The Science Based Targets initiative (SBTi), the global body enabling businesses to set emissions reduction targets in line with science, recently launched the world-first Net-Zero Corporate Standard. Ørsted is delighted to be among the seven companies with science-based net-zero targets verified by the SBTi, and the first energy company in the world with a validated net-zero target.
Mads Nipper, CEO, says: “Ørsted strongly welcomes the SBTi’s new Net-Zero Standard, which provides much needed clarity on what’s required for corporate net-zero targets to actually fight climate change. We’re proud to be the first energy company in the world to receive validation of our 2040 net-zero target as being fully aligned with what climate science requires.”
He continues: “We see growing ambitions from businesses to reach net-zero, and that’s absolutely necessary to reach a net-zero world. However, it’s critical that these goals meet the requirements of climate science to decarbonise. I encourage all business leaders who want to have a real impact on the climate to commit to the necessary near-term and long-term reductions under the new SBTi standard.”
What are Science-Based Targets?
Science-Based Targets are greenhouse gas (GHG) reduction targets, through which a company commits to cutting emissions at a high enough pace to do ‘their part’ to limit global warming to 1.5C – in line with climate science. Previously, SBTi approved only near-term emissions reduction targets. The new standard enables SBTi for the first time to assess which long-term net-zero targets are aligned with climate science. For a company to have an SBTI-validated net-zero target, net-zero must be achieved primarily through emission reductions (not offsetting) and the target must cover all three scopes (Scope 1, 2 and 3).
What were Ørsted’s previous science-based targets?
Ørsted was one of the first energy companies to set a near-term science-based target validated by SBTi. This was our target of a 98 percent reduction in carbon intensity by 2025 (compared to 2006), covering direct emissions from our energy generation, operations, and administration (Scope 1); and indirect emissions from our energy consumption (Scope 2). Given current performance and planned actions, we are well on track to reach this target. Beyond this science-based reduction target, Ørsted plans to go a step further by reaching net-zero in Scope 1-2 by 2025.