Ørsted, a Danish leading operator of offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, has announced its commitment of becoming the world’s first company to have all of its suppliers using 100 percent renewable electricity by 2025.
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The plan steps on what the company has learned from its existing supply chain decarbonisation programme, originally announced in 2020, and supports the company’s industry-first science-based 2040 net-zero target.
The company has reduced its scope 1 and 2 emission intensity by 87 % since 2006 and is well on track to become carbon-neutral in its own energy generation and operations by 2025. Ørsted continues its large-scale build-out of renewable energy and is fully committed to science-aligned climate action.
That’s why Ørsted is working to address suppliers’ emissions linked to component manufacturing, transportation, installation, and operation of renewable energy assets as the next frontier in its decarbonisation endeavour.
To reach its targets, Ørsted relies on collaboration across the supply chain and the success of its suppliers. The company is now taking the step to extend its 100 % renewable electricity target from its strategic suppliers to all suppliers.
This means that Ørsted now expects all its suppliers to exclusively use electricity from renewable energy sources when providing products or services to Ørsted by 2025 at the latest.
Mads Nipper, Group President and CEO of Ørsted, says: “A sustainable future for our planet requires a rapid transition to renewable energy and limiting global warming to 1.5 °C. That’s why the renewables industry must lead the pack by decarbonising its own supply chain. We’ve transformed Ørsted into a global leader in renewable energy and strongly believe that companies must demand science-aligned climate action from each other as well.”
He adds: “We recognise the efforts undertaken by all existing and new suppliers who share our ambitions and will commit to using 100 % renewable electricity. We look forward to working together to achieve this goal as soon as possible and to set a new gold standard for the renewable energy industry.” ■
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