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Decarbonising our supply chain and natural gas wholesales

By 2040, we aim to have net-zero emissions across
our entire value chain.

We already have a plan in place for gradually phasing out natural gas from our business operations and we're working to reduce emissions in our supply chain.

On this page
What are we doing?
Tracking our progress
Latest updates
Key information

Why are we focusing on supply chain decarbonisation?  


At Ørsted, we have the most progressive decarbonisation targets in the energy sector, and we aim to reach net-zero greenhouse gas emissions across our whole value chain (scope 1-3) by 2040. Find out how we're reducing our scope 3 emissions – those that come from our supply chain and the use of the natural gas we sell.

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We need to find ways to decouple the growth of our build-out from the growth of emissions in our supply chains.  


We’re gradually phasing out natural gas sales from our business portfolio. This will eliminate the vast majority of our scope 3 emissions. But it still leaves emissions linked to our supply chain, including those from the manufacture, installation, and transportation of our renewable energy assets – activities that all need to grow as we accelerate the build-out of green energy.  

This makes supply chain decarbonisation one of the most important and complex parts of our work to reach net-zero. 

What are we doing? 


In this area, there are no competitors, only partners. Supply chain emissions are beyond our direct control, and many of them come from hard-to-abate sectors like shipping, steel, and heavy manufacturing. Our success depends on succeeding with others.  

Our work on supply chain decarbonisation focuses on three areas.


  1. Tracking and measuring carbon progress by developing models for life cycle assessments (LCAs): We use the models to calculate the total carbon footprint of our new offshore wind farms and will develop them to cover onshore wind and solar PV technologies as well as the more recent technologies in our portfolio. We also contribute to the development of standardised LCA metrics to increase transparency and comparability of data.

  2. Engaging with suppliers on integrating decarbonisation strategies in their operations: We engage with key suppliers from some of the most carbon-intensive segments of our supply chains. Our aim is for them to adopt science-based targets, conduct transparent climate reporting to CDP, and use renewable electricity in the manufacturing of products for Ørsted.

  3. Entering into offtake agreements for low-emission products essential to the green energy transition: We contribute towards the scaling of new technologies by reducing uncertainties for suppliers and further incentivising their investments in low-emission technologies.

Tracking our progress

We track our scope 3 greenhouse gas emissions, including and excluding gas sales.
Each measure has a different science-based target. 

Scope 1-3 greenhouse gas emissions intensity (excluding gas sales)
g CO2e/kWh​

Scope 3 greenhouse gas emissions from gas sales
Mt CO2e​

Latest updates 

We’ve been working closely with suppliers to drive the integration of decarbonisation into their strategies and operations – a cornerstone of our supplier engagement efforts. Our focus is on key high-impact suppliers, representing over half of our total procurement spend and encompassing the most carbon-intensive segments of our supply chain. We extend clear expectations to adopt science-based targets (through SBTi), provide transparent climate reporting (through CDP), and transition to renewable electricity for their energy needs. For selected high-impact segments, we’ve introduced climate requirements into our standard contracts and tender criteria.

For more information, please see our annual report 2024, section ‘E1: Climate change’.


What’s next? 

We will continue to develop tools to support our suppliers in their green transformations as we enhance sustainability in our sourcing processes. We'll also start engaging with suppliers on biodiversity, circularity, the carbon footprint of their products, and the climate engagement of their own supply chains.

Key information 


Partnerships

Our decarbonisation efforts are guided by collaboration with world-leading climate NGOs and cross-industry alliances, including:

  • 1.5 °C Supply Chain Leaders Exponential Roadmap Initiative
  • Climate Group SteelZero   
  • First Movers Coalition
  • The Carbon Trust

International frameworks 

Our climate strategy builds on global best practice standards and the 1.5 °C pathway, as outlined by climate science: 

  • CDP climate change questionnaire
  • Greenhouse Gas (GHG) Protocol
  • IPCC Sixth Assessment Report
  • Science Based Targets initiative (SBTi): Corporate Net-Zero Standard
  • The Paris Agreement


Governance 

Accountability lies with our Chief Operating Officer.

Suppliers share their decarbonisation journeys

Decarbonising with Siemens Gamesa

Jonas Pagh Jensen: “Supply chain collaboration can mobilise change”

Decarbonising with Van Oord

Theo De Lange: “We must all embed sustainability into our procurement processes”

Decarbonising with Bladt Industries

Anders Søe-Jensen: “Low-cost green steel requires everyone to step up”
Our sustainability efforts

Decarbonising our energy generation
and operations

We have the most progressive decarbonisation targets in the energy sector

Read more