Running kids on grass

Green energy for the planet and its people

Green energy for the planet and its people

Sustainability report 2021

Table of Contents
  • Sustainability at our core
  • Our sustainability priorities
  • Our progress across sustainability programmes

A green transformation that works for people


The green transformation will involve and impact the lives of millions of people across supply chains and local communities, as well as the employees working to make it happen.

With the following five sustainability programmes, we address the challenges associated with the transformation, and our aspiration is to lead a build-out of green energy that is inclusive, enabling, and creates local benefits.

Programmes
10. Local communities
11. Human rights
12. Inclusion of diversity
13. Employee safety, health, and well-being
14. Employee development and satisfaction

SDG 3: Good health and well-being, 8: Decent work and economic growth, 10: Reduced inequalities, 11: Sustainable cities and communities & 16: Peace, justice and strong institutions
  • 10. Local communities

    Sustainability challenge
    Local community impact and job creation

    The green build-out must benefit the local communities that host renewable energy projects. To ensure local support, it is increasingly critical to meet local stakeholder expectations of jobs and community contributions while addressing any concerns.

    Our approach
    Our renewable energy projects form a very tangible part of the communities in which they are built. Through systematic engagement, it is our ambition to create shared benefits with local communities and enable them to take part in and benefit from the green energy transition.

    Our progress

    • We continue to engage with locally elected officials, suppliers, educational institutions, NGOs, and commercial fisheries. For example:
      –In the US, we have partnered with Zeem Solutions in New Jersey to support the roll-out, training, and infrastructure required for a new electric truck fleet at the Port of Newark.
      –In Germany, we collaborated with the municipalities in East Frisia by sponsoring the decommissioned Borkumriff lightship in the Borkum harbour. The ship serves as a local tourist attraction, providing a range of information about the history and special habitat of the Wadden Sea.
      –In the UK, we awarded more than GBP 330,000 in grants to 16 organisations from coastal communities in Cumbria and Lancashire as part of our Walney Extension Community Fund. Since 2016, we have supported 184 projects in the region with more than GBP 3 million.
      –In Taiwan, funds from Ørsted’s Offshore Wind Industrial Development Fund (IDF) made it possible to train over 170 local people in welding and safety, most of whom work for suppliers to our Greater Changhua wind farms.

    Actions for the future
    Further strengthen each market’s ability to successfully implement impactful local community initiatives and partnerships by updating our programmatic approach to local community engagement with tools tailored to stakeholder needs.

  • 11. Human rights

    Sustainability challenge
    Human rights due diligence

    Operating in geographies and markets with prominent human rights risks increases a company’s responsibility to ensure that it and its suppliers and business partners operate in line with international human rights standards.

    Our approach
    We want to ensure that human rights are respected across our operations, suppliers, and business partners. We identify our most salient human rights risks through a human rights impact assessment and address any risks identified through improvement initiatives in our operations or with our business partners. Going forward, we will implement human rights impact assessments on an even more regular basis.

    Our progress

    • We have a Responsible Business Partner Programme (RPP) which we use to manage human rights risks in our supply chain (see programme 15).
    • In 2021, we initiated a project to strengthen our human rights approach as we expand into areas and markets with a higher risk of human rights violations.
    • We have also developed a new human rights policy covering our own operations and providing links to other programmatic responses already in place which also cover human rights.
    • We have anchored our human rights efforts in our Sustainability Committee to assign accountability for our human rights work among top management.

    Actions for the future
    Strengthen our adherence to the UN Guiding Principles by bolstering our human rights policy commitment, conducting regular human rights impact assessments, and improving our reporting, our grievance mechanism, and access to remedies.

  • 12. Inclusion of diversity

    Sustainability challenge
    Diversity and equal opportunity

    Companies have a responsibility to attract and develop their workforce and develop a supply chain that reflects the diversity of the communities in which they operate. This is essential to support an inclusive and equitable build-out of green energy.

    Our approach
    We want to build an organisation where diversity, equity, and inclusion accelerate our global growth. Our ambition is (i) embedded in our business strategy and all our talent decisions, (ii) central to our sustainability agenda and regulatory requirements, (iii) global in approach and tailored to local needs, (iv) defined broadly around visible and invisible diversity, and (v) informed by data so we act on evidence and track progress.

    Our progress

    • Our new ambition for gender balance is at least a 40|60 balance across Ørsted by 2030, tracked at three levels: senior director and above; people managers; all employees.
    • We have introduced employee diversity dashboards to measure gender, nationality, and age across career levels and business areas to increase transparency and strengthen accountability among top management and team leaders.
    • We have completed an equal pay analysis across several regions, published a report on the results, and taken steps to address inequity.
    • We have matured our inclusion networks into a global movement of more than 1,000 members, with a network in every region supported by senior leaders.
    • Our Management Team takes part in training to expand and consolidate its understanding of an inclusive and equitable organisation.
    • We were an official partner to WorldPride and EuroGames in Copenhagen in 2021.

    Actions for the future
    Improve our strategic approach to diversity, equity, and inclusion so that it embeds inclusion of diversity in all our People & Development processes, makes it a core part of how we work with our suppliers, and identifies ways for us to grow and diversify the pool of talent seeking to work within renewable energy.

  • 13. Employee safety, health, and well-being

    Sustainability challenge
    Health and well-being, and safe working conditions

    Companies have a responsibility to provide the physical, social, and psychological working conditions that allow people to live whole and healthy lives.

    Our approach
    We take a holistic and preventive approach to employee well-being where mental, physical, and social health are prioritised equally. We are committed to creating a healthy, safe, and inclusive workplace and to promoting a sustainable approach to the working lives of our employees. The well-being of our global workforce is key to how we define success.

    Our progress

    • We have launched a five-year QHSE strategy focusing on QHSE leadership, supplier engagement, knowledge management, governance, and process excellence, and we have set key QHSE priorities.
    • A new QHSE scorecard focusing on performance monitoring (e.g. occupational incidents) and process monitoring (e.g. audits) allows for more holistic change decisions.
    • An increased share of our employees are experiencing stress, likely due to numerous compounding factors, including, but not limited to, organisational changes, rapid global growth, increased workload, and the ongoing COVID-19 pandemic.
    • We have launched several initiatives to focus on our employees’ mental and physical health, including:
      –producing new materials for managers on how to work with stress, bullying, harassment, and discrimination
      –rolling out the Howdy well-being monitoring app to all business areas and piloting a supplemental feature that measures muscular skeletal health
      –launching MOVE, a health initiative to encourage movement to enhance physical and mental well-being.

    Actions for the future
    Continue to develop resources, tools, and services to improve the safety, health, and well-being of our employees.

  • 14. Employee development and satisfaction

    Sustainability challenge
    The future of work

    As global competition for the best talent grows, businesses must improve the development and retention of existing talent and engage new diverse talent globally. Creating a work environment where all employees thrive and are motivated to help create a sustainable business is essential for sustaining long-term value creation.

    Our approach
    We have a strategic aspiration to foster a global, inclusive, and effective organisation, and our employees’ development and satisfaction are key components in making this happen. We provide global digital and in-person learning opportunities for all employees, both through our learning platform and through programmes tailored to specific business areas and geographies. Learning opportunities are easy to use, scalable, individualised, and transparent, and drive business outcomes.

    Our progress

    • We have aligned, globalised, and increased the headcount in our Learning & Talent Development and Diversity & Talent teams to increase our in-house support for this agenda.
    • We ran our second virtual Global Learning Week focusing on two of our six core capabilities. Globally, more than 20 % of employees attended virtual sessions led by internal and external speakers.
    • We increased the number of openings on our high-potential programmes to meet business demand. When we identify participants, we aim for a good gender balance, and this year had a 40|60 distribution – placing us two years ahead of our gender balance ambition.
    • We have begun piloting a new career framework, which we intend to roll out company-wide in 2022. The framework is designed to provide more transparency around career opportunities and to enable people to take more ownership of career development in line with their aspirations.
    • We have not met our employee satisfaction rate target of top 10 % compared to external benchmarks, covering a period where organisational changes, rapid global growth, and increased workload has affected employees’ work lives.

    Actions for the future
    Our Executive Committee will continue to engage directly with our organisation on our updated strategy to ensure that all employees understand how their work contributes to our company vision.

 

Ørsted employees working on onshore wind turbine
Our progress across sustainability programmes

A governance that enables the right decisions

On this page we outline our progress in our strategic sustainability priority about a governance that enables the right decisions