Offshore wind developer Orsted has commenced efforts to decarbonise its supply chain by 2040.
In its supplier engagement programme, Orsted 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.
Orsted has identified manufacture of wind turbines, foundations, substations and cables, as the most carbon-intensive categories of its global supply chain, which numbers 22,000 suppliers, with “strategic” suppliers constituting 50% of the company’s total procurement spend.
Turbines, foundations, substations and cables 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, identified by Orsted in its supply chain, are the fossil fuels used by the maritime vessels that transport and install offshore wind components.
Orsted chief executive Henrik Poulsen said: “Reducing emissions in the renewable energy supply chain is a significant task. Businesses will need to collaborate across supply chains to cut emissions at the pace and scale demanded by science.
“We now reach out to our industry-leading suppliers to join forces to accelerate the global green transformation.”
The company 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.
Orsted’s carbon emission reduction targets are science-based targets approved by the non-profit Science-Based Targets initiative (SBTi), which has classified them as more ambitious than a well below 2°C trajectory.
