Offshore wind developer Ørsted says it expects all of its suppliers to use 100% renewable electricity by 2025, and says it is the first energy company in the world to do so
The commitment builds on the company’s existingsupply chain decarbonisation programme, first established in 2020,and supports the company’s industry-first science-based 2040 net-zero target.
The company already expects strategic suppliers to use 100 % renewable electricity in the manufacturing of wind turbines, foundations, cables, substations, and other components and services by 2025. It has reduced its scope 1 and 2 emission intensity by 87% since 2006 and says it iswell on trackto become carbon-neutral in its own energy generation and operations by 2025.
Ørsted group president and chief executive Mads Nipper said, “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.”
Mr Nipper added, “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.”
Ørsted says renewable electricity is a ‘readily available’ means to reduce emissions and believes suppliers should invest in on-site renewable electricity assets and enter into power purchase agreements (PPAs) tied to renewable energy projects whose realisation depends on securing financing or purchasing renewable electricity certificates.
