Topic

Climate change

Sub-topic

Climate change adaptation

Sub-sub-topic

IRO

Risk

Location

Own operations

Time-frame

Long-term

Title

Physical chronic and acute climate-related risks

Example

Chronic: Dependency of renewable energy generation on natural resources, such as wind patterns, may lead to uncertainty in production estimates. Acute: Increase in the severity and frequency of extreme weather events may result in extended temporary shutdowns and an increase in repair needs. Orsted assess the resilience of all new assets towards the occurrence of climate-related hazards.

Reference

Orsted, 2023

Topic

Climate change

Sub-topic

Climate change mitigation

Sub-sub-topic

IRO

Opportunity

Location

Downstream

Time-frame

Long-term

Title

Investing in renewable energy - mitigate climate change, and increase competitiveness

Example

Enel’s investment in renewable energy sources aims to significantly reduce greenhouse gas emissions and support climate change mitigation, enhancing the company’s sustainability profile and market competitiveness.

Reference

Enel Sustainability Report, 2023

Topic

Climate change

Sub-topic

Climate change mitigation

Sub-sub-topic

IRO

Risk

Location

Own operations

Time-frame

Long-term

Title

Transition climate risk related to potential lack of political support for the continued renewable energy build-out

Example

Whilst a 1.5 °C-aligned global phase-out of fossil fuels or a tax on GHG emissions is not a risk to Orsted’s business model, the transition risk relates to potential insufficient political and regulatory support to mitigate climate change and to the continued renewable energy build-out, which may lead to uncertainty in investment conditions for future projects. Orsted are actively engaged in climate-related advocacy, calling their stakeholders to action for activities that will accelerate the renewable energy build-out.

Reference

Orsted, 2023

Topic

Climate change

Sub-topic

Climate change mitigation

Sub-sub-topic

IRO

Impact - actual negative

Location

Downstream

Time-frame

Medium-term

Title

GHG emissions from the renewable energy supply chain, regular power sales, and downstream GHG emissions from natural gas sales

Example

Supply chain emissions from manufacturing and installing renewable energy assets and from use of sold products (natural gas sales) and fuel and energy-related activities (fossil fuels at CHP plants and regular power sales). Orsted respond to this impact through their strategic targets and actions to decarbonise their value chain.

Reference

Orsted, 2023

Topic

Climate change

Sub-topic

Climate change mitigation

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Long-term

Title

Renewable energy deployment

Example

Renewable energy is one of the key technologies needed to decarbonise society and succeed in limiting global heating to 1.5 °C. By deploying renewable energy technologies, Orsted contribute to mitigating GHG emissions.

Reference

Orsted, 2023

Topic

Pollution

Sub-topic

Pollution of air

Sub-sub-topic

IRO

Impact - actual negative

Location

Own operations

Time-frame

Short-term

Title

Air pollution as a by-product of energy production

Example

Air pollution from energy production facilities is a major environmental concern, harming biodiversity and causing health problems. Companies like Enel are implementing technologies to reduce pollutant emissions from their plants, however, air pollution continues to have a negative impact on the environment until then.

Reference

Enel Sustainability Report, 2023

Topic

Biodiversity and ecosystems

Sub-topic

Direct impact drivers of biodiversity loss

Sub-sub-topic

IRO

Impact - actual negative

Location

Downstream

Time-frame

Medium-term

Title

Natural resources exploitation and land-use change from mining of minerals and metals.

Example

Almost all resources used in Orsted’s supply chain, and subsequently their renewable energy assets, are virgin materials that are mined and processed. Extraction and refinement of these materials can have adverse impacts on biodiversity. Orsted are actively working towards managing their value chain impacts.

Reference

Orsted, 2023

Topic

Biodiversity and ecosystems

Sub-topic

Impacts on the state of species

Sub-sub-topic

Species population size

IRO

Impact - actual negative

Location

Own operations

Time-frame

Medium-term

Title

Disturbances to habitats and displacement or loss of species.

Example

Disturbances to habitats due to construction and operation of renewable energy assets. Construction and operation of renewable energy projects can impact habitats due to ground preparation and the presence of infrastructure and can adversely impact certain species. Orsted scope these impacts and take appropriate avoidance, reduction, and mitigation action to manage them.

Reference

Orsted, 2023

Topic

Biodiversity and ecosystems

Sub-topic

Impacts on the state of species

Sub-sub-topic

Species global extinction risk

IRO

Impact - actual positive

Location

Downstream

Time-frame

Medium-term

Title

Biodiversity restoration, research, and innovation initiatives.

Example

We conduct habitat and ecosystem restoration efforts, including maximising positive impacts on wider supportive ecosystems (e.g. salt marsh). We conduct species restoration efforts, research on habitats and species, and innovation (e.g. biodiversity monitoring and tracking).

Reference

Orsted, 2023

Topic

Circular economy

Sub-topic

Resource inflows, including resource use

Sub-sub-topic

IRO

Risk

Location

Downstream

Time-frame

Short-term

Title

Availability of materials and components.

Example

An accelerated increase in the demand for renewables coupled with inelastic supply chains would require rapid maturation of sustainable solutions (e.g. reuse and recycling of materials for main components and use of low-emission materials). Orsted take measures to, for example, reduce and optimise resource usage, and prolong the lifetime of our assets.

Reference

Orsted, 2023

Topic

Circular economy

Sub-topic

Resource outflows related to products and services

Sub-sub-topic

IRO

Impact - actual negative

Location

Own operations

Time-frame

Long-term

Title

Waste generation during operation and decommissioning.

Example

Orsted’s assets have an expected lifetime of approximately 20-35 years, and up to approximately 90% of the total material volumes used in these assets can be recycled at their end of life. There is still potential to increase the overall recyclability of renewable energy assets, so that the value of all materials can be kept at end of life. Orsted actively investigate opportunities for repairing, refurbishing, and reusing key components.

Reference

Orsted, 2023

Topic

Own workforce

Sub-topic

Working conditions

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Long-term

Title

Secure employment and flexible workplace for our employees.

Example

Orsted ensure employees are part of a safe and fair working environment with transparent and compliant employment terms and benefits. Employees are part of a flexible workplace and are empowered to balance work and private life in alignment with their people leaders.

Reference

Orsted, 2023

Topic

Own workforce

Sub-topic

Equal treatment and opportunities for all

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Long-term

Title

Recruiting and advancing women and under-represented groups, and working to ensure that they stay in Orsted.

Example

Orsted aim to recruit and keep female employees to promote gender equality and mitigate the gender pay and management gap. They are creating targeted initiatives to support representation of under-represented or marginalised groups in leadership and management.

Reference

Orsted, 2023

Topic

Own workforce

Sub-topic

Equal treatment and opportunities for all

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Long-term

Title

Career progression through training and development.

Example

Orsted offer plenty of development opportunities through access to challenging assignments and experts within a wide range of professional fields. All employees have regular development conversations to support continuous development.

Reference

Orsted, 2023

Topic

Workers in the value chain

Sub-topic

Working conditions

Sub-sub-topic

Working time

IRO

Impact - actual negative

Location

Upstream

Time-frame

Medium-term

Title

Excessive working hours for supply chain workers

Example

To the extent supply chain workers are subject to excessive working hours, it can potentially lead to health issues. Orsted therefore evaluate working hours performance when conducting supplier assessments.

Reference

Orsted, 2023

Topic

Workers in the value chain

Sub-topic

Working conditions

Sub-sub-topic

Freedom of association, including the existence of work councils

IRO

Opportunity

Location

Own operations

Time-frame

Long-term

Title

Stakeholder dialogues can help inform business direction

Example

Engaging with stakeholders can enhance community relations and inform business direction. Enel conducts regular stakeholder dialogues to address community concerns and expectations.

Reference

Enel Sustainability Report, 2023

Topic

Workers in the value chain

Sub-topic

Equal treatment and opportunities for all

Sub-sub-topic

Measures against violence and harassment in the workplace

IRO

Risk

Location

Upstream

Time-frame

Medium-term

Title

Suppliers' breach of contractual agreements on human rights commitments.

Example

Expansion of operations into high-risk geographies may increase the likelihood of suppliers breaching contractual human rights commitments, which may lead to reputational damage and affect the ability to proceed with project plans. Orsted therefore use country risk as a screening and assessment parameter in our due diligence approach.

Reference

Orsted, 2023

Topic

Workers in the value chain

Sub-topic

Other work-related rights

Sub-sub-topic

IRO

Impact - actual negative

Location

Upstream

Time-frame

Medium-term

Title

Forced labour, e.g. debt bondage and withholding of passports.

Example

Supply chain workers can end up in debt bondage if they have to pay recruitment fees, and they can end up in forced labor if their identification documents are withheld. Additionally, specific state-imposed forced labor risks have been reported in the solar PV supply chain. Orsted therefore have particular focus on forced labor and supply chain traceability in our due diligence approach.

Reference

Orsted, 2023

Topic

Affected communities

Sub-topic

Communities' economic, social and cultural rights

Sub-sub-topic

Water and sanitation

IRO

Impact - potential negative

Location

Upstream

Time-frame

Long-term

Title

Air, water, and soil pollution may pose a danger to local communities' health.

Example

Air, soil, and water contamination from mining may have adverse health effects on local communities, e.g. from toxic minerals from mining leaking into local groundwater, resulting in unsafe drinking water and bioaccumulation of such minerals in the plants or animals communities consume.

Reference

Orsted, 2023

Topic

Affected communities

Sub-topic

Communities' economic, social and cultural rights

Sub-sub-topic

IRO

Impact - potential positive

Location

Own operations

Time-frame

Long-term

Title

Biodiversity restoration work replenishing local fisheries' stock and land-based biodiversity.

Example

Our biodiversity restoration work holds the potential to positively impact local fisheries' stock and land-based biodiversity.

Reference

Orsted, 2023

Topic

Affected communities

Sub-topic

Communities' civil and political rights

Sub-sub-topic

Freedom of expression

IRO

Risk

Location

Own operations

Time-frame

Short-term

Title

Balancing the global pace for deployment of renewable energy with local community interests and concerns.

Example

Local opposition – if not managed early in our projects – may result in delays in project work and costs associated with community lawsuits. Orsted’s commitment to engage with communities and uphold human rights is outlined in their global human rights policy, stakeholder engagement policy, and just transition policy.

Reference

Orsted, 2023

Topic

Affected communities

Sub-topic

Rights of indigenous people

Sub-sub-topic

Free, prior and information consent

IRO

Impact - actual negative

Location

Own operations

Time-frame

Long-term

Title

Indigenous rights may be disrespected in the development stage of our renewable energy assets.

Example

Related to some of Orsted’s offshore wind developments, some Native American tribes with traditional/cultural connections to the seabed have expressed dissatisfaction with the consultation process utilised by the federal government. The company is engaging with affected Indigenous Peoples on the matter.

Reference

Orsted, 2023

Topic

Business conduct

Sub-topic

Political engagement

Sub-sub-topic

IRO

Impact - actual negative

Location

Own operations

Time-frame

Long-term

Title

Constructive political engagement through lobbying.

Example

A large company’s lobbying activities and other means of political influence can have positive societal and environmental effects resulting from changes in legislation.

Reference

Coolset, 2024

Topic

Business conduct

Sub-topic

Management of relationships with suppliers including payment practices

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Medium-term

Title

Good management of suppliers, ensuring compliance with our code of conduct.

Example

Positive business conduct through regular internal risk scoring, incorporation of evolving standards into screening tools and strong relationships with suppliers, has widespread positive impacts through the supply chain, for consumers and the environment.

Reference

Coolset, 2024

Topic

Business conduct

Sub-topic

Corporate culture

Sub-sub-topic

IRO

Impact - potential positive

Location

Own operations

Time-frame

Medium-term

Title

Healthy corporate culture driving the company towards shared goals.

Example

Orsted’s five guiding principles of integrity, passion, team, results, and safety help drive them towards shared goals. Working with their principles is a way of operating and promoting a healthy corporate culture.

Reference

Orsted, 2023

Topic

Business conduct

Sub-topic

Protection of whistle-blowers

Sub-sub-topic

IRO

Impact - actual positive

Location

Own operations

Time-frame

Medium-term

Title

Protection of whistleblowers through anti-retaliation policies and procedures.

Example

Orsted’s protection of whistleblowers encourages and enables all stakeholders to speak up. Orsted commit to doing more than required by law regarding the protection of whistleblowers, taking a proactive approach to mitigating risks and negative impacts.

Reference

Orsted, 2023