Ørsted

InfluenceMap Score
B+
Performance Band
84%
Organisation Score
73%
Relationship Score
Sector:
Energy
Head​quarters:
Fredericia, Denmark
Official Web Site:

Climate Lobbying Overview: Ørsted appears actively and positively engaged on various strands of EU climate regulation in 2020-21, including GHG emissions targets, renewable energy legislation and the EU Emissions Trading System (EU ETS). The company has also engaged positively on the energy transition, particularly the use of renewable hydrogen.

Top-line Messaging on Climate Policy: Ørsted’s top-line communications on climate change appear consistently positive. Acceptance of climate science is stated on the corporate website accessed in 2021, and CEO Mads Nipper outlined the risks associated with continued greenhouse gas emissions in Ørsted’s 2020 Sustainability Report. Ørsted has consistently stated support for drastic action to reduce emissions in line with 1.5°C and net zero by 2050, including on its corporate website in 2021. In its 2020 Sustainability Report, Ørsted expressed support for government policy and regulation to achieve emissions reductions in line with global limiting temperature rise to 1.5°C in line with the Paris Agreement.

Engagement with Climate-Related Regulations: Ørsted appears to engage positively and actively on climate-related regulations, providing detailed suggestions for achieving emissions reductions in response to several proposed EU climate policies in 2020. In 2020, Ørsted expressed strong support for the 55% by 2030 emissions target in comments submitted on the EU 2030 Climate Target Plan Initiative. In its response to the EU 2030 Climate Target Plan, Ørsted also called for the EU Emissions Trading System (EU ETS) to be made more effective by using a carbon price floor to reduce the risk for investors in the green transition. Similarly, Ørsted responded to the EU Commission’s public consultation on the EU ETS, stating support for increasing its ambition and stringency in line with the GHG target of 55%, partly through restricting the supply of exemptions.

In 2020 Ørsted responded to the EU Clean Energy Strategy - Strategy for Energy System Integration, which aims to link the different energy sectors in the EU (electricity, gas, buildings, transport, industry) to help them reduce carbon emissions. Ørsted responded by stating that energy efficiency should be at the centre of the policy, advocating for further progress in electrification and the implementation of Power-to-X, a technology that directs surplus electric power down different pathways, for instance to be stored. In response to the EU commission’s Renewable Energy Directive in 2020, Ørsted advocated for the EU Commission to do a risk assessment for more ambitious renewable energy targets than the current ambition of 32% renewables by 2030, advocating for a renewable energy target of 40% to be assessed. Ørsted argues that higher ambition is necessary in order to achieve the EU’s 55% by 2030 GHG target. Ørsted also provided detailed feedback on how this higher ambition can be achieved, including through providing incentives for using renewables in district heating and cooling.

Positioning on Energy Transition: Ørsted appears to strongly support transitioning the energy mix to green energy. The statement “we have a vision to create a world that runs entirely on green energy” appears in many of its public communications, including the corporate website in 2021. Furthermore, Ørsted has supported phasing out coal rapidly in its 2020 Sustainability Report. In its 2020 sustainability report, Ørsted also advocated for increasing the use of biomass, as well as highlighting the need for robust regulations to ensure that it is carbon-neutral.

Ørsted has also communicated a positive position on renewable hydrogen, consistently stating support for using green and renewable hydrogen, especially in transport, maritime and other hard to abate sectors. This is stated on Twitter in 2020 and in response to the EU Clean Energy Strategy for Energy System Integration in 2020, in which Ørsted called for the EU to define renewable hydrogen as distinct from low carbon hydrogen. In 2021 Ørsted was a signatory to a letter from Solar Power Europe, which expressed concern about proposals to weaken emission standards for hydrogen under the EU taxonomy.

Industry Association Governance: In 2021, Ørsted has disclosed a list of memberships to industry associations in a document linked to the sustainability webpage. However, the company has not published a review of its alignment with these groups on climate change. Of the industry associations analyzed by InfluenceMap that Ørsted holds membership to, the majority appear to be lobbying positively or hold a neutral position on climate policy. Notably, Declan Flanagan, Executive Vice President and CEO Onshore at Ørsted is director on the board of American Clean Power Association, an association which lobbies in favor of ambitious climate change policy in the US. Similarly, Ørsted is a direct member of CBI, which holds a broadly positive position on climate change and has lobbied for progressive climate policy in both the EU parliament and the UK. Conversely, Ørsted list themselves as members of The International Gas Union, which has lobbied for the maintenance of natural gas in the energy mix.

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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
85%
 
85%
 
91%
 
91%
 
71%
 
71%
 
50%
 
50%
 
50%
 
50%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.