The commitment builds on learnings from Ørsted’s supply chain decarbonisation programme, first established in 2020, and supports the company’s science-based 2040 net-zero target.
The company has reduced its scope 1 and 2 emissions by 87 per cent since 2006 and is set to become carbon-neutral in its own energy generation and operations by 2025. Ørsted is now working to address suppliers’ emissions linked to component manufacturing, transportation, installation, and operation of renewable energy assets as the next step in its own decarbonisation efforts.
In a statement, Mads Nipper, group president and CEO of Ørsted, said: “A sustainable future for our planet requires a rapid transition to renewable energy and limiting global warming to 1.5 °C. That’s why the renewables industry must lead the pack by decarbonising its own supply chain. We’ve transformed Ørsted into a global leader in renewable energy and strongly believe that companies must demand science-aligned climate action from each other as well.”
Ørsted said its suppliers can reach the 100 per cent target by investing in on-site renewable electricity assets, entering into power purchase agreements tied to renewable energy projects whose realisation depends on securing financing, or purchasing renewable electricity certificates. Ørsted added it will support its suppliers with renewable electricity guidelines to help select the best solutions.
Ørsted's supply chain decarbonisation programme saw the company working with its strategic suppliers - who represent over 60 per cent of Ørsted’s total procurement spend and the most high-impact carbon-intensive categories - to decarbonise its offshore wind supply chain. As part of the programme, Ørsted set an expectation for strategic suppliers to use 100 per cent renewable electricity in the manufacturing of wind turbines, foundations, cables, substations, and other components and services by 2025. Ørsted is now building on learnings from the programme and will expect that all current and future suppliers join the transition to renewable electricity.
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