Ørsted demands all suppliers use 100% renewables by 2025
Denmark's state-owned energy company Ørsted has told its suppliers that, by 2025, it expects them all to use 100% renewable energy, becoming the first energy company to do so.
The commitment builds on Ørsted’s existing supply chain decarbonisation programme, first established in 2020, and supports the company’s industry-first science-based 2040 net-zero target.
The company has cut its scope 1 and 2 emissions intensity by 87% since 2006 and is on track to becoming carbon-neutral in its own energy generation and operations by 2025.
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Ørsted is relying on collaboration across the supply chain and the success of its suppliers in order to meet its targets, which is why the company is now taking the step to extend its 100% renewables target from its strategic suppliers to all suppliers. This means that all suppliers are expected to exclusively use electricity from renewable energy sources when providing products or services to Ørsted by 2025 at the latest.
The Danish developer said it is working to address suppliers’ emissions linked to component manufacturing, transportation, installation, and operation of renewable energy assets as the next frontier in its decarbonisation endeavour.
The company is now taking the step to extend its 100% renewable electricity target from its strategic suppliers to all suppliers.
This could be achieved through investing in on-site renewable electricity assets, by entering into PPAs tied to renewable energy projects that depend on securing financing or purchasing renewable electricity certificates.
Orsted said it would support its suppliers by producing guidelines for renewable electricity to help find the best solutions.
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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.
“We recognise the efforts undertaken by all existing and new suppliers who share our ambitions and will commit to using 100% renewable electricity. We look forward to working together to achieve this goal as soon as possible and to set a new gold standard for the renewable energy industry,” he added.
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