Natural resources exploitation and land-use and freshwater-use change (E4)
Habitat loss from land degradation (E4)
Species population size decrease, and extinction risk increase (E4)
Use and depletion of virgin materials (E5)
Pollution from mining may affect communities’ health (S3)
Indigenous Peoples’ rights and livelihoods possibly disrespected or disrupted by suppliers (S3)
Sustainability-related risks:
Climate-related transition risks due to changes in political support (E1)
Climate-related physical risks (E1)
Dependence on scarce critical raw materials (E5)
Increased voluntary turnover (S1)
Possible supplier misconduct concerning forced labour (S2)
Local communities’ resistance and concerns (S3)
Increasing local content and social impact requirements in tender processes (S3)
Consent of Indigenous communities (S3)
Sustainability-related opportunities:
Renewable energy deployment (E1)
Biodiversity restoration, research, and innovation initiatives (E4)

Orsted

ESRS disclosure: SBM-3_02

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