The green energy build-out impacts many people’s lives. To support a just transition, we must ensure that the companies we work with run their businesses and supply chains responsibly.
Why do we have a responsible business partner programme?
Through our ‘Code of Conduct for business partners’, we extend our commitment to leading a build-out that works for people towards our business partners and suppliers. We need to ensure that the companies we work with run their businesses free from labour and human rights violations, corruption, and environmental risks, and that adverse impacts on workers, communities, and the natural environment are mitigated.
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We must protect the environment and all groups of workers and stakeholders in our supply chains, including those that are most vulnerable.
This programme builds on our general human rights due diligence approach. It allows us to collaborate with suppliers and business partners on improving their adherence to our social, environmental, and ethical expectations.
What are we doing?
Our work is based on a systematic due diligence process used to assess partners’ and suppliers’ adherence to our Code of Conduct for business partners (CoC).
We include the CoC in all contracts to establish a solid commitment from our business partners and suppliers.
We identify performance gaps through a combination of risk screenings, extended risk screenings, and CoC assessments, either before or after contract signing. These take category and country risks into consideration. Any gaps we identify are followed up by an improvement plan, which is implemented and monitored jointly between Ørsted and our supplier or business partners.
How are we doing?
We’ve taken several steps to address responsible business conduct and establish commitment from our partners and suppliers.
Risk screenings, extended risk screenings, and CoC assessments conducted on all sourcing contracts above DKK 3 million (number)
Procurement spend risk-screened (%)
Latest updates from 2023
- We initiated a Respectful Working Environment campaign aimed at strategic vessel suppliers, to mitigate the risk of bullying and harassment in our offshore logistics supply chain.
- We continued our work with industry peers to improve the rights and welfare of migrant workers in our supply chains, which is central to responsible business conduct and a just transition.
- We refined our due diligence approach to assess all high-risk suppliers before contract signing, irrespective of project location.
- We signed the International Renewable Energy Covenant.
- We conducted a pilot project applying blockchain technology to enhance the transparency of copper usage and we agreed with a supplier to initiate reporting on the origin of steel used in foundations for upcoming projects.
What’s next?
We’re committed to meeting the expectations of the anticipated Corporate Sustainability Due Diligence Directive of the EU and other relevant legislations across our markets. We aim to enhance our due diligence approach, reporting, and communication performance.
We're also evaluating and strengthening pre-contract screening for offshore projects, focusing on ongoing supplier monitoring during contract execution.
Our commitment to transparency includes evaluating the results of our blockchain pilot in 2024, with plans to extend its application to other suppliers and metals. Moving forward, we're also exploring reporting the origin of steel for foundations and turbines with selected suppliers.
Key information
Partnerships
- The Initiative for Responsible Mining Assurance (IRMA) – a leading mining standard that secures more social and environmental responsible mining practices
- Ethical Trade Denmark – a Danish multistakeholder initiative that works for more responsible and sustainable supply chains
- Wind Europe Sustainability Working Group - wind industry association, actively promoting wind energy across Europe
- Solar Power Europe – solar industry association working to promote solar energy in Europe
International frameworks
- UN Guiding Principles on Business and Human Rights
- OECD Guidelines for Multinational Enterprises
- IFC Performance Standards and the Equator Principles
- ILO Core Conventions
- UK Modern Slavery Act and UK Bribery Act
- WindEurope Industry Principles
- Equator Principles 4
- UK Bribery Act
- Maritime Labour Convention
- US Foreign Corrupt Practices Act
- The Ten Principles of the UN Global Compact
Governance
Accountability lies with our Head of Global Stakeholder Relations, who also chairs our ESG Supplier Due Diligence Steering Committee.
Policies
These efforts contribute towards the following Sustainable Development Goals:
