Ørsted scores ’A’ on gold standard climate action list – again
Today, Ørsted was recognised by CDP for its actions to cut emissions, mitigate climate risks, and help develop the low-carbon economy, based on the data reported by the company through CDP’s 2021 climate change questionnaire. This is the third ’A’ score in three years for the company.
“We’re delighted to once again be recognised by CDP as a company at the forefront of climate action. Energy companies play a crucial role in helping the world meet the Paris Agreement. At Ørsted, we’ve taken our climate action further than any other energy company, getting our 2040 net-zero target approved as science-based as the only energy company and one out of only seven companies globally,” says Mads Nipper, Group President and CEO of Ørsted.
A key contribution to Ørsted’s CDP climate ’A’ score in 2021 was the company’s climate targets, which met CDP’s new scoring requirements and were awarded the maximum possible leadership points. In particular, Ørsted’s net-zero target for 2040 as well as its 1.5°C aligned near-term science-based emissions reduction targets for 2025 and 2032 were all recognised by CDP to be industry-leading among energy companies.
World’s only energy company with a science-based net-zero target
Since reporting its climate actions to CDP earlier this year, Ørsted has gone one step further by reinforcing its 2040 net-zero target with 1.5°C aligned long-term greenhouse gas reduction targets. In doing so, the company now has an ambitious decarbonisation pathway, underpinned by clear near-term and long-term emissions reduction levels towards net-zero and a commitment to limit the use of offsets to neutralise maximum of 10 % emissions that cannot yet be eliminated. This target was approved by the Science Based Targets initiative (SBTi) in October at the launch of its new Corporate Net-Zero Standard, making Ørsted one of only seven companies and the only energy company in the world with a science-based net-zero target.
A first milestone in Ørsted’s decarbonisation journey comes in 2025, when it will become carbon-neutral in scope 1-2 through reducing emissions intensity by at least 98 % from 2006. This will make Ørsted the first major energy company to reach carbon neutrality in its energy generation – far ahead of science-based decarbonisation targets for limiting global warming to 1.5 °C.
SBTi’s world-first Net-Zero Standard is the only standard to validate that companies set targets in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement. The SBTi is a partnership between CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
Corporate environmental transparency
CDP’s annual environmental disclosure and scoring process is widely recognised as the gold standard of corporate environmental transparency. According to CDP, over 590 investors with over USD 110 trillion in assets and 200 major purchasers with USD 5.5 trillion in procurement spend requested companies to disclose data on environmental impacts, risks, and opportunities through CDP’s platform. In 2021, a record-breaking 13,000 companies responded. CDP assessed the companies and allocated a score of A to D-.
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 590 investors with over USD 110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 14,000 organisations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64 % of global market capitalisation, and over 1,100 cities, states and regions. Fully aligned with the Task Force on Climate-Related Financial Disclosures (TCFD), CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero-carbon, sustainable, and resilient economy. CDP is a founding member of the Science Based Targets initiative, the We Mean Business Coalition, The Investor Agenda, and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target as validated by Science Based Targets initiative. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights' 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,672 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion).