Ørsted has announced that it expects all its suppliers to exclusively use electricity from renewable energy sources when delivering products or services by 2025 at the latest, in an extension of its own renewable energy targets.
The Danish firm's decision applies to suppliers’ emissions linked to component manufacturing, transportation, installation, and operation of renewable energy assets. It was prompted by insights from the company’s existing supply chain decarbonisation programme, established in 2020, and supports its 2040 net-zero target.
Ørsted anticipates that suppliers will meet the target by investing in onsite renewable electricity assets, entering into power purchase agreements (PPAs) tied to renewable energy projects whose realisation depends on securing financing, or purchasing renewable electricity certificates. It will support its suppliers with renewable electricity guidelines to help select the best solutions.