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Net Zero Target 2040: Ørsted Drives Decarbonization Of The Entire Supply Chain

Fredericia, Denmark - Danish energy company Ørsted launched its supply chain decarbonization program in 2020.

Since then, the company has been working on this issue together with its strategic suppliers in the offshore wind sector. According to Ørsted, the activities of these strategic suppliers account for over 60 percent of Ørsted's total procurement spend and also represent the areas of the value chain with the highest CO2 emissions.

Under the program, Ørsted has set a clear expectation for its strategic suppliers to use 100 percent renewable electricity in the manufacture of wind turbines, foundations, cables, substations and other components and services from 2025.

Significant results have been achieved in the first two years of the program, according to Ørsted. C Currently, a majority of suppliers involved have already adopted 100 % renewable electricity use. An additional 15 % of suppliers involved have committed to using renewable electricity exclusively by 2025.Meanwhile, the majority of participating suppliers already use 100 percent electricity from renewable energy sources, according to Ørsted. Another 15 percent of participating suppliers have committed to using only electricity from renewable energy sources from 2025.

Ørsted is now building on the lessons learned from the program and is the first energy company in the world to extend the decarbonization requirement to all suppliers and service providers, meaning that they must source or generate all their electricity from renewable sources from 2025. This requirement is designed to support Ørsted on the path to achieving its net zero target by 2040.

Ørsted recently joined the 1.5 °C Supply Chain Leaders initiative, a platform for leading companies to share their commitment and learnings from engaging with their supply chains to limit climate change. Ørsted leads the initiative’s 100 percent renewable energy group.

Yesterday, Ørsted's shares rose 3.3, percent to a price of 116.40 euros (Aug. 10, 2022, closing price, Stuttgart Stock Exchange). Compared to the turn of the year, the share of the RENIXX Group is thus up 3.2 percent.

Source: IWR Online, Aug 08 2022