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Ørsted Launches Program for Carbon Neutral Supply Chain by 2040

Power News - Published on Tue, 11 Feb 2020

Image Source: Ørsted Carbon Neutral
Renewable energy company Ørsted targets carbon neutral energy generation by 2025 and now sets out to work with its suppliers to decarbonise the supply chain by 2040. Companies will have to cut emissions faster and further across their operations and supply chains if the world is to limit global warming to 1.5°C by reaching net-zero emissions in 2050. Ørsted, one of the world's largest renewable energy companies and recently named the most sustainable company in the world, has announced that it will be carbon neutral by 2025 and will reach net-zero emissions across the company's entire carbon footprint by 2040.

Ørsted's carbon footprint is comprised of two parts: The company's own emissions from energy generation and operations; and the emissions from the energy traded by the company and the goods and services in its supply chain. On track to be carbon neutral in energy generation and operations by 2025, the company wants to cut energy trading and supply chain emissions in half by 2032 and then down to net-zero emissions by 2040.

Supplier engagement program

As Ørsted phases out trading of natural gas and accelerates the build-out of renewables, supply chain emissions will increasingly come into focus, the company outlines in its 2019 Sustainability Report.

To decarbonise the supply chain, Ørsted is now launching a programme with the aim of engaging its strategic suppliers in the most carbon-intensive categories of the Ørsted supply chain: the manufacture of wind turbines, foundations, substations and cables. These are produced using steel, aluminium and copper, among other materials, which are energy intensive to extract and manufacture. The second largest source of supply chain emissions is the fossil fuels used by the maritime vessels that transport and install offshore wind components.

In its supplier engagement programme, Ørsted will ask its strategic suppliers to:
disclose their own emissions and set science-based carbon reduction targets
use 100% renewable electricity in the manufacture of wind turbines, foundations, cables, substations and components
optimise their current vessel fleet and develop a roadmap to power vessels with renewable energy.

Ørsted has more than 22,000 suppliers, with strategic suppliers constituting 50% of the company's total procurement spend. Ørsted will also encourage its remaining suppliers to reduce the carbon impact of their goods and services and is strengthening the sustainability criteria in the company's procurement tenders.

Source :

Posted By : Arun Huidrom on Tue, 11 Feb 2020
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