In the race to deliver on global climate ambitions, mobilising institutional and private capital for green energy investments is now more urgent than ever. In short, sustainable finance will help us to achieve sustainable growth.
Why is sustainable financing important?
As a renewable energy company, we’re committed to providing opportunities for our investors to invest in projects and activities that contribute to a more sustainable world.
We fully support the integration of credible ESG information into investment decisions. We aspire to maintain strong ESG performance by continuing to integrate sustainability into everything we do.
What are we doing?
- We exclusively deploy green and sustainable long-term financing to advance our green transformation and build-out. The proceeds allocated from these issuances are directly linked to financing our projects and enable our investors to know that their investments create direct sustainability impacts.
- We use KPI-linked products to help support and incentivise business to meet our sustainability targets.
- We strive to deliver best-in-class reporting on the sustainability impacts of allocated green bond proceeds. We align our reporting with ratings and recognised ESG frameworks, including the EU taxonomy and upcoming Corporate Sustainability Reporting Directive (CSRD).
Latest updates from 2023
- We're the first energy company to issue blue bonds, aiming to raise funds for offshore biodiversity and sustainable shipping. This helps us promote biodiversity in offshore wind development.
- We issued three new green bonds totalling DKK 14.7 billion, bringing the total issuance of green bonds to DKK 77.7 billion since 2017.
- Our ‘green finance framework’ is aligned with best practice and has received the highest possible grading: a dark green shading from CICERO Shades of Green.
- We reported all our projects with green bond financing as aligned with the EU taxonomy requirements. We expect the practices for taxonomy reporting to evolve and will continue to align our reporting with industry practices and EU guidance as it emerges.
- All new Ørsted bonds have been issued in a green format since 2017, and we are committed to exclusively deploying long-term green and sustainable financing moving forward.
What’s next?
We’ll continue to only use sustainable financing instruments for all future long-term financing and explore new opportunities within sustainable finance as they emerge.
We fully welcome the increased demands for ESG information from regulatory disclosure requirements and investors, and we’ll continue to work to improve our set-up to meet key expectations.
Key information
Partnerships
We engage in partnerships to collaborate closely with industry peers and to stay at the forefront of regulatory developments:
- Chairmanship of Eurelectric and European Federation of Energy Traders’ working group on sustainable finance
- Corporate Forum on Sustainable Finance
International frameworks
We base our reporting on international frameworks to ensure it’s transparent and aligned with best practices:
- EU taxonomy for sustainable activities
- TCFD recommendations
- Green Bond Principles – ICMA (International Capital Market Association)
- Green Loan Principles – LMA (Loan Market Association), APLMA (Asia Pacific Loan Market Association) and LSTA (Loan Syndications and Trading Association)
Governance
Accountability for our sustainable finance efforts lies with our Chief Financial Officer.
Policies
These efforts contribute towards the following Sustainable Development Goals:
