Henrik Brünniche Lund, Head of Investor Relations, says:
“At Ørsted, we want to create a world that runs entirely on green energy. We need to transform the way we power the world; from black to green energy. This is also reflected in our investments. For 2017 we expect them to amount to DKK 18-20bn in wind power, biomass conversions and the installation of remote-read power meters. With green bonds, we invite investors to join us in the green transformation.”
Our Green Bonds Framework, which is developed in alignment with the Green Bond Principles 2017, has been reviewed by the not-for-profit research institute Center for International Climate and Environmental Research (CICERO). CICERO allocated the framework a Dark Green Shading, which is the highest grading a green bond issuer can receive.
Green bonds are like any other regular bond but with one key difference: the proceeds raised by the issuer are earmarked towards green investments, ie environmentally friendly assets or business activities. These projects must promote the transition to low-carbon and climate-resilient growth and a sustainable economy; in Ørsted they are likely to encompass new and existing offshore wind energy projects and the conversion of our coal-fired heat and power plants to sustainable biomass. Energy efficiency projects and energy storage are also eligible projects for green bond proceeds.
Henrik Brünniche Lund, Head of Investor Relations, says:
“We recognise the importance of transparency and investors’ interest in impact reporting on projects financed with green bonds. It's our ambition to report on, for example, renewable energy capacity installed and negative environmental impacts avoided and/or reduced.”
As an independent, not-for-profit research institute, Ciciero (Center for International Climate and Environmental Research – Oslo) provides second opinions on institutions’ and businesses framework and guidance for assessing and selecting eligible projects for green bond investments. Cicero also assesses the framework’s robustness in meeting the institutions’ and businesses’ environmental objectives.
The second opinion as well as our Green Bonds Framework is publicly available on our website. (https://orsted.com/en/Investors/Debt-Investors/). An annual investor letter and the opinion of an external auditor will also be publicly available on our website.
