What Company is This?
Ørsted was formed as DONG Energy in 2006 and has transformed from an oil and gas company to an offshore wind leader. In 2017, the company set its first Scope 1 and 2 SBTi-validated emissions reduction targets and rebranded as Ørsted after divesting its oil and gas production business. Ørsted’s vision is a world that runs entirely on green energy. The company’s revenue for 2025 was DKK 72,2 million, and the number of employees was approximately 8,000. The company is listed on Nasdaq Copenhagen.
What Are the Results?
Ørsted achieves a total score of 31%, placing fourth. The company scores 28% for the General Supply Chain Sustainability category and 34% for the Steel Supply Chain Sustainability category. Ørsted scores 18% and 25% for Target-Setting and Progress, and Supply Chain Levers, respectively, in the first-mentioned category and zero points for Disclosure, 46% for Target-Setting and Progress, and 42% for Supply Chain Levers in the second-mentioned category.
What Are the Highlights?
Ørsted has SBTi-validated climate targets but does not disclose a disaggregated target for purchased goods; therefore, it scores 25% on the indicator for SBTi targets. The company also gets partial points for requiring climate targets from suppliers, for a commitment to source 100% certified forest biomass, for screening and evaluation of suppliers against its code of conduct and QHSE requirements, and, as the only company on the scoreboard, scores points for including climate requirements in standard contracts and tenders for selected high-impact categories.
Ørsted is the only company on the Scoreboard to score full points for setting targets to use fossil fuel-free and environmentally sustainable steel (notably, no company on the Lead the Charge Leaderboard, which assesses electric vehicle manufacturers, scores full points for this indicator either). Ørsted is committed to procuring 10% near-zero-emission steel by 2030 as a First Movers Coalition member, transitioning to using 50% lower-emission steel by 2030, and setting a clear pathway to using 100% net-zero steel by 2040 as a SteelZero member. The company consequently also scores full points for the indicator that considers membership in these two buyer coalitions. The company earns partial points for disclosing the share of recycled steel it uses and for disclosing its partnerships with Dillinger and Salzgitter to buy lower-emission steel.
Where Can the Company Improve?
Ørsted has room to improve in the General Supply Chain Sustainability category by requiring suppliers to set science-based climate targets and disclosing the share of suppliers having them, requiring suppliers to set water reduction targets and incentivising and controlling water management in the supply chain, as well as implementing incentives and control systems to eliminate deforestation from its supply chain. In the Steel Supply Chain Sustainability category, Ørsted can make progress by disclosing disaggregated greenhouse gas emissions from steel, by disclosing the current share of lower-emission or fossil-free steel it uses, by setting a target for the use of recycled steel, by becoming a member and engaging with suppliers on ResponsibleSteel membership and certification, and by integrating improved recyclability of steel into product design and manufacturing. The company scores zero points for all of the above.
