Orsted has set a clear expectation towards all suppliers to use 100% renewable electricity by 2025, which it says makes it the first energy company in the world to do so.
The commitment builds on learnings from Orsted’s existing supply chain decarbonisation programme, first established in 2020.
It also supports the company’s industry-first science-based 2040 net-zero target, Orsted said.
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, the developer added.
Orsted will continue its large-scale build-out of renewable energy and is fully committed to science-aligned climate action, according to the company.
The Danish developer said it 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.
The company is now taking the step to extend its 100% renewable electricity target from its strategic suppliers to all suppliers.
This means that Orsted now expects all its suppliers to exclusively use electricity from renewable energy sources when providing products or services to the developer by 2025 at the latest.
With this new target, Orsted is setting an expectation that all its suppliers cover 100% of their electricity use with renewable electricity.
This could be through investing in on-site renewable electricity assets, entering into PPAs tied to renewable energy projects whose realisation depends on securing financing, or purchasing renewable electricity certificates.
Orsted said it will support its suppliers with renewable electricity guidelines to help select the best solutions.
Orsted chief executive and group president 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 Orsted into a global leader in renewable energy and strongly believe that companies must demand science-aligned climate action from each other as well.
“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.”