Ørsted unveils ambitious new targets on supply chain emissions, fleet electrification

Danish energy giant Ørsted has unveiled new ambitions to reduce emissions from its ground transport fleet and supply chain, after drastically reducing emissions from power generations.

82% of Ørsted's power generation was classed as 'clean' in H1 of 2019, up from 71% in H1 of 2018. Image: Orsted

82% of Ørsted's power generation was classed as 'clean' in H1 of 2019, up from 71% in H1 of 2018. Image: Orsted

The company has today (8 August) pledged to halve emissions from its global supply chain by 2032, against a 2018 baseline.

This ambition – the first from Ørsted which involves the supply chain, will cover activities such as supply chain logistics and the manufacturing of products such as blades for offshore wind turbines. It will also apply to the burning of natural gas sold to business customers, the installation of new turbines and the repair of existing assets.

At the same time, Ørsted has committed to fully electrify its fleet of ground vehicles by 2025. The company’s petrol and diesel cars and vans will be replaced with pure-electric models by this deadline.

The unveiling of the new goals came as Ørsted unveiled its half-year results to investors and media representatives at its headquarters in Denmark.

Speaking at the event, Ørsted’s chief executive Henrik Poulsen said the new decarbonisation commitments will build on the firm’s success in decarbonising its energy generation.

The company has reduced emissions intensity from power generation by 83% since 2006, largely by shifting its business model away from oil and natural gas and towards offshore wind. It is targeting a 98% reduction, against the same baseline, by 2025.

"We take a broader responsibility, not only for our own direct production, but also our suppliers," Poulsen said.

"We have been working with our suppliers for quite a while to support them in reducing the carbon footprint of the different components that go into our wind farms. We will continue that focus and continue to work with them to make sure that they continue to accelerate their decarbonisation."

Ørsted ‘s new commitments come at a time when the average company’s supply chain emissions are estimated to be around five-and-a-half times greater than those generated by their direct operations. The good news is that disclosure around the environmental impact of supply chains by corporates is becoming more common, with more than 110 of the world's largest companies now requesting sustainability data from their suppliers through CDP, up from just 14 in 2008.

Sarah George



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