Ørsted is recognised as a leader in responsible tax practices and tax transparency. This supports our ambition to help build green energy in a way that gives back to society.
Why are responsible tax practices important?
Tax contributions are a key part of the positive social and economic impact we can make as a business. They help the local economies in which we operate to deliver valuable public services, such as healthcare, education, and transport, and build the infrastructure that allows businesses to thrive.
By being a responsible taxpayer and engaging with policymakers to support robust tax regulations, we support well-functioning societies, institutions, and regulations that are conducive to both people and business.
What are we doing?
- We are committed to paying the right amount of tax, at the right time, in the right place – in accordance with the tax laws of the countries where we operate. We seek to comply not only with the letter of the law but also with the underlying tax policy intent.
- We are transparent in our tax reporting and voluntarily report using the GRI 207 standard as a basis, which includes disclosing financial, economic, and tax-related information for each jurisdiction where we operate. We include this information in our tax footprint available here.
- To ensure the application of the GRI207 standard, we conduct a thorough self-assessment based on the guidelines provided in the GRI207 framework.
- We engage constructively in national and international dialogue with governments, business groups, and civil society to support the development of effective tax systems, legislation, and administration. The purpose of our engagement is to promote the development of future tax legislation and practice that supports the green transformation.
Latest updates from 2024
- We retained the Fair Tax Mark accreditation, which we first qualified for in 2022 as the first Danish multinational company to secure accreditation to the global gold standard of responsible tax conduct.
- We were ranked 1st in an international peer review on Tax Governance in Danish “Økonomisk Ugebrev”.
- We expanded our reporting on our tax footprint to include total tax contribution on a more granulate level
- We engaged with the OECD – both in written submissions and in panel debates – on the implementation of the global minimum tax (Pillar 2). We addressed issues related to safe harbor mechanisms, and compatibility with the US subsidies for renewable energy.
- We provided responses on several public consultations in the US the implementation of and guidance to the Inflation Reduction Act, to ensure alignment with the objectives for the green transformation.
- We collaborated with clean energy trade associations and industry stakeholders to analyzse the tax impact of the US Corporate Alternative Minimum Tax. We outlined observations, concerns, and recommendations for further guidance and presented them to US policy makers resulting in clarification of pertinent issues and codification of equal treatment both IFRS and US GAAP
- We are engaging with CSR Europe on developing a European index for responsible tax practices, and we participated in several panel debates, with a view to promoting responsible tax practices.
What’s next?
We will maintain our focus on transparency and accountability across our tax payments and reporting to fully satisfy increasing compliance and reporting requirements and promote mutual trust in the corporate tax system..
Key information
Our tax footprint
Our tax footprint is available here.
Partnerships
We engage in partnerships to promote fair tax regulation, staying up to date on policy developments, and engaging with peers on responsible practices:
- The Danish Confederation of Enterprises’ Tax Panel, with a view to influencing tax regulations and staying up to date on tax policy developments.
- The Tax Dialogue, with a view to staying updated on tax policy developments.
- B-Team, to engage with peers on responsible tax principles and tax governance matters.
- Fair Tax Foundation, where we have been accredited for our responsible tax practices.
International frameworks
- OECD BEPS and Pillar I and Pillar II
- EU directives, e.g. ATAD, DAC6, and CbCR
- Applicable local and international tax legislation
Governance
Tax is a core part of our corporate responsibility and governance and is overseen by the Board of Directors. Within the Board of Directors, the Chairperson of the Audit & Risk Committee is accountable for the tax policy, and the responsibility for tax risk management lies with the Chief Financial Officer. Day to day operations are managed by a centralised global tax team. Significant business decisions are referred to Ørsted’s Investment Committee and/or Board of Directors after approval by TAX.
Policies
We follow and comply with Ørsteds Tax Policy. The Tax Policy is reviewed, updated and approved by Ørsted’s Board of Directors on an annual basis, and latest approval was 17 December 2024.
These efforts contribute towards the following Sustainable Development Goals:
