Ørsted

InfluenceMap Score
B+
Performance Band
83%
Organisation Score
86%
Relationship Score
Sector:
Energy
Head​quarters:
Fredericia, Denmark
Official Web Site:

Climate Lobbying Overview: Ørsted appears to be actively and positively engaged on various climate policies in the EU and US in 2022, including renewable energy targets, CO2 standards and the U.S. Inflation Reduction Act. The company has also engaged positively on the energy transition, particularly on the use of renewable hydrogen.

Top-line Messaging on Climate Policy: Ørsted’s top-line communications on climate change appear consistently positive. Ørsted has consistently stated support for drastic action to reduce emissions in line with 1.5°C and net zero by 2050, including in its 2021 Sustainability Report, published in February 2022. In a May 2022 joint statement, Ørsted expressed support for government policy, highlighting the need for an ambitious package of policies in the EU without delays or weakening of the legislation. In a January 2022 white paper, the company supported demand-side policies including “quotas and carbon pricing”. In a November 2022 joint statement, the company advocated for countries to set more ambitious Nationally Determined Contributions ahead of COP27.

Engagement with Climate-Related Regulations: Ørsted appears to engage positively and actively on climate-related regulations, particularly in relation to renewable energy. In an open letter to EU President Ursula von der Leyen in May 2022, signed by the CEO Mads Nipper, Ørsted advocated for “increased ambition and action” via the EU Renewable Energy Directive. Ørsted also advocated for high ambition within the EU Renewable Energy Directive, supporting ambitious and binding targets in a joint letter to EU Energy and Transport Ministers in December 2022. In another December 2022 joint letter to the EU Commission, the company urged policymakers to set a 100% zero-emission target by 2035 for Heavy Goods Vehicles. In a May 2022 open letter, the company supported a strengthened EU Emissions Trading System, in line with support for specific reforms in a February 2021 public consultation response to the EU Commission. However, in the same consultation it was unclear whether Ørsted supported the introduction of the Carbon Border Adjustment Mechanism for all sectors.

In the US in January 2022, the company advocated to policymakers to support the offshore wind provisions in the Massachusetts House Bill as part of a testimony to the Massachusetts Joint Committee on Energy. In a September 2022 post on social media, Ørsted CEO Mads Nipper supported the passing of New Jersey’s increased offshore wind target, describing it as a “huge and important decision.” In a July 2022 position paper, Ørsted advocated for green steel standards to incentivize investments in technologies to decarbonize steel production.

Positioning on Energy Transition: Ørsted appears to strongly support transitioning the energy mix, linking renewable energy to industrial decarbonization and strongly supporting green hydrogen. The company provided detailed recommendations to policymakers throughout 2022, for example advocating for a ‘power-to-X’ strategy combining renewables and green hydrogen production to decarbonize industry in a May 2022 white paper. Ørsted signed a December 2022 joint statement called "Blue is not Green", advocating for only renewable hydrogen to be included in the EU Renewable Energy Directive and for blue hydrogen to be excluded from the scope. The company also welcomed the EU’s RePowerEU policy to reduce dependence on Russian fossil fuels in an October 2022 position paper. The company’s CEO Mads Nipper strongly supported the economic opportunities from U.S climate policy on hydrogen, describing the green hydrogen tax credits in the U.S. Inflation Reduction Act as “extremely encouraging” in an August 2022 call with shareholders.

Industry Association Governance: Ørsted has disclosed a list of memberships to industry associations, however this is dated 2018. The company has not published a review of its alignment with these groups on climate change policy engagement. Of the industry associations analyzed by InfluenceMap that Ørsted holds board membership to, American Clean Power Association (formerly AWEA) and WindEurope and a direct membership to Advanced Energy United (AEU), all of which are strongly supportive of climate policy in the US and EU. Ørsted’s disclosure lists membership to the International Gas Union, which strongly advocates for policies in favor of fossil gas, however the company is not listed on the association’s website as a member.

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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
86%
 
86%
 
90%
 
90%
 
95%
 
95%
 
73%
 
73%

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.