Ørsted

  
Annual report 2024

Contents
Management’s review *
Overview
Strategic ambitions .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 6
Performance highlights .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 7
Letter to our stakeholders .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 9
Our business.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 13
Our footprint .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 14
Outlook
Financial and ESG outlook 2025 .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 16
Financial targets and policies .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 18
Strategy and business 
The renewable energy market .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 20
Our strategy.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 21
Executing our strategy .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 23
Enterprise risk management .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 27
Performance
Full-year results .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 32
Five-year summary .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 36
Fourth quarter .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 37
Quarterly summary, 2023-2024 .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 42
Corporate governance
Governance framework .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 44
Board of Directors .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 46
Group Executive Team .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 50
Summary of our remuneration report .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 53
Shareholder information .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 54
Sustainability statements *
General
Basis for preparation .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 59
ESRS disclosure requirements .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 60
Sustainability governance.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 63
Our business model and how we create value.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 65
Our strategy and impact on sustainability matters�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 66
Double materiality assessment.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 67
Interests and views of our stakeholders .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 75
Sustainability due diligence .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 77
ESRS data points from other EU legislation .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 78
Environment
Climate change .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 81
EU taxonomy for sustainable activities .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 103
Biodiversity and ecosystems .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 108
Resource use and circular economy .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 116
Social
Own workforce .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 124
Workers in the value chain .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 137
Affected communities .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 145
Governance
Business conduct .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 153
Financial statements
Consolidated financial statements
Consolidated statement of income .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 159
Consolidated statement of comprehensive income .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 159
Consolidated statement of financial position .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 160
Consolidated statement of shareholders’ equity .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 161
Consolidated statement of cash flows .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 162
Notes
Parent company financial statements
Income statement .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 239
Statement of financial position .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 239
Statement of changes in equity .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 240
Notes .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 241
Management’s statement, auditor’s reports, and glossary
Statement by the Executive Board and the Board of Directors .�.�.�.�.�.�.�.�.�.�.�.� 249
Independent Auditor’s Reports .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 250
Independent Auditor’s Limited Assurance Report on  
Sustainability Statements .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 255
Glossary .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 257
Get an overview of all of our reporting material by downloading  
our reports and investor presentations. 
Remuneration report, Green finance impact report. 
See our reports at orsted.com. 
*  Our management report consists of two parts: the management’s  
review and the sustainability statements.
2
Management’s review
ØRSTED ANNUAL REPORT 2024

Management’s  
review
3
Management’s review
ØRSTED ANNUAL REPORT 2024

I’m delighted to welcome our new  
CEO Rasmus Errboe. I’m convinced 
that Rasmus is the right person to  
lead the company.
Lene Skole
Chair
I’m honoured and humbled to step 
into the role of CEO of a company I’ve 
proudly served for the past 13 years. 
Rasmus Errboe
Group President and CEO
Read more in our letter to our stakeholders on page 9.
4
Management’s review
ØRSTED ANNUAL REPORT 2024

→
Wind turbine technicians aboard TSS Pioneer prepare to 
cross the motion-compensated gangway to work on Greater 
Changhua 1 in Taiwan. Inaugurated in April 2024 together with 
Greater Changhua 2a, these are the Asia-Pacific region’s largest 
offshore wind farms, with a total installed capacity of 900 MW. 
They are the first two wind farms in the Greater Changhua 
offshore wind zone, with more farms in the pipeline.
Overview
	 6	
Strategic ambitions
	 7	
Performance highlights 
	 9	
Letter to our stakeholders
	13	
Our business 
	14	
Our footprint
5
Management’s review
ØRSTED ANNUAL REPORT 2024

27.3
22.0
18.2
Installed renewable capacity
Gross capacity, GW
  Offshore 
  Onshore 
  Bioenergy
2024 
installed  
capacity
2026
ambition
Installed 
and under 
construction
1	 See page 91 in section ‘Climate change’ for details on our SBTi-validated climate targets.
2	 The targeted range is not a hurdle rate; consequently, some projects might deviate from the targeted range.
Strategic ambitions
We exclusively deploy 
green and sustainable 
long-term financing, 
and all projects are 
taxonomy-aligned.
40 : 60 
women : men
Gender balance in our total  
workforce by 2030
Net-positive  
biodiversity impact
from all new renewable 
energy projects  
commissioned from 
2030, at the latest
~13 %
Average ROCE
2024-2030
150-300 bps
Targeted range for spread to WACC2  
at time of bid/FID (whichever comes first)  
for individual projects
Group EBITDA (excl. new partnerships 
and cancellation fees)
DKKbn
24.8
29-33
2024
2026
12 % CAGR
↓  More on our strategy on pages 21-22.
Science-based 2040 net-zero target, 
validated by SBTi
GHG emissions intensity, g CO2e/kWh
  Scopes 1-3 (excl. gas sales)
322
75
<2.9
80
127
2023 2024
2040
2018
2030
-99 %
-77 %
Science- 
based  
targets 1
//
//
6
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Performance highlights
Follow up on outlook  
announced for 2024
EBITDA realised
DKKbn
Guidance (DKKbn) (7 Feb.): 23-26,  
(5 Nov.): 24-26
With EBITDA excluding new partnerships and 
cancellation fees totalling DKK 24.8 billion, 
earnings ended within our original guidance 
of DKK 23-26 billion, although with higher 
earnings in Offshore and lower earnings in 
Bioenergy & Other than expected.
24.8
42.8
Investments realised
DKKbn
Guidance (DKKbn) (7 Feb.): 48-52,
(15 Aug.): 44-48, (5 Nov.): 36-40
Investments totalled DKK 42.8 billion and 
thus ended below our original guidance but 
above our latest guidance range of DKK 
36-40 billion. The increase was due to timing 
effects across our construction portfolio, with 
a larger amount of milestone payments being 
paid in 2024.
2023
38.5
2024
42.8
2022
37.4
Cash flow and balance sheet
Gross investments
DKKbn
Our gross investments reached  
DKK 42.8 billion and was mainly  
driven by our construction of wind  
and solar assets.
42.8
ROCE was 4.5 % for the year. Adjusted for 
impairments and cancellation fees, ROCE 
amounted to 10.1 % in 2024.
Profit for the year was DKK 0.0 billion. 
Profit for the year excluding ­cancellation 
fees (DKK 7.3 billion) and ­impairments 
after tax (DKK -13.7 billion) amounted to 
DKK 6.4 billion.
Our net debt increased to  
DKK 58.0 billion.
The credit metric funds from operations  
(FFO) relative to adjusted net debt 
amounted to 13 % in 2024 (22 % excluding 
cancellation fees).
Profits and return
  Excl. new partnerships and cancellation fees     New partnerships   
  Excl. impairments and cancellation fees     Cancellation fees
Operating profit (EBITDA)
DKKbn
EBITDA totalled DKK 32.0 billion. EBITDA 
excluding cancellation fees (DKK 7.3  
billion) and new partnerships (DKK -0.1  
billion) amounted to DKK 24.8 billion.
32.0
2023
18.7
2024
2022
32.0
32.1
-14.2 %
17 %
12.9 %
14.9
10.1 %
Return on capital employed (ROCE)
%
2023
2022
2024
Profit for the year
DKKbn
-20.2
0.0
15.0
6.4
2023
2022
2024
2023
2022
2024
47.4
30.6
58.0
Interest-bearing net debt
DKKbn
2023
2022
2024
29 %
43 %
13 %
Credit metric (FFO/adjusted net debt)
%
(-0.1)
7.3
24.8
7
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Follow up on outlook 
announced for 2024
Lower
GHG emissions intensity  
(scopes 1 and 2), realised
g CO2e/kWh
Guidance (7 Feb.): Lower
The green house gas emissions 
­intensity for scopes 1 and 2 
decreased in 2024 due to higher 
renewable generation and ceasing 
of coal-based power generation.
Higher
GHG emissions intensity  
(scopes 1-3, excl. gas sales), 
realised
g CO2e/kWh
GHG emissions from gas sales 
(scope 3), realised
million tonnes CO2e
Guidance (7 Feb.): Higher
Scope 3 emissions increased as we 
commissioned more renewable 
assets. Consequently, our scope 1-3 
GHG intensity also increased. 
In line
Gender balance – gender  
with lowest representation 
Women
Guidance (7 Feb.): Higher
The gender balance was slightly 
below last year; however, 37 % of 
new hires were women in 2024.
Nationality and gender 
Diversity in the Board of Directors 
and the Group Executive Team 
(all members).
In 2024, we held our first interna-
tional election for employee- 
elected board members.
Governance
40 %
Women
60 %
Men
47 %
Danish
53 %
Other
Social
Environment
2.7
2.8 in 2023/3.1 in 2022
Safety
Total recordable injury rate (TRIR) 
We saw a further improvement in 
our safety performance in 2024.
34:66
35:65 in 2023/33:67 in 2022
Gender balance 
(women:men)
In 2024, 37 % of all new hires 
were women. 
Employee satisfaction
Index 0-100, 2022/2023/2024
In 2024, we concluded our organ-
isational efficiency programme, 
including redundancy rounds. 
Our employee satisfaction survey, 
People Matter, showed a decrease 
from last year, resulting in a satis-
faction and motivation score of 70.
9.0
80
127
147
The greenhouse gas intensity from our 
heat and power generation and other 
operating activities (scopes 1 and 2) 
was 16 g CO2e/kWh. Including scope 3 
(excl. gas), the greenhouse gas intensity 
was 127 g CO2e/kWh. The increase in 
GHG intensities was due to more projects 
reaching COD.
Our scope 3 greenhouse gas emis-
sions were 9.0 million tonnes CO2e. 
The increase in emissions was mainly 
a result of an additional 2.4 GW 
­renewable asset capacity being 
­commissioned in 2024.
 
Greenhouse gas emissions intensity
CO2e/kWh
2024
2023
2022
Greenhouse gas emissions
(scope 3), million tonnes, CO2e
Installed renewable capacity increased 
by 16 % to 18.2 GW in 2024, mainly due 
to the commissioning of the offshore 
wind farms Greater Changhua 1 and 2a 
and the onshore assets Eleven Mile Solar 
Center, Mockingbird, and Sparta Solar.
18.2
Installed renewable capacity
GW
60
38
16
↓  See more in our ‘Corporate governance’ section.
15.7
18.2
15.1
2024
2022
2023
70
76
76
8
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Navigating a challenging industry
Letter to our stakeholders
Global electricity demand is projected to double  
by 2050, driven by the electrification of transport, 
­heating, cooling, industrial processes, and the expan-
sion of AI and data centres. While the exact electricity 
demand depends on the much-needed electrification, 
electricity is expected to become the largest global 
energy carrier by 2050.
 
Future demand must be met by affordable, secure, and 
renewable energy sources. The renewables industry has 
seen substantial build-out in recent years, and renewa-
ble energy projects can expand local supply chains, gen-
erate jobs, boost manufacturing, improve infrastructure, 
and create local investments and long-term opportuni-
ties for growth in local communities. Diversified energy 
portfolios, including a higher share of renewables, can 
improve energy security and reliability by reducing 
dependency on imported fuels. 
Furthermore, renewables are instrumental in decar-
bonising energy systems and industrial processes and 
in reaching global climate targets. Also, renewables 
can drive nature restoration, if done right. 
Our vision is to create a world that runs entirely on 
green energy, and we are ready to do our part. How-
ever, to unlock the full potential of renewables in 
the future, governments, private sector, and local 
communities need to collaborate closely to facili-
tate the supply of renewable energy, set targets for a 
renewable build-out, and expand the grid infrastruc-
ture to handle it. This must be done in a way which 
ensures value creation for all parties, both in the short 
and long term. 
We are adapting to the market development
In the past 12 months, the industry has been charac-
terised by continued and more challenging headwinds 
relating to regulatory, supply chain, and macroeco-
nomic developments. Together with project-specific 
challenges related to our US offshore wind projects 
under construction, this has had an adverse impact 
on our capital structure. Faced by this reality, we are 
updating our business plan to be more focused and to 
support our target of a solid investment grade rating. 
As part of this, we are stepping away from our 2030 
GW ambition and EBITDA target, and we are reducing 
our investment programme. 
We will continue to be active across our three regions, 
but we will focus our capital allocation. Thus, when 
we pursue new development opportunities, we will 
first and foremost prioritise the most financially 
attractive offshore wind opportunities in regions and 
countries where we see the most attractive frame-
work conditions and investment environment. 
With the reduced growth ambition towards 2030 and a 
disciplined approach to capital allocation, Ørsted will 
inevitable become a more lean and focused company. 
Therefore, we will take measures, beyond the 2024 initi-
atives, to continuously adapt and rightsize our cost base 
and organisation to fit our value and build-out ambition.
To deliver on the plan, we will reduce our investment 
programme by approx. 25 % to DKK 210-230 billion 
in the period 2024-2030, ensure the delivery of our 
divestment programme, and focus our immediate 
efforts on the execution of our existing construction 
portfolio. Expectedly, this will roughly double our 
installed offshore wind capacity from 9.9 GW to 18.0 
GW and increase our total installed renewable capac-
ity to 27.3 GW by the end of 2027. 
We expect to deliver an EBITDA of DKK 29-33 billion 
by 2026 and to achieve a return on capital employed 
(ROCE) of 13 % on average for the period 2024-2030. 
During 2024, we achieved significant strategic steps, 
and we have advanced five transformational and 
company-wide business priorities to significantly 
improve our ability to enhance value creation.
First, we have advanced our revised project and oper-
ating model, which will create clearer accountability 
and stronger risk management throughout the devel-
opment and construction phases of our offshore pro-
jects. Second, we are fully on track to deliver perma-
nent cost savings of DKK 1 billion per year as a part 
of our organisational efficiency initiative. Third, we 
have progressed our initiative to improve our revenue 
capabilities to maximise the value of our energy gen-
eration and improve our competitiveness by expand-
ing and leveraging our asset-backed trading compe-
tences further. Fourth, we are enhancing the value of 
our operating fleet by optimising the operations and 
maintenance of our assets to achieve higher availabil-
ity, at the right time. And finally, we have commenced 
an initiative to strengthen our supply chain and risk 
management capabilities to leverage our leading 
position and improve our competitiveness in future 
auctions. Altogether, we are confident that these 
company-wide and transformational business priori-
ties will have a significant positive impact on our abil-
ity to deliver cost-savings, increase revenue, and help 
improve our overall competitiveness. 
In 2024, we added 1.0 GW of installed capacity to our 
offshore portfolio by commissioning Greater Changhua 
1 and 2a and South Fork and 1.4 GW to our onshore 
portfolio by commissioning four solar farms, including 
Mockingbird, our largest solar farm to date. By the end 
of 2024, our total installed capacity reached 18.2 GW. 
9
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

During 2024, we also advanced eight projects with a 
total capacity of 1.8 GW to FID, spanning across our 
portfolio of offshore and onshore wind as well as solar 
and storage. 
Following the award of an offshore wind renewable 
energy certificate (OREC) in New York’s fourth off-
shore wind solicitation, we added Sunrise Wind to our 
construction portfolio in 2024. With this addition, we 
had 6.9 GW of offshore capacity under construction 
by the end of 2024. In early 2025, we took FID on the 
wind farm Baltica 2, further adding 1.5 GW to our con-
struction portfolio. 
In our onshore business, we took FID on several pro-
jects in 2024, the most significant being our onshore 
wind farm Badger Wind and a storage project adja-
cent to our solar farm Old 300. By the end of 2024, we 
had 0.8 GW of onshore capacity under construction.
In the UK, we reached a significant milestone in 2024, 
when the UK Department for Energy Security & Net 
Zero (DESNZ) awarded us 3.5 GW of capacity for our 
offshore wind farms Hornsea 3 and Hornsea 4. When 
operational, Hornsea 3 will be the world’s single larg-
est offshore wind farm with a capacity of 3 GW. 
Most of our projects are progressing according to plan, 
and we work diligently to de-risk our portfolio. How-
ever, we continue to face and manage supply chain and 
construction challenges at our two US offshore con-
struction projects Revolution Wind and Sunrise Wind. 
Our partnership and divestment programme is on track, 
with several divestments initiated and concluded during 
the year. Total proceeds from the transactions make up 
DKK 22 billion of the target of DKK 70-80 billion through 
2026. We have divested 12.45 % of four operational 
UK offshore wind farms with a combined total capac-
ity of 3.5 GW to Brookfield and 50 % of our Taiwanese 
offshore wind farm Greater Changhua 4 (583 MW) to 
Cathay Life Insurance. In Onshore, we made a partial 
divestment of four US operational wind farms (957 MW) 
to Stonepeak and a partial divestment of the solar farm 
Mockingbird to Energy Capital Partners (ECP). Addition-
ally in the partnership with ECP, we signed an agree-
ment to partially divest our solar farm Sparta Solar and 
our battery storage project Eleven Mile Solar Center, 
with closings expected in 2025. Lastly, we divested our 
onshore platform in France to ENGIE. 
Innovation is another lever to improve our competitive-
ness, and we have continued to be at the forefront of the 
industry. In 2024, we developed a new low-noise founda-
tion installation method, which strengthens existing pro-
tections to marine life. Beyond the noise reduction, this 
new technology is a step change in offshore wind mono-
pile installation that, once adopted at scale, can over-
come pile refusal challenges and provide for cheaper 
and faster installation than any other monopile instal-
lation technology. In addition, we launched the world’s 
first heavy-lift cargo drone operations at our offshore 
wind farm Borssele 1 & 2. The drones will improve opera-
tional efficiency and safety in the offshore wind industry.
The organisational efficiency programme included 
company-wide and coordinated redundancy rounds, 
which were concluded in November. This has had an 
impact on our employee satisfaction score. Motivation 
and well-being of our colleagues are of the highest 
importance to us, and increasing employee satisfac-
tion will be a key priority.
Operational earnings delivering as expected
EBITDA totalled DKK 32.0 billion in 2024 compared  
to DKK 18.7 billion in 2023. EBITDA excluding new  
partnerships and cancellation fees amounted to 
DKK 24.8 billion, an increase of DKK 0.7 billion 
compared to 2023 and in line with our guidance of 
DKK 24-26 billion. Earnings in 2024 were positively 
impacted by Ocean Wind 1 cancellation fees, where 
we have continued to work through our supplier  
contracts and finalised negotiation of several  
contracts with a better outcome than assumed.  
Net of the provision for ceasing FlagshipONE, this  
has led to a positive EBITDA impact of DKK 7.3 billion. 
EBITDA from new partnerships in 2024 was limited 
and related to the 50 % farm-down of Greater  
Changhua 4 and Mockingbird. 
Earnings from sites in operation in Offshore increased 
with almost 20 % and amounted to DKK 23.8 billion in 
2024, mainly due to ramp-up of generation at Greater 
Changhua 1 and 2a, South Fork, and Gode Wind 3, 
higher wind speeds, and a higher pricing of the infla-
tion-indexed CfDs and green certificates. Lower avail-
ability dampened the increase in 2024. 
In 2024, we recognised net impairments of DKK 15.6 
billion, with the majority (DKK 14.1 billion) relating to 
our US projects and from our decision to cease con-
struction of FlagshipONE (DKK 1.5 billion). The US 
impairments were due to an increase in the US long-
dated interest rate, a lower market-informed valu-
ation of our US seabeds, construction delays, and 
higher expected costs for our US projects Revolution 
Wind and Sunrise Wind. 
ROCE was 4.5 % for the year. Adjusted for impairments 
and cancellation fees, ROCE amounted to 10.1 % in 
2024. Profit for the year amounted to DKK 0.0 billion. 
Excluding impairments (after tax) and cancellation 
fees, profit for the year was DKK 6.4 billion. 
In the UK, we reached a significant milestone 
in 2024, when the UK Department for Energy 
Security & Net Zero (DESNZ) awarded us  
3.5 GW of capacity for our offshore wind  
farms Hornsea 3 and Hornsea 4. 
10
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Sustainability is at the core of our business
Our commitment to a sustainable build-out is at the 
core of our business. Our three strategic sustainability 
priorities – decarbonisation, biodiversity, and commu-
nity impact – play an enabling role in our strategy and 
project delivery. They support that we mitigate risks 
and deliver more resilient energy projects that also 
drive a positive change for society and nature. 
In 2024, we saw strong progress on all three priorities. 
Among other things, we launched our ‘Biodiversity 
measurement framework’ to guide transparent meas-
urement and reporting on our biodiversity impact. 
We also reached the last big milestone in transform-
ing our energy production to renewable energy by 
shutting down our last coal-fired power station. With 
this, we are on track to reach our industry-leading 
science-based target to reduce our scope 1 and 2 
emissions intensity by 93 % since 2018 and to reach 
our target of a 99 % renewable share of energy gener-
ation by 2025.
We have been reporting on sustainability for the last 
two decades, and in 2024, we have further developed 
our reporting to comply with the new European Sus-
tainability Reporting Standards (ESRS) framework. For 
investors and other stakeholders, the standardisation 
and transparency of this new regulation will ensure 
greater comparability across companies’ sustainabil-
ity impacts, risks, and opportunities. 
Long-term safety efforts pays off
In 2024, we reduced our total recordable injury rate 
(TRIR). It is the second year in a row that we experi-
ence a reduction, and we see it as a result of our long-
term focused effort on safety. We welcome the reduc-
tion in TRIR, and we will continue our safety improve-
ment initiatives to ensure the trend continues.
Concluding remarks 
The year 2024 proved to be a challenging year for the 
industry and for Ørsted. We have experienced head-
winds and have therefore taken necessary actions 
while leveraging our 30 years of experience to achieve 
several milestones across our renewables portfolio. 
We have made substantial divestments and advanced 
our focused company-wide business priorities. We 
have done this to ensure the strongest possible plat-
form to deliver consistent value in the years to come. 
We believe in the long-term fundamentals of the 
renewables industry and will continue to navigate 
existing and new market challenges as well as engage 
Rasmus Errboe
Group President and CEO
Lene Skole
Chair
↑ Greater Changhua 1 and 2a, Taiwan Strait, Taiwan.
proactively to restore investor confidence in Ørsted 
and in offshore wind as an industry. In 2024, we have 
worked relentlessly to strengthen and improve the 
conditions for our industry in close dialogue with key 
stakeholders, and we will continue this effort in 2025. 
We will continue our journey to adapt to the new real-
ity by constantly improving our competitiveness to 
remain one of the world’s leading developers, con-
structors, and generators of renewable assets.
On behalf of the Board, we would like to thank Mads 
Nipper for his commitment to Ørsted’s vision and his 
strong and constructive collaboration over the past 
four years. 
As a concluding remark, we would like to express 
our sincere gratitude to our skilled colleagues, who, 
throughout a year of uncertainty and redundancies, 
yet again proved their unwavering commitment, and 
who continue to drive the energy transition forward.
11
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Business development and partnerships 
7.6
2.4
GW renewable energy under  
construction by the end of 2024 1
GW renewable energy  
reaching COD in 2024
For project progress, see page 25.
1  With the FID of Baltica 2 (1,498 MW) in January 2025, our capacity under construction is 9.1 GW.
253 MW
Gode Wind 3
Located in the German part of the North Sea, 
our offshore wind farm Gode Wind 3 is producing 
at full capacity and expected to reach COD in 
Q1 2025. 
920 MW
Greater Changhua 2b and 4
In Taiwan, we expect completion of our  
two wind farms by the end of 2025. 
924 MW
Sunrise Wind
We signed the final OREC agreement on our 
US offshore wind farm and received the final 
outstanding federal permit when our construc-
tion and operations plan (COP) was approved 
by BOEM. During the year, we experienced 
construction challenges and are progressing 
on a tight schedule according to a revised plan. 
We expect COD in H2 2027.
704 MW
Revolution Wind
During the year, we faced challenges with the 
construction of the onshore substation and the 
piling of one of the offshore substation mono-
piles. We have reassessed the risks related to 
the US project and increased our contingencies. 
We expect COD in 2026.
913 MW
Borkum Riffgrund 3
We expect construction of our German offshore 
wind farm to be completed in Q1 2026.
2,852 MW/300 MW
Hornsea 3
We have been awarded contracts for difference 
(CfD) for a 1,080 MW share of our offshore wind 
farm. COD is expected in 2027. Additionally, we 
took FID on a 300 MW battery storage system 
co-located with Hornsea 3, which is expected to 
be operational in H2 2027.
259 MW
Badger Wind
We took FID on our US onshore wind farm,  
with expected COD in 2025.
250 MW
Old 300 storage (BESS)
We took FID on our battery energy storage  
system (BESS) adjacent to the solar farm 
Old 300 situated in Texas, the US, and con- 
struction is expected to commence in Q1 2025.
262 MW
Onshore Europe
Construction of our European onshore  
projects is on track.
Divestment programme
In the UK, we divested a minority share of 
four operational UK offshore wind farms to 
­Brookfield, and in Taiwan, we divested 50 % of 
our offshore wind farm Greater Changhua 4 to 
Cathay Life Insurance. In the US, we partially 
divested four operational onshore assets to 
Stonepeak and three onshore projects to 
Energy Capital Partners (ECP) with individual 
closings in both 2024 and 2025. Additionally, 
we divested our onshore platform in France 
to Engie. 
Hornsea 4 award
We were awarded contracts for difference 
(CfD) for a 2,400 MW share of our offshore  
wind project. 
Deprioritising liquid  
e-fuels short term
We have deprioritised our green fuels efforts 
for now. Consequently, we ceased our liquid 
e-fuels project FlagshipONE. We remain 
committed to renewable hydrogen as an 
important lever for offshore wind.
On track for SBTi- 
validated target for 2025
We shut down our last coal-fired combined 
heat and power plant in Esbjerg, Denmark. This 
marks a major step in reducing our scope 1 
and 2 GHG emissions from operations, and we 
remain on track to achieve the SBTi-validated 
target for 2025.
New lower-noise  
installation technology
Building on existing marine life protections, we 
have developed a new lower-noise installation 
method, which strengthens existing protections 
to marine life, and we successfully tested it at 
our German offshore wind farm Gode Wind 3 
in 2024. Once adopted at scale, it can provide 
more efficient and cost-effective installation of 
offshore wind foundations.
Feasibility licence
We were granted a feasibility license by the 
Australian government to develop a large-scale 
offshore wind project in Australia. Furthermore, 
the government intends to grant us a license for 
a second project. Combined, the two projects 
have a potential capacity of up to 4.8 GW of 
renewable energy.
900 MW 
Greater Changhua 1 and 2a
Greater Changhua 1 and 2a are Taiwan’s  
first large-scale offshore wind farms.
132 MW
South Fork
South Fork is New York’s first offshore  
wind farm. 
600 MW
Eleven Mile Solar Center
In Arizona , the Eleven Mile Solar Center, a solar 
and battery energy storage system (BESS), will 
provide power to businesses, homes, and Meta’s 
planned data centre.
471 MW
Mockingbird
Mockingbird Solar Center, placed in Texas,  
the US, is our largest solar farm to date.
250 MW
Sparta Solar
With the completion of the solar part of Helena 
Energy Center, the combined wind and solar 
farm, placed in Texas, the US, is now fully 
operational (518 MW in total).
73 MW
Old 300
In Texas, the US, we completed the remaining 
part of the solar farm Old 300 (430 MW in total).
Selected events 
Executing on our business plan 
12
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Our business
How we create value
We create value by developing, ­construc­ting, oper­
ating, and owning renewable assets and by providing 
­sustainable energy products to our customers.
What we do
Our portfolio includes offshore and onshore wind 
farms, solar farms, energy storage, and heat 
and power plants. 
We develop our pipeline of renewable assets, we 
construct them based on thorough supplier selection 
and local content adherence, and we operate our 
large portfolio.
We enter into long-term power purchase agreements 
with strategic partners, and we manage and optimise 
our large portfolio of renewable assets and partnerships.
For more details on our business model, including key 
inputs, what we depend on, key outputs, and benefits 
created, please refer to pages 65-66.
A sustainable approach
We have made it a core commitment to develop, 
construct, and operate our renewable assets in an 
environmentally and socially sustainable way, which 
helps de-risk projects, enhance our license to operate, 
and drive lasting, positive change for society – through 
employment opportunities, community support, and 
enhancing nature. 
Non-exhaustive illustration
13
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

Renewable capacity 
Consisting of 18.2 GW in operation (installed), 7.6 GW  
under construction (FID’ed), and 5.2 GW awarded. In addition,
we have substantiated pipelines of 19 GW in Offshore and
16 GW in Onshore.
See pages 97-98 in our ‘Sustainability statements’ for more information.
31.0 GW
Denmark
3.0 GW
Offshore
CHP plants 
Sales of energy
Sweden
Sales of energy
United Kingdom
11.3 GW
Offshore
Onshore
Storage
United States  
of America
8.0 GW
Offshore
Onshore
Solar PV
Storage
The Netherlands
0.8 GW
Offshore
Germany
2.6 GW
Offshore
Onshore
Solar PV
Taiwan
1.9 GW
Offshore
Korea
Offshore
Australia
Offshore
Poland
2.8 GW
Offshore
Ireland
0.5 GW
Offshore
Onshore
Solar PV
Our footprint
Spain
Onshore
Capacity
GW
Capacity
  In operation
  Under construction
  Awarded
United States of America
Offshore wind
Onshore wind
Solar PV
Storage
1.8
3.5
2.1
0.6
United Kingdom and Ireland
Offshore wind
Onshore wind
Solar PV
Storage
10.9
0.5
0.1
0.3
APAC
Offshore wind
1.9
Continental Europe
Offshore wind
Onshore wind
CHP, power
CHP, heat
7.0
0.1
2.1
2.9
14
Management’s review  |  Overview
ØRSTED ANNUAL REPORT 2024

→
The 83-metre-long service and operations vessel, Wind of  
Hope, is dwarfed by the offshore wind turbines at Hornsea 2.  
In September 2024, the UK government awarded us contracts 
for difference for a 1,080 MW share of Hornsea 3, currently under 
construction, and for a 2,400 MW share of Hornsea 4, currently 
under development. When complete, the Hornsea zone will be by 
far the largest in the world, with around 8 GW of installed capacity.
Outlook
16	
Financial and ESG outlook 2025
18	
Financial targets and policies
15
Management’s review
ØRSTED ANNUAL REPORT 2024

Financial and  
ESG outlook 2025
Group EBITDA guidance
Our EBITDA guidance does not include earnings 
from new partnership agreements and impact from 
potential changes in cancellation fees relating to 
ceasing the development or construction of projects.
Operating profit (EBITDA) excluding new partnership 
agreements and cancellation fees is expected to be 
DKK 25-28 billion in 2025. 
As in previous years, we could see offsetting effects 
between the business units compared to our directional 
guidance. 
Offshore – higher
Earnings from sites are expected to increase in 2025 
compared to 2024, mainly due to:
·	 ramp-up of generation from Greater Changhua 1 
and 2a, Greater Changhua 2b and 4, South Fork, 
and Gode Wind 3, and compensation for grid delay 
related to Borkum Riffgrund 3
·	 higher expected availability 
·	 inflation adjustments on ROC and CfD farms, partly 
offset by lower prices on merchant assets, a step 
down in subsidy level for our older German assets, 
and Anholt (DK) stepping out of subsidy 
·	 partly offset by ramp-up of costs related to Revolu-
tion Wind and Sunrise Wind and slightly higher than 
normal wind speeds in 2024. 
Earnings from existing partnerships are expected to 
increase compared to 2024, mainly driven by:
·	 negative effects from provisions and construction 
contracts in 2024 not expected to be repeated  
in 2025 
·	 partly offset by higher costs related to M&A 
activities.
‘Other’ in Offshore is expected to be more negative 
than in 2024, mainly due to: 
·	 higher expensed project development costs and 
fixed costs. 
Our EBITDA guidance for the Group is the prevailing guidance, whereas the directional earnings development per 
business segment (and component) serves as a means to support this. Higher and lower indicate the direction of 
the business unit’s earnings relative to the results for 2024.
Guidance on 2025 EBITDA without new partnerships and cancellation fees
DKKbn
Offshore
Onshore
Bio & Other
2024
2025
Sites
Existing  
partnerships
Onshore
Other
Bioenergy 
& Other
24.8
~1.5
~1.0
~1.5
~0.2
~0.5
25-28
Outlook 2025
DKK billion
Realised 
2024
Guidance 
2025
EBITDA (without new partnerships, excl. cancellation fees)
24.8
25-28
Offshore
19.2
Higher
Onshore
4.0
Higher
Bioenergy & Other
1.1
Significantly 
higher
Gross investments
42.8
50-54
ESG outlook
Greenhouse gas emissions intensity (scopes 1, 2), CO2e/kWh
16
Lower
Greenhouse gas emissions intensity (scopes 1-3 excl. gas sales), g CO2e/kWh
127
Lower
Greenhouse gas emissions from gas sales (scope 3), million tonnes CO2e
4.1
Higher
Gender balance – gender with lowest representation (female)
34
Higher
16
Management’s review  |  Outlook
ØRSTED ANNUAL REPORT 2024

Onshore – higher
Earnings in Onshore (excluding new partnership 
agreements) are expected to increase compared 
to 2024.
The positive impact on EBITDA in 2025 is driven by:
·	 ramp-up of generation from Eleven Mile Solar 
Center, Old 300, Badger Wind, and Mockingbird 
·	 higher expected availability in the US
·	 partly offset by the impact from the 50 % farm-
down of Mockingbird in December 2024 and 
Eleven Mile Solar Center and Sparta Solar in 2025
·	 ‘Other’ is expected to be more negative than in 
2024, mainly due to higher project development 
costs and from sale of components in 2024 not 
expected to be repeated in 2025.
Bioenergy & Other – significantly higher
Earnings from CHP plants (including ancillary services) 
and ‘Gas Markets & Infrastructure’ are expected to 
increase compared to 2024.
The positive impact on EBITDA in 2025 is driven by 
higher earnings from ‘Gas Markets & Infrastructure’ 
due to higher volumes expected from the Tyra field 
(not owned by Ørsted), whereas earnings from our 
CHP plants are expected to be in line with 2024.
Gross investments
Gross investments for 2025 are expected to amount 
to DKK 50-54 billion, mainly driven by:
·	 Offshore (Sunrise Wind, Greater Changhua 2b and 4, 
Revolution Wind, Hornsea 3, Baltica 2, and Borkum 
Riffgrund 3) 
·	 Onshore (Badger Wind, Old 300 BESS, and projects 
from our substantiated pipeline in both the US 
and Europe).
Our gross investments guidance for 2025 is particularly 
sensitive to and can be impacted by changes in our 
divestment programme and from changed timing in 
payment schedules, etc.
Uncertainties, prices, and hedges
The most significant uncertainty to the operating 
profit in 2025 is the power generation, which depends 
on wind conditions, ramp-up of new assets, asset 
availability, timing of possible farm-downs, and the 
attractiveness of spreads on our CHP plants.
High gas and power price volatility could impact 
earnings for the year through optimisation possibilities 
of our gas storage and sourcing contracts as well as 
higher balancing and intermittency costs.
Our wind and solar PV assets are largely subject 
to prices that are indexed to inflation or are fixed 
nominal, implying a high degree of revenue certainty, 
setting aside the above-mentioned volume risk. 
This means that we know the price (or minimum 
price) per generated MWh for most wind farms in the 
Netherlands, the US, and Germany and for the CfD 
wind farms in the UK. For our British ROC wind farms, 
we also know the subsidy per generated MWh, which 
we will receive in addition to the market price.
In 2025, 80 % of our expected revenue from our 
wind and solar PV assets is inflation-indexed or fixed 
­nominal. The remaining 20 % is exposed to fluctations 
in power prices. Our hedging approach is to hedge up 
to 70 % of this remaining merchant exposure. For 2025, 
we have hedged approx. 45 % of this, leaving Ørsted 
with an unhedged price exposure of 11 % from gener-
ation from our wind and solar PV assets. See note 6.2 
‘Energy price risks’.
Greenhouse gas emissions 
The greenhouse gas emissions intensity for scope 1 
and 2 is expected to decrease in 2025 and meet our 
science-based target of 10 g CO2e/kWh. The decrease 
is due to higher expected renewable generation, and 
as we ceased coal-based heat and power generation 
in 2024. We also expect the scope 1-3 emissions 
intensity to decrease as we will have fewer renewable 
assets reaching COD in 2025 than in 2024 and higher 
renewable generation. 
We expect more gas delivered under our contract 
with The Danish Underground Consortium (DUC), 
following the gradual reopening of the Tyra gas field in 
2024. Therefore, we expect an increase in our scope 3 
emissions from gas sales.
§  Forward-looking statements
The annual report contains forward-looking 
statements, which include projections of our 
short- and long-term financial performance and 
targets as well as our financial policies. 
These statements are by nature uncertain and 
associated with risk. Many factors may cause 
the actual development to differ materially 
from our expectations. 
These factors include, but are not limited to, 
changes in temperature, wind conditions,  
wake and blockage effects, precipitation  
levels, the development in power, coal, carbon, 
gas, oil, currency, inflation rates, and interest  
rate markets, the ability to uphold hedge 
accounting, changes in legislation, regulations, 
or standards, the renegotiation of contracts, 
changes in the competitive environment in  
our markets, reliability of supply, and market 
volatility and disruptions from geopolitical 
tensions. 
Read more about the risks in the chapter on 
‘Enterprise risk management’ and in note 6  
‘Risk management’ in the financial statements.
Furthermore, the proceeds we can realise  
from our anticipated farm-downs and divest-
ments as part of the measures we take to  
support a robust capital structure are subject 
to uncertainty. 
17
Management’s review  |  Outlook
ØRSTED ANNUAL REPORT 2024

Updated business plan
In the past 12 months, the industry has been charac-
terised by continued and more challenging headwinds. 
Together with project-specific challenges related to 
our US offshore wind projects under construction, 
this has had an adverse impact on our capital struc-
ture. Therefore, we are adapting our business plan 
to ­support our target of a solid investment grade 
­rating. As part of this, we are stepping away from our 
2030 GW ambition and EBITDA target, and we are 
reducing our investment programme. 
Financial targets
We have three key financial targets to support our 
self-funded build-out. The financial targets cover 
(see details to the left):
·	 spread to WACC on investments
·	 EBITDA 
·	 ROCE.
Financial policies and capital allocation
The Board of Directors has decided to pause dividend 
payments for the financial years 2023-2025. ­Here- 
after, the target is to reinstate dividend payments. 
To ensure we have financial robustness and the 
strength to operate in the international energy and 
financial markets, we target a solid investment 
grade rating with all three major rating agencies. 
This includes an FFO/adjusted interest-bearing net 
debt credit metric above 30 %.
Financial targets and policies
Spread to WACC on investments
Fully loaded unlevered life cycle spread  
to WACC at the time of bid/FID 1
150-300 bps
Continuous
EBITDA
Group EBITDA excluding new partner-
ships and cancellation fees
DKK 29-33 billion
2026
ROCE
Average return on capital employed
~13 %
2024-2030
Rating
Solid investment grade with Moody’s/ 
S&P/Fitch
Capital structure
FFO/adjusted interest-bearing net debt
above 30 % 
Dividend policy
No dividend payments for the financial 
years 2023-2025. Target to reinstate  
dividend from the financial year 2026.
Financial targets
Financial policies
1  Targeted range for spread to WACC at time of bid/FID (whichever comes first) for individual projects.  
The targeted range is not a hurdle rate, and consequently, there could be projects that deviate from  
the targeted range.
  Forward-looking statements are described on page 17.
18
Management’s review  |  Outlook
ØRSTED ANNUAL REPORT 2024

→
The offshore installation vessel Aeolus played a crucial role  
in installing the 12 turbines that make up South Fork Wind,  
off the coast of New York State in the US – along with hundreds 
of US workers across the Northeast. Construction concluded 
in March 2024. The offshore wind farm is the first in the 
Empire State and America’s first in commercial scale, generating 
enough renewable energy to power around 70,000 US homes.
Strategy  
and business
20	
The renewable energy market
21	
Our strategy
23	
Executing our strategy
27	
Enterprise risk management
19
Management’s review
ØRSTED ANNUAL REPORT 2024

The renewable energy market
The outlook for the renewable energy market is 
strong. Globally, we expect to reach 50 % renewable 
electricity generation in 2030, with a vast majority 
coming from wind and solar PV. Europe reached the 
50 % threshold in 2024. Yet, to realise the full potential 
of renewable energy sources in decarbonising our 
energy systems, we need large-scale public and private 
investment in renewable energy projects, innovation, 
and infrastructure.
The renewable energy market 
Global power demand is continuing to increase at a 
fast pace, and renewable energy sources are essen-
tial to meet it. Geopolitical conflicts, reliance on 
gas imports, and increasing global competitiveness 
have underscored the importance of energy security 
and independence. The build-out of AI data centres 
­provides new sources of demand. The already visible 
impacts of climate change have made the need for a 
sustainable energy transition clear. ​
While addressing these pressing challenges, the renew-
able energy transition also fosters local job creation 
and can help protect nature. Renewable energy is a 
lever to increase energy independence, create lasting 
jobs, and support local communities.
Getting there will require public and private invest-
ment in the renewable transition, the creation of the 
right conditions to scale up innovations, and that we 
address the current barriers in the industry. 
For the first time ever, half of the EU’s electricity 
generation came from renewable energy sources 
in 2024. Further, wind overtook gas to become the 
EU’s second largest source of electricity (behind 
nuclear energy). The UK procured an additional 
9.6 GW of renewable energy in auction round 6, 
including 5 GW offshore wind. It showed that the 
UK is willing to incentivise renewable energy. 
The US renewable energy industry, including 
offshore and onshore technologies, continues to 
have bipartisan support, driven by job creation and 
domestic investments to help meet the country’s 
increasing electricity demand. The recent executive 
order from the Administration is being reviewed to 
assess its impact on our US portfolio.
Towards 2030, we are thus anticipating a high growth 
in the global renewable energy market, with total 
combined capacity (offshore wind, onshore wind, 
solar PV, and energy storage) expected to reach 
>4,000 GW (excl. China).
However, difficult macroeconomic conditions 
­continued to cause headwinds and uncertainty for the 
renew­ables industry in 2024. LCoE levels remained 
high due to elevated materials costs, ­interest rates, 
and squeezed supply chains. The current high-cost 
environment, especially in offshore wind, is pressuring 
developers. 
Offshore wind 
Despite current headwinds, especially in the US, 
offshore wind is a crucial lever of the global energy 
transition and a necessary enabler of the ambitious 
build-out targets set globally. In the long-term, it 
remains an industry with a strong fundamental value 
proposition. Yet, it has become clear that several 
industry challenges must be addressed to realise the 
full potential of offshore wind. This includes complex 
and timely permitting processes, auction designs 
which are based solely on price, or which involve 
concession payments, and other structural barriers. 
We believe that governments and industry can work 
together to weather the current challenges and 
facilitate future offshore wind deployment, and we 
are pleased to see the continued commitment from 
both the EU and the member states to offshore wind.
Along with the rest of the industry, we have felt 
the impact of these challenges. We are therefore 
adapting our business to new market conditions. 
We have spent the past year working – both internally 
and with governments and industry – to strengthen 
conditions for offshore wind and support future 
offshore wind deployment.
Installed capacity (excl. China) *
GW
  EU 
  AMER 
  APAC 
  Rest of world
Political initiatives in 2024
Government policies to accelerate deployment 
and uptake of renewables
Offshore wind
25
13
89
~x3
2024
2030
~42
~128
5
37
Onshore renewables
~4,025
~x2.3
~1,780
2024
2030
~530 
~870
~1,300
~1,330
~180
~400
~600
~600
EU  Clean Industrial Deal
Foster competitive and resilient industries, clean 
technology innovations, and high-quality jobs.
UK  Beyond 2030 strategy
Modernising the electrical grid to ensure grid 
integration and distribution of renewables, 
particularly offshore wind.
DK / SE / DE / UK market designs
Addressing energy market designs and instruments 
as levers of energy system flexibility and resilience.
US  federal and state-level investment policy
Implementing federal tax credit policies to foster 
long term investment.
Shaping state procurement policy to support a 
strong future for development opportunity. 
TW auction design
Easing local content requirements in offshore 
wind to enable broader participation in future 
auctions and accelerate renewables deployment 
in Taiwan.
*  Source: BNEF (2024)
20
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

Our strategy
Ørsted’s vision is to create a world that runs entirely 
on green energy. We are contributing towards this 
vision in our daily work by developing, constructing, 
and operating renewable assets at scale and by 
leading the way for an energy build-out that drives 
positive change beyond green electrons. 
// ESRS 2, SBM-1
Our strategic aspiration
Our strategic aspiration is to be the world’s leading 
green energy major. This aspiration builds on three 
strategic pillars, illustrated to the right. 
First, we aspire to be one of the world’s leading 
developers, constructors, and generators of renewable 
assets. This includes our focus on optimising our 
projects in construction as well as our generation, 
­revenue, and trading businesses. 
Currently, we have 18.2 GW renewable energy 
installed across our three regions: Europe, Americas, 
and APAC. In offshore wind, our core business area, 
we are present in our three regions, with projects in 
the UK, Northern Europe, Northeastern USA, Taiwan, 
Korea, and Australia. Our onshore renewables plat-
form consists of onshore wind, solar, and storage, with 
projects in the UK, Ireland, Germany, Spain, and the 
US. Finally, our bioenergy and carbon capture and 
storage (CCS) platform is focused in Denmark. 
We will continue to be active across our three regions, 
but we will focus our capital allocation. Thus, when 
we pursue new development opportunities, we will 
first and foremost prioritise the most financially 
attractive offshore wind opportunities in regions 
and countries where we see the most attractive 
framework conditions and investment environment, 
and where we have the most distinct competitive 
differentiation and ability to leverage and unfold our 
business model. We remain committed to onshore 
wind, solar PV, battery energy storage solutions, and 
carbon capture. ​//
Our employees are the cornerstone to delivering on 
our ambitions. Our second pillar, to be the leading 
talent platform in renewables, means employees 
globally experience Ørsted as a great place to work.
We help our employees to understand how their daily 
work impacts our vision. We support them in growing 
their talent by learning from expert colleagues and 
through global collaboration. In doing so, we create a 
supportive, empowered, and result-focused company 
culture.
The final pillar to delivering on our renewable energy 
ambitions is that we construct and operate in an envi-
ronmentally and socially sustainable way. Our renew-
able energy projects require resources and space at 
land and at sea, all of which are constrained. They 
also require public support. As such, a sustaina-
ble approach that benefits nature and people is a 
A world that  
runs entirely on 
green energy
Our vision
Our three strategic pillars
→  One of the world’s leading 
developers, constructors, 
and generators of renewable 
assets
→  The leading talent platform  
in renewable energy
→  Globally recognised  
sustainability leader
Our strategic aspiration
The world’s  
leading green 
energy major
prerequisite for building renewable energy at the 
pace and scale needed. It is also an extraordinary 
opportunity to deliver additional positive value  
to society.​
Our three strategic sustainability priorities are 
tailored to drive this value and support our efforts 
to be a globally recognised sustainability leader. 
Decarbonisation: to limit our use of emission-­intensive 
resources and support long-term business resilience 
and competitiveness. Biodiversity: to help protect 
nature and ensure access to land and sea. And 
community impact: to ensure people in the regions 
where we operate in benefit from and support the 
build-out and our license to operate. With these, 
we lead the way for a renewable energy build-out 
that drives a lasting, positive change for our society, 
industry, and company.
21
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

Business priorities
During the year, we have advanced five transforma-
tional and company-wide business priorities that 
will ensure we have the strongest possible platform 
to deliver consistent value in the years to come. 
These priorities will improve our competitiveness.
We have advanced our revised operating model 
across the three regions to future-proof our offshore 
business in a less predictable and more competitive 
market. This will create clearer accountability and 
stronger risk management in the development and 
construction of our offshore wind projects. We are 
also strengthening our supply chain management 
capabilities to improve our competitiveness through 
our supply chain partnerships and activities.
We are progressing towards a simpler, more efficient, 
more competitive organisation, which will allow 
us to realise savings of more than DKK 1 billion by 
2026. We are improving our generation and revenue 
capabilities to reduce our downside risk, improve 
decision-making, and ensure we maximise the value 
of our green electrons.​
To ensure effective tracking of progress on our business 
priorities, we are enhancing our focus on performance 
management and simplification. This will create 
clearer alignment between strategic targets, business 
priorities, and KPIs.
With the reduced growth ambition towards 2030,  
we will take measures, beyond the 2024 initiatives,  
to continuously adapt our cost base and organisation 
to fit our value and build-out ambition.
EBITDA targets
Group EBITDA excl. new partner- 
ships and cancellation fees 
DKKbn
2024
24.8
2026
29-33
Installed capacity ambition
GW
  Offshore 
  Onshore 
  Bioenergy
Our three strategic sustainability 
priorities
Decarbonisation
Biodiversity
Community impact
Our business platform 
Technology and markets
Offshore wind, fixed-bottom
Selective in support of offshore wind: renewable hydrogen. 
Invest-to-grow core business area in →
Europe, Americas, APAC
Onshore wind, solar, and storage
Invest-to-grow strategic area in →
Europe, Americas
Bioenergy and carbon capture and storage (CCS)
Steady business with opportunistic plays in →
Europe
27.3
22.0
18.2
Installed 
and under 
construction
2026
ambition
2024 
installed 
capacity
22
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

Executing our strategy
In 2024, we have executed on the business plan pre-
sented in February last year. We have also continued 
the integration of sustainability into our business and 
value chain to help address challenges to the build-out 
and further de-risk our project delivery.
Expanding our portfolio
In 2024, we added a total of 1.0 GW to our installed 
offshore capacity, which, by the end of 2024, totalled 
9.9 GW. With a capacity of 900 MW, the ­commissioning 
of the Greater Changhua 1 and 2a wind farms in ­Taiwan 
was a significant part of this increase. The two wind 
farms are the largest of their kind in Taiwan and in the 
Asia-Pacific region. Additionally, we commissioned 
the wind farm South Fork in the US, adding 132 MW of 
installed offshore capacity to our portfolio. Gode Wind 
3 in Germany is fully operational and will expectedly be 
commissioned in Q1 2025, adding a further 253 MW to 
our installed capacity.
In our Onshore business, we added a total of 1.4 GW 
in 2024. In Texas in the US, we commissioned Sparta 
Solar, Old 300 (remaining part), and ­Mockingbird Solar 
Center in 2024, with Mockingbird being the ­largest 
solar farm in our portfolio to date. Furthermore, 
Eleven Mile Solar Center, our combined solar and 
battery storage project of 300 MW solar PV and 
an additional 300 MW/1,200 MWh of storage, was 
commissioned in 2024. Lastly, we commissioned an 
onshore solar farm in Europe.
By the end of 2024, we had 7.6 GW of capacity 
under construction. During the year, we took FID on 
eight projects. In our offshore business, Sunrise Wind 
reached FID. In our onshore business, the solar farms 
Ballinrea, Rottenegg, and Hatzenhof were FID’ed, as 
were the wind farms Farranrory and Badger Wind. 
Lastly, we took FID on two storage projects ­adjacent 
to our wind farm Hornsea 3 and our solar farm Old 300. 
In January 2025, we took FID on Baltica 2, thereby 
adding an additional 1.5 GW to our construction 
portfolio.
We continue to manage the construction risks facing 
our US offshore portfolio. During the year, we have 
experienced challenges at Revolution Wind with the 
construction of the onshore substation and challenges 
related to the piling of one of the offshore ­substation 
monopiles. At Sunrise Wind, we have experienced 
challenges related to the monopile fabrication and 
installation. For both projects, this has led to higher 
costs. In addition, we have increased our cost estimate 
for Sunrise Wind for the first-ever HVDC system and 
export cables and for installation of turbines, based 
on learnings from Revolution Wind. Both projects 
are progressing according to the updated schedules. 
In ­Germany, construction of Borkum Riffgrund 3 is pro-
gressing according to schedule, but the installation of 
the project’s power grid connection has been delayed 
by the German TSO, and the expected COD is moved 
to Q1 2026. We are being compensated for this delay. 
In addition to our assets under construction, we had 
5.2 GW of capacity awarded or contracted, resulting 
in a total capacity of 31.0 GW across our business. 
We have decided to cease the construction of our liquid 
e-fuels project FlagshipONE. The decision was based 
on a slower-than-expected industrialisation of the tech-
nology and commercial development of the offtake 
market as well as a deteriorating business case.
Securing long-term capacity with strategic suppliers 
is key for us to build collaboration and collaboratively 
manage risks and construction of our offshore wind 
projects. Therefore, we have entered a partnership with 
Cadeler for a new-built wind farm installation vessel to 
secure capacity from Q1 2027 until the end of 2030. 
An overview of our build-out plan, including project 
progress, can be seen on page 25.
Divestment programme on track
We have made several divestments since the farm-
down programme was announced as part of the 
­business plan update in February last year. 
In the UK, we closed an agreement with Brookfield to 
divest a share of four operational offshore wind farms 
(Hornsea 1, Hornsea 2, Walney Extension, and Burbo 
Extension) with a combined total capacity of 3.5 GW. 
We will retain a 37.55 % ownership interest in the 
four assets and continue to exercise a similar level of 
­control and governance as before the divestment.
In Taiwan, we closed an agreement to divest 50 % of 
our offshore wind farm Greater Changhua 4 to Cathay 
Life Insurance, the leading insurance company in 
­Taiwan. As part of the agreement, we will construct 
the wind farm under a full-scope EPC contract, 
and we will also provide long-term operations and 
maintenance (O&M) services. 
In the US, we made a partial divestment of four 
operational assets (957 MW) to Stonepeak. We have 
maintained full operational control and fully consol-
idate the portfolio in our financial accounts. Addi-
tionally in the US, we made a partial divestment of 
three onshore projects to Energy Capital ­Partners 
(ECP). The farm-downs include two solar farms in 
Texas, Mockingbird Solar (468 MW) and Sparta Solar 
(250 MW), and Eleven Mile Solar Center, a 300 MW 
solar and 300 MW/1,200 MWh battery storage project 
in Arizona. With operations commencing in 2024, all 
three projects have tax equity partnerships and power 
purchase agreements in place. Lastly, we divested our 
onshore platform in France to ENGIE. 
Exploring new business opportunities 
We continue to explore value-creating opportunities. 
We are pleased that the Australian Government has 
granted us feasibility licences for our first offshore wind 
projects in Australia. With these licenses, we aim to 
develop large-scale offshore wind farms in Australia, 
expected to become operational in the early 2030s.
23
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

As part of our carbon capture and storage project 
‘Ørsted Kalundborg Hub’, we have entered a new major 
agreement on carbon removal with Microsoft to sell a 
further one million tonnes of carbon removal over a ten-
year period from Avedøre Power Station. This agree-
ment builds on an existing commitment by Microsoft 
to buy 2.67 million tonnes. Additionally, we signed an 
agreement with Equinor to sell ­credits for the removal of 
330,000 tonnes of CO2 over a ten-year period. 
Innovating the industry 
Innovation is core to our business, and we believe we can 
continue to harness existing and new technologies to 
make renewable energy more affordable, reliable, effi-
cient, and sustainable.
Building on existing marine life protections, we have 
developed a new lower-noise installation method, which 
strengthens existing protections to marine life. We suc-
cessfully tested the innovative installation method on 
three monopile foundations at our German offshore wind 
farm Gode Wind 3. Beyond the noise reduction, this new 
technology is a step change in offshore wind monopile 
installation that, once adopted at scale, can provide 
more efficient and cost-effective installation of offshore 
wind foundations.
Building on previous trials and expertise using drones at 
offshore wind farms, we have launched the world’s first 
heavy-lift cargo drone operations at the Borssele 1 & 2 
Offshore Wind Farm. The drones, which can transport 
cargo of up to 100 kg, will improve operational 
efficiency and safety in the offshore wind industry.
We continue to lead in leveraging innovative tech­
nolo­gies to enhance biodiversity monitoring across our 
projects. In 2024, we have made significant advance-
ments by using artificial intelligence (AI) to make bio-
diversity assessments more efficient and precise. This 
includes integrating machine learning models and 
improving the use of underwater video footage with 
computer vision techniques. These efforts align with our 
ambition to deliver a net-positive biodiversity impact on 
all new renewable energy projects commissioned from 
2030, at the latest.
Delivering on sustainability 
Through our three strategic sustainability priorities – 
decarbonisation, biodiversity, and community impact – 
we continued to deliver actions that drive value for our 
business as well as nature and people. In 2024, we had a 
key focus on efforts that support project development 
and business resilience. An overview of the selected 
progress can be seen on page 26.
We continued to push for the further integration of 
sustainability into our business – to support that 
sustainability impacts, risks, and opportunities are 
consistently considered in decisions, ranging from what 
we source to how we develop, construct, operate, and 
decommission our projects. As part of this, we began to 
further detail and develop roadmaps – to break down our 
ambitions into structured short- to medium-term actions 
and milestones. Going forward, this will support that all 
relevant business functions have a strong understanding 
of their roles in and responsibilities for executing on 
sustainability. We will continue this work in 2025. 
To strengthen a successful integration of sustainability 
into the business, we updated our sustainability 
governance with a clear accountability and leadership 
focus at the Group Executive Team level. 
Sustainability information  
in the annual report 
Sustainability information can be found in both the ‘Manage-
ment’s review’ and the ‘Sustainability statements’. The latter 
is structured according to the four mandated sections in the 
European Sustainability Reporting Standards (ESRS): ­‘General’, 
‘Environment’, ‘Social’, and ‘Governance’, where most of our 
ESRS disclosures can be found. However, we have chosen to 
incorporate some disclosures from the cross-cutting standard 
ESRS 2 and ESRS G1 by reference in the management’s review. 
Primarily, this includes information about corporate govern-
ance, strategy, and enterprise risk management.
In 2024, we conducted a double materiality assessment 
(DMA) to identify and assess our material sustainability-
related impacts, risks, and opportunities (IROs). We work 
continuously to integrate sustainability into our strategy and 
business model and to effectively manage these IROs. 
Please see the ‘Sustainability statements’ to read more, 
including the full details of our sustainability-related IROs, 
actions, and performance. 
The specific ESRS disclosures incorporated by reference in  
the ‘Management’s review’ are marked with a tag, starting 
with ‘// ESRS’ and ending with ‘//’.
Sustainability 
statements
General
Environment
Social
Governance
Management’s  
review
Strategy and business 
Corporate governance
24
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

18.2 GW
7.6 GW
5.2 GW
31.0 GW
1,498 MW
Baltica 2
Commercial operation date: 
H2 2027 
FID taken in January 2025. Large 
share of CAPEX contracted. 
1,255 MW 1
Baltica 3
Commercial operation date: 
n.a.
Working collaboratively on the  
reconfiguration and revised  
schedule of Baltica 3, together  
with our partner PGE.
2,400 MW
Hornsea 4
Commercial operation date:
Before end of 2030 
Project in development phase. 
9.9 GW
Offshore wind
6.2 GW
Onshore renewables
2.1 GW
CHP plants
2024  →
2024
2024
920 MW 
Greater Changhua 2b and 4
Commercial operation date:
H2 2025 
Installation of the offshore substa-
tion jacket and topside completed. 
Continued progress on production of 
array cables and foundations. Vessel 
capacity secured and first power 
expected during summer 2025.
913 MW
Borkum Riffgrund 3
Commercial operation date: 
Q1 2026
All foundations and turbines 
installed as planned. 
253 MW
Gode Wind 3
Commercial operation date:
Q1 2025
The offshore wind farm is ­producing 
at full capacity and expected to 
reach COD in Q1 2025.
704 MW
Revolution Wind 
Commercial operation date: 
2026 
Onshore substation construction 
and piling of monopile for offshore 
substation progressing according 
to updated schedule. 80 % of the 
­monopiles have been installed,and 
turbine installation is progressing.
924 MW
Sunrise Wind
Commercial operation date: 
H2 2027 
Onshore construction and prepara-
tion works are progressing. Offshore 
installation is commencing in Q1 
2025. 
2,852 / 300 MW
Hornsea 3 / storage (BESS)
Commercial operation date: 
H2 2027 
Onshore works on converter sta-
tions and cable routes progressing 
according to schedule. First offshore 
activities to commence in 2025. 
BESS ­construction to commence in 
Q2 2025. 
259 MW
Badger Wind
Commercial operation date: 
2025 
FID taken in October. Construction 
has commenced.
250 MW
Old 300 storage (BESS)
Commercial operation date:  
2026 
FID taken in Q4. Construction is 
expected to commence in Q1 2025.
262 MW
Onshore Europe
Commercial operation date:  
2025 – 2026 
Construction of our onshore  
renewable assets is on track.
2027
2024  →
Installed capacity
Decided (FID)
Awarded
Installed, decided (FID), and awarded
Build-out
Gross renewable capacity
27.3 GW
Capacity installed  
and under construction
With the FID of Baltica 2 (1,498 MW) 
in January 2025, we have line of 
sight on a significant expansion of 
capacity through projects currently 
under construction. 
~35 GW 
Substantiated pipeline
Projects that have reached a level of 
maturity, such as secured ­exclusivity 
through a lease or site, secured 
­consent or environmental impact 
assessment (EIA), or established 
partner­ships where no final invest-
ment decision has been taken yet.
↓ 
For progress on our strategic  
sustainability priorities, see next page.
1  Capacity includes both 
Baltica 3 (1,045 MW) and the 
awarded lease capacity for 
Baltica 2+ (210 MW). Baltica 2+ 
has not received a CfD on the 
terms stated for Baltica 3.
25
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

Sustainable build-out 
Selected 2024 actions across strategic sustainability priorities
Decarbonisation 
In only 15 years, we have entirely transformed our business model 
from being a fossil utility to a global renewable energy company. 
We are taking action to tackle all emissions across our business 
and value chain; in 2024 moving a step closer to doing so while 
creating a more resilient business.
Biodiversity 
The space required for the renewable energy transition is signif-
icant, and, with a nature in crisis, it is vital that we make sure our 
energy projects benefit nature. We continued taking action to 
deliver on our ambition that all new renewable energy projects 
commissioned from 2030, at the latest, will have a net-positive 
biodiversity impact.
Community impact 
A large-scale build-out of renewable energy can only be achieved 
if people are at the center of how it is delivered.In 2024, we con-
tinued to integrate local jobs, training, and community engage-
ment into our project delivery.
Shut-down of our last coal-fired combined heat and power plant
This was the last big milestone in transforming our energy gen-
eration to renewable energy. We have now taken all necessary 
actions to meet our industry-leading science-based target to 
reduce our scope 1-2 GHG emissions intensity by 98 % compared 
to 2006 and achieved a 99 % green share of energy generation 
by 2025. 
Pioneering lower-emissions steel 
We continued to push for the decarbonisation of materials essen-
tial to renewable energy, signing a long-term offtake agreement 
for lower-emissions heavy plate steel with our supplier Dillinger. 
The agreement secures Ørsted first offer and ensures a more 
diversified supply and secure capacity of steel, while supporting 
Dillinger’s efforts to decarbonise steel production. 
Reuse and recycling of blades and towers
Reuse and recycling of turbine components and materials is key 
to lower emissions and costs and to diversifying supply. In the 
decommissioning of our wind farm Owenreagh 1 in Northern 
Ireland, we sent turbine towers for reuse while the blades were 
sent to be recycled, reflecting our commitment to not send  
blades to landfill.
Launching our ‘Biodiversity measurement framework’ 
Transparently measuring and reporting on our biodiversity impact 
is key to demonstrating the potential of renewable energy in 
delivering benefits to nature. We are the first in the offshore 
industry to deliver a science-based framework, and we hope it 
will help accelerate collective industry consensus and action by 
establishing a clear approach. 
Business for Nature (BfN) approval of our nature strategy 
Recognising our holistic and ambitious approach to protecting 
nature, BfN approved our broader nature strategy that was 
launched in 2024. That makes Ørsted one out of the first 25 
companies globally to get this approval as part of BfN’s ‘Now for 
Nature’ campaign. 
Piloting net-positive solutions 
We have a global portfolio of innovative biodiversity projects, 
demonstrating the wide range of ideas we are testing to enhance 
nature. In Taiwan, for example, we are cultivating corals to grow 
on offshore wind turbines and have now finalised preparations to 
deploy the first ones in 2025. 
Training a local offshore wind workforce
Local people and businesses have a vital role to play in the 
growth of the renewable energy industry. In the US, we developed 
a workforce development programme that has provided 335 
union workers with the necessary credentials for working offshore. 
They can now safely and smoothly transition to offshore wind 
farm installation scopes.
Delivering additional value with renewable energy 
In connection with the construction of Hornsea 3 in the UK, we 
have launched a community benefit fund that will distribute up 
to GBP 7 million over ten years to invest in the region’s future. 
In 2024, 21 social and environmental groups were selected by 
an advisory panel formed of local representatives as the first 
to receive grants.
Assessing the impact of our community engagement 
We consistently work to learn from and optimise the impact of our 
community engagements. We completed three different pilots to 
measure the effectiveness of the local social value we deliver. The 
results will help us target investments to the areas that drive the 
greatest local benefits. 
For more information, see ‘Climate change’ (ESRS E1), page 81,  
and ‘Resource use and circular economy’ (ESRS E5), page 116.
For more information, see ‘Biodiversity and ecosystems’ (ESRS E4), page 108.
For more information, see ‘Affected communities’ (ESRS S3), page 145.
26
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

High
High
Low
Enterprise risk management
Risks are a natural and integral part of our business 
activities, and our risk profile changes continuously. 
We aim to mitigate our risks and reduce them to an 
acceptable level through risk management. 
How we manage risk
The Board of Directors oversees our risk management 
in general and have delegated the oversight of our 
enterprise risk management risks to the Board’s Audit 
& Risk Committee. 
Our ‘Enterprise risk framework’ sets out the general 
principles, the roles and responsibilities, and the main 
processes by which all risks must be identified, assessed, 
managed, monitored, and communicated throughout 
the Group. This framework is being strengthened to 
support consistent processes for managing risks at 
Ørsted and to enable informed decisions on risk-taking 
to be made. Targeted initiatives are being run in the 
context of the ‘Enterprise risk framework’, including an 
enterprise-wide programme to implement the new 
regulatory requirements under the European Network 
and Information Security Directive (NIS2).
We have continued to strengthen risk management 
in relation to the development and construction of 
assets during 2024, where we have seen substantial 
adverse impacts on our business risks in recent years. 
This includes the roll-out of the new operating model 
for offshore asset projects, including a revised stage 
gate model with independent project reviews, and 
a dedicated offshore project risk management 
framework. The focus on contingency planning 
(including more proactive contracting for back-up 
supply chain capacity) and monitoring suppliers 
(including from site visits to tracking manufacturing 
progress) has continued during the year. Furthermore, 
the Board of Directors has established an Asset 
Project Committee, which has regular updates on 
project execution and monitoring of risks as its key 
focus. Risk reviews are being carried out for selected 
projects and reported to the Group Executive Team 
and the Board of Directors. 
We will also continue our work to manage future 
breakaway profiles for asset projects by scrutinising 
financial commitments before taking final investment 
decision (FID) to avoid high capital commitments rela­
tive to project maturity and to ensure greater flexibility 
on project timelines and commissioning dates as well 
as phasing of CAPEX. 
How we assess risk
Risk assessment is carried out on an ongoing basis in 
all business segments and regions as part of our daily 
business operations. 
In addition, we have performed an annual risk assess-
ment with the overall objective of identifying and 
reporting on our most significant risks. This is carried 
out through an assessment of the main risks across 
all business segments, regions, and selected staff 
­functions. An assessment is made of the potential 
financial impact of the main risks, which are then 
Top 7 business risks
Effect on our value and credit metric
1	 (#1 in 2023)
	
Supply chain and cost inflation
2	 (#3 in 2023)
	
Farm-downs and partnerships
3	 (New in 2024)
	
Project execution
4	 (#5 in 2023)
	
Cybersecurity
5	 (#2 in 2023)
	
Inflation, interest rate, and currency risks
6	 (#4 in 2023)
	
Power prices and energy markets
7	 (New in 2024)
	
US regulatory risks
→
Quantification of risks is based on a scenario where the risk 
occurs with 10 % probability (P90). Our Internal Audit function 
has examined the process for identifying and measuring the 
accompanying portfolio risks.
Impact on FFO/adjusted interest-bearing net debt
Impact on value
consolidated and evaluated at Group level. Overall 
ownership for all mitigating actions for individual risks 
identified as part of the annual risk assessment rests 
with a member of the Group Executive Team.
The top six enterprise risks identified are shown to the 
right where they are illustrated based on their poten-
tial impact (post-risk mitigation) on our value and 
credit metrics over the next years. You can read more 
about these risks and how we mitigate them on the 
following pages. 
In addition to these top risks, we are exposed to risks 
which have a very small probability of occurring, 
but which could potentially impact our finances or 
reputation substantially. 
Development in enterprise risks in 2024
We have introduced ‘Project execution’ as a new sixth 
risk and ‘US regulatory risks’ as a new seventh risk 
in 2024, and we have seen changes in the relative 
importance of our top risks from last year.
‘Supply chain and cost inflation’ is still assessed to be 
our largest risk. Supply chains are suffering delays, 
and the financial position of our suppliers continues to 
be stretched. While considering alternative suppliers, 
27
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

we are is facing higher prices as the current strong 
demand for the development of renewable projects 
still exceeds the supply available. Throughout the 
year, we have seen bottlenecks in several parts of our 
supply chain, leading to increased costs and risk of 
delayed projects.
‘Farm-downs and partnerships’ is placed as our second-­
largest risk. Higher interest rates and increased global 
geopolitical uncertainty continue to negatively impact 
investor demand for renewable assets. There is an 
increasing number of renewable assets being put 
up for sale by companies who are looking to reduce 
their capital exposure or rebalance their investments 
to assets where they can access higher returns. 
This greater competition for capital has led investors 
to be more selective in their choices. 
We assess ‘Project execution’ to be our third-largest 
risk. Wind projects are large and complex in nature 
and may encounter obstacles, from both internal and 
external factors, causing delays and cost overruns. 
All projects have completion deadlines, and failure to 
meet these may result in partial or full loss of subsidies, 
grid connections, and/or project rights. Ongoing 
initiatives to strengthen project risk management 
highlight the importance of managing this core risk 
to Ørsted’s business and enabling future growth.
‘Cybersecurity’ has moved up to be our fourth-largest 
risk. The geopolitical development over the past 
years has shown that cyberattacks are an increased 
threat to our operations. It is of the utmost importance 
that we protect our infrastructure and systems from 
malicious attacks. Furthermore, we can see that the 
demand for cybersecurity professionals continue to 
rise and currently outpace availability.
‘Inflation, interest rate, and currency risks’ is now 
assessed to be our fifth-largest risk, and ‘Power prices 
and energy markets’ is assessed as our sixth risk in 2024. 
Both risks have moved down in ranking in 2024, mainly 
because other risks have increased in magnitude. Lastly, 
‘US regulatory risks’ has been added as our seventh 
largest risk due to potential changes compared to 
the current treasury guidance on the qualification 
for bonus ITCs.
// ESRS 2, IRO-1
Sustainability-related risks
Managing and evaluating sustainability-related risks 
as part of ongoing risk management activities is 
essential for all companies, not least for those in the 
renewable energy sector. While we have worked with 
and reported on sustainability risks for many years, we 
support the added transparency and standardisation 
provided by the Corporate Sustainability Reporting 
Directive (CSRD) – and see it as a way of working in 
addition to being a reporting framework. For several 
years, we have used the Task Force on Climate-related 
Financial Disclosures (TCFD) recommendations as a 
foundation for building our climate risk assessments. 
These assessments, as well as our EU taxonomy 
reporting, are now integrated into the climate change 
section in our sustainability statements. //
The CSRD mandates reporting on environmental, 
social, and governance (ESG) practices and adher-
ence to a double materiality assessment (DMA). 
These assessments are used to identify and disclose 
material sustainability impacts and financial risks 
and opportunities, inform areas for development, 
and track progress annually, ensuring sustainability-­
related financial risks are considered together with 
the broader risk portfolio. 
// ESRS 2, IRO-1
Based on the DMA performed in 2024, the magnitude 
of the identified sustainability-related financial risks 
were below the magnitude of the enterprise risks 
presented on the previous page. During 2025, we 
will further align the sustainability risk assessment 
between the DMA and enterprise risk framework. // 
We have identified seven of the ten ESRS topical 
standards under the CSRD to be material. These are 
‘Climate change’ (ESRS E1), ‘Biodiversity and ecosys-
tems’ (ESRS E4), ‘Resource use and circular economy’ 
(ESRS E5), ‘Own workforce’ (ESRS S1), ‘Workers in the 
value chain’ (ESRS S2), ‘Affected communities’ (ESRS 
S3), and ­‘Business conduct’ (G1). A detailed description 
of the DMA methodology and results can be found in 
the ‘Sustainability statements’ on pages 67-74.
↑  Offshore wind technicians,  
Anholt Offshore Wind Farm, Denmark.
28
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

1. Supply chain and cost inflation
Description
As a global renewable energy developer, we are exposed 
to risks related to cost inflation due to highly volatile 
prices, driven by high global demand and opportunistic 
supplier pricing. 
There is a continued risk of supply chain bottlenecks, 
due to the limited number of suppliers with required 
capabilities. We have onboarded new suppliers; 
however, this introduces a risk that some do not meet 
the performance expectations or standards initially 
contracted. Increased costs and supply chain shortages 
are worsened by further barriers from geopolitical and 
regulatory risks. 
We also face credit and counterparty risks when procuring 
equipment and services, if one of our suppliers should 
default or deliver unsatisfactory products.
Potential impact
The inability of our suppliers to deliver on agreed 
schedules, lack of available production capacity or 
transportation and installations vessels, and sudden 
inflation in key materials could result in project delays 
and budget overruns as well as cancellation of projects.
Mitigating actions
We enter into volume agreements and source wind 
turbines from key suppliers in a timely manner to reduce 
uncertainty, and we have entered into long-term vessel 
supply contracts. As part of our strengthened operating 
model, we pro-actively secure additional capacity for 
restricted supply chain sources to have more flexibility 
and alternatives in our project plans and installation 
schedules, and we monitor suppliers, e.g. by tracking 
manufacturing progress. 
To mitigate cost inflation risks, we carry out hedging for 
steel and other commodities on an asset project basis.
Our process for vetting new suppliers is thorough, and we 
have strict credit risk policies in place to manage credit 
and counterparty risks.
2. Farm-downs and partnerships
Description
Our partnership strategy continues to be a cornerstone 
in managing our financial planning and reaching our 
strategic ambition, with a sizeable number of farm-
downs, full divestments, and joint venture partnerships 
expected in the coming years. This entails risks related 
to delays, lower proceeds, the lack of potential buyers, 
regulatory and contractual restrictions, and the 
macroeconomic environment. 
There is an increased competition for capital, which is 
leading investors to be more selective in their choices, 
and in addition, buyers are increasingly seeking for 
Ørsted to insulate them from project risks, for example 
during the construction phase, which can increase the 
impact of any negative developments in the individual 
projects post-divestment on us.
Potential impact
Failure to complete future farm-downs of projects or 
delays could lead to an adverse impact on our credit 
rating and value. Furthermore, increasing interest 
rates could have a negative impact on the investment 
capacity and on the value extracted from partnerships.
Mitigating actions
We have years of experience in handling all aspects of 
divestment and partnership processes with a strong 
track record of creating value through our partnership 
model. 
Our highly experienced team is capable of not only 
managing the equity transaction; it also takes the lead 
on structuring the financing package together with or 
on behalf of our partners.
We continuously engage with current and future 
investors and partners to help secure demand for our 
portfolio of assets.
3. Project execution
Description
Offshore wind projects are large and complex in nature 
and may encounter obstacles, both from internal and 
external factors, leading to installation challenges 
impacting project execution, delays to construction 
schedules, and cost overruns. The risk has increased in 
the US, due to the uncertainty around the newly issued 
executive orders.
Potential impact
All projects have completion deadlines, and failure to 
meet these may result in partial or full loss of subsidies, 
grid connections, and/or project rights, leading to 
adverse impacts on financial metrics. Delays and 
technical challenges can lead to cost-overruns during 
the project execution phase. In the worst case, this risk 
may lead to impairments or projects being cancelled 
and subsequently high breakaway costs incurred. 
Mitigating actions
Throughout the year, we have strengthened the risk 
management activities during the construction phase 
for offshore asset projects. We have implemented a 
new operating model with a dedicated offshore project 
risk management framework, including independent 
project reviews, under a revised stage gate model. 
In addition, we are planning a roll-out of a stronger 
portfolio governance framework, targeting an early 
and consistent identification of risks and management 
of trade-offs. We carry out risk reviews for selected 
projects and report to the Group Executive Team and 
the Board of Directors, and we regularly report the status 
on project execution progress and project risks to the 
newly established Asset Project Committee. 
4. Cybersecurity
Description
We face significant cybersecurity risks from individuals, 
groups, and nations, aiming to harm or profit from the 
company or the society it serves. Cyberthreats can range 
from compromising a single asset to disrupting entire 
operations and societies. Europe’s diversified energy 
sources make us a potential target for cyberattacks, 
as our critical knowledge in innovation and technology 
attract threats or actors seeking confidential informa-
tion and access to critical national infrastructure.
Potential impact
Minor digital risk events, such as viruses and attempted 
break-ins, are everyday risks without significant impact. 
However, a ransomware attack or direct sabotage of 
our digital systems and processes could severely impact 
trading activities, financial settlements, maintenance, 
construction, and contract negotiations. Dependence 
on the enterprise environment means energy production 
would be affected, with the impact increasing the longer 
the disruption continues.
Mitigating actions
We face different types of cyber risks. Some are related 
to our assets and some to our systems. Thus, we mitigate 
cyber risks with several different initiatives, which are 
continuously assessed and prioritised based on our 
strategic cybersecurity risk assessment with the aim of 
lowering our risk exposure.
At our operating assets, we have deployed production 
cyberdefences to enhance protection against onsite and 
offsite attacks. In addition, we have a top-level information 
and cybersecurity management system and framework, 
supported by our global governance model. We have 
regular trainings and roll-out of new security measures 
as they are approved. We also carry out selected crisis 
response and preparedness testing and training.
This way, our cyber capability is continuously improved 
to identify, protect, detect, respond, and recover across 
the enterprise and production sites.
29
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

5. Inflation, interest rate, and currency risks
Description
Our inflation, interest rate, and currency risks are related 
to volatility in the macroeconomic environment where 
we operate. 
We are exposed to inflation, both directly through the 
real return but also indirectly through cost inflation  
and higher interest rates. Approx. 50 % of our revenue in 
2025-2030 is inflation-indexed and expected to follow 
the development in consumer prices, thereby protecting 
the real value of our assets and equity. However, for 
assets and in markets where we do not have inflation-
indexed PPAs or subsidies, we are exposed to inflation 
risks, where an increase in inflation will adversely impact 
the expected real value of our revenue.
Potential impact
Fluctuations in interest rates, inflation, and foreign 
exchange rates may adversely impact our earnings and 
the value of our assets.
Mitigation initiatives
We prefer investing in assets and entering into contracts 
with inflation-indexed revenue streams to mitigate cost 
inflation, and we match our debt with our assets per 
currency and the same payment structures (modified 
duration). Hence, our European fixed nominal subsidies 
are being offset by EUR-denominated fixed-rate debt. 
In contrast, we have entered into inflation swaps for 
part of our inflation-indexed revenue in the UK to match 
our nominal GBP debt. In new markets, we may execute 
interest rate swaps to lock in interest rates before financing 
is secured.
Our currency exposure is managed by hedging more in 
the near years and less in the later years over a five-year 
horizon. 
Read more about inflation and interest rate risks in note 
6.3 ‘Inflation and interest rate risks’ and about currency 
risks in note 6.4 ‘Currency risks’.
6. Power prices and energy markets
Description
Power price risks primarily originate from the sale of 
our renewable power generation in the UK, the US, 
and north-western Europe. Our CHP plants constitute 
a spread risk due to the difference between the prices 
of the power generated and the fuel consumed (i.e. 
biomass, gas, and carbon dioxide allowances). 
We are also exposed to second-order risks, arising from 
power price hedges not fully matching our actual revenue 
exposure (i.e. position, intermittency, and regulatory risks). 
Furthermore, we are exposed to liquidity risks where 
we are required to post collateral at exchanges if our 
positions are ‘out of the money’ (which was the case 
when the energy prices soared throughout 2022). 
Potential impact
Energy prices are volatile and can impact both earnings 
and liquidity.
Mitigating actions
Approx. 85 % of our expected revenue from generation 
of power from renewable offshore and onshore assets in 
2025-2030 have no exposure to power price risk as the 
price is either regulated through subsidies or contracted 
through CPPAs. This significantly reduces our exposure 
towards volatility in power prices.
We manage the remaining 15 % of our exposure through a 
hedge framework, under which we hedge up to 70 % of the 
power generation volume in the first two years. The 70 % 
limit is set based on an assessment of the uncertainties 
related to power generation volumes. The hedge level is 
based on a holistic assessment of the risk profile of the 
combined offshore and onshore assets as well as the 
balance between market, credit, and liquidity risks.
Read more about our risk framework and energy price risks 
in notes 6.1 ‘Risk framework’ and 6.2 ‘Energy price risks’.
Legal compliance
Description
Risks associated with legal compliance are assessed 
based on financial and reputational significance and 
probability. Our most significant risks are 1) tax law, 
2) financial regulation, and 3) tender law. (1) We operate 
in tax regimes with different tax rules and rates, and our 
tax affairs span over corporate tax compliance, transfer 
pricing, and indirect taxes. (2) We are subject to several 
financial regulations, such as REMIT, MAR, EMIR, Dodd 
Frank, MiFID, SFTR, and AML1. The financial regulations 
are relevant for a large part of our activities. (3) Many 
of our purchases of goods, services, and work in the EU 
are subject to EU and local tender rules. 
Potential impact
Failure to comply with the above-mentioned rules and 
regulations may result in severe legal sanctions, such as 
imprisonment, fines, and damage claims, but will also 
impact sourcing processes and subsequently increase 
the risk of project delays.
Mitigating initiatives
(1) We have implemented a comprehensive tax control 
framework and a mandatory compliance framework, 
including transfer pricing documentation, in line with 
OECD recommendations and local requirements. This 
has been prepared on a contemporary basis to mitigate 
our tax risks. (2) We have implemented comprehensive 
policies, procedures, training, and controls for relevant 
parts of our business to ensure compliance with finan-
cial regulations. We also carry out regular training on 
relevant regulatory topics. (3) To ensure compliance with 
tender laws, our legal team carries out training courses 
for procurement teams and e-learning targeted for new 
employees and has developed comprehensive guide-
lines on how to apply the standard tender documents. 
The legal team also works closely together with the 
­procurement team on major tenders.
7. US regulatory risks
Description
Ørsted is exposed to potential changes in energy policy, 
tax incentives, and regulatory frameworks in the US. 
This leads to risks relating to permitting and regulation, 
grid infrastructure, carbon standards, and trade policies 
as well as the ability to qualify for the additional 10 % 
ITC bonus credits on our US offshore wind projects 
Revolution Wind and Sunrise Wind. In our business cases, 
we have included a 95 % probability of qualifying for 
the additional 10 % ITC bonus credits based on our 
assessment that the onshore substations are located 
on brownfield sites as defined by the current ‘energy 
community’ guidance.
 
Potential impact
If our US offshore projects Revolution Wind and Sunrise 
Wind fail to qualify for additional 10 % ITC bonus credits, 
it will lead to adverse financial impacts, including further 
impairments of approx. DKK 5.1 billion. See more in note 
3.2 ‘Impairments’, where we have included sensitivity 
analyses of impairment effects if assumptions to ITC 
bonus credits change. 
 
Mitigating actions
Actions to mitigate risks are ongoing, such as tracking 
and mitigating tariff risks on components. Our highly 
experienced market-facing team is continuously working 
on a good and constructive dialogue with relevant 
stakeholders in the US administration regarding any 
potential changes on tax incentives, and we rely on the 
solid existing guidance and current frameworks issued. 
We also include sensitivities on forward-looking tax 
equity assumptions in our business cases. 
30
Management’s review  |  Strategy and business
ØRSTED ANNUAL REPORT 2024

→
The jack-up vessel Seaway Ventus successfully installed the  
first of the 83 offshore wind turbines that will make up Borkum  
Riffgrund 3 in Germany in June 2024. When complete, the  
offshore wind farm will be Germany’s largest, with an installed 
capacity of 913 MW. It is also the first in the world to have been 
awarded without any subsidies.
Performance
32	
Full-year results
36	
Five-year summary
37	
Fourth quarter
42	
Quarterly summary, 2023-2024
31
Management’s review 
ØRSTED ANNUAL REPORT 2024

Full-year results
Financial results
Revenue
Power generation from offshore and onshore assets 
increased by 9 % and totalled 33.9 TWh in 2024. 
The increase was due to ramp-up of generation from 
our offshore wind farms Greater Changhua 1 and 2a, 
South Fork, and Gode Wind 3, our onshore wind farm 
Sunflower, and our solar PV farms Sparta Solar (part 
of Helena Energy Center), Eleven Mile Solar Center, 
and Mockingbird. Furthermore, we had higher wind 
speeds across our portfolio. This was partly offset by 
lower availability at Hornsea 1 and 2 due to electrical 
infrastructure issues in the export transmission cables, 
resulting in periods with curtailment in H1 2024. 
­Further, bad weather conditions in the US in Q1 2024 
affected our onshore assets, and the divestment of 
London Array in Q3 2023 impacted the year-on-year 
comparison.
Heat generation increased by 5 % in 2024, mainly due 
to colder weather in Q1. Thermal power generation 
increased by 2 %, mainly due to more attractive spreads. 
Our renewable share of generation amounted to  
97 %, an increase of 4 percentage points compared  
to last year.
Revenue amounted to DKK 71.0 billion. The decrease 
of 10 % relative to 2023 was mainly due to lower 
power sales, mainly due to lower volumes sold on 
third-party contracts with limited impact on EBITDA.
EBITDA
Operating profit (EBITDA) for the year amounted 
to DKK 32.0 billion, DKK 13.2 billion higher than in 
2023. Adjusted for cancellation fees and new partner­
ships, EBITDA increased by DKK 0.7 billion (3 %) to 
DKK 24.8 billion.
The impact on EBITDA from cancellation fees amounted 
to an income of DKK 7.3 billion in 2024 and related 
to Ocean Wind 1 as well as the decision to cease 
construction of FlagshipONE. As regards Ocean Wind 1, 
we have finalised the negotiations of several contracts 
with a better outcome than provided for in 2023, 
leading to a positive EBITDA impact. This was partly 
offset by costs related to fulfilling and cancelling 
contracts for FlagshipONE. In 2023, the cancellation 
fees related to ceasing development of the Ocean 
Wind 1 project. Earnings from new partnerships in 2023 
primarily related to the divestment of London Array.
EBITDA excluding new partnerships and cancellation fees
DKKbn
Other
Sites
CHP plants
0.0
Gas & Other
-0.5
0.2
Sites
3.6
Existing partnerships
-1.9
0.8
Other
Other
-1.6
0.2
2024
24.8
2023
24.0
Offshore
Bio & Other
Financial results
DKKm
2024
2023
%
Revenue
71,034
79,255
(10 %)
EBITDA
31,959
18,717
71 %
New partnerships
(127)
4,324
n.a.
Cancellation fees
7,335
(9,621)
n.a.
EBITDA excl. new partnerships and cancellation fees
24,751
24,014
3 %
Depreciation and amortisation
(10,225)
(9,795)
4 %
Impairment (loss)/reversal
(15,563)
(26,775)
(42 %)
Operating profit (loss) (EBIT)
6,171
(17,853)
n.a.
Gain (loss) on divestment of enterprises
(11)
234
n.a.
Financial items, net
(3,591)
(1,443)
149 %
Profit before tax
2,606
(19,026)
n.a.
Tax on profit (loss) for the year
(2,590)
(1,156)
124 %
Tax rate
99 %
(6 %)
105 %p
Profit (loss) for the year
16
(20,182)
n.a.
Onshore
32
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Earnings from Offshore sites amounted to DKK 23.8 
billion, an increase of DKK 3.6 billion compared to 2023. 
The increase was due to higher wind speeds (DKK 0.4 
billion), ramp-up of generation at Greater Changhua 1 
and 2a, South Fork, and Gode Wind 3, and higher prices 
on green certificates and on the inflation-­indexed CfD 
and ROC wind farms. This was partly offset by the lower 
availability mentioned above and the divestment of 
London Array in Q3 2023. 
In addition, earnings in ‘Sites’ were positively impacted 
by DKK 0.9 billion of indirect costs to ‘Other’ due to a 
change in allocation method. This had no impact on 
total EBITDA for Offshore.
EBITDA from existing partnerships decreased by 
DKK 1.9 billion and amounted to a loss of DKK 1.0 
billion in 2024, which mainly related to updated 
assumptions and increased provision related to 
operation and maintenance of offshore transmission 
assets in the UK, higher costs for Borkum Riffgrund 3,  
which reduced earnings under the construction 
agreement, and minor adjustments related to farm-
downs completed in prior years.
EBITDA from our Onshore business excl. new partner­
ships amounted to DKK 4.0 billion, DKK 1.0 billion 
higher than in 2023. The increase was due to ramp-up 
of generation at Sunflower, Sparta Solar, Mockingbird, 
and Eleven Mile Solar Center. This was partly offset by 
periods with bad weather conditions in the US in Q1 
2024, resulting in lower availability and generation. 
EBITDA from our CHP plants amounted to DKK 1.2 
­billion in 2024, in line with last year. 
EBITDA from our gas business totalled DKK 0.2 billion 
in 2024, DKK 0.3 billion lower than last year. The 
decrease was the result of a positive revaluation of our 
gas at storage in 2023, which was not repeated to the 
same extent in 2024. 
Impairment
Impairment losses had a negative effect in 2024 of 
DKK 15.6 billion. The main contributors to the net 
impairment were construction delay and increased 
costs for Sunrise Wind (DKK 4.3 billion) and Revolution 
Wind (DKK 3.8 billion), lower valuation of our seabed 
leases (DKK 4.1 billion), an increase in the US long-
dated interest rate (DKK 2.7 billion across our US 
portfolio), and our decision to cease construction of 
FlagshipONE (DKK 1.5 billion). This was partly offset by 
a reversal on our Sunrise Wind project (DKK 1.8 billion) 
due to its award of a higher OREC by the State of New 
York. Impairments in 2023 amounted to DKK 26.8 
billion, of which DKK 20 billion related to Ocean Wind 1. 
See note 3.2 ‘Impairments’ for more information.
EBIT
EBIT increased by DKK 24.0 billion to DKK 6.2 billion 
in 2024. This was mainly due to the higher EBITDA, of 
which cancellation fees accounted for DKK 17.0 billion 
(positive impact in 2024 of DKK 7.3 billion and negative 
impact in 2023 of DKK 9.6 billion), partly countered 
by the DKK 11.2 billion higher impairments in 2023. 
Adjusted for cancellation fees and impairments, EBIT 
amounted to DKK 14.4 billion, down DKK 4.1 billion 
compared to 2023 due to lower earnings from new 
partnerships. 
Financial income and expenses 
Net financial income and expenses amounted to 
DKK -3.6 billion compared to DKK -1.4 billion in 2023. 
The higher net expenses were mainly due to gains 
on interest rate swaps in 2023 not being eligible for 
hedge accounting and from negative exchange rate 
adjustments.
Tax and tax rate 
Tax on profit for the year amounted to DKK 2.6 ­billion, 
DKK 1.4 billion higher than last year. The tax rate in 
2024 was 99 % and was negatively affected by the 
recognition of deferred tax liabilities related to tax 
equity contributions for US projects and net unrecog­
nised deferred tax assets, including effects related 
to impairment losses and cancellation fees. In 2023, 
the tax rate of -6 % was affected by non-taxable 
gains on London Array and Gode Wind 3, unrecog-
nised deferred tax assets related to impairment losses 
and ­cancellation fees, and a reversal of a recognised 
deferred tax liability in the US related to the tax equity 
partnership for Ocean Wind 1. See note 4.2 ‘Tax on 
profit (loss) for the year’.
Profit for the year
Profit for the year totalled DKK 0.0 billion, DKK 20.2 
billion higher than in 2023. The increase was mainly 
due to higher EBITDA and lower impairments. Adjusted 
for cancellation fees and impairments (after tax), profit 
for the year amounted to DKK 6.4 billion, a decrease 
of DKK 8.5 billion compared to 2023, driven by lower 
earnings from new partnerships, higher net finance 
costs, and higher tax, which was only partly offset by 
higher underlying EBITDA. 
EBITDA
Offshore 84 %
Onshore 
13 %
Bioenergy 
& Other 
3 %
DKK 32.0 bn
33
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Cash flows and net debt
Cash flows from operating activities
Cash flows from operating activities totalled DKK 18.4 
billion in 2024 compared to DKK 28.5 billion in 2023 
with negative year-over-year contributions from can-
cellation fee payments, construction contracts, paid 
taxes, and lower receipt of previous margin payments. 
This was partly offset by higher tax equity contributions 
and part of the proceeds from the partial divestment of 
four UK wind farms being booked as a prepayment. 
 
During 2024, we had a net cash outflow of DKK 6.3 
billion from payments of cancellation fees regarding 
Ocean Wind 1. These payments are part of ‘Change 
in provisions’, which furthermore reflects the DKK 7.3 
billion non-cash change in provision we have reserved 
through EBITDA in 2024 as mentioned above. In 2023, 
we paid DKK 1.5 billion in cancellation fees and had an 
opposite impact on ‘Change in provisions’ related to 
the DKK 9.6 billion non-cash cancellation fee provision 
recognised in EBITDA. At the end of 2024, the remain-
ing provision related to the Ocean Wind 1 cancella-
tion fee amounted to DKK 1.6 billion.
During 2024, we released DKK 1.8 billion, net, in varia-
tion margin payments on unrealised hedges (‘Change 
in variation margin’) and initial margin payments at 
clearing houses (part of ‘Change in other working 
­capital’), whereas we released DKK 9.3 billion in 2023. 
The changes are specified as follows:
·	 The variation margin payments were a cash inflow 
of DKK 1.5 billion vs a cash inflow of DKK 7.1 billion 
in 2023. 
Cash flow and net debt 
DKKm
2024
2023
%
Cash flows from operating activities
18,356
28,532
(36 %)
EBITDA
31,959
18,717
71 %
Reversal of gain (loss) on divestment of assets
(349)
(5,745)
(94 %)
Change in derivatives, excl. variation margin
(892)
(2,812)
(68 %)
Change in variation margin
1,540
7,086
(78 %)
Change in provisions
(13,057)
8,454
n.a.
Other items
(129)
287
n.a.
Interest expense, net
(474)
1,384
n.a.
Paid tax
(6,327)
(2,717)
133 %
Change in work in progress
(3,803)
(722)
427 %
Change in tax equity liabilities
1,458
374
290 %
Change in other working capital
8,430
4,226
100 %
Gross investments
(42,808)
(38,509)
11 %
Divestments
15,680
1,542
917 %
Free cash flow
(8,772)
(8,435)
4 %
Net interest-bearing debt at 1 January
47,379
30,571
55 %
Free cash flow
8,772
8,435
4 %
Dividends and hybrid coupons paid
1,028
6,613
(84 %)
Addition of leasing obligations, net
1,076
978
10 %
Repurchase of hybrid capital, net
(1,813)
699
n.a.
Exchange rate adjustments, etc.
1,585
83
1,810 %
Net interest-bearing debt at 31 December
58,027
47,379
22 %
Gain (loss) on sale of assets is part of EBITDA but is presented as part of the ‘divestment’ cash flow.  
The EBITDA effect is thus reversed in the specification of cash flows from operating activities.
Key ratios 
DKKm, %
2024
2023
%
ROCE, %
4.5
(14.2)
19 %p
Adjusted interest-bearing net debt, DKKm
71,392
59,056
21 %
FFO/adjusted interest-bearing net debt, %
13.2
28.6
(15 %p)
ROCE and FFO/adjusted interest-bearing net debt is specified in notes 2 ‘Return on capital employed’  
and 5.1 ‘Interest-­bearing net debt and FFO’.
·	 The initial margin payments were a cash inflow of 
DKK 0.3 billion vs a cash inflow of DKK 2.2 billion 
in 2023.
In 2024, we had a net cash outflow from work in 
­progress of DKK 3.8 billion, mainly related to the 
­construction of the Hornsea 3 and Hornsea 4 off-
shore transmission assets and the construction of 
Gode Wind 3 for partners, partly offset by milestone 
payments received for Borkum Riffgrund 3 and Greater 
­Changhua 4. In 2023, we had a cash outflow of DKK 0.7 
billion, mainly related to construction of the Hornsea 3  
offshore transmission assets and work at Greater 
Changhua 1, partly offset by the sale of our remaining 
50 % of the Hornsea 2 offshore transmission assets.
In 2024, we received tax equity contributions for Eleven 
Mile Solar Center, Sparta Solar, and Mockingbird, while 
we received tax equity contributions for Sunflower 
in Onshore and South Fork in Offshore in 2023. In both 
years, ‘Change in tax equity’ includes a reversal of 
the non-cash recognition of tax credits and benefits 
through EBITDA.
‘Change in other working capital’ was positively 
affected by a DKK 6.2 billion prepayment of power 
related to the divestment of an equity ownership stake 
in a portfolio consisting of four UK offshore wind farms.
34
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Taxonomy-aligned KPIs
Read more about our EU taxonomy-aligned  
KPIs in our ‘Sustainability statements’.
Revenue  91 %
EBITDA  99 %
OPEX  86 %
Investments and divestments
Gross investments amounted to DKK 42.8 billion in 
2024. The main investments were:
·	 offshore wind farms (DKK 33.0 billion), including 
Greater Changhua 2b and 4 in Taiwan and our 
­portfolio of US and German projects 
·	 onshore wind and solar PV farms (DKK 7.4 billion), 
including the construction of Eleven Mile Solar Center, 
Mockingbird, Badger Wind, and our portfolio of 
European projects
·	 CHP plants (DKK 2.3 billion), including carbon 
­capture and storage facilities in Denmark.
In 2024, ‘Divestments’ amounted to DKK 15.7 billion 
and were mainly related to the divestment of an equity 
ownership stake in a portfolio consisting of four UK 
offshore wind farms and a portfolio of four US onshore 
wind farms, the farm-downs of Greater Changhua 4 and 
Mockingbird, the sale of the French part of our European 
Onshore portfolio, and customary compensation to our 
partners in Hornsea 1 for wake-loss effects. 
In 2023, ‘Divestments’ amounted to DKK 1.5 billion 
and were related to the divestment of London Array, 
a 50 % farm-down of Gode Wind 3, and our acquisition 
of Eversource’s 50 % ownership share of Lease Area 500 
and PSEG’s 25 % equity stake in Ocean Wind 1. As the 
two US acquisitions are with non-controlling share-
holders, they are not included in ‘Gross investments’ 
but as part of ‘Divestments’.
Interest-bearing net debt
Interest-bearing net debt totalled DKK 58.0 billion at 
the end of 2024 against DKK 47.4 billion at the end 
of 2023. The increase was mainly due to a negative 
free cash flow of DKK 8.8 billion, partly offset by net 
issuance of hybrid capital in 2024. 
Equity and capital employed
Equity 
Equity was DKK 93.5 billion at the end of 2024 against 
DKK 77.8 billion at the end of 2023. The partial divest-
ment of the four UK offshore wind farms and four US 
onshore wind farms contributed DKK 10.4 billion to 
non-controlling interests.
Capital employed
Capital employed was DKK 151.5 billion at the end 
of 2024 against DKK 125.2 billion at the end of 2023, 
mainly due to new investments. 
Financial ratios
Return on capital employed (ROCE)
Return on capital employed (ROCE) was 4.5 % in 2024. 
The increase of 19 percentage points compared to 
last year was attributable to a higher EBIT due to 
higher EBITDA and lower impairment losses in 2024. 
ROCE adjusted for impairment losses and cancellation 
fees in 2024 was 10.1 % vs 12.9 % in 2023. 
Credit metric (FFO/adjusted net debt)
The funds from operations (FFO)/adjusted net debt 
credit metric was 13.2 % in 2024 against 28.6 % in 
2023. The decrease was due to lower FFO and higher 
interest-bearing net debt. Adjusted for cancellation 
fee payments, the credit metric was 21.6 % in 2024.
ESG results
Renewable share of heat and power generation
The renewable share of heat and power generation 
amounted to 97 % in 2024, a 4 percentage point 
increase compared to 2023. The increase was driven 
by lower coal-based generation at the CHP plants.
Greenhouse gas emissions
Our greenhouse gas emissions from heat and power 
generation (scopes 1 and 2) decreased by 54 % in 2024 
compared to 2023, mainly due to a decrease in the 
use of fossil fuels, primarily coal, at our CHP plants. 
Our scope 1 and 2 greenhouse gas intensity decreased 
to 16 g CO2e/kWh in 2024 against 38 g CO2e/kWh in 
2023, mainly due to a decrease in scope 1 emissions 
(numerator) together with an increase in total heat 
and power generation (denominator). 
Our scope 1-3 greenhouse gas intensity (excluding 
gas sales) increased to 127 g CO2e/kWh in 2024 
against 80 g CO2e/kWh in 2023, mainly due to scope 3 
emissions from commissioned assets (capital goods). In 
2024, we commissioned four major solar farms in the 
US and three offshore wind farms in Taiwan and the 
US, whereas we only commissioned four onshore wind 
farms in 2023.
Safety
In 2024, we had 85 total recordable injuries (TRIs), 
of which 66 injuries were related to contractors’ 
employees. This was an increase of 12 injuries or 16 % 
compared to 2023. Total hours worked increased by 
20 %, resulting in a decrease in the total recordable 
injury rate (TRIR) from 2.8 in 2023 to 2.7 in 2024.
Gross investments  99 %
35
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Five-year summary
1	 In 2023, we changed our accounting policy on recognition of revenue from the settlement of failed own-use contracts related to power.  
The change only impacts revenue and cost of sales with no impact on EBITDA. The comparisons for 2022 have been adjusted, but 2020-2021  
numbers have not been adjusted. The related power volumes in 2022 and 2023 have consequently been netted. 
2	 For 2021-2020, these business drivers are for US only. 
Financial statements
DKKm
2024
2023
2022
2021
2020
Income statement
Revenue 1
71,034
79,255
114,417
77,673
50,151
EBITDA
31,959
18,717
32,057
24,296
16,598
Offshore
26,470
13,817
19,569
18,021
14,451
Sites, O&M, and PPAs
23,819
20,207
9,940
13,059
15,177
Construction agreements and divestment gains
(1,065)
5,218
12,277
7,535
1,593
Cancellation fees
7,335
(9,621)
-
-
-
Other
(3,619)
(1,987)
(2,648)
(2,573)
(2,319)
Onshore
3,863
2,970
3,644
1,349
1,112
Bioenergy & Other
1,082
1,523
8,619
4,747
824
Other activities
544
407
225
179
210
Depreciation and amortisation
(10,225)
(9,795)
(9,754)
(7,972)
(7,588)
Impairment
(15,563)
(26,775)
(2,529)
(129)
-
Operating profit (loss) (EBIT)
6,171
(17,853)
19,774
16,195
9,010
Gain (loss) on divestment of enterprises
(11)
234
331
(742)
10,831
Net financial income and expenses
(3,591)
(1,443)
(2,536)
(2,166)
(2,524)
Profit (loss) before tax
2,606
(19,026)
17,609
13,277
17,324
Tax
(2,590)
(1,156)
(2,613)
(2,390)
(1,776)
Profit (loss) for the year
16
(20,182)
14,996
10,887
15,537
Balance sheet
Assets
298,786
281,136
314,142
270,385
196,719
Equity
93,484
77,791
95,532
85,137
97,329
Shareholders in Ørsted A/S
62,138
56,782
71,743
64,072
81,376
Hybrid capital
20,955
19,103
19,793
17,984
13,232
Non-controlling interests
10,391
1,906
3,996
3,081
2,721
Interest-bearing net debt
58,027
47,379
30,571
24,280
12,343
Capital employed
151,511
125,170
126,103
109,416
109,672
Additions to property, plant, and equipment
46,985
37,954
33,662
43,941
28,442
Cash flow
Cash flows from operating activities
18,356
28,532
11,924
12,148
16,466
Gross investments
(42,808)
(38,509)
(37,447)
(39,307)
(26,967)
Divestments
15,680
1,542
25,636
21,519
19,039
Free cash flow
(8,772)
(8,435)
113
(5,640)
8,538
Financial ratios
Return on capital employed (ROCE), %
4.5
(14.2)
16.8
14.8
8.3
FFO/adjusted net debt, %
13.2
28.6
42.7
26.3
65.0
Number of outstanding shares, 31 December, ‘000
420,381
420,381
420,209
420,175
420,068
Share price, 31 December, DKK
324
374
631
835
1,244
Market capitalisation, 31 December, DKKbn
136
157
265
351
522
Earnings per share (EPS), DKK
(2.2)
(50.1)
34.6
24.3
38.8
Dividend yield, %
-
-
2.1
1.5
0.9
Business drivers
2024
2023
2022
2021
2020
Offshore
Decided (FID’ed) and installed capacity, GW
16.8
15.5
11.1
10.9
9.9
Installed capacity, GW
9.9
8.9
8.9
7.6
7.6
Generation capacity, GW
5.3
5.0
4.7
4.0
4.4
Wind speed, m/s
10.0
9.8
9.5
9.1
10.0
Load factor, %
42
43
42
39
45
Availability, %
88
93
94
94
94
Power generation, GWh
18,599
17,761
16,483
13,808
15,248
Power sales, GWh
19,967
21,448
23,194
25,020
29,152
Onshore
Decided (FID’ed) and installed capacity, GW
7.0
6.4
6.2
4.7
3.4
Installed capacity, GW
6.2
4.8
4.2
3.4
1.7
Wind speed 2, m/s
7.2
7.2
7.4
7.4
7.6
Load factor 2, wind, %
37
36
40
42
45
Load factor 2, solar PV, %
25
24
25
24
-
Availability 2, wind, %
90
88
93
96
96
Availability 2, solar PV, %
98
98
98
96
-
Power generation, GWh
15,315
13,374
13,146
8,352
5,738
Bioenergy & Other
Degree days, number
2,485
2,585
2,548
2,820
2,432
Heat generation, GWh
6,919
6,587
6,368
7,907
6,671
Power generation, GWh
4,522
4,437
6,012
6,890
4,438
Power sales, GWh
2,426
2,627
5,399
8,797
11,623
Gas sales, GWh
17,372
16,880
31,637
61,349
90,347
Sustainability statements
Employees (FTE), end of year, number
8,278
8,905
8,027
6,836
6,179
Total recordable injury rate (TRIR)
2.7
2.8
3.1
3.0
3.6
Fatalities, number
0
0
0
0
0
Renewable share of energy generation, %
97
93
91
90
90
GHG emission (scopes 1 & 2), million tonnes
0.7
1.6
2.5
2.1
1.9
GHG intensity (scopes 1 & 2), g CO2e/kWh
16
38
60
58
58
GHG intensity (scopes 1-3 excl. gas sales), g CO2e/kWh
127
80
147
165
162
GHG emissions (scope 3), million tonnes
9.0
5.6
11.0
18.2
25.3
36
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Onshore
Group financial performance 
EBITDA
Operating profit (EBITDA) for the fourth quarter 
amounted to DKK 8.4 billion, DKK 9.0 billion higher 
than in 2023. Adjusted for cancellation fees and new 
partnerships, EBITDA decreased by DKK 1.1 billion 
to DKK 7.6 billion. Of this, Offshore contributed with 
DKK 5.8 billion (down DKK 1.0 billion from Q4 2023), 
Onshore contributed with DKK 1.1 billion (up DKK 0.6  
billion from Q4 2023), and Bioenergy & Other ­con- 
tributed with DKK 0.9 billion (down DKK 0.6 billion from 
Q4 2023).
The impact on EBITDA from cancellation fees was 
an income of DKK 0.9 billion in Q4 2024 and related 
to changes in the provision for onerous contracts for 
Ocean Wind 1. New partnerships in Q4 2024 related to 
the divestment of Mockingbird and Greater ­Changhua 4, 
whereas new partnerships in Q4 2023 related to the 
divestment of Gode Wind 3. 
Impairment losses 
We had net impairments of DKK 12.1 billion in Q4 2024 
related to our US portfolio. The negative development 
was driven by an increase in long-dated interest rates 
in the US (DKK 4.3 billion across the portfolio), revalu-
ation of our Ocean Wind and Skipjack seabed leases 
(DKK 3.5 billion), as well as construction delays and 
higher expected costs due to increased risk related to 
Sunrise Wind (DKK 4.3 billion excl. interest rate impact). 
See note 3.2 ‘Impairments’ for more information. 
Fourth quarter
Financial results
DKKm
Q4 2024
Q4 2023
%
Revenue
21,077
21,530
(2 %)
EBITDA
8,353
(686)
n.a.
New partnerships
(127)
317
n.a.
Cancellation fees
926
(9,621)
n.a.
EBITDA excl. new partnerships and cancellation fees
7,554
8,618
(12 %)
Depreciation and amortisation
(2,571)
(2,366)
9 %
Impairment (loss)/reversal
(12,127)
1,647
n.a.
Operating profit (loss) (EBIT)
(6,345)
(1,405)
352 %
Gain (loss) on divestment of enterprises
34
(44)
n.a.
Financial items, net
(457)
2,001
n.a.
Profit (loss) before tax
(6,761)
557
n.a.
Tax
677
(841)
n.a.
Tax rate
10 %
151 %
(141 %p)
Profit (loss) for the period
(6,084)
(284)
n.a.
EBITDA excluding new partnerships and cancellation fees
DKKbn
Other
Sites
CHP plants
Gas & Other
-0.2
-0.4
-0.1
Sites
1.4
Existing partnerships
-1.3
0.3
0.3
Other
Other
-1.1
Q4 2024
7.6
Q4 2023
8.6
Offshore
Bio & Other
Tax and tax rate
Tax on profit for the quarter amounted to a net 
income of DKK 0.7 billion compared to an expense 
of DKK 0.8 billion in Q4 2023. The tax rate was 10 % 
and was impacted by net unrecognised deferred tax 
assets, including impairment losses and cancellation 
fees.
Cash flows from operating activities
Cash flows from operating activities totalled DKK 10.3 
billion in Q4 2024 compared to DKK 6.2 billion in Q4 
2023 with positive year-over-year contributions from 
a prepayment related to the partial divestment of four 
UK wind farms, tax equity contributions, and lower 
cash outflows related to financial instruments and 
construction contracts, partly offset by cancellation 
fee payments, higher paid taxes, and lower unwinding 
of previous margin payments. 
During Q4 2024, we had a net cash outflow of DKK 0.4 
billion from payments of cancellation fees regarding 
Ocean Wind 1 (part of ‘Change in provisions’). 
During Q4 2024, cash flows from variation margin 
payments on unrealised hedges (‘Change in variation 
margin’) and initial margin payments at clearing 
houses (part of ‘Change in other working capital’) 
were net neutral, whereas we released DKK 3.0 billion 
in Q4 2023.
37
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

In Q4 2024, we had a net cash outflow from work 
in progress of DKK 0.4 billion, mainly related to the 
construction of the Hornsea 3 offshore transmission 
assets and the construction of Borkum Riffgrund 3 
and Greater Changhua 1. This was partly offset 
by milestone payments from partners in Greater 
Changhua 4. In Q4 2023, we had a net cash outflow 
of DKK 1.8 billion, mainly related to the construction 
of the Hornsea 2 and Hornsea 3 offshore transmission 
assets and the construction of Greater Changhua 1 
and Borkum Riffgrund 3.
In Q4 2024, we received new tax equity contributions 
for Mockingbird, while we did not receive any new tax 
equity contributions in Q4 2023. 
Change in ‘Other working capital’ was positively 
affected in Q4 2024 by a DKK 6.2 billion prepayment 
of power related to the divestment of an equity 
ownership stake in a portfolio consisting of four UK 
offshore wind farms. 
Investments and divestments
Gross investments amounted to DKK 17.1 billion  
in Q4 2024. The main investments were:
·	 offshore wind farms (DKK 13.4 billion), including 
Greater Changhua 2b and 4 in Taiwan and our 
portfolio of US and German projects
·	 onshore wind and solar PV farms (DKK 2.7 billion), 
including the construction of Eleven Mile Solar Center, 
Mockingbird, and our portfolio of European projects.
In Q4 2024, ‘Divestments’ amounted to DKK 13.3 
billion and were mainly related to the divestment of 
an equity ownership stake in a portfolio consisting 
of four UK offshore wind farms and the farm-downs 
of Greater Changhua 4 and Mockingbird. In Q4 2023, 
divestments amounted to DKK 1.9 billion and were 
mainly related to the 50 % farm-down of Gode Wind 3.
Cash flow and net debt 
DKKm
Q4 2024
Q4 2023
%
Cash flows from operating activities
10,306
6,170
67 %
EBITDA
8,353
(686)
n.a.
Reversal of gain (loss) on divestment of assets
(83)
(692)
(88 %)
Change in derivatives, excl. variation margin
203
(4,202)
n.a.
Change in variation margin
74
2,690
(97 %)
Change in provisions
(1,466)
8,330
n.a.
Other items
(56)
354
n.a.
Interest expenses, net
158
2,259
(93 %)
Paid tax
(3,147)
(587)
436 %
Change in work in progress
(399)
(1,761)
(77 %)
Change in tax equity partner liabilities
155
(527)
n.a.
Change in other working capital
6,514
992
558 %
Gross investments
(17,114)
(13,039)
31 %
Divestments
13,317
1,861
616 %
Free cash flow
6,509
(5,008)
n.a.
Net interest-bearing debt, beginning of period 
62,817
42,892
46 %
Free cash flow
(6,509)
5,008
n.a.
Dividends and hybrid coupon paid
535
440
22 %
Addition to lease obligations, net
36
13
177 %
Exchange rate adjustments, etc.
1,148
(974)
n.a.
Net interest-bearing debt, end of period
58,027
47,379
22 %
38
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Offshore
Financial results for Q4 2024
Power generation decreased by 5 % to 5.7 TWh  
in Q4 2024 due to lower wind speeds. This was partly 
offset by ramp-up of generation at South Fork and 
Gode Wind 3. 
Wind speeds amounted to a portfolio average of 
11.1 m/s, which was lower than in Q4 2023 (11.5 m/s) 
and the normal wind speeds expected in the fourth 
quarter (11.5 m/s). 
Availability was 94 %, which was 2 percentage points 
higher than in the same period last year, due to 
­scheduled outages and component replacements 
in Q4 2023 not being repeated to the same extent in 
Q4 2024. 
Revenue was at the same level as 2024 and amounted 
to DKK 16.2 billion. 
Revenue from offshore wind farms in operation 
increased by 2 % to DKK 8.6 billion, mainly driven 
by increased revenue from CfD contracts, ROCs, 
and green certificates, only partly offset by lower 
generation. Revenue from power sales decreased 
by 8 % to DKK 6.2 billion, due to lower volumes sold 
on third-party contracts. Revenue from construction 
agreements mainly related to the construction of 
Borkum Riffgrund 3 for partners. 
EBITDA increased by DKK 9.3 billion and amounted 
to DKK 6.6 billion.
EBITDA from ‘Sites, O&M, and PPAs’ increased by 
DKK 1.4 billion and amounted to DKK 8.5 billion in 
Q4 2024. The increase was driven by ramp-up of 
generation from Gode Wind 3 and South Fork, higher 
revenue from CfDs, ROCs and green certificates as 
well as lower costs and higher O&M fees in Q4 2024. 
This was only partly offset by lower wind speeds 
(DKK 1.0 billion). In addition, we have reallocated 
DKK 0.9 billion of indirect costs from ‘Sites’ to ‘Other’ 
at year end. 
EBITDA from ‘Construction agreements and 
divestment gains’ amounted to DKK -0.9 billion in 
Q4 2024 and mainly related to updated assumptions 
and an increased provision related to operation and 
maintenance of offshore transmission assets in the 
UK and higher costs for Borkum Riffgrund 3, which 
reduced earnings under the construction agreement. 
In Q4 2023, earnings mainly related to the divestment 
of Gode Wind 3. 
EBITDA from cancellation fees amounted to a net 
income of DKK 0.9 billion in Q4 2024 and related to 
changes in the provision for onerous contracts for 
Ocean Wind 1. In Q4 2023, we had a negative effect 
from cancellation fees related to our decision to cease 
the development of Ocean Wind 1. 
EBITDA from ‘Other’ was DKK 1.1 billion more negative 
than in Q4 2023, of which DKK 0.9 billion related to the 
cost reallocation, which had no impact on the total 
EBITDA for Offshore.
Results 
Q4 2024
Q4 2023
%
2024
2023
%
Business drivers
Decided (FID’ed) and installed  
capacity, GW
16.8
15.5
7 %
16.8
15.5
7 %
Installed capacity, GW
9.9
8.9
12 %
9.9
8.9
12 %
Generation capacity, GW
5.3
5.0
5 %
5.3
5.0
5 %
Wind speed, m/s
11.1
11.5
(3 %)
10.0
9.8
2 %
Load factor, %
51
56
(4 %p)
42
43
(1 %p)
Availability, %
94
92
2 %p 
88
93
(5 %p)
Power generation, GWh
5,740
6,011
(5 %)
18,599
17,761
5 %
Denmark
596
623
(4 %)
2,061
1,970
5 %
The United Kingdom
3,064
3,434
(11 %)
10,357
10,887
(5 %)
Germany
701
733
(4 %)
2,356
2,076
13 %
The Netherlands
362
490
(26 %)
1,333
1,449
(8 %)
APAC
923
705
31 %
2,220
1,291
72 %
The US
94
26
253 %
272
88
210 %
Power sales, GWh
5,839
6,244
(6 %)
19,967
21,448
(7 %)
Power price, LEBA UK
117
117
21 %
88
116
(21 %)
British pound
9.0
8.6
4 %
8.8
8.6
3 %
Financial performance, DKKm
Revenue
16,203
16,058
1 %
53,808
58,427
(8 %)
Sites, O&M, and PPAs
8,613
8,425
2 %
26,627
23,304
14 %
Power sales
6,190
6,729
(8 %)
18,486
27,495
(33 %)
Construction agreements
719
784
(8 %)
6,991
6,589
6 %
Other
681
120
468 %
1,704
1,039
64 %
EBITDA
6,639
(2,611)
n.a.
26,470
13,817
92 %
Sites, O&M, and PPAs
8,533
7,164
19 %
23,819
20,207
18 %
Construction agreements  
and divestment gains
(894)
676
n.a.
(1,065)
5,218
n.a.
Cancellation fees
926
(9,621)
n.a.
7,335
(9,621)
n.a.
Other
(1,926)
(830)
132 %
(3,619)
(1,987)
82 %
Depreciation
(1,808)
(1,628)
11 %
(7,091)
(6,815)
4 %
Impairment losses
(11,355)
1,462
n.a.
(14,242)
(25,526)
(44 %)
EBIT
(6,524)
(2,777)
135 %
5,137
(18,524)
n.a.
Cash flow from operating activities
12,193
6,005
103 %
12,931
21,209
(39 %)
Gross investments
(13,404)
(9,690)
38 %
(33,023)
(28,613)
15 %
Divestments
12,147
1,790
579 %
11,293
1,500
653 %
Free cash flow
10,936
(1,895)
n.a.
(8,799)
(5,904)
49 %
Capital employed
103,599
83,574
24 %
103,599
83,574
24 %
39
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Onshore
Financial results for Q4 2024 
Power generation increased by 21 % compared to 
Q4 2023 and amounted to 4.1 TWh. The increase was 
due to ramp-up of generation at Sunflower, Sparta 
Solar (part of Helena Energy Center), Mockingbird, and 
Eleven Mile Solar Center. In Q4 2024, the wind speeds 
across the portfolio were 7.5 m/s, slightly below Q4 
2023 and a normal wind year (7.7 m/s).
Revenue was slightly below Q4 2023 and amounted 
to DKK 0.6 billion.
EBITDA for Q4 2024 amounted to DKK 1.1 billion, 
which was DKK 0.5 billion higher than the same 
period last year. The increase was mainly due to the 
mentioned ramp-up of generation from new assets 
in operation, lower project development costs, and 
a gain on sale of components. 
Divestment gain/(loss) for Q4 2024 amounted to 
DKK -0.1 billion and related to the 50 % farm-down 
of Mockingbird. As part of the transaction, DKK 0.3 
billion of previously expensed deferred tax liabilities 
related to tax equity contributions were reversed in 
the tax line item. 
Results 
Q4 2024
Q4 2023
%
2024
2023
%
Business drivers
Decided (FID’ed) and installed  
capacity, GW
7.0
6.4
5 %
7.0
6.4
9 %
Installed capacity, GW
6.2
4.8
29 %
6.2
4.8
29 %
Wind speed, m/s
7.5
7.6
(1 %)
7.2
7.2
0 %
Load factor, wind, %
40
36
3 %p
37
36
1 %p
Load factor, solar PV, %
20
17
4 %p
25
24
1 %p
Availability, wind, %
90
85
6 %p
90
88
2 %p
Availability, solar PV, %
98
98
0 %p
98
98
(0 %p)
Power generation, GWh
4,086
3,376
21 %
15,315
13,374
15 %
The US, wind
2,925
2,640
11 %
10,939
10,124
8 %
The US, solar PV
883
391
126 %
3,346
2,131
57 %
Europe, wind and solar PV
278
344
(19 %)
1,030
1,119
(8 %)
US dollar
7.0
6.9
1 %
6.9
6.9
0 %
Financial performance, DKKm
Revenue
554
598
(7 %)
2,720
2,620
4 %
EBITDA
1,061
525
102 %
3,863
2,970
30 %
Sites
374
394
(5 %)
1,396
1,256
11 %
Tax credits and tax attributes
904
590
53 %
3,253
2,567
27 %
Divestment gains/(loss)
(88)
-
n.a.
(88)
-
n.a.
Other
(129)
(460)
(72 %)
(697)
(854)
(18 %)
Depreciation
(523)
(498)
5 %
(2,190)
(1,957)
12 %
Impairment losses
(772)
507
n.a.
(1,321)
(927)
42 %
EBIT
(234)
534
n.a.
352
86
309 %
Cash flow from operating activities
1,420
(11)
n.a.
4,459
609
632 %
Gross investments
(2,698)
(3,024)
(11 %)
(7,391)
(9,069)
(19 %)
Divestments
1,171
3
n.a.
4,430
5
n.a.
Free cash flow
(107)
(3,032)
(96 %)
1,498
(8,455)
n.a.
Capital employed
39,443
35,634
11 %
39,443
35,634
11 %
40
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Bioenergy & Other
Financial results for Q4 2024
Heat generation decreased by 1 % in Q4 2024, mainly 
due to warmer weather. Power generation increased 
by 37 % due to improved wood pellet spreads for 
power condensing generation. 
Gas sales increased by 32 %, driven by our offtake 
­contract with DUC as a consequence of the ramp-up of 
production from the Tyra field (not owned by Ørsted).
EBITDA amounted to DKK 0.9 billion compared to 
DKK 1.4 billion in Q4 2023. 
EBITDA from ‘CHP plants’ was DKK 0.7 billion, DKK 0.2 
billion lower than in Q4 2023. This was mainly due to a 
contractual compensation in Q4 2023 from Energinet, 
the Danish TSO, for keeping three of our power stations 
operational, which was not repeated in 2024. This was 
only partly offset by higher sales of ancillary services, 
higher generation, and better spreads.
EBITDA from ‘Gas Markets & Infrastructure’ decreased 
by DKK 0.3 billion to DKK 0.2 billion in Q4 2024. 
The decrease was driven by a positive effect from 
revaluation of our gas at storage during Q4 2023, which 
was not repeated to the same extent in Q4 2024.
Results 
Q4 2024
Q4 2023
%
2024
2023
%
Business drivers
Degree days
846
966
(12 %)
2,485
2,585
(4 %)
Heat generation, GWh
2,367
2,385
(1 %)
6,919
6,587
5 %
Power generation, GWh
1,428
1,042
37 %
4,522
4,437
2 %
Gas sales, GWh
4,016
3,041
32 %
17,372
16,880
3 %
Power sales, GWh
635
628
1 %
2,426
2,627
(8 %)
Gas price, TTF, EUR/MWh
42.8
43.3
5 %
34.3
41.4
(16 %)
Power price, DK, EUR/MWh
88.1
91.1
24 %
70.7
89.3
(16 %)
Green dark spread, DK, EUR/MWh
(10.9)
(5.4)
102 %
(25.9)
(25.8)
(30 %)
Wood pellet spread, DK, EUR/MWh
8.4
(0.5)
n.a.
6.4
4.3
49 %
Financial performance, DKKm
Revenue
4,456
5,235
(15 %)
15,105
19,230
(21 %)
EBITDA
869
1,434
(39 %)
1,082
1,523
(29 %)
CHP plants
679
836
(19 %)
1,248
1,218
2 %
Gas Markets & Infrastructure
245
589
(58 %)
249
558
(55 %)
Other
(55)
9
n.a.
(415)
(253)
64 %
Depreciation
(171)
(180)
(4 %)
(667)
(759)
(12 %)
Impairment losses
-
(322)
n.a.
-
(322)
n.a.
EBIT
698
932
(25 %)
415
442
(6 %)
Cash flow from operating activities
(1,094)
358
n.a.
1,939
2,550
(24 %)
Gross investments
(950)
(374)
154 %
(2,250)
(727)
209 %
Divestments
-
64
n.a.
-
61
n.a.
Free cash flow
(2,044)
48
n.a.
(311)
1,884
n.a.
Capital employed
5,679
4,655
22 %
5,679
4,655
22 %
41
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

Quarterly summary, 2023–2024
Financial statements
DKKm
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Income statement
Revenue
21,077
15,766
15,023
19,168
21,530
17,441
14,565
25,719
EBITDA
8,353
9,548
6,570
7,488
(686)
9,173
3,320
6,910
Offshore
6,639
8,530
5,218
6,083
(2,611)
8,037
2,979
5,412
Sites, O&M, and PPAs
8,533
3,958
4,400
6,928
7,164
4,050
3,135
5,859
Construction agreements  
and divestment gains
(894)
106
6
(283)
676
4,245
340
(42)
Cancellation fees
926
5,109
1,300 
-
(9,621)
-
-
-
Other
(1,926)
(643)
(488)
(562)
(830)
(258)
(496)
(405)
Onshore
1,061
991
995
816
525
819
792
834
Bioenergy & Other 
869
(185)
(36)
434
1,434
155
(583)
517
Other activities/eliminations
(216)
212
393
155
(34)
162
132
147
Depreciation and amortisation
(2,571)
(2,548)
(2,683)
(2,423)
(2,366)
(2,537)
(2,454)
(2,438)
Impairment
(12,127)
(284)
(3,913)
761
1,647
(28,422)
-
-
Operating profit (loss) (EBIT)
(6,345)
6,716
(26)
5,826
(1,405)
(21,786)
866
4,472
Gain (loss) on divestment of enterprises
34
14
(7)
(52)
(44)
(50)
159
169
Net financial income and expenses
(457)
(1,235)
(552)
(1,347)
2,001
(128)
(1,797)
(1,519)
Profit (loss) before tax
(6,761)
5,508
(575)
4,434
557
(21,955)
(763)
3,135
Tax
677
(339)
(1,103)
(1,825)
(841)
(607)
225
67
Profit (loss) for the period
(6,084)
5,169
(1,678)
2,609
(284)
(22,562)
(538)
3,202
Balance sheet
Assets
298,786
290,341
286,002
290,383
281,136
286,782
296,466
306,644
Equity
93,484
91,127
83,368
83,325
77,791
78,361
103,548
102,826
Shareholders in Ørsted A/S
62,138
65,987
56,446
58,709
56,782
57,304
82,379
78,551
Hybrid capital
20,955
20,955
22,792
22,792
19,103
19,103
19,103
19,793
Non-controlling interests
10,391
4,185
4,130
1,824
1,906
1,954
2,066
4,482
Interest-bearing net debt
58,027
62,817
49,366
49,864
47,379
42,892
43,924
35,261
Capital employed
151,511
153,944
132,734
133,189
125,170
121,253
147,471
138,087
Additions to property, plant, and equipment
19,111
11,375
8,479
8,020
12,064
10,988
6,963
7,939
Cash flows
Cash flows from operating activities
10,306
(1,639)
6,081
3,608
6,170
9,796
2,447
10,119
Gross investments
(17,114)
(9,780)
(8,292)
(7,622)
(13,039)
(9,204)
(7,498)
(8,768)
Divestments
13,317
108
2,993
(738)
1,861
1,735
(2,038)
(16)
Free cash flow
6,509
(11,311)
782
(4,752)
(5,008)
2,327
(7,089)
1,335
Financial ratios
Return on capital employed (ROCE), % LTM
4.5
8.1
(12.4)
(12.2)
(14.2)
(13.7)
13.2
13.8
FFO/adjusted net debt, % LTM
13.2
12.6
22.7
18.7
28.6
20.9
17.7
37.4
Number of outstanding shares, end of period, ‘000
420,381
420,381
420,381
420,381
420,381
420,381
420,381
420,381
Share price, end of period, DKK
324
445
371
384
374
385
645
583
Market capitalisation, end of period, DKKbn
136
187
156
162
157
162
271
245
Earnings per share (EPS), DKK
(15.8)
12.0
(4.1)
5.7
(1.6)
(53.8)
(1.4)
6.7
Business drivers
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Offshore
Decided (FID’ed) and installed capacity, GW
16.8
16.8
16.8
16.5
15.5
12.0
12.0
12.0
Installed capacity, GW
9.9
9.9
9.8
9.8
8.9
8.9
8.9
8.9
Generation capacity, GW
5.3
5.2
5.1
5.1
5.0
5.0
4.9
4.7
Wind speed, m/s
11.1
8.4
9.0
11.4
11.5
8.6
8.1
10.9
Load factor, %
51
31
33
52
56
33
29
53
Availability, %
94
89
83
85
92
93
91
95
Power generation, GWh
5,740
3,522
3,667
5,670
6,011
3,544
3,044
5,162
Power sales, GWh
5,839
4,010
3,854
6,264
6,244
3,948
4,158
7,098
Onshore
Decided (FID’ed) and installed capacity, GW
7.0
6.4
6.4
6.4
6.4
6.2
6.2
6.2
Installed capacity, GW
6.2
5.7
5.6
4.8
4.8
4.8
4.6
4.5
Wind speed, m/s
7.5
6.2
7.4
7.9
7.6
6.2
6.7
8.1
Load factor, wind, %
40
26
41
42
36
27
35
45
Load factor, solar PV, %
20
31
29
18
17
32
30
16
Availability, wind, %
90
87
92
89
85
85
92
91
Availability, solar PV, %
98
97
97
98
98
98
98
99
Power generation, GWh
4,086
3,270
4,187
3,772
3,376
2,927
3,321
3,750
Bioenergy & Other
Degree days, number
846
79
360
1,200
966
53
409
1,157
Heat generation, GWh
2,367
332
935
3,285
2,385
234
790
3,178
Power generation, GWh
1,428
805
805
1,484
1,042
781
917
1,697
Power sales, GWh
635
577
581
633
628
566
556
877
Gas sales, GWh 
4,016
4,138
4,051
5,167
3,041
5,355
4,016
4,468
Sustainability statements
Employees (FTE), end of period, number
8,278
8,377
8,411
8,706
8,905
8,906
8,661
8,422
Total recordable injury rate (TRIR)
2.7
2.3
2.1
2.9
2.8
2.9
2.6
2.7
Fatalities, number
0
0
0
0
0
0
0
0
Renewable share of energy generation, %
99
96
97
97
95
94
97
89
GHG emissions (scopes 1 & 2), million tonnes
0.1
0.3
0.2
0.2
0.4
0.3
0.2
0.7
GHG intensity (scopes 1 & 2), g CO2e/kWh
5
40
16
14
25
46
24
52
GHG intensity (scopes 1-3, excl. gas sales), 
g CO2e/kWh
65
194
262
57
62
94
77
90
GHG emissions (scope 3), million tonnes
1.7
2.2
3.3
1.8
1.2
1.6
1.3
1.5
42
Management’s review  |  Performance
ØRSTED ANNUAL REPORT 2024

→
Solar panels are just one part of the Eleven Mile Solar Center in 
Pinal County near Phoenix, Arizona, the US. The 300 MW facility, 
which was commissioned in 2024, also features battery storage 
that can hold 1,200 MWh of power. The combination of solar 
and storage allows for a highly reliable supply of renewable 
energy to help power homes and businesses – and, in this case, 
Meta’s planned data centre in Mesa, Arizona.
Corporate 
governance
44	
Governance framework 
46	
Board of Directors  
50	
Group Executive Team 
53	
Summary of our remuneration report 
54	
Shareholder information
43
Management’s review 
ØRSTED ANNUAL REPORT 2024

Governance framework
As a publicly listed company, Ørsted is subject to the 
recommendations on corporate governance issued by 
the Danish Committee on Corporate Governance.
Compliance with corporate governance 
recommendations
We comply with all the Danish corporate governance 
recommendations. A separate overview describing 
our compliance with each of the recommendations 
can be found here.
Shareholders and general meetings
The Danish State is our majority shareholder with a 
50.1 % ownership share. The Danish State exercises 
its ownership interest in Ørsted in accordance with 
the ordinary governance set-up in Danish companies. 
The Danish State’s ownership policy (only in Danish) 
is available on: fm.dk/udgivelser/2015/april/ 
statens-ejerskabspolitik/.
The shareholders of Ørsted exercise their right to vote 
at the general meeting through a one-share-one-vote 
principle. The general meeting adopts decisions in 
accordance with the ordinary Danish rules. Due to our 
majority ownership by the Danish State, we have a 
bespoke quorum requirement, as proposals to amend 
our articles of association or dissolve the company 
require that the Danish State participates in the general 
meeting and supports the proposals.
The general meeting appoints a board of non-executive  
directors (the Board of Directors), who, together with 
the executive directors appointed by the board (the 
Executive Board), is responsible for the management 
of the company.
Board of Directors 
The Board of the Directors is, together with the 
Executive Board, responsible for the management 
of the company.
Each year at the annual general meeting, the share-
holders elect six to eight board members. In addition, 
our employees may elect members corresponding 
to half of the board members elected by the general 
meeting pursuant to Danish mandatory rules. 
Our Board of Directors currently comprises ten mem-
bers, six members elected by the general meeting and 
four members elected by the employees. In 2024, the 
election of employee-elected board members ­covered 
all employees globally for the first time.
The Board of Directors is responsible for the overall 
strategic management of the company. The Board 
of Directors lays down the company’s strategy and 
makes decisions concerning major investments and 
divestments, the capital base, key policies, control 
and audit matters, risk management, and significant 
operational issues. You can see the most important 
tasks in 2024 on the next page.
The Board of Directors monitors and oversees perfor-
mance on material sustainability impacts, risks, opportu-
nities, progress related to our sustainability priorities, and 
achievement of our sustainability targets, including our 
net-zero carbon reduction targets for scope 1-3 emis-
sions. ESG and sustainability priorities are an integral 
part of the decision-making governance of the Board of 
Directors, and an update on our sustainability targets 
and progress is presented to them annually. Read more 
about our sustainability governance on pages 63-64. 
The Board of Directors reviews the required com-
petences for its composition annually. The list of 
required competences can be found at orsted.com/
competences-overview.
We have a diverse Board of Directors. As three out 
of the six board members elected by the general 
­meeting and two out of four board members elected 
by the employees are women, we have a fully equal 
representation on the board.
The age of our board members spans from 49 to  
70 years old among the board members elected by 
the general meeting and from 30 to 57 years old 
among board members elected by the employees. 
Our governance model
Board of Directors
Shareholders and general meeting
Nomination & 
Remuneration 
Committee
Audit & Risk 
Committee
Asset Project 
Committee
Internal  
Audit
QHSE Committee
Compliance Committee
Cybersecurity Committee
Group Executive Team
Sustainability governance, see pages 63-64
44
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Our board members have different educational 
backgrounds within finance, economics, geophysics, 
and engineering and professional experience from 
diverse industries, private equity, private investments, 
and academia. A description of the individual board 
members, including any other managerial positions, 
independence, and the contribution of the individual 
board members to the required board competences, 
can be found on the following pages. Their meeting 
attendance during 2024 can be found above.
The Board of Directors evaluates its performance 
annually. In 2024, the board evaluation was conducted 
by distributing a customised online survey to all members 
of the Board of Directors and the Group Executive 
Team, and findings were subsequently discussed at a 
board meeting. The overall score, although slightly 
lower than in 2023, was satisfactory. The board 
evaluation identified relevant focus areas for the 
Board of Directors, which among other things included 
how to further strengthen the visibility of succession 
planning to the board.
The general meeting determines the remuneration 
for the members of the Board of Directors for the 
financial year in which the general meeting is held. 
In the separate remuneration report, you can read 
more about the remuneration of the Board of Directors. 
Below, you can find a link to the ‘Remuneration report’ 
and a link to our statutory report on data ethics, 
prepared in accordance with the Danish Financial 
Statements Act, section 99 d.
→  orsted.com/remuneration2024 
orsted.com/data-ethics2024
Important tasks 2024 
– managed by the Board of Directors
Investments, acquisitions, and divestments
Final investment decisions on the offshore 
wind project Sunrise Wind, the battery  
energy storage systems co-located with  
the Hornsea 3 Offshore Wind Farm and  
with the Old 300 Solar Center, respectively, 
and preparation for the FID on Baltica 2  
early 2025.
Build-out of our offshore wind portfolio, 
including bids in tenders in the UK, the US, and 
Taiwan and the acquisition of the remaining 
50 % share of the Sunrise Wind offshore wind 
project from Eversource.
Divestment of 12.45 % of four operational  
UK offshore wind farms to Brookfield and 
a partial divestment of four operational US 
onshore wind farms to Stonepeak, farm-down 
of the offshore wind farm Greater Changhua 4 
in Taiwan to Cathay Life Insurance, a partial 
divestment of the solar farm Mockingbird to 
Energy Capital Partners, and an agreement 
to partially divest the solar farm Sparta Solar 
and the battery storage project Eleven Mile 
Solar Center to Energy Capital Partner, with 
closings expected in 2025.
Decision to enter into partnership with 
Nordsøfonden and Equinor to explore the 
possibility of storing CO2 in the subsurface.
Decision to cease development of the Swedish 
e-fuels project FlagshipONE.
Other tasks
Decision to update our business plan,  
financial targets, and financial policies.
Decision to update the executive manage-
ment structure, including the appointment  
of a Deputy CEO and Chief Commercial 
Officer (CCO), a new CFO, and a new Chief 
Operating Officer (COO).
Establishment of the Asset Project 
­Committee, which assists the Board of 
Directors in overseeing the planning, 
execution, and delivery of asset projects. 
Oversight of recurring portfolio reviews and 
actions to improve capital structure.
Issuance of green subordinated bonds 
to proactively manage the hybrid capital 
portfolio and finance renewable energy 
projects in accordance with our ‘Green finance 
framework’.
Oversight of financial results and guidance, 
including impairments.
Oversight of sustainability performance and 
reporting, including double materiality results.
Oversight of the results from the 2024 
employee satisfaction survey, including the 
focus areas identified by the Group Executive 
Team.
Meeting attendance 
Board of Directors
Nomination & 
Remuneration Committee
Audit & Risk 
Committee
Asset 
Project Committee
Board members
Ordinary
Extraordinary
Ordinary
Extraordinary
Ordinary
Ordinary
Extraordinary
Lene Skole
7/0
8/0
3/0
1/0
Annica Bresky
7/0
8/0
4/1
4/0
3/1
Andrew Brown
7/0
8/0
2/0
1/0
4/0
4/0
Julia King
7/0
7/1
3/0
1/0
4/0
4/0
Peter Korsholm
7/0
8/0
6/0
Dieter Wemmer
7/0
5/3
6/0 
Benny Gøbel
7/0
8/0
Leticia Francisca Torres Mandiola 1
3/0
3/3
Anne Cathrine Collet Yde
7/0
8/0
Ian McCalder
6/0
6/0
The numbers indicate how many meetings in 2024 the members have attended or not attended, respectively, during the year.
1 Laticia joined the Board of Directors on 4 October 2024.
45
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Board of Directors
Lene Skole
*1959, Denmark, she/her
Elected by the general meeting 
Independent
2015	
Joined as Deputy Chair 
2024	
Elected Chair 
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Highly experienced in ­managing listed companies 
from her former position as CFO of Coloplast and 
current position as CEO of Lundbeckfonden where 
she serves as a non-executive director of portfolio 
companies of Lundbeckfonden.
Managerial functions in other enterprises
CEO  Lundbeckfonden and Lundbeckfond Invest A/S 
Chair  LFI Equity A/S1  Deputy Chair  ALK-Abelló A/S1, 
H. Lundbeck A/S1, Falck A/S1, and Nordea Bank Abp.
Board committee memberships in other enterprises
Member of the Remuneration and Nomination 
Committee of Falck A/S, member of the Nomination 
& Remuneration Committee and the Scientific 
Committee of ALK-Abelló A/S, member of the 
Nomination & Remuneration Committee and the 
Scientific Committee of H. Lundbeck A/S, and member 
of the Audit Committee of Nordea Bank Abp. //
Management competences
General · Financial · Risk · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity   
Social  People management and equity, diversity 
& inclusion · Health & safety  Governance  Business 
conduct //
Other competences
Investor and capital market relationships 
1  Board positions included in the position as CEO  
of the Lundbeck Foundation.
Andrew Brown
*1962, United Kingdom, he/him
Elected by the general meeting 
Not independent (former position as interim  
COO of Ørsted)
2023	
Joined as board member
2024	
Elected Deputy Chair
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Extensive international executive experience  
from leading positions in large global organisations,  
operations, and projects with both Shell (ExCom)  
and Galp (CEO) and from his former position as  
interim COO of Ørsted. Also, non-executive  
experience as Vice Chair of SBM Offshore.
Other positions
Advisor of ZeroAvia Inc. and President of the council  
of the Energy Institute (EI). //
Management competences
General · Project · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment Decarbonisation  Social  People 
management and equity, diversity & inclusion 
· Health & safety · Human rights · Community 
impact  ­Governance  ­Business conduct //
Other competences
Investor and capital market relationships
46
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Annica Bresky
*1975, Sweden, she/her
Elected by the general meeting 
Independent
2023	
Joined
2024 	 Most recently re-elected
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Extensive industrial and leadership experience from 
global listed companies within the forestry, paper, 
and packaging industry, from her former positions 
as ­President and CEO of Stora Enso and as CEO of 
Holmen ­Iggesund Paperboard. A deep knowledge of 
sustainability transformation and policy development 
in the EU and globally.
Managerial functions in other enterprises
Chair  Permascand Top Holding AB  Member  Vaisala 
Oyj, Fagerhult Group AB (publ), Nordstjernan AB, and 
Stegra AB.
Board committee memberships in other enterprises
Member of the Nomination Committee and the  
People and Sustainability Committee of Vaisala Oyj 
and member of the Risk, Audit, and Sustainability 
Committee of Stegra AB.
Other positions
Member of the Royal Swedish Academy of Engineering 
Sciences (IVA). //
Management competences
General · Financial · Risk · Project · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity · 
­Circularity  Social  People management and equity, 
diversity & inclusion · Health & safety · Human rights · 
Community impact  Governance  Business conduct //
Other competences
IT, digitalisation & cybersecurity · Investor and capital 
market relationships · Innovation 
Julia King 
The Baroness Brown of Cambridge
*1954, United Kingdom, she/her
Elected by the general meeting 
Independent
2021	
Joined
2024	
Most recently re-elected
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Strong international background within engineering 
in both industry and academia, including Rolls-Royce 
plc, Cambridge University, and Imperial College.  
A deep knowledge of renewable energy and  
government policy perspectives from positions, 
among others, as member of the Committee on  
Climate Change and non-executive director of the 
Green Investment Bank.
Managerial functions in other enterprises
Chair  The Carbon Trust and Frontier IP Group Plc.   
Non-executive director  Ceres Power Holdings Plc 
(Senior Independent Director).
Board committee memberships in other enterprises
Chair of the ESG Committee and member of the  
Remuneration Committee and the Nomination 
Committee of Ceres Power Holdings Plc and member of 
the Remuneration Committee of Frontier IP Group Plc. 
Other positions
Crossbench Peer in the UK House of Lords, and Chair 
of the Adaptation Committee of the Committee on 
Climate Change. // 
Management competences
General · Financial · Project · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity · Circularity  
Social  People management and equity, diversity & 
inclusion · Health & safety · Human rights · Community 
impact  Governance  Business conduct //
Other competences
IT, digitalisation & cybersecurity · Innovation
Peter Korsholm
*1971, Denmark, he/him
Elected by the general meeting 
Independent
2017	
Joined
2024	
Most recently re-elected
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Extensive M&A experience from his time as Partner 
and Head of EQT Partners Denmark and from private 
investments. Also experience with financial ­reporting, 
risk management, and capital markets from his former 
position as CFO of AAK AB.
Managerial functions in other enterprises
CEO  DSVM Invest A/S, DSV Miljø Group A/S, Togula 
ApS, and Totalleveranser Sverige AB. 
Chair  Flügger group A/S, Nymølle Stenindustrier A/S, 
Totalleveranser Sverige AB, United Fintech Group 
Limited, Lion Danmark I ApS, two wholly-owned 
subsidiaries of Lion Danmark I ApS (Lomax Group),  
and Too Good to Go Holding ApS. 
Member  DSVM Invest A/S and eight wholly-owned 
subsidiaries of DSVM Invest A/S, BCHG Holding A/S, 
Projektselskabet Teglbuen A/S, and two-wholly 
owned subsidiaries of BCHG Holding A/S. 
Board committee memberships in other enterprises
Member of the Nomination & Remuneration 
Committee of Flügger group A/S and member of the 
Remuneration Committee and the Finance, Risk and 
Audit Committee of Too Good To Go Holding Aps. //
Management competences
General · Financial · Risk · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Circularity  Social  People management 
and equity, diversity & inclusion  Governance  Business 
conduct //
Other competences
Investor and capital market relationships
Dieter Wemmer
*1957, Switzerland, he/him
Elected by the general meeting 
Independent
2018	
Joined
2024	
Most recently re-elected
2025	
Current election period expires
// ESRS 2, GOV-1
Experience
Highly experienced in capital markets, investments, 
and risk management from leading positions within 
the finance sector, including as former CFO of Allianz 
and Zurich Insurance.
Managerial functions in other enterprises
Chair  Marco Holding, plc and one wholly-owned  
subsidiary of Marco Holding, plc. //
Management competences
General · Financial · Risk · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation  Social  People man-
agement and equity, diversity & inclusion · Human 
rights · Community impact  Governance  Business 
conduct //
Other competences
IT, digitalisation & cybersecurity · Investor and capital 
market relationships
47
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Benny Gøbel
*1967, Denmark, he/him
Elected by the employees 
Not independent
2011	
Joined
2024	
Most recently re-elected
2026	
Current election period expires
// ESRS 2, GOV-1
Experience
Benny Gøbel has worked in Ørsted since 2005.
Position
Senior Mechanical Specialist, Commercial. //
Leticia Francisca Torres Mandiola
*1994, Chile, she/her
Elected by the employees 
Not independent
2022	
On the board from April 2022 to March 
2024. Re-elected as alternate in March 2024. 
Rejoined the board in October 2024
2026	
Current election period expires
// ESRS 2, GOV-1
Experience
Leticia Francisca Torres Mandiola has worked  
in Ørsted since 2018.
Position
Lead Strategy Consultant, Commercial. //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation  Social  People 
management and equity, diversity & inclusion //
Other competences
IT, digitalisation & cybersecurity · Innovation
Anne Cathrine Collet Yde
*1983, Denmark, she/her
Elected by the employees 
Not independent
2022	
Joined
2024	
Most recently re-elected
2026	
Current election period expires
// ESRS 2, GOV-1
Experience
Anne Cathrine Collet Yde has worked in Ørsted  
since 2017.
Position
Head of HR Business Partners Europe,  
People & Culture. //
Management competences
Project · Stakeholder 
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Social  People management and equity, diversity  
& inclusion · Health & safety · Human rights ·  
Community impact //
Ian McCalder
*1984, Canada, he/him
Elected by the employees 
Not independent
2024	
Joined
2026	
Current election period expires
// ESRS 2, GOV-1
Experience
Ian McCalder has worked in Ørsted since 2014.
Position
Radio Communication Project Specialist, EPC //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Social  People management and equity, diversity 
& inclusion · Health & safety  Governance  Business 
conduct //
Other competences
IT, digitalisation & cybersecurity · Innovation
48
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

The Board of Directors has established three commit-
tees, consisting of members appointed by and among 
the members of the Board of Directors: The Audit & 
Risk Committee, the Nomination & Remuneration 
Committee, and the Asset Project Committee.
Audit & Risk Committee 
Dieter Wemmer (Chair), Peter Korsholm, and Annica 
Bresky are the members of this committee.
The tasks of the committee include overseeing the 
integrity of the financial and sustainability reporting 
(including key accounting estimates and judgements), 
funding, liquidity, and capital structure development, 
financial and business-related risks, compliance with 
statutory and other requirements from public authorities, 
internal controls, nomination of external auditors, and IT 
security in operational and administrative areas and 
in cybersecurity. Moreover, the committee approves 
the framework governing the work of Ørsted’s exter­
nal and internal auditors (including limits for non-
audit services), evaluates the external auditors’ 
independence and qualifications, and monitors the 
company’s whistleblower scheme.
In 2024, the committee reviewed impairments 
on our property, plant, and equipment with a 
high attention to our US offshore wind projects, 
monitored the development in provisions for onerous 
contracts and cancellation fees, continued working 
on strengthening the ‘Risk management framework’, 
and continued the work on implementing CSRD. 
Board committees
Furthermore, the committee worked on strengthening 
the internal control framework, continued to assess 
the claim made by the Danish Tax Agency requiring 
double Danish taxation of certain of our British off­
shore wind farms, and lastly, reviewed the progress in 
IT security. 
Our Internal Audit function reports to the committee 
and is independent of our administrative manage-
ment structures. Internal Audit enhances and protects 
the organisational value by providing risk-based and 
objective assurance, advice, and insight. The focus 
for Internal Audit is to audit and advise on our core 
processes, governance, risk management, control 
­processes, and IT security.
// ESRS G1, GOV-1
The Chair of the Audit & Risk Committee is responsible 
for managing our whistleblower scheme. Internal 
Audit receives and handles any reports submitted. //
Our employees and other associates may report 
­serious offences, such as cases of bribery, fraud, and 
other inappropriate or illegal conduct, to our whistle-
blower scheme or through our management system. 
In 2024, 14 substantiated cases of inappropriate or 
unlawful behaviour were reported through our whistle­
blower scheme. A total of ten cases related to good 
business conduct policy violations, while three cases 
concerned the workplace environment, and one 
case was classified as ‘other’. None of the reported 
cases were critical to our business, nor did they cause 
adjustments to our financial results. Additionally, no 
cases required reporting to the police.
Whistleblower cases are taken very seriously, and we 
continuously enhance the awareness of good business 
conduct through education and awareness campaigns 
to minimise future similar cases.
You can read more about the Audit & Risk Committee 
and the terms of reference for the committee at 
orsted.com/audit-risk-committee.
Nomination & Remuneration Committee
Lene Skole (Chair), Andrew Brown, and Julia King are 
the members of this committee.
The committee assists the Board of Directors in 
matters regarding the composition, remuneration, 
and performance of the Board of Directors and the 
Group Executive Team.
In 2024, the committee reviewed the executive 
management structure and discussed the 
appointments of Rasmus Errboe as Deputy CEO 
and Chief Commercial Officer (CCO), Trond Westlie 
as new Chief Financial Officer (CFO), and Patrick 
Harnett as new member of the Group Executive Team 
and Chief ­Operating Officer (COO). The committee 
also reviewed the structure and KPIs used in the 
variable pay for ­Executive Board members as well 
as an update of the peer group used in the long-term 
incentive scheme.
You can read more about the Nomination & 
Remuneration Committee and the terms of 
­reference for the committee at orsted.com/
nomination-remuneration-committee.
Asset Project Committee
In May 2024, the Board of Directors established  
the Asset Project Committee. Andrew Brown (Chair), 
Julia King, and Annica Bresky are the members of  
this committee.
The committee assists the Board of Directors with 
overseeing the planning, execution, and delivery of 
asset projects to ensure they meet the company’s 
strategic objectives, budget, and timelines.
In 2024, the committee reviewed and discussed 
several updates on our asset projects. These updates 
included our project and operating model, project 
top risks, portfolio risks, risk management, supply 
chain status, bid submissions, project specific costs 
and schedule updates, and final investment decisions. 
You can read more about the Asset Project Committee 
and the terms of reference for the committee at 
orsted.com/asset-project-committee.
49
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Group Executive Team
The Executive Board is appointed by the Board of 
Directors and is in charge of the day-to-day manage-
ment of Ørsted through the Group Executive Team 
in accordance with the guidelines and instructions 
given by the Board of Directors.
Rasmus Errboe (Group President and CEO), Trond 
Westlie (CFO), and Henriette Fenger Ellekrog 
(Chief HR Officer) are members of the Executive 
Board and registered as executives with the Danish 
Business Authority. All members of the Executive 
Board are also part of the Group Executive Team, 
which in addition consists of Patrick Harnett 
(Chief Operating Officer).
By February 2025, female representation constitutes 
33.3 % of our Executive Board. We have not set a 
target to increase gender diversity among ‘other 
managerial levels’ as defined under Danish law. 
The Danish rules regarding gender diversity among 
‘other managerial levels’ do not apply to us, as the 
average number of full-time employees in Ørsted A/S 
did not exceed 50 in 2024.
We describe the remuneration of the Executive Board 
in the separate remuneration report. You can also 
find information about the members of the Group 
Executive Team on page 52.
Management committees
The Group Executive Team is supported by committees 
whose members are appointed by the Group Executive 
Team. The committees are the QHSE Committee, 
the Compliance Committee, and the Cybersecurity 
Committee. More information about the management 
committees can be found on the next page.
Ørsted has also established three supportive decision 
forums to support the Group Executive Team on 
sustainability matters. See pages 63-64 for a detailed 
description of our sustainability governance
Sustainability commitment 
The Group Executive Team sets the strategic direction 
on sustainability and is accountable for oversight 
and performance on sustainability impacts, risks, and 
opportunities. Moreover, they present proposals for 
sustainability targets to the Board of Directors for 
approval. The Group Executive Team is involved in all 
major decisions and is updated regularly on progress. 
Each Group Executive Team member is accountable 
for sustainability topics relevant for their line of 
business and is responsible for driving progress. 
Read more on pages 63-64.
Internal controls environment
We have established internal control systems to 
identify and mitigate risks in financial and sustainability 
reporting by setting up targets, policies, manuals, 
procedures, and controls.
We conduct an annual risk assessment to identify 
risks of material misstatements in financial reporting 
based on materiality, process complexity, and the 
­probability of errors and omissions. 
In preparation for the CSRD, a plan was established 
to perform walkthroughs to identify risks, reassess 
existing controls, and identify additional controls for 
sustainability reporting. This initiative started in 2024 
and will continue until the end of 2025. 
We have established a unified governance for financial 
and sustainability reporting. The Audit & Risk Committee 
monitors our financial and sustainability reporting 
processes, including a review of the risk assessment, the 
internal controls, and their operating effectiveness.
We are committed to ensuring the accuracy of our 
financial and sustainability reporting. Our financial 
reporting is audited by an independent audit firm 
elected at the annual general meeting. Our sustaina-
bility data is subject to limited assurance by the same 
independent auditor. All observations in the external 
auditor’s long-form report and management letter are 
addressed by action plans with allocation of respon-
sibilities and deadlines, and we regularly follow up on 
and review them.
Rasmus Errboe
Group President and CEO
Trond Westlie
CFO
Henriette Fenger Ellekrog
CHRO
Patrick Harnett
COO
50
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

QHSE Committee 
This committee oversees that we live up 
to our QHSE (quality, health, safety, and 
­environment) priorities, and it reviews our 
QHSE strategy and policy. In addition, the 
committee reviews our integrated manage-
ment system, ‘way we work’, conducts the 
management review as required by our ISO 
certifications, and monitors the performance 
of our QHSE programmes to ensure compli-
ance with rules and regulations as well as 
agreed international standards.
The committee consists of the Chief Operat-
ing Officer, the Head of QHSE, the Head of 
Procurement, the Head of Engineering, the 
Head of Project Services, the Head of Region 
Europe Generation, and the Head of Global 
Stakeholder Relations. The QHSE Commit-
tee, chaired by the Chief Operating Officer, 
meets six times a year.
Management committees appointed  
by the Group Executive Team
Compliance Committee
This committee oversees our group-wide 
legal compliance programmes. It provides 
instructions to our Chief Compliance Officer 
and compliance officers for each of the legal 
compliance programmes on management’s 
risk tolerance, reviews recommendations 
regarding the legal compliance programmes, 
and appoints the compliance officers.
The committee’s members are the CEO, the 
CFO, the Chief HR Officer, the Chief Compli-
ance Officer, and the Head of Internal Audit. 
The Compliance Committee, chaired by the 
CEO, meets at least twice a year.
Cybersecurity Committee
This committee oversees and guides our 
strategy, our global risk tolerance, and our 
investment choices within cybersecurity and 
information security. It supports significant 
global initiatives and oversees the compli-
ance with cybersecurity and information 
security laws and regulations, including the 
European Network & Information Security 2 
Directive.
The committee is cross-functional and con-
sists of the CFO, the Chief Operating Officer, 
the Chief Information Officer, the Chief 
­Information Security Officer, and the Head  
of Legal. The Cybersecurity Committee, 
chaired by the CFO, meets four times a year.
Sustainability Governance 
In 2024, our sustainability governance was 
redesigned to provide clearer executive 
accountability for sustainability ­matters 
across Ørsted. The revised governance 
comprises new supportive decision forums 
for our strategic priorities, ­decarbonisation, 
biodiversity, and community impact, and a 
Human Rights Task Force to support com-
pliance with the upcoming EU directive 
CSDDD. The forums will assist the account-
able persons in the Group Executive Team 
in progressing according to set roadmaps. 
For ­additional details, please refer to 
pages 63-64.
51
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Henriette Fenger Ellekrog
*1966, Denmark, she/her
Executive Vice President and Chief HR Officer (CHRO)
Member of the Executive Board and registered as 
an executive of Ørsted A/S with the Danish Business 
Authority
Education
MA in Business Languages (cand.ling.merc), 
Copenhagen Business School (1992)
// ESRS 2, GOV-1
Professional experience
2022: 
Ørsted, member of the Executive Board 
2019: 
Ørsted, Executive Vice President and Chief HR Officer 
(CHRO) 
2014 – 2019: 
Danske Bank A/S, most recently as Chief HR Officer
2007 – 2014: 
SAS AB, most recently as Deputy CEO, Executive Vice  
President, HR & Communication
1998 – 2007: 
TDC A/S, most recently as Senior Executive Vice 
President, Chief of Staff, member of the Executive 
Management Team
1992 – 1998: 
Peptech (Europe) A/S and Mercuri Urval A/S:  
Various positions
Managerial positions in other enterprises
Board member: NV Bekaert SA (member of the 
Nomination & Remuneration Committee) and SAS AB 
(Chair of the Remuneration Committee). //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity  Social   
People management and equity, diversity & inclusion · 
Health & safety · Human Rights  Governance  Business 
conduct //
Trond Westlie
*1961, Norway, he/him
Executive Vice President and Group Chief Financial 
Officer (CFO)
Member of the Executive Board and registered as 
an executive of Ørsted A/S with the Danish Business 
Authority
Education
MSc in Auditing and is a Chartered Accountant, 
Norges Handelshøyskole (1987)
// ESRS 2, GOV-1
Professional experience
2024:  
Ørsted, Executive Vice President and Group Chief 
Financial Officer (CFO)
2017-2019:  
VEON, Group CFO
2010-2016:  
A.P. Moller-Maersk, Group CFO and member of  
the Executive Board
2004-2009:  
Telenor, Group CFO and Executive Vice President
1997-2004:  
Aker Group, most recently as Group CFO and 
Executive Vice President in Aker Kvaerner
Managerial functions in other enterprises
Chair: Arendals Fossekompani //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Circularity  Social   
People management and equity, diversity & inclusion 
· Health & safety · Human rights · Community impact 
Governance  Business conduct //
Patrick Harnett
*1976, United Kingdom, he/him
Executive Vice President and Chief Operating Officer 
(COO), Head of EPC
Member of the Group Executive Team
Education
MSc in Electromechanical Engineering, Durham 
University (1999), and Master of Business 
Administration (MBA), University of Hull (2004)
// ESRS 2, GOV-1
Professional experience
2024: 
Ørsted, Chief Operating Officer (COO) and member  
of the Group Executive Team, Head of EPC 
2016-2024: 
Ørsted, most recently as Head of European Execution 
Programmes 
2012-2016: 
Centrica, most recently as Head of Solar and 
Managing Director of the British gas solar business
2005-2011: 
EDF Energy, most recently as Electrical Systems 
Project Manager //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity · ­Circularity 
Social  People management and equity, diversity & 
inclusion · Health & safety · Human rights · Community 
impact  Governance  Business conduct //
Rasmus Errboe
*1979, Denmark, he/him
Group President and Chief Executive Officer (CEO)
Member of the Executive Board and registered  
as an executive of Ørsted A/S with the Danish  
Business Authority
Education
MA (Law), University of Copenhagen (2006), MBA,  
University of San Diego (2011)
// ESRS 2, GOV-1
Professional experience
2025: 
Ørsted, Group President and CEO 
2024: 
Ørsted, Deputy CEO and Chief Commercial  
Officer (CCO)
2023: 
Ørsted, interim Chief Financial Officer (CFO)  
and member of the Executive Board
2022: 
Ørsted, Executive Vice President and CEO of Region 
Europe (member of Ørsted’s Group Executive Team)
2012 – 2022: 
Ørsted, most recently Senior Vice President,  
Head of Continental Europe, Offshore
2006-2012: 
Kromann Reumert, law firm, most recently  
as Attorney-at-Law
Board committee memberships in other enterprises
Member of the Main Board of the Confederation  
of Danish Industries (DI). //
// ESRS 2, GOV-1; ESRS G1, GOV-1
ESG competences
Environment  Decarbonisation · Biodiversity   
Social  People management and equity, diversity & 
inclusion · Health & safety · Community impact   
Governance  Business conduct //
52
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Summary of our remuneration report
The overall objective of the remuneration policy is to 
attract and retain qualified members of the Board of 
Directors and the Executive Board. The policy includes 
remuneration elements that support our strategy, 
long-term interests, and sustainability. 
Remuneration policy (extract)
The overall objective of our remuneration policy is  
to support the Ørsted Group’s strategy, long-term 
interests, and sustainability.
 
To attain this objective, the policy is designed to 
attract and retain qualified members of the Board of 
Directors and the Executive Board and to guide the 
priorities of the Executive Board.
 
The remuneration should be competitive but not 
­market-leading compared to the remuneration in 
other major listed Danish companies with inter-
national activities. The full remuneration policy is 
­available at orsted.com/remuneration2024.
 
Remuneration of the Board of Directors
The members of the Board of Directors receive a 
fixed fee each year. The Chair and the members 
of the committees also receive a multiple of the 
fixed fee for the extra work performed in these 
roles. The members’ travel costs are covered by the 
company. The members are not entitled to severance 
payments. The fees did not increase in 2024. 
Remuneration of the Executive Board
Besides a fixed salary, the Executive Board participates 
in a variable short-term incentive scheme (STI), which 
consists of 70 % shared financial and ESG KPIs aligned 
with our strategic targets:
 
·	 Financial: EBITDA and capital planning
·	 ESG: CDP climate score, relative scope 1 and 2 GHG 
emissions, employee satisfaction, gender diversity, 
and safety 
 
The remaining 30 % of the STI consists of individual 
business and leadership targets. Furthermore, the 
Executive Board is eligible to participate in a long-term 
share-based incentive scheme (LTI), which consists 
of 100 % total shareholder return (TSR) performance 
benchmarked against ten industry peers. 
 
Remuneration in 2024
The remuneration awarded to our Executive Board 
in 2024 was in line with our remuneration policy. 
The Executive Board’s shared STI score ended at 31 %. 
In the LTI, which vested in April 2024, Ørsted was 
ranked as the last when benchmarked on TSR against 
ten comparable energy companies. As a result, no 
shares were settled at the end of the performance 
and vesting period.
For more information, please see the full  
remuneration report.
Remuneration awarded 
(DKK ‘000)
2024
2023
Board of Directors
Fixed annual fee 1
6,430
6,907
Executive Board: 2
Fixed remuneration
Fixed base salary
37,557
27,849
Benefits, incl. social security
1,116
858
Variable remuneration
Cash-based inventive scheme (STI)
4,676
3,712
Share-based inventive scheme (LTI) 3
5,066
2,719
Ordinary remuneration
48,415
35,138
Garden leave period
-
7,071
Severance pay
-
6,210
Total remuneration
54,845
55,325
Remuneration awarded
The table shows the total remuneration awarded to members of the Board of Directors and the Executive Board in aggregate 
from 2023 to 2024. For remuneration expensed, see note 2.7 ‘Employee costs’ of the consolidated financial statements.
1	 Based on an ordinary board fee of DKK 0.4 million, equal to last year’s fee.
2	 In 2023, Executive Board members included former CFO Daniel Lerup. 
3	 The remuneration from the share-based incentive programme (LTI) reflects the market value of the scheme in the year  
when it was granted.
STI
Short-term incentive scheme, components 
25 % ESG
45 % Financial
30 % Business & leadership 
(individual target) 
LTI
Long-term incentive scheme, components 
100 % TSR performance vs industry peers 
53
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Shareholder information
The Ørsted share closed 2024 at DKK 324, corre-
sponding to a market value of DKK 136 billion at the 
end of the year.
Price development for the Ørsted share in 2024
The Ørsted share decreased by 13 % in 2024. The share 
price of comparable European utility companies 
decreased by 2 % (2 % total return), and the OMX C25 
cap decreased by 2 % (0 % total return) in 2024. 
The highest traded share price of the year was 
DKK 455 on 9 October, while the year’s lowest traded 
price of DKK 324 was on 30 December. The Ørsted 
share closed 2024 at DKK 324, corresponding to a 
market value of DKK 136 billion at the end of the year.
The average daily turnover on Nasdaq Copenhagen 
was 592,236 shares in 2024. The trading volume 
decreased by 12 % compared to 2023.
Share capital 
Ørsted’s share capital is divided into 420 million 
shares, enjoying the same voting and dividend rights. 
The company’s share capital remained unchanged in 
2024. At the end of 2024, the company held a total of 
146 thousand treasury shares, which will be used to 
cover incentive schemes.
Composition of shareholders
At the end of the year, the number of shareholders 
had decreased by 8 % to 122,432, and the majority 
(63 %) is held by Danish owners. The figure on the next 
page shows the composition of our shareholders by 
country. Approx. 2.4 % of the share capital is owned 
by Danish retail investors.
Annual general meeting and dividends
The annual general meeting will be held on 3 April 
2025. The Board of Directors has decided to pause 
dividend payments for the financial year years 
2023-2025. Hereafter, the intention is to reinstate 
dividend payments. 
Share data
2024
2023
2022
2021 
2020
Earnings per share, DKK
(2.2)
(50.1)
34.6
24.3
38.8
Proposed dividend per share, DKK
-
-
13.5
12.5
11.5
Dividend yield, %
-
-
2.1
1.5
0.9
Share price, year-end, DKK
324
374
631
835
1,244
Share price, high, DKK
455
704
898
1,400
1,273
Share price, low, DKK
324
253
575
790
574
Market capitalisation, year-end, DKKbn
136
157
265
351
522
Average trading per day, thousands of shares
592,236
671,952
496,899
549,778
516,919
Share price development 2024
Ørsted share price compared to peers (indexed)
  OMXC25 Index rebased 
  Ørsted 
  MSCI EU Utilities Index rebased 
  PX volume
500
400
3,000,000
300
2,000,000
200
1,000,000
0
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Volumes
Share price
Share information
ISIN
DK 0060094928220
Share classes
1
Nominal value
DKK 10 per share
Exchange
Nasdaq OMX Copenhagen
Ticker
ORSTED
Registered share
99.2 %
Number of shares
420,381,080 shares
Number of treasury shares
146,317 shares
54
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Investor relations
To achieve a fair pricing of our shares and corporate 
bonds, we seek to ensure a high level of transparency 
and stability in our financial communication. In addi-
tion, our management and our Investor Relations 
function engage in regular dialogues with investors 
and analysts. The dialogues take the form of quarterly 
conference calls, roadshows, conferences, capital 
markets days, and regular meetings with individual or 
groups of investors and analysts. The dialogues are 
subject to certain restrictions prior to the publication 
of our financial reporting. 
In 2024, we had more than 450 meetings with the 
financial market and participated in more than 
30 investor events.
Ørsted is covered by 35 equity analysts and 10 bond 
analysts. Their recommendations and consensus 
estimates for Ørsted’s future financial performance 
are available at orsted.com/en/investors. On this site, 
you can also download our annual and interim reports, 
our remuneration report, our investor presentations, 
and a wide range of other data.
Shareholders as of 31 December 2024
Share capital and/or voting share %
Selected company  
announcements in 2024
Financial calendar 
2025
Danish State (majority shareholder)  50.1 %
Andel A.M.B.A  5 %
Remaining Danish owners  6.0 %
United Kingdom  6.2 %
United States 6.1 %
Others  14.1 %
19 February
New Chair and Deputy Chair of Ørsted’s  
Board of Directors
27 February
Ørsted appoints new Group CFO and COO
13 March
Ørsted divests share of four US onshore  
wind farms to Stonepeak
21 March
Ørsted updates its executive management 
structure and appoints Rasmus Errboe as  
Deputy CEO
29 April 
Ørsted to divest its French onshore business
29 August
Ørsted shuts down its last combined coal-fired 
heat and power plant
3 September
Ørsted’s Hornsea 3 and Hornsea 4 awarded 
capacity in UK allocation round 6.
30 October
Ørsted divests share of four UK offshore wind 
farms to Brookfield
11 December
Ørsted brings in Cathay Life Insurance as investor 
in Greater Changhua 4 Offshore Wind Farm
18 December
Ørsted divests shares in three US solar and 
battery storage projects to Energy Capital 
Partners
6 February	
Annual report 2024
3 April	
Annual general meeting
Interim reports:
7 May	
The first quarter of 2025
13 August	
The first half-year of 2025
5 November	
The first nine months of 2025
Equinor ASA  10 %
Danish retail investors  2.4 %
55
Management’s review  |  Corporate governance
ØRSTED ANNUAL REPORT 2024

Sustainability 
statements
56
Sustainability statements 
ØRSTED ANNUAL REPORT 2024

Management’s  
review
Strategy and business 
Corporate governance
Sustainability 
statements
General
Environment 
Social 
Governance
Contents 
Sustainability statements
General
ESRS 2	 	
Basis for preparation .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 59
ESRS 2	 	
ESRS disclosure requirements .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 60
ESRS 2	 	
Sustainability governance .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 63
ESRS 2	 	
Our business model and how we create value .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 65
ESRS 2	 	
Our strategy and impact on sustainability matters�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 66
ESRS 2	 	
Double materiality assessment .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 67 
·	 Value chain overview  
·	 Material impacts, risks, and opportunities (IROs) 
·	 Methodology and process 
ESRS 2	 	
Interests and views of our stakeholders .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 75
ESRS 2	 	
Sustainability due diligence .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 77
ESRS 2	 	
ESRS data points from other EU legislation .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 78
Environment
ESRS E1	
Climate change .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 81
n.a.	
	
EU taxonomy for sustainable activities .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 103
ESRS E4	
Biodiversity and ecosystems .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 108
ESRS E5	
Resource use and circular economy .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 116
Social
ESRS S1	
Own workforce .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 124
ESRS S2	
Workers in the value chain .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 137
ESRS S3	
Affected communities .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 145
Governance
ESRS G1	
Business conduct .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�. 153
How to read the  
sustainability statements 
Our management report consists of two parts: the 
management’s review and the sustainability statements. 
Our ­sustainability statements are structured according 
to the four overall sections in the European Sustainability 
­Reporting Standards (ESRS): ‘General’, ‘Environment’, ‘Social’, 
and ‘Governance’. Most of our ESRS disclosures can be found 
in these four sections. However, some of the disclosures 
from the cross-cutting standard ESRS 2 are best suited to be 
read in the management’s review and remuneration report 
and therefore have been ‘incorporated by reference’.
The specific ESRS disclosure requirements are marked 
throughout the sustainability statements and manage-
ment’s review, starting and ending with ‘//’. In our data 
tables with metrics, we have also included the data 
point reference from the ESRS standards. We provide 
additional entity specific data points where necessary, 
marked with ‘entity spec.’. 
Information on where we have reported on ESRS 
­disclosure requirements can be found on pages 60-62.
57
Sustainability statements 
ØRSTED ANNUAL REPORT 2024

→
The offshore wind farms Greater Changhua 1 and 2a are 
Taiwan’s first large-scale offshore wind farms. They have a 
tatal capacity of 900 MW and produce renewable energy 
for Taiwanese households.
General
59	
ESRS 2	
Basis for preparation 
60	
ESRS 2	
ESRS disclosure requirements 
63	
ESRS 2	
Sustainability governance
65	
ESRS 2	
Our business model and how we create value
66	
ESRS 2	
Our strategy and impact on sustainability matters 
67	
ESRS 2	
Double materiality assessment  
68	
	
·	 Value chain overview
69	
	
·	 Material impacts, risks, and opportunities (IROs) 
73	
	
·	 Methodology and process 
75	
ESRS 2	
Interests and views of our stakeholders
77	
ESRS 2	
Sustainability due diligence 
78	
ESRS 2	
ESRS data points from other EU legislation
58
Sustainability statements 
ØRSTED ANNUAL REPORT 2024

Basis for preparation
// ESRS 2, BP-1 
General basis for preparation  
of sustainability statements
Frameworks and data selection 
The sustainability statements are prepared in 
­accordance with the ESRS standards adopted by the 
EU Commission. All the disclosures included in the E, S, 
and G sections have either been assessed as material 
according to our double materiality assessment (DMA) 
or are mandatory according to the ESRS standards.
// ESRS 2, BP-2
All greenhouse gas emissions (GHG scopes 1-3) are 
reported based on the Greenhouse Gas Protocol. //
Consolidation
The sustainability statements have been prepared on 
a consolidated basis. The data is consolidated accord-
ing to the same principles as the financial statements 
and thus comprises the parent company Ørsted A/S 
and subsidiaries controlled by Ørsted A/S. Joint oper-
ations are included with Ørsted’s proportionate share. 
Associates and joint ventures are not included in the 
consolidated data. For the reporting of absolute scope 
1 and 2 GHG emissions, we also report the ­difference 
between total scope 1 and 2 GHG ­emissions using 
operational control of the sites we operate as 
­consolidation principle compared to scope 1 and 
2 totals using our standard financial ­consolidation 
of the entities, as per ESRS disclosure requirement 
E1-6, data point 50. Consolidation of all data follows 
the principles above, unless otherwise specified in the 
accounting policies. 
Value chain
The sustainability statements cover our upstream 
and downstream value chain as the related impacts, 
risks, and opportunities have been identified and 
assessed in our DMA. Selected policies, actions, and 
targets extend to our value chain, where relevant. 
Measurement basis
The accounting policies have been applied consist-
ently in the financial year and for comparative figures. 
Calculation factors used are listed on the pages with 
the relevant metrics, together with references. 
External review
Our auditor PwC has performed limited assurance of 
our sustainability statements (please see the auditor’s 
limited assurance report on page 255). // 
// ESRS 2, BP-2
Disclosures related to  
specific circumstances
Sources of estimation and outcome uncertainty 
(including value chain estimation)
We make assessments and estimates for the ­reporting 
of some data points using indirect sources, including 
sector-average data and proxies. This includes our 
resource inflow metrics and EU taxonomy KPIs. For our 
scope 3 GHG emissions reporting, we use estimates 
in the way that we generally use activity data com-
bined with emissions factors. It is not feasible to 
obtain ­accurate supplier-specific data and emissions 
factors for all of our scope 3 GHG emissions cate-
gories. ­Therefore, in some cases, we use broader, 
more generic activity data or emissions factors and 
­extrapolate these to cover data gaps that we might 
have. We describe the basis for preparation of these 
estimates in our accounting policies.
We regularly reassess our use of estimates and 
­judgements based on experience, the development 
of ESG reporting, and several other factors. Changes 
in estimates are recognised in the period in which the 
estimate in question is revised. 
Changes in preparation or presentation  
of sustainability information
For adjustments to financial numbers presented in 
the sustainability statements, we follow the financial 
statements. We have a policy for adjustments to ESG 
metrics to support our assessment as to whether we 
should restate previously reported numbers in case 
we discover an error or change the accounting policy. 
If we assess that a restatement is necessary based on 
materiality, we clearly indicate what the restatement 
is in the relevant table with the metric.
Changes in 2024
We have updated parts of our EU taxonomy accounting 
policy in 2024, which has triggered a restatement of 
some of our 2023 data.
Firstly, in 2023, we reported our natural gas-based 
thermal energy generation activity as non-eligi-
ble, despite recognising that it was an activity in 
the ­Complementary Climate Delegated Act, as it 
accounted for less than 1.0 % of revenue, EBITDA, 
CAPEX, and OPEX, and therefore was assessed as not 
material to report as taxonomy-eligible. However, 
we have decided to report the activity as taxonomy-­
eligible (but not taxonomy-aligned) in 2024, reflecting 
official EU taxonomy reporting guidance that states 
materiality levels may not be used. For transparency 
and comparability reasons, we have also applied this 
updated accounting policy to the 2023 numbers for 
revenue, EBITDA, CAPEX, and OPEX.
Secondly, we have updated our accounting policy 
regarding taxonomy-aligned revenue and CAPEX 
adjusted for green bonds financing. Previously, we 
have adjusted both the numerator and denominator in 
the KPIs, but we have updated our approach in 2024, 
so only the numerator is adjusted, reflecting offi-
cial EU taxonomy reporting guidance. We have also 
applied this updated accounting policy to the 2023 
numbers, which has triggered a restatement of these 
two KPIs. // 
59
Sustainability statements  |  General
ØRSTED ANNUAL REPORT 2024

BP-1
General basis for preparation  
of the sustainability 
statements
SUS · page 59
BP-2
Disclosures in relation to  
specific circumstances
SUS · pages 59-62
GOV-1
The role of the administrative, 
management, and supervisory 
bodies
MR · pages 46-48, 52
SUS · pages 63-64, 130, 134-135
GOV-2
Information provided to 
and sustainability matters 
addressed by the undertaking’s 
administrative, management, 
and supervisory bodies
SUS · pages 63-64
Cross-cutting standards
ESRS 2  ·  General disclosures (incl. incorporation by reference)
GOV-3
Integration of sustainability- 
related performance in  
incentive schemes
REM · page 7 · Performance of 
the Executive Board
GOV-4
Statement on sustainability 
due diligence
SUS · page 77
GOV-5
Risk management and internal 
controls over sustainability 
reporting
SUS · page 64
SBM-1
Strategy, business model,  
and value chain 
MR · page 21
SUS · pages 65-66, 68, 103, 133
SBM-2
Interests and views  
of stakeholders
SUS · pages 75-76
SBM-3
Material impacts, risks,  
and opportunities and their 
interaction with strategy  
and business model
SUS · pages 68-72, 82-83, 
85-88, 109-110, 117, 125, 138, 
146-147, 154
IRO-1
Description of the process  
to identify and assess  
material impacts, risks,  
and opportunities
MR · page 28
SUS · pages 73-74
IRO-2
Disclosure requirements in 
ESRS standards covered by the 
undertaking’s ­sustainability 
statements
SUS · pages 60-62, 74, 78-79
BP	
Basis for preparation
GOV	
Governance
SBM	
Strategy and business model
IRO	
Impacts, risks, and opportunities
ESRS disclosure 
requirements
Content index
The tables to the right and on the following pages list all of 
the ESRS disclosure requirements in ESRS 2 and the seven 
topical ESRS standards which are material to Ørsted, and 
which have guided the preparation of our ­sustainability 
statements. They can be used to navigate to information 
relating to a specific ESRS disclosure requirement (e.g. BP-1) 
or to our ‘entity specific data points’. They also show where 
to find information relating to specific disclosure require-
ments that lie outside of the sustainability statements and 
is ‘incorporated by reference’. Our remuneration report is 
published as a separate report.
// E2, IRO-1; E3, IRO-1
Immaterial ESRS standards
We have omitted all the disclosure requirements in the 
topical standards ESRS ‘E2 Pollution’, ESRS ‘E3 Water and 
marine resources’, and ESRS ‘S4 Consumers and end-users’, 
as these topics were deemed immaterial in our DMA. For 
ESRS E2 and ESRS E3, we identified and assessed impacts, 
risks, and opportunities following the same methodology 
and process steps as for the topics deemed material. 
This was informed by environmental impact assessments, 
risk registers, reported data, and other documentation, such 
as asset-specific conditions for management of pollution 
and water imposed by local authorities, which is particularly 
relevant for our CHP plants. However, none of the identified 
IROs were assessed as material for these two topics due to 
the high minimum environmental requirements imposed by 
authorities in the countries where we operate our assets. //
// ESRS 2, IRO-2 and BP-2
  Disclosure requirements 
partly or fully incorporated 
by reference
MR	
Management’s review
SUS	
Sustainability statements
REM	
Remuneration report
60
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ØRSTED ANNUAL REPORT 2024

E1-3
Actions and resources in  
relation to climate change 
policies
SUS · pages 88-90
E1-4
Targets related to climate 
change mitigation and 
adaptation
SUS · pages 91-92
E1-5 
Energy consumption and mix
SUS · pages 93, 102
E1-6 
Gross scope 1, 2, 3, and total 
GHG emissions
SUS · pages 94-95
Entity-specific data points
·	 Energy consumption and mix
·	 Gross scope 1, 2, 3, and total 
GHG emissions
·	 Overview by country
·	 Renewable capacity
·	 Generation capacity
·	 Energy business drivers
·	 Energy generation and sales
·	 Total heat and power 
generation by source
SUS · pages 93-95, 97-102
E4-1
Transition plan and conside- 
ration of biodiversity and  
ecosystems in strategy  
and business model
SUS · page 110
E4, SBM-3 (ESRS 2)
Material impacts, risks,  
and opportunities and their 
interaction with strategy  
and business model
SUS · pages 111-112, 114
E4, IRO-1 (ESRS 2)
Description of processes  
to identify and assess material 
biodiversity and ecosystem- 
related impacts, risks, depend-
encies, and opportunities
SUS · pages 110-111
E4-2
Policies related to biodiversity 
and ecosystems
SUS · pages 112-113
E4-3
Actions and resources related 
to biodiversity and ecosystems
SUS · page 113
E4-4
Targets related to biodiversity 
and ecosystems
SUS · page 113
E4-5
Impact metrics related to 
biodiversity and ecosystems 
change
SUS · page 114
Environmental standards
ESRS E4  ·  Biodiversity and ecosystems
Environmental standards
ESRS E5  ·  Resource use  
and circular economy
E5, IRO-1 (ESRS 2)
Description of the processes 
to identify and assess material 
resource use and circular  
economy-related impacts, 
risks, and opportunities
SUS · page 118
E5-1
Policies related to resource  
use and circular economy
SUS · page 118
E5-2
Actions and resources related 
to resource use and circular 
economy
SUS · pages 118-120
E5-3
Targets related to resource  
use and circular economy
SUS · page 120
E5-4
Resource inflows
SUS · page 121
E5-5
Resource outflows
SUS · page 122
Environmental standards
ESRS E1  ·  Climate change (incl. incorporation by reference)
Value chain illustration
Visualisation of our material impacts, risks, and 
opportunities (IROs) resulting from our DMA
Transition plan
Resilience of our strategy and business model to 
our IROs (for E1 and E4)
Actions
Actions taken in the reporting year and planned 
for the future, where relevant, to address our IROs 
Further details of our IROs
Tables describing the IROs and how we manage 
them (incl. link to strategy and business model)
Policies and approaches
Relevant policies per topic and approaches to 
e.g. stakeholder engagement (for S1, S2, and S3) 
Targets
Targets adopted to track effectiveness  
of our policies and actions (if applicable)
Metrics
Performance data, primarily disclosed  
in data tables, including accounting policies
Structure of the ESRS topics in our report 
Each topical chapter in the ‘Environment’ and ‘Social’ 
sections follow the below structure:
E1, GOV-3 (ESRS 2)
Integration of sustainability- 
related performance in  
incentive schemes
REM · page 7 · Performance  
of the Executive Board
SUS · pages 88, 134
E1-1
Transition plan for climate 
change mitigation
SUS · pages 83-85
E1, SBM-3 (ESRS 2)
Material impacts, risks,  
and opportunities, and their 
interaction with strategy  
and business model
SUS · pages 82, 85-88
E1, IRO-1 (ESRS 2)
Description of the processes 
to identify and assess material 
climate-related impacts, risks, 
and opportunities
SUS · pages 85-88
E1-2
Policies related to climate 
change mitigation and 
adaptation
SUS · page 88
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S2, SBM-2 (ESRS 2)
Interests and views  
of stakeholders
SUS · page 75
S2, SBM-3 (ESRS 2)
Material impacts, risks,  
and opportunities and their 
interaction with strategy  
and business model
SUS · pages 138-139
S2-1
Policies related to value  
chain workers
SUS · pages 139-140
S2-2
Processes for engaging  
with value chain workers  
about impacts
SUS · pages 140-141
S2-3
Processes to remediate  
negative impacts and channels 
for value chain workers to  
raise concerns
SUS · pages 141-142
S1-14
Health and safety metrics
SUS · page 136
S1-16
Compensation metrics (pay 
gap and total compensation)
SUS · pages 134-135
S1-17
Incidents, complaints,  
and severe human rights 
impacts
SUS · page 129
Entity-specific data points
·	 People
·	 Group Executive Team  
and Board of Directors
·	 Diversity and pay gap
·	 Safety
SUS · page 133-136
Social standards 
ESRS S2  ·  Workers in the value chain
S2-4
Taking action on material 
impacts on value chain  
workers, and approaches  
to managing material risks  
and pursuing material  
opportunities related to  
value chain workers, and  
effectiveness of those actions
SUS · pages 140-143
S2-5
Targets related to managing 
material negative impacts, 
advancing positive impacts, 
and managing material risks 
and opportunities
SUS · page 143
Entity-specific data points
Supply chain due diligence
SUS · page 144
G1, GOV-1 (ESRS 2)
The role of the administrative, 
supervisory, and management 
bodies
MR · pages 46-49, 52
G1, IRO-1 (ESRS 2)
Description of the pro-
cesses to identify and assess 
material impacts, risks, and 
opportunities
SUS · page 155
G1-5
Political influence and  
lobbying activites
SUS · pages 155-156
Entity-specific data points
Whistleblower cases
SUS · page 156
S3, SBM-2 (ESRS 2)
Interests and views  
of stakeholders
SUS · page 75
S3, SBM-3 (ESRS 2)
Material impacts, risks,  
and opportunities and their 
interaction with strategy  
and business model
SUS · pages 146-148
S3-1
Policies related to affected 
communities
SUS · pages 148-149
S3-2
Processes for engaging with 
affected communities about 
impacts
SUS · pages 149-150
S3-3
Processes to remediate  
negative impacts and channels 
for affected communities to 
raise concerns
SUS · page 150 
S3-4
Taking action on material 
impacts on affected commu- 
nities, and approaches  
to managing material risks  
and pursuing material oppor- 
tunities related to affected 
communities, and effective-
ness of those actions
SUS · pages 149-151
S3-5
Targets related to managing 
material negative impacts, 
advancing positive impacts, 
and managing material risks 
and opportunities
SUS · page 151
Social standards
ESRS S3  ·  Affected communities
Governance standards 
ESRS G1  ·  Business conduct
(incl. incorporation by 
reference)
S1-4
Taking action on material 
impacts on own workforce, 
and approaches to mitigating 
material risks and pursuing 
material opportunities related 
to own workforce, and effec-
tiveness of those actions
SUS · pages 128-129
S1-5
Targets related to managing 
material negative impacts, 
advancing positive impacts, 
and managing material risks 
and opportunities
SUS · pages 131-132
S1-6
Characteristics of the  
undertaking’s employees
SUS · pages 133, 135
S1-9
Diversity metrics
SUS · page 135
Social standards
ESRS S1  ·  Own workforce
S1, SBM-2 (ESRS 2)
Interests and views  
of stakeholders
SUS · page 75
S1, SBM-3 (ESRS 2)
Material impacts, risks,  
and opportunities and their 
interaction with strategy  
and business model
SUS · pages 125-126
S1-1
Policies related to  
own workforce
SUS · pages 126-129
S1-2
Processes for engaging  
with own workers and workers’ 
representatives about impacts
SUS · pages 129-131
S1-3
Processes to remediate nega-
tive impacts and channels for 
own workers to raise concerns
SUS · page 131
62
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Sustainability governance
// ESRS 2, GOV-1
Our sustainability governance enables us to deliver 
on sustainability matters. In 2024, we redesigned our 
sustainability governance. The new set-up ensures clear 
executive accountability for our sustainability matters 
and stronger ownership of material sustainability 
impacts, risks, and opportunities throughout Ørsted. 
The new governance was approved by our Group 
Executive Team in 2024 and will be fully implemented 
in 2025.
Board of Directors
Ørsted’s Board of Directors is the highest governing 
body for sustainability. The Board ultimately approves 
the strategic direction and targets, oversees our per-
formance on material sustainability impacts, risk, 
opportunities (IROs), and approves the double materi-
ality assesssment (DMA) results annually. // 
// ESRS 2, GOV-1 and GOV-2
The Board is presented with a progress update annually 
across material IROs and strategic priorities and 
targets, and engages in deep dives on sustainability 
topics, when needed. // 
// ESRS 2, GOV-1
As a whole, the Board possesses expertise across 
our material sustainability IROs. Based on the seven 
ESRS topics that have been assessed as material 
to Ørsted through our DMA, we have mapped the 
Board’s sustainability competences to ensure that 
they have the relevant expertise to oversee material 
sustainability matters. For more details, see pages 
46-48 in the ­management’s review. 
Audit & Risk Committee
The Audit & Risk Committee reports to the Board 
of Directors. The committee is responsible for the 
integrity and statutory compliance of Ørsted’s CSRD 
reporting.
The Audit & Risk Committee meets six times a year 
and annually reviews our CSRD reporting, including 
the DMA results, before the Board of Directors 
approves it.
For description of the Nomination & Remuneration 
Committee, the Asset Project Committee, and Internal 
Audit, please see page 49.
Group Executive Team
The Group Executive Team steers and approves the 
strategic direction on sustainability and is account-
able for oversight and performance on material 
­sustainability IROs. 
Ørsted’s Chief Commercial Officer (CCO) has the over-
all responsibility for ensuring that the business delivers 
on our sustainability targets and actions, in line with 
our sustainability ambition. Our Chief Financial Officer 
(CFO) is responsible for our sustainable finance report-
ing, including our CSRD reporting. // 
// ESRS 2, GOV-1
Our sustainability governance model
Board of Directors
Business functions
Support functions
Group Executive Team
ESRS topic
Group Executive Team accountable person | Supportive decision forums
E1	 Climate change
COO	 |	 Decarbonisation Core Group
E2	 Pollution*
COO	 |	 QHSE Committee
E3	 Water and marine resources* 
COO	 |	 QHSE Committee
E4	 Biodiversity and ecosystems
CCO	 |	 Biodiversity & Community Impact Core Group
E5	 Resources and circular economy
COO	 |	 Decarbonisation Core Group
S1	 Own workforce (excl. safety)
CHRO	|	 People & Culture Leadership
S1	 Own workforce (safety)
COO	 |	 QHSE Committee
S2	 Workers in the value chain
COO	 |	 Human Rights Task Force
S3	 Affected communities
CCO	 |	 Biodiversity & Community Impact Core Group
G1	Business conduct
Head of Legal**  |  Compliance Committee
Nomination & Remuneration Committee
Asset Project Committee
Audit & Risk Committee
Internal Audit
*	 The ESRS topics E2 and E3 are immaterial according to our DMA results in 2024.
**	 Responsibility delegated to group management team level as ‘Business conduct’  
overlaps with existing mandate in the department Group Legal.
63
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// ESRS 2, GOV-1 and GOV-2
The Group Executive Team discusses material sustain-
ability IROs twice a year. They approve our strategic 
direction and targets on sustainability, including links 
to our corporate strategy, and are accountable for 
our performance ambitions on sustainability topics. 
The Group Executive Team discusses and reviews the 
DMA ahead of the Board of Directors’ approval as well 
as performance on material sustainability matters 
and progress towards targets. 
The Group Executive Team has always considered 
material sustainability matters when ­overseeing 
our corporate strategy, and going forward, the IROs 
resulting from our DMA will further inform their 
decision-­making and support that the IROs are con-
sistently considered in decisions, ranging from what 
we source to how we develop, construct, operate, 
and decommission our projects. The material IROs 
addressed during the year are described in the topical 
ESRS chapters under the actions section. // 
// ESRS 2, GOV-1
As a whole, the Group Executive Team possesses 
expertise across our material IROs. For more details, 
see page 52 in the management’s review. 
Group Executive Team accountable persons
In 2024, we strengthened the Group Executive Team’s 
accountability for sustainability and delegated 
accountability of material sustainability areas to 
individual members of the Group Executive Team in 
alignment with the sustainability topics defined in the 
ESRS standards. 
The new governance integrates responsibility into the 
line organisation in Ørsted to ensure a focused set-up 
with a strong mandate to execute on sustainability 
topics. 
The new accountable persons in the Group Executive 
Team are individually accountable for driving progress 
on the assigned sustainability topic according to road-
maps, including defining key actions and allocating 
resources to secure progress on targets and ambitions. 
They will be supported by supportive decision forums 
as well as internal experts from the support functions 
on sustainability topics.
Supportive decision forums
The Decarbonisation Core Group and the ­Biodiversity 
& Community Impact Core Group will support the 
accountable persons in the Group Executive Team in 
delivering on our strategic sustainability priority areas. 
The two new groups will kick off in 2025 and consist 
of the Group Executive Team accountable person and 
senior leaders from functional areas with a clear role 
in delivering on the material sustainability matters. 
The groups have a tactical responsibility and decide 
on new sustainability initiatives needed to deliver on 
our ambitions and targets, guide implementation in 
the organisation, and act on IROs. The core groups will 
meet two-three times a year or pending need.
We are in the process of establishing a human rights 
task force, specifically focused on strengthening our 
due diligence systems to ensure compliance with the 
upcoming EU Corporate Sustainability Due Diligence 
Directive (CSDDD). The task force will enable the 
implementation of a human rights management ­system 
and oversee its integration into relevant business 
processes to reach compliance. The task force will 
kick off in 2025 and consist of the Group Executive 
Team accountable person as well as senior leaders 
representing Ørsted’s value chain to ensure the value 
chain-wide approach of integrating human rights into 
management systems and processes. The task force 
will meet twice a year.
The Compliance Committee monitors compliance 
with laws, rules, standards, and internal codes of 
conduct for all business areas. The QHSE Committee 
oversees our quality, health, safety, and environment 
(QHSE) priorities and has a special focus on these 
aspects in relation to sustainability topics.
Business functions
The business functions are responsible for executing 
on material sustainability IROs. They deliver concrete 
actions on the ground to progress on our targets 
and ambitions while managing risks and capturing 
performance data. 
Support functions
The key support functions are Corporate Strategy, 
Global Sustainability, and Group Finance. The support 
functions assist all the accountable persons in ­facilitating 
the sustainability work and oversight and guides 
and enables the accountable persons in the Group 
Executive Team and the business in setting ambition 
levels and delivering on sustainability matters. // 
// ESRS 2, GOV-5 
Risk management and internal controls
In preparation for the CSRD, a plan was estab-
lished to perform walkthroughs to identify 
risks, reassess existing controls, and identify 
additional controls for sustainability reporting. 
This initiative started in 2024 and will continue 
until the end of 2025. These walkthroughs of 
sustainability reporting processes were priori-
tised based on the results of the DMA performed 
in 2023 with reference to the draft ESRS. Priority 
is given to the quantitative data points related 
to our material ESRS topics.
The walkthroughs are facilitated by the Internal 
Control Assurance team (second line of defence) 
in collaboration with functions involved in the 
sustainability reporting processes and data 
collection processes. The risks associated with 
the completeness, accuracy, and timeliness of 
the data as well as results of estimations and 
calculations are assessed based on materiality 
of the individual data points and process 
complexity. 
The walkthrough of the ESRS ‘E1 Climate 
change’ topic was finalised in 2024. It was con-
firmed that main risks in data collection and 
reporting processes for material data points 
within this area have been mitigated by rele-
vant controls. Some controls required formal-
isation, which has been completed in 2024. 
Since January 2025, formalised controls for this 
area have been included in our ‘Internal con-
trol framework’ for financial and sustainability 
reporting processes to further monitor their 
design and operating effectiveness.
The Audit & Risk Committee monitors our 
­sustainability reporting processes, including the 
plans for improvements, risks, internal controls, 
and their operating effectiveness. //
64
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Our business model and  
how we create value 
// ESRS 2, SBM-1
We create value by developing, constructing, ­operating, 
and owning renewable assets and by providing 
sustainable energy products to our ­customers. 
Our portfolio includes offshore and onshore wind 
farms, solar farms, energy storage, and CHP plants.
Key inputs and what we depend on
Natural resources 
Our business relies on natural resources, such as wind 
and sun, for our assets to generate the renewable energy 
we sell to our customers. To deliver on our renewable 
capacity target, we also depend on materials such 
as steel and copper and on critical raw materials. We 
secure those inputs through volume agreements and a 
thorough process for vetting new suppliers.
Human and financial capitals 
We depend on human capital through our talented 
8,000+ employees, working to create value every day 
while adhering to our core values. Our business model 
depends on financial capital where our partnership 
model plays a key role in recycling cash flow through 
farm-downs.
Stakeholder relationships 
We depend on political support for the continued 
renewable energy build-out, and we rely on a construc-
tive dialogue with authorities, suppliers, investors, and 
joint venture partners.
Key outputs and benefits created
Customers 
We help countries and companies meet their climate 
targets. We enter into long-term agreements to give 
customers certainty about the costs and origin of their 
renewable power supply.
Communities 
We ensure people in the regions where we operate 
benefit from and support the build-out of renewable 
energy, thereby driving a lasting, positive change for 
communities.
Shareholders 
We will invest in value-creating growth opportunities 
and operate our portfolio in a cost-effective way to 
create value for our shareholders.
Employees 
We ensure a safe and inclusive workplace focused on 
employees’ skills development and their well-being.
Our business model in relation to sustainability
We have made it a core commitment to develop, 
construct, and operate our renewable assets in an 
environmentally and socially sustainable way, which 
helps de-risk projects, enhance our license to operate, 
and drive a lasting, positive change for society. //
·	
Natural resources
·	
Human capital
·	
Financial capital
·	
Stakeholder relationships
Develop Secure pipeline through  
land and project rights, grid access, 
and permits
Construct Thorough supplier selection 
and local content adherence
Operate Ensure high availability  
and balance power to the grid
Own Manage and optimise our asset 
portfolio and partnerships
·	
Customers
·	
Communities
·	
Shareholders
·	
Employees
Key inputs
and what we depend on	
Activities
in our business model
Key outputs 
and benefits created
65
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Our strategy and 
impact on sustainability 
matters
// ESRS 2, SBM-1
We develop, construct, and operate our renewable energy 
assets in an environmentally and socially sustainable way. 
We work continuously to integrate sustainability into our 
strategy and business model and to respond to the main 
challenges and opportunities ahead of us and in our industry.
We have three strategic sustainability priorities – decarbon-
isation, biodiversity, and community impact – which play 
an enabling role in our commercial and project ­delivery. 
These priorities were confirmed by the result of our 2024 
double materiality assessment (DMA) and reflect where 
strategic value is gained in our business model by creating 
positive impacts on nature and society. 
At the same time, we acknowledge the aspects of our 
strategy and business model that bring vulnerabilities and 
risks. Renewable energy requires significant amounts of 
natural resources, such as steel, with negative impacts on 
climate and the environment. The build-out also affects 
people and local communities. 
We therefore focus our efforts on making sure that we 
mitigate negative impacts while creating positive impacts 
by decarbonising societies, helping to protect nature, 
and making sure the build-out brings benefits to people, 
workers, and local communities. // 
We develop, construct, and operate renewable energy assets at scale
Strategic sustainability priorities
// ESRS 2, SBM-1
Key elements of our strategy that impact sustainability matters 
Resources
·	 Use of virgin and scarce raw materials 
·	 Energy- and emissions-intensive supply chain 
·	 Vulnerable supply chain workers
Land and sea space
·	 Renewable energy capacity build-out should  
co-exist with nature 
·	 Ecosystem and biodiversity impacts from  
our supply chain 
Public and political support
·	 Local resistance to renewable energy assets 
·	 Political opposition to and lack of support for 
renewable energy build-out
How we respond to these challenges
Decarbonisation (ESRS E1 and E5)
Optimise the use of resources and  
energy and reduce GHG emissions
·	 Collaboration with suppliers to decarbonise  
materials and processes
·	 Roadmaps to decarbonise key resources  
and processes
·	 Partnerships to improve recyclability  
of our renewable energy assets
Biodiversity (ESRS E4)
Protect and preserve nature and reduce  
direct impact drivers of biodiversity loss
·	 Application of our measurement framework  
and the mitigation hierarchy
·	 Site monitoring and action plans, including  
positive impact efforts
Community impact (ESRS S3)
Ensure people in the regions where we operate 
benefit from and support the build-out
·	 Engagement and ongoing dialogue with  
affected communities
·	 Integration of affected communities’  
perspectives in project planning phase
Foundational sustainability areas
Main challenges 
Human rights 
(ESRS S1, S2, S3)
·	 Human rights due diligence
·	 Risk-based audits and supplier 
assessments
Health and safety 
(ESRS S1, S2) 
·	 High focus on safety measures
·	 Recurring safety training and  
awareness campaigns
People management,  
diversity and inclusion  
(ESRS S1) 
·	 Employee engagement
·	 Inclusive workplace
·	 Flexible working conditions
Business conduct  
(ESRS G1)
·	 Good business conduct  
policy and training 
·	 Grievance mechanisms
·	 Climate advocacy  
(political engagement)
66
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ØRSTED ANNUAL REPORT 2024

S1  Own workforce
+ / −  R
S2  Workers in the value chain
−  R
E2  Pollution
E3  Water and marine resources
S4  Consumers and end-users
G1  Business conduct
+
E1  Climate change
+  O
E5  Resource use and circular economy
−  R
S3  Affected communities
+ / −  R
E4  Biodiversity and ecosystems
−  O
MATERIAL
IMMATERIAL
MATERIAL
DOUBLE MATERIALITY
Crucial
Crucial
Financial materiality
Significant
Significant
Impact materiality
Immaterial
Immaterial
Double materiality  
assessment 
We have conducted a double materiality assessment 
(DMA) according to the double materiality criteria defined 
in ESRS 1 and implementation guidance from EFRAG. 
In our DMA, we have identified and assessed our impacts on 
the environment and society as well as the sustainability- 
related financial risks that we are exposed to and the 
opportunities we leverage. In total, 40 impacts, risks, 
and opportunities (IROs) have been assessed as material, 
comprising of 7 positive impacts, 23 negative impacts,  
8 risks, and 2 opportunities (see pages 69-72).
A high-level outcome of our DMA is shown in the matrix, 
aggregated per ESRS topic. Seven ESRS topics are 
material to Ørsted, with six of these topics having 
‘double materiality’, i.e. they have both material impacts 
and financial risks or opportunities. Climate change 
(E1), biodiversity and ecosystems (E4), resource use and 
circular economy (E5), and affected communities (S3) are 
our most material sustainability matters, and the IROs 
within these topics are closely linked to our strategic 
aspiration to be the world’s leading green energy major.
R	
Risk
O	
Opportunity 
+	
Positive impact
–	
Negative impact
	
Materiality threshold
The highest-scoring IRO within a topic 
determines the placement of that topic in 
the matrix. ‘E1 Climate change’ is e.g. placed 
in the quadrant shown due to a positive 
impact and an opportunity scored as ‘crucial’. 
However, this topic also has negative impacts 
and risks scored as ‘significant’, which are 
not shown in the matrix. If multiple topics are 
placed within the same quadrant, e.g. E4, E5, 
S3, they are listed in chronological order, and 
this does not indicate differing degrees of 
materiality.
67
Sustainability statements  |  General
ØRSTED ANNUAL REPORT 2024

Biodiversity 
restoration
Downstream value chain
Mining of 
minerals and 
metals
Animal 
habitats
Resource 
extraction and 
processing
Society
Supply chain 
workers
Affected
communities
Upstream value chain
Farm-downs
Gas and power 
sales
Own operations
Ørsted 
workplaces
Employees
Supplier 
management
Power 
stations
Solar 
farms
Energy 
storage
Onshore wind 
farms and onshore 
renewables
construction
Offshore 
wind farm 
construction
Offshore 
wind farms
Positive impacts
	
Renewable energy 
deployment (E1)
	
Local jobs and  
educational  
opportunities (S3)
Sustainability-related opportunities
	
Renewable energy 
deployment (E1)
	
Biodiversity ­restoration, 
research, and innova-
tion initiatives (E4)
Negative impacts
	 Natural resources  
exploitation and land-
use and freshwater-use 
change (E4)
	 Habitat loss from land 
degradation (E4)
	 Species population size 
decrease, and extinction 
risk increase (E4) 
	 Use and depletion of  
virgin materials (E5) 
	 Pollution from mining 
may affect communities’ 
health (S3)
	 Indigenous Peoples’ 
rights and livelihoods 
possibly disrespected or 
disrupted by suppliers 
(S3)
Sustainability-related risks
	
Climate-related  
transition risks due to 
changes in political 
support (E1)
	
Climate-related  
physical risks (E1)
	
Dependence on scarce 
critical raw materials 
(E5)
	
Increased voluntary 
turnover (S1)
	
Possible supplier mis-
conduct concerning 
forced labour (S2)
	
Local communities’ 
resistance and  
concerns (S3)
	
Increasing local con-
tent and social impact 
requirements in tender  
processes (S3)
	
Consent of Indigenous 
communities (S3)
// ESRS 2, SBM-1 and SBM-3
Value chain overview 
Our material sustainability-related impacts, risks,  
and opportunities (IROs 1) across our full value chain
1	 Impacts shown in this overview have a materiality level  
of ‘crucial’, and the risks and opportunities shown have a 
materiality level of ‘crucial’ or ‘significant’.
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Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
Material impacts, risks,  
and opportunities (IROs)
Overview of our material IROs
In the following tables, we list our IROs that were 
identified and assessed as material in our DMA, i.e. 
they were scored with either a ‘crucial’ or ‘significant’ 
level of materiality. Within each ESRS topic, we specify 
which sub-topics the IROs relate to, e.g. in ESRS ‘E1 
Climate change’, the sub-topics are ‘climate change 
mitigation’, ‘climate change adaptation’, and ‘energy’. 
Brief descriptions of the material IROs are also included 
in the tables, alongside an indication as to whether the 
IROs are in our own operations (OO) or value chain (VC). 
For impacts, we also show whether they are positive (+), 
negative (-), actual (A), or potential (P). More information 
on each IRO, including how we manage them, is included 
in the topical sections under ‘Environment’, ‘Social’,  
and ‘Governance’.
Inherent risks and impacts
Our DMA is based on inherent risks and impacts but also 
accounts for actions that have been fully integrated in 
our governance, management, and daily operations to 
reduce or mitigate their effects.
E1 Climate change
// ESRS 2, SBM-3
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Climate change mitigation
Renewable energy deployment
I
+
A
OO
Crucial
Renewable energy deployment
O
OO
Crucial
Carbon removal through nature-based projects
I
+
P
OO
Significant
Scope 1 and 2 GHG emissions from our operations
I
-
A
OO
Significant 
Scope 3 GHG emissions from the renewable energy 
supply chain 
I
-
A
VC
Significant
Scope 3 GHG emissions from regular power sales and 
natural gas sales 
I
-
A
VC
Significant
Climate-related transition risks due to changes in political  
support for the renewable energy build-out
R
OO
Significant
2
Climate change adaptation
Climate-related physical risks (chronic and acute)
R
OO
Significant
3
Energy
Energy consumption, mainly at our CHP plants
I
-
A
OO
Significant
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
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Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Direct impact drivers of biodiversity loss
Natural resources exploitation and land-use and freshwater-use  
change from mining
I
-
A
VC
Crucial
Ecotoxicity from mining
I
-
A
VC
Significant
Land-use and sea-use change from coal and gas extraction
I
-
A
VC
Significant
2
Impacts on the extent and condition of ecosystems
Habitat loss from land degradation from mining
I
-
A
VC
Crucial
Biodiversity restoration, research, and innovation initiatives
I 1
+
A
OO
Significant
Biodiversity restoration, research, and innovation initiatives
O 1
OO
Significant
Temporary disturbances to habitats during construction
I
-
A
OO
Significant
3
Impacts on the state of species1
Species population size decrease, and extinction risk increase  
due to mining 
I
-
A
VC
Crucial
Temporary displacement or loss of species during construction
I
-
A
OO
Significant
E4 Biodiversity and ecosystems
// ESRS 2, SBM-3
E5 Resource use and circular economy
// ESRS 2, SBM-3
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Resource inflows, including resource use
Use and depletion of virgin materials
I
-
A
VC
Crucial
Increased demand for scarce critical raw materials and necessary 
maturation of supply chains for lower-emissions alternatives
R
VC
Significant
2
Waste
Materials wasted during construction, operation, and 
decommissioning
I
-
A
OO
Significant
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
1	 The positive impact and opportunity also fall under the sub-topic ‘Impacts on the state of species’.
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Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Working conditions
Flexible working conditions
I
+
A
OO
Significant
Work-induced stress
I
-
A
OO
Significant
Possible work-related injuries and fatalities
I
-
P
OO
Significant
Increased voluntary turnover, potentially due to perceived  
internal risks or uncertainties
R
OO
Significant
2
Equal treatment and opportunities for all
Unequal gender distribution in management
I
-
A
OO
Significant
S1 Own workforce
// ESRS 2, SBM-3
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
S2 Workers in the value chain
// ESRS 2, SBM-3
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Working conditions
Excessive working hours for supply chain workers
I
-
A
VC
Significant
Possible work-related injuries and fatalities for supply chain workers
I
-
P
VC
Significant
2
Other work-related rights
Debt bondage and withholding of passports
I
-
A
VC
Significant
State-imposed forced labour in the solar PV supply chain
I
-
P
VC
Significant
Forced labour allegations or misconduct in major supply chains for 
renewable energy materials and components
R
VC
Significant
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
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Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
Immaterial
Significant
IMPACT MATERIALITY
Crucial
Immaterial
FINANCIAL MATERIALITY
Significant
Crucial
S3 Affected communities
// ESRS 2, SBM-3
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Communities’ economic, social, and cultural rights
Pollution from mining may impact communities’ health
I
-
P
VC
Crucial
Local jobs and educational opportunities
I
+
A
OO
Crucial
Improvement to public infrastructure improving living standards
I
+
A
OO
Significant
Local communities’ resistance and concerns with renewable 
energy projects 
R
OO
Significant
Increasing local content and social impact requirements  
in tender processes
R
OO
Significant
2
Rights of Indigenous Peoples 
Indigenous Peoples’ rights and livelihoods possibly disrespected  
or disrupted by suppliers
I
-
P
VC
Crucial
Indigenous Peoples’ rights and livelihoods disrespected or disrupted 
during development and construction
I
-
A
OO
Significant
Consent of Indigenous communities
R
OO
Significant
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
G1 Business conduct
// ESRS 2, SBM-3
Ørsted impact, risk, and opportunity (IRO) 
IRO
+/-
A/P
OO/VC
Materiality level
1
Political engagement and lobbying activities
Constructive political engagement through lobbying
I
+
A
OO
Significant
I	
Impact
R	
Risk
O	
Opportunity 
+	
Positive
–	
Negative
A	
Actual
P	
Potential
OO	
Own operations
VC	
Value chain
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
The highest-scoring IRO 
within a sub-topic determines 
the placement of that sub-
topic (number) in the matrix.
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Planet and society
Financial materiality 
(outside-in)
Double materiality approach
Ørsted 
Impact materiality 
(inside-out)
Methodology and process
// ESRS 2, IRO-1 
We developed our double materiality assessment 
(DMA) methodology and process steps based on 
the ‘IG1: Materiality Assessment Implementation 
­Guidance’ published by EFRAG in May 2024. In addition, 
we developed scoring tools to operationalise the 
parameters and criteria set out and to document the 
process steps, including rationales and supporting 
documentation for our scoring assessments.
Methodologies  
and assumptions
Scope
We have considered all the sub-sub-topics listed 
in ESRS 1 when identifying our impacts, risks, and 
opportunities (IROs). For impacts on people and the 
environment (inside-out), we considered both positive 
and negative impacts related to sustainability 
matters, which can be both actual and potential. In 
our financial assessment (outside-in), we assessed 
potential sustainability-related risks that could 
trigger a negative financial effect on our business and 
opportunities that could benefit our business positively. 
We considered activities within our own operations as 
well as from our business relationships and value chain. 
Our value chain assessment mainly focused on our first-
tier suppliers, and beyond that, we relied on industry-
wide value chain assessments, ­industry knowledge, 
and internal knowledge based on our engagement 
in various forums. We had ­particular focus on the 
upstream value chain focusing on sourcing of materials 
and exposure to certain geographies that might give 
rise to a heightened risk of adverse human and labour 
rights and of environmental impacts due to the nature 
of our industry.
Stakeholder engagement
Understanding which stakeholders are affected by our 
business is fundamental. This is managed continuously 
through ongoing dialogues to understand stakeholders’ 
positions, concerns, and expectations. The insight gained 
from these continuous dialogues also served to inform 
our DMA as we used our in-house ­subject-matter experts 
as a valid proxy for bringing the interests and views of our 
stakeholders into the DMA. 
They used their professional judgement when 
applying the scoring criteria and were informed 
by publicly available evidence of circumstances, 
determining that a matter is material without further 
analysis. Our continuous engagement activities in the 
communities where we are present were also a solid 
basis for assessing our material impacts and risks.
Scoring
Impacts
As per ESRS 1 and the guidance from EFRAG, three 
parameters of ‘scale’, ‘scope’, and ‘irremediable charac-
ter’ have been used in the scoring of the ‘severity’ of 
our actual and potential negative impacts:
1	 When scoring ‘scale’, we assessed how great the 
impact is or could be on the environment or people. 
For actual negative impacts, the scale depends on 
successful mitigation that has taken place before 
or during the event. Therefore, when scoring ‘scale’, 
the current mitigation actions were considered, 
including the ‘license to operate’ conditions required 
by authorities.
2	 When scoring ‘scope’, we assessed how widespread 
the impact is based on parameters, such as the 
percentage of sites, employees, or financial spend 
that the impact relates to.
3	 When scoring ‘irremediable character’, we assessed 
how difficult it is to reverse the damage in terms of 
cost and time horizon.
For actual negative impacts, these three dimensions 
were scored and weighted equally for ‘severity’. For 
potential negative impacts, an additional parameter 
of ‘likelihood’ was scored. This ‘likelihood’ score was 
weighted 1:1 with the ‘severity’ score. However, for a 
human rights potential negative impact, ‘severity’ took 
precedence over ‘likelihood’ (3:1 weighting, respectively). 
This weighting was applied on all potential negative 
impacts in S1, S2, and S3 across all sub-topics. 
For actual positive impacts, ‘scale’ and ‘scope’ were 
scored and weighted equally for ‘severity’. For potential 
positive impacts, ‘likelihood’ was also scored and 
weighted 1:1 with the ‘severity’ score, as it was for 
potential negative impacts.
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Risks and opportunities
When scoring sustainability risks and opportunities, 
we assessed the potential ‘magnitude’ of possible 
financial effects on, for example, revenue, CAPEX or 
OPEX, which constitutes one part of the score, and the 
‘likelihood of occurrence’, which constitutes the other 
part. The possible financial effects of the ­individual 
risks and opportunities were assessed through sustain­
ability-matter-specific scenarios, operationalised 
through stress tests. Mitigation measures put in place 
are reflected in either the magnitude or ­likelihood of 
the assessed scenarios. 
Some scenarios were assessed quantitatively. In cases 
where a quantitative assessment was not possible 
or insufficient, qualitative assessments were used 
to supplement or inform the magnitude of the risk 
or opportunity. This approach was necessary due to 
the complexity of defining exact values for potential 
sustainability scenarios.
Time horizons
Potential impacts, risks, and opportunities were 
assessed across three time horizons: short term 
(­covering the current reporting year and the next 
year), medium term (from the end of the short term 
period to five years), and long term (more than 
five years).
For risks and opportunities, we consolidated the 
score by assigning weights over the short-, medium-, 
and long-term horizons. The weights were evenly 
distributed or adjusted to emphasise either the short 
term or medium and long term. // 
// ESRS 2, IRO-2
Thresholds
Our calibration group discussed where to set the 
thresholds for materiality, and their recommendation 
was submitted to the Group Executive Team when the 
final DMA results were presented to them for approval. 
There were five degrees of materiality for the IROs: the 
highest level was ‘crucial’, then ‘significant’, ‘important’, 
‘informative’, and lastly ‘minimal’ as the lowest level. 
The materiality threshold was set at ‘significant’, meaning 
that IROs scored as ‘significant’ or ‘crucial’, and their 
associated ESRS standard, were material. // 
// ESRS 2, IRO-1
Process
We defined five process steps for conducting the DMA. 
In addition, there was a fundamental initial step of 
‘understanding the context’ as suggested in the ESRS 
IG1. Our work with mapping our sustainability-related 
impacts builds on the approach we have used for over 
a decade for assessing the materiality of sustainability-
related matters. Furthermore, our daily work with 
sustainability is supported by benchmark reports, 
studies, and internal projects, including regulatory 
landscape understanding, media monitoring, peer 
analysis, etc. 
1  Engagement of stakeholders
2  Scoping of IROs
3  Assessment of IROs
4  Validation of results and calibration
5  Final review and approval 
1. Engagement of stakeholders
We identified subject-matter experts with extensive 
insight and knowledge into each ESRS standard and 
set-up DMA workshops with them. These experts 
included a variety of employees working with sustain-
ability impacts and risks at corporate level and in the 
business as well as employees working with ­regulatory 
and public affairs. Onboarding sessions helped to get 
a common understanding of the new CSRD regulation 
and objectives of the DMA. 
2. Scoping of IROs
As preparation for the workshops, we identified IROs 
relating to environmental, social, and governance 
matters. We consulted relevant internal information 
(e.g. previous materiality assessments, internal impact 
reports, internal risk memos, and stakeholder findings) 
to scope and pre-define relevant matters per ESRS 
sub-topic and sub-sub-topic. This gross list of IROs 
formed the starting point for verification and assess-
ment at the workshops. 
3. Assessment of IROs
At the workshops, the experts reviewed the predefined 
IROs and adjusted wording and classification of these, 
where relevant. Secondly, they assessed each IRO, 
and scoring rationales were documented, including 
relevant reference documents. Lastly, participants 
added additional IROs if they found that a relevant 
matter was not captured in the pre-defined list. 
The experts were introduced to the assessment criteria 
at the workshops to ensure a consistent approach 
and understanding of the scoring methodology. 
Where relevant, additional experts were identified 
and consulted following the initial workshops to 
capture insights for a specific matter or regional 
perspectives. 
4. Validation of results and calibration
Results from the workshops were systematically 
captured and aggregated using a scoring tool in order 
to calculate the degree of materiality of each IRO. 
The tool was organised to clearly link the ESRS 
topics, sub-topics, and sub-sub-topics to each IRO 
identified and assessed in the workshops. The tool 
provided an overview of the scores which constituted 
the preliminary results. Workshop participants were 
consulted again for validation of the preliminary 
results. If any adjustments were needed, the relevant 
expert provided the rationale for adjustment in order 
to document any changes. 
As a next validation step, a calibration group 
calibrated the preliminary results before the final 
review and approval step. This group consisted 
of the head of Group Finance, the head of Global 
Sustainability, and leads from Investor Relations 
and Global Regulatory & Public Affairs. The group 
specifically focused on bringing their insights from 
external stakeholders, including investors, to bridge 
the results to our strategic sustainability priorities. 
5. Final review and approval 
In the final step, the results were reviewed and 
approved by relevant leaders. Any necessary adjust-
ments were incorporated before their final sign-off. 
After their approval, the DMA process and results were 
presented to the Group Executive Team. Finally, the 
results were approved by the Board of Directors. //
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Interests and views  
of stakeholders
// ESRS 2, SBM-2 
Stakeholder engagement
Our ‘Stakeholder engagement policy’ underscores 
our commitment to actively listen to and engage with 
our stakeholders. Through ongoing dialogue, we gain 
insight into their positions, concerns, and expectations. 
The insights gained from these dialogues inform 
our due diligence processes and double materiality 
assessment. This allows us to align our sustainability 
priorities, projects, and processes with the interests 
and views of our stakeholders. 
Guided by principles of openness, transparency, and 
integrity, our Stakeholder engagement policy adheres 
to international norms and codes, including the UN 
Guiding Principles on Business & Human Rights, the 
UN Declaration on the Rights of Indigenous Peoples, 
and the IFC Performance Standards on Social & 
Environmental Sustainability.
We ensure that the views and interests of affected 
stakeholders regarding our sustainability-related 
impacts, risks, and opportunities are regularly com-
municated to the relevant accountable person in the 
Group Executive Team through periodic ­meetings. 
For more information on our new sustainability 
­governance, please see pages 63-64.
In the following table, we outline examples of how 
we engage with key stakeholders. //
How engagement is organised
Purpose of engagements
Examples of outcomes from the engagements
// S1, SBM-2
Employees 
// S2, SBM-2 
Suppliers
·	 Understanding employees’ perceptions, 
experiences, challenges, and suggestions 
for improvement
·	 Raising awareness of internal policies  
and changes 
·	 Contributing to a sustainable workplace 
and working life, including physical and 
psychological health and safety 
·	 Increasing employee retention and 
attraction 
·	 Internal policy updates, e.g. labour and 
employment rights policy
·	 Global initiatives and campaigns for e.g. 
employee well-being 
·	 Employment relations and occupational 
health and safety representatives
·	 Inclusion and enterprise social networks
·	 Employee-elected board members
·	 Personal development dialogues
·	 Employee satisfaction surveys, workplace 
assessments, and town halls
·	 Ensuring compliance with our code of conduct
·	 Promoting responsible sourcing, incl. of 
minerals and metals
·	 Protecting human and labour rights of workers 
·	 Ensuring a respectful working environment 
·	 Decarbonising our value chain and promoting 
circular solutions for resource use 
·	 Understanding supplier needs and concerns
·	 Streamlined supplier expectations 
·	 Supplier improvement plans to comply with 
code of conduct
·	 Informed procurement decisions 
·	 Investments in test pilots and early offtake 
agreements for low-carbon solutions 
·	 Interviews and assessments for supplier 
due diligence
·	 Workshops and industry collaborations, 
e.g. DecomBlades
·	 Addressing community concerns,  
questions, and feedback
·	 Building trust and relationships with local 
stakeholders affected by renewable 
energy projects 
·	 Ensuring community benefits and our 
social license to operate
·	 Design of tailored community benefits  
and projects 
·	 Support of local projects for job 
creation, economic development, and 
environmental preservation
// S3, SBM-2 
Local communities
·	 Consultations, public forums, and  
informational events 
·	 Direct communication through project 
staff and liaison officers 
·	 Interviews during environmental and  
social impact assessments 
·	 Whistleblower Hotline and other  
grievance mechanisms
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Examples of outcomes from the engagements
Purpose of engagements
How engagement is organised
·	 Understanding investor concerns and 
addressing questions
·	 Building trust and demonstrating 
long-term value of renewable energy 
investments 
·	 Discussing performance, risk management, 
and strategic direction
·	 Ensuring compliance with regulatory 
frameworks and standards
·	 Promoting a sustainable build-out of 
renewable energy
·	 Addressing climate-related transition  
risks and opportunities 
·	 Contributing to local initiatives 
·	 Ensuring transparency and responsiveness 
to public concerns 
·	 Understanding our local license to operate 
and public expectations 
·	 Pooling efforts to address supply chain 
challenges, e.g. decarbonisation and 
human rights 
·	 Enabling the industry to engage 
policymakers and promoting the build-out 
of renewable energy
·	 Developing industry standards for 
sustainability
·	 Pooling efforts to decarbonise hard-to-
abate sectors in our supply chain
·	 Understanding the views of value chain 
workers’ representatives 
·	 Action plans to improve ESG performance
·	 Increased disclosure to ESG rating 
agencies 
·	 Alignment of investment strategy with 
sustainable finance frameworks, e.g. the 
EU taxonomy 
·	 Operational adjustments to ensure 
compliance 
·	 Informed decisions for renewable energy 
deployment and financing
·	 Informed project planning and site-
specific initiatives, e.g. for biodiversity 
conservation or community development 
·	 Alignment of projects with best practice 
for community engagement 
·	 Industry-led life cycle assessment 
methodology for offshore wind farms
·	 Launch of the Responsible Renewables 
Infrastructure Initiative
·	 Design of tailored initiatives for value 
chain workers trough unions 
Investors
Governments, policy- 
makers, and regulators
Civic and non-profit  
organisations
Industry and sustainability  
associations
·	 ESG ratings and assessments
·	 One-on-one investor relations meetings, 
questionnaires, and inquiries 
·	 Quarterly earnings calls
·	 Capital market days and annual general 
meetings 
·	 Participation in public hearings and  
regulatory processes 
·	 Consultations and policy roundtables
·	 White papers, studies, and thought 
leadership related to renewable energy 
deployment 
·	 Collaboration and consultations 
on community projects and impact 
assessments 
·	 Contributions to research projects
·	 Workshops, knowledge sharing, and  
industry conferences 
·	 Joint initiatives and industry research 
on e.g. biodiversity impact or life cycle 
assessments 
·	 Consultations with trade unions on e.g. 
worker welfare and rights 
Corporate  
customers
·	 Understanding customer needs and 
expectations 
·	 Building trust and providing transparency 
·	 Enabling customers to achieve their 
renewable energy targets 
·	 Product or service improvements for e.g. 
power purchase agreements (PPAs)
·	 Adaptation of marketing strategies, e.g. 
by providing ESG rating scorecards for 
customers 
·	 Customer support inquiries 
·	 Periodic reviews and meetings with 
account managers 
·	 Assessments for business partner  
due diligence
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Sustainability due diligence
Our due diligence approach
For over a decade, we have been following the OECD 
Guidelines for Multinational Enterprises and the UN 
Guiding Principles on Business and Human Rights to 
integrate due diligence into our procurement, operations, 
and local communities. This work has set a strong 
foundation for our future ambitions, as we prepare to 
meet the anticipated requirements of the EU Corporate 
Sustainability Due Diligence Directive (CSDDD). 
Guided by these frameworks, we have implemented 
a risk-based due diligence approach centered around 
accountability, transparency, collaboration, and 
proactive engagement with stakeholders across our 
value chain. 
At the core of our approach is the Sustainability Due 
Diligence & Compliance team, established to ensure 
that all business partners and suppliers adhere to 
Ørsted’s ethical, social, and environmental standards, 
as defined in our ‘Code of conduct for business 
partners’. This code sets out specific requirements and 
expectations related to human rights, labour conditions, 
anti-corruption, and environmental protection.
Our processes
We perform risk screenings and code of conduct 
assessments to ensure that our business partners 
meet the requirements in our code of conduct.
We are also developing corrective actions and tailored 
improvement plans together with our suppliers, where 
necessary. This is an ongoing effort that includes 
audits, supplier training, and regular follow-ups to 
address any gaps identified.
Partnerships and cross-industry collaboration are 
also fundamental if we want to succeed with our due 
diligence approach. We are therefore collaborating 
with key industry organisations, such as the 
International Responsible Business Conduct (IRBC) 
Agreement for the Renewable Energy Sector, the 
Initiative for Responsible Mining Assurance (IRMA), 
Ethical Trade Denmark, and WindEurope. These 
collaborations provide access to best practices, 
shared knowledge, and support the continuous 
improvement of our due diligence processes in the 
renewable energy value chain.
Governance
We are in the process of establishing a Human Rights 
Task Force specifically focused on strengthening our 
due diligence systems and governance. For more 
information about this task force, see pages 63-64.
Next steps
As we look forward, we are continuously refining 
our due diligence practices. This includes enhancing 
pre-contractual screenings to identify potential risks 
early, especially for complex and large-scale projects, 
such as offshore wind farms. 
Additionally, we are investing in tools to improve 
traceability throughout our supply chain. For example, 
we have conducted a blockchain pilot project to trace 
origin for key metals in one of our projects, and we are 
evaluating the application of blockchain opportunities 
with other suppliers and on other metals as well as 
exploring steel origin reporting for wind turbines.
Through these efforts, we are dedicated to continuously 
enhancing our due diligence approach in line with the 
CSDDD and OECD Guidelines’ principles of ongoing 
monitoring, learning, and improvement. 
On the right is a mapping detailing where in our 
sustainability statements we provide further infor-
mation about our due diligence process, including 
how we apply the main aspects and steps of our 
due diligence process. 
// ESRS 2, GOV-4 
Core elements of due diligence
a) Embedding due diligence in governance,  
strategy, and business model
Our Human Rights Task Force oversees the 
integration of due diligence across procurement, 
operations, and communities. Read more:
General · pages 63-66
b) Engaging with affected stakeholders  
in all key steps of due diligence
We maintain continuous dialogue and collabora-
tion with employees, value chain workers, local 
communities, and at-risk groups. Read more:
General · pages 75-76
Social · pages 129-131, 140-141, 149-150
c) Identifying and assessing adverse impacts
Our double materiality assessment (DMA) 
identifies material adverse impacts in our 
business and value chain. We also conduct 
systematic impact assessments, risk screenings, 
and code of conduct assessments in our 
value chain. Read more:
General · pages 68-72
Social · pages 125-126, 138-139, 141, 144, 
146-148
d) Taking actions to address adverse impacts
We take specific action to address ­material 
impacts identified in our DMA. We also 
collaborate with business partners to identify 
performance gaps, develop and implement 
corrective action plans, work on strengthening 
pre-contractual screenings, and engage in 
­partnerships to enhance adherence to our 
code of conduct. Read more:
Social · pages 128-129, 142-143, 150-151
e) Tracking the effectiveness of these  
efforts and communicating
We annually report on key metrics and work to 
enhance supply chain traceability. Read more:
Social · pages 131-136, 142, 144
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// ESRS 2, IRO-2
ESRS data points from other EU legislation 
The following tables include all of the data points  
that derive from other EU legislation as listed in 
ESRS 2, appendix B, indicating where the data points 
can be found in the sustainability statements, and 
which data points are assessed as ‘not material’ (NM), 
‘not stated’ (NS), or ‘not relevant’ (NR). 
Legislation 
SFDR	
Sustainable Finance Disclosure Regulation 
P3	
EBA Pillar 3 disclosure requirements
BRR	
Climate Benchmark Standards Regulation
EUCL	
EU Climate Law 
Other short forms
NR	
Not relevant
NS	
Not stated
NM	
Not material
Disclosure 
requirement
Data point
Legislation
Page
ESRS 2, GOV-1
21 (d)
Board’s gender diversity
SFDR/BRR
page 135
21 (e)
Percentage of board members who are independent
BRR
page 134
ESRS 2, GOV-4
30
Statement on due diligence
SFDR 
page 77
ESRS 2, SBM-1
40 (d) (i)
Involvement in activities related to fossil fuel activities
SFDR/P3/BRR
page 81
40 (d) (ii)
Involvement in activities related to chemical production
SFDR/BRR
NR
40 (d) (iii)
Involvement in activities related to controversial weapons
SFDR/BRR
NR
40 (d) (iv)
Involvement in activities related to cultivation  
and production of tobacco
BRR
NR
ESRS E1-1
14
Transition plan to reach climate neutrality by 2050
EUCL
pages 83-85
16 (g)
Undertakings excluded from Paris-aligned benchmarks
P3/BRR
page 84
ESRS E1-4
34
GHG emission reduction targets
SFDR/P3/BRR
page 91
ESRS E1-5
38
Energy consumption from fossil sources disaggregated  
by sources (only high climate impact sectors)
SFDR
page 93
37
Energy consumption and mix
SFDR
page 93
40-43
Energy intensity associated with activities in high  
climate impact sectors
SFDR
page 93
ESRS E1-6
44
Gross scope 1, 2, 3, and total GHG emissions
SFDR/P3/BRR
page 94
53-55
Gross GHG emissions intensity
SFDR/P3/BRR
page 95
ESRS E1-7
56
GHG removals and carbon credits
EUCL
NR
ESRS E1-9
66
Exposure of the benchmark portfolio to climate- 
related physical risks
BRR
page 87
66 (a);  
66 (c)
Disaggregation of monetary amounts by acute and  
chronic physical risk; location of significant assets  
at material physical risk
P3
NS (phase-in)
67 (c)
Breakdown of the carrying value of its real estate  
assets by energy-efficiency classes
P3
NS (phase-in)
69
Degree of exposure of the portfolio to climate- 
related opportunities
BRR
page 88
ESRS E2-4 
28
Amount of each pollutant listed in annex II of the  
E-PRTR regulation emitted to air, water, and soil
SFDR
NM
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Disclosure 
requirement
Data point
Legislation
Page
ESRS E3-1 
9
Water and marine resources
SFDR
NM
13
Dedicated policy
SFDR
NM
14
Sustainable oceans and seas
SFDR
NM
ESRS E3-4
28 (c)
Total water recycled and reused
SFDR
NM
29
Total water consumption in m3 per net revenue on own operations
SFDR
NM
ESRS E4, SBM-3 
(ESRS 2)
16 (a) (i)
Activities negatively affecting biodiversity-sensitive areas
SFDR
page 114
16 (b)
Land degradation, desertification, or soil sealing
SFDR
page 112
16 (c)
Threatened species
SFDR
page 111
ESRS E4-2 
24 (b)
Sustainable land/agriculture practices or policies
SFDR
NR
24 (c)
Sustainable oceans/seas practices or policies
SFDR
page 112
24 (d)
Policies to address deforestation
SFDR
NR
ESRS E5-5 
37 (d)
Non-recycled waste
SFDR
page 122
39
Hazardous waste and radioactive waste
SFDR
page 122
ESRS S1, SBM-3 
(ESRS 2)
14 (f)
Risk of incidents of forced labour
SFDR
page 126
14 (g)
Risk of incidents of child labour
SFDR
page 126
ESRS S1-1 
20
Human rights policy commitments
SFDR
pages 126-127
21
Due diligence policies on issues addressed by the fundamental 
International Labor Organisation Conventions 1 to 8
BRR
page 126
22
Processes and measures for preventing trafficking  
in human beings
SFDR
page 126
23
Workplace accident prevention policy or  
management system
SFDR
page 128
ESRS S1-3 
32 (c)
Grievance/complaints-handling mechanisms
SFDR
page 131
ESRS S1-14 
88 (b) and (c) Number of fatalities and number and rate of work-related 
accidents
SFDR/BRR
page 136
88 (e)
Number of days lost to injuries, accidents, fatalities, or illness
SFDR
NS (phase-in)
ESRS S1-16 
97 (a)
Unadjusted gender pay gap
SFDR/BRR
page 135
97 (b)
Excessive CEO pay ratio
SFDR
page 134
ESRS S1-17 
103 (a)
Incidents of discrimination
SFDR
page 129
104 (a)
Non-respect of UNGPs on Business & Human Rights,  
ILO principles, or OECD guidelines
SFDR/BRR
page 129
Disclosure 
requirement
Data point
Legislation
Page
ESRS S2, SBM-3 
(ESRS 2)
11 (b)
Significant risk of child labour or forced labour  
in the value chain
SFDR
page 139
ESRS S2-1 
17
Human rights policy commitments
SFDR
page 139
18
Policies related to value chain workers
SFDR
pages 139-140
19
Non-respect of UNGPs on Business & Human Rights,  
ILO principles, or OECD guidelines
SFDR/BRR
page 140
19
Due diligence policies on issues addressed by the fundamental 
International Labor Organisation Conventions 1 to 8
BRR
page 140
ESRS S2-4 
36
Human rights issues and incidents connected to its  
upstream and downstream value chain
SFDR
page 140
ESRS S3-1 
16
Human rights policy commitments
SFDR
page 148
17
Non-respect of UNGPs on Business & Human Rights,  
ILO principles, or OECD guidelines
SFDR/BRR
page 148
ESRS S3-4 
36
Human rights issues and incidents
SFDR
page 149
ESRS S4-1 
16
Policies related to consumers and end-users
SFDR
NM
17
Non-respect of UNGPs on Business and Human  
Rights and OECD guidelines
SFDR/BRR
NM
ESRS S4-4 
35
Human rights issues and incidents
SFDR
NM
ESRS G1-1 
10 (b)
United Nations Convention against Corruption
SFDR
NR
10 (d)
Protection of whistleblowers
SFDR
NR
ESRS G1-4 
24 (a)
Fines for violation of anti-corruption and anti-bribery laws
SFDR/BRR
page 155
24 (b)
Standards of anti-corruption and anti-bribery
SFDR
page 155
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Environment
	 81	
ESRS E1	 Climate change
	103	
EU taxonomy for sustainable activities
108	
ESRS E4	 Biodiversity and ecosystems
	116	
ESRS E5	 Resource use and circular economy
→
European flat oysters are cultivated along with horse mussels at 
DTU Aqua’s hatchery in Denmark. These bivalves are the true stars 
of our BioReef partnership with DTU Aqua and WWF Denmark. 
Together, we are aiming to establish biogenic reefs in the Danish 
part of the North Sea to help support healthy marine ecosystems. 
Projects like this form part of our work to innovate and test 
solutions that can contribute to our target of having a net-positive 
biodiversity impact on renewable energy projects.
80
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Upstream value chain
Downstream value chain
Own operations
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
Carbon removal through 
nature-based projects 
Potential positive impact
Scope 3 GHG emissions 
from regular power sales
and natural gas sales
Negative impact 
Scope 3 GHG emissions 
from regular power sales
and natural gas sales 
Negative impact
Climate-related physical  
risks (chronic and acute)
Risk
Energy consumption,  
mainly at our CHP plants
Negative impact
Scope 3 GHG emissions  
from the renewable  
energy supply chain
Negative impact 
//ESRS 2, SBM-3
Our material impacts, risks, and opportunities (IROs)
E1 Climate change 
Climate-related transition risks due 
to changes in political support for 
the renewable energy build-out
Risk
Renewable energy deployment
Positive impact  
Opportunity
Scope 1 and 2 GHG emissions 
from our operations
Negative impact
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// ESRS 2, SBM-3; E1, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right and on the next page 
are descriptions of our material IROs related to 
climate change, including how we manage them. 
These IROs are closely tied to our strategic 
decision over 15 years ago to transform our 
business model from fossil-based to renewable 
energy and to expand our portfolio to include 
offshore and onshore wind, solar, and storage 
solutions.
While deploying renewable energy is ­essential 
for the transition to a sustainable energy 
­system, we recognise that it has associated 
GHG emissions from resource extraction, 
­manufacturing, and service operations. There-
fore, we also focus our efforts on decarbonising 
our supply chain to mitigate these impacts.
The impacts are highly connected to our strategy 
and business model and occur through our 
contruction and operation activities as well as 
through business relationships with suppliers. 
The resilience of our business to potential 
­negative impacts and risks is shaped by the 
broader political framework for ­renewable 
energy deployment as well as effective 
­collaboration across the value chain to achieve 
our commercial and sustainability ambition. 
While we continue to monitor developments 
and adapt as needed, our strategy and ­business 
model have been assessed as capable of 
addressing these challenges and leveraging 
climate-­related opportunities.
Material IRO description
How do we manage the IRO?
 
Renewable energy deployment
Positive impact (own operations)
Opportunity (own operations)
The positive impact and opportunity arise from our deployment of 
renewable energy. Generally, risks associated with the transition to a 
low-carbon economy present opportunities for Ørsted, as our vision 
and long term ambitions are closely aligned with this transition. 
We create environmental and societal benefits by developing and 
operating renewable energy assets, which are critical technologies 
for decarbonising society and limiting global warming to 1.5 °C.
Deploying renewable energy 
is at the core of our business, 
and we address this ­material 
opportunity and positive 
impact through our business 
model and strategy.  
 
Carbon removal through nature-based projects  
Potential positive impact (own operations)
This potential positive impact arises from carbon removal achieved 
through our nature-based projects, which complement our efforts 
to reduce emissions by supporting climate action beyond our value 
chain and are not a substitute for direct emission reductions.
Initiatives such as mangrove reforestation in the Gambia remove 
carbon dioxide from the atmosphere, supporting efforts to limit 
global warming to 1.5 °C. 
The impact is expected to materialise over a medium timescale of 
three to five years as mangrove forests mature.
We have taken several actions 
to pursue this positive impact 
related to carbon removal 
through nature-based projects, 
which support broader ­climate 
action and sustainability 
objectives.
 
Scope 1 and 2 GHG emissions from our operations
Negative impact (own operations)
This negative impact arises from our scope 1 and 2 GHG emissions. 
Scope 1 emissions primarily result from fossil fuel-based heat and 
power generation at our CHP plants, with a smaller contribution 
from operation and maintenance activities. Scope 2 emissions 
stem from the purchase and consumption of electricity and heat. 
We fully cover our electricity consumption with renewable energy 
­certificates, effectively reducing our net scope 2 emissions. 
While our scope 1 and 2 emissions are relatively low compared to 
other industries, they still negatively impact the environment by 
contributing to global warming.
We have strategic targets 
aimed at reducing our scope 1 
and 2 GHG emissions intensity. 
These are supported by actions 
such as transitioning away 
from fossil fuel-based power 
generation, increasing the 
use of renewable energy, and 
improving energy efficiency 
across our operations. 
Material IRO description
How do we manage the IRO?
 
Scope 3 GHG emissions from the renewable energy supply chain  
Negative impact (upstream value chain)
Scope 3 GHG emissions from regular power and natural gas sales 
Negative impact (upstream and downsteam value chain)
These negative impacts relate to activities that result in scope 3 GHG 
emissions, contributing to global warming. They include: 
(a) upstream emissions in our renewable energy supply chain, including 
material extraction and manufacturing (category 2) 
(b) upstream and downsteam emissions from power sales stemming 
from extraction, processing, transportation, and energy generation 
within the residual energy mix (category 3) 
(c) upstream and downstream emissions from gas sales, covering both 
biogas and natural gas (category 11). 
We have strategic targets to 
reduce our scope 1-3 GHG 
emissions intensity, our scope 3 
GHG emissions from gas sales, 
and actions to decarbonise 
our value chain.
Climate-related transition risks due to changes in political support  
for the renewable energy build-out
Risk (own operations)
This climate-related transition risk arises due to possible changes in the 
political and regulatory landscape, which could result in insufficient 
support for renewable energy deployment or the removal of existing 
subsidies and incentives. 
This risk specifically concerns investment subsidies (e.g. capital grants) 
and production subsidies (e.g. feed-in tariffs or tax credits). It could 
impact our operations, potentially influencing project viability.
We are actively engaged in 
climate-­related advocacy, call-
ing our stakeholders to action 
for activities that will accelerate 
the renewable energy build-out 
and help manage this risk. 
We continuously monitor 
emerging or evolving geopoliti-
cal and macroeconomic risks.
Climate change mitigation
→
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Material IRO description
How do we manage the IRO?
Climate-related physical risks (chronic and acute)
Risk (own operations)
The chronic physical risks relate to the dependency of renewable 
energy generation on natural resources, such as wind patterns, and 
the acute physical risks relate to a potential increase in the severity 
and frequency of extreme weather events.
We assess the resilience of all new assets 
towards the occurrence of climate-related 
hazards.
Energy consumption, mainly at our CHP plants
Negative impact (own operations)
We have identified a negative impact associated with energy  
consumption at our combined heat and power (CHP) plants, which 
includes the use of fossil-based fuels.  
The use of fossil-based fuels contributes to greenhouse gas  
emissions, which negatively affect the environment by contributing  
to global warming.
We target reductions in our scope 1 and 
2 GHG emissions. In 2024, we closed  
Esbjerg Power Station, our last coal-fired 
CHP plant, advancing our decarbonisation 
efforts.
Climate change adaption
Energy
This section outlines our approach to managing climate-­
related impacts, risks, and opportunities, ensuring 
­resilience and alignment with global ­sustainability 
goals. While the transition to a green economy offers 
significant growth opportunities, it also presents 
­challenges, particularly in decarbonising supply chains.
We have already made substantial progress, 
transitioning from a fossil fuel-based utility to a 
global leader in renewable energy. Our policies, 
strategic actions, and other initiatives highlight our 
continued efforts towards a low-carbon economy.
For an overview of how we have structured this ­chapter, 
please see page 61. Our IROs are highlighted in italics.
// E1-1
Transition plan 
Ørsted’s transition plan outlines the company’s overall 
pathway to achieving net-zero emissions by 2040, 
aligned with the 1.5 °C goal of the Paris Agreement. 
The plan is substantiated by science-based targets, 
includes key decarbonisation levers, and identifies 
strategic actions that have driven the transformation 
of our business model towards renewable energy and 
will continue to shape our ongoing transition. The plan 
supports broader policy priorities, including the European 
Union’s 2050 climate neutrality goals formalised in the 
European Green Deal and associated regulations (e.g. 
the EU taxonomy and the EU Green Bonds Standard). 
These goals represent both an opportunity and a 
responsibility to align our business strategy with global 
decarbonisation efforts, contributing to the renewable 
energy transition and broader sustainability objectives. 
First transition wave: 
Shift from fossil fuels to renewable energy
Over the past 15 years, we have undergone a significant 
transformation, evolving from a fossil fuel-based utility 
to a global leader in renewable energy deployment. 
This transformation has been driven by substantial 
investments in offshore wind, onshore wind, solar PV, 
and storage assets, achieving material progress in 
decarbonising energy production. Additionally, our shift 
to biomass-fuelled combined heat and power (CHP) 
generation has played a pivotal role during this period. 
This shift continues to be characterised by the 
following:
·	 Growth in renewable capacity: In 2024, we continued 
to expand our renewable energy portfolio, reaching a 
total of 18.2 GW of installed ­capacity, with a pipeline 
of 7.6 GW in decided (FID’ed) ­capacity, reinforcing our 
commitment to advancing the global shift to renew-
able energy in line with our long term ambition. 
·	 An increase in renewable energy generation and 
the phase-out of coal: We are on track to meet 
our 2025 target of a 99 % share of energy genera-
tion coming from renewables. Our coal generation 
­activities were ceased in 2024.
·	 Capital alignment with climate goals: Since the 
entry into force of the EU Climate Delegated Act, 
99 % of Ørsted’s capital expenditures (CAPEX) 
have been allocated to activities classified as 
sustainable. For 2024, these expenditures include 
DKK 37,867 million for the deployment of offshore 
and onshore wind capacity, DKK 6,097 million for 
the deployment of solar PV and energy storage 
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|  ESRS E1

technologies, and DKK 2,836 million for hydro-
gen, carbon capture and storage, and bioenergy 
activities.
·	 A measurable performance: We track and disclose 
progress of our renewable energy portfolio by 
monitoring progress towards our installed capacity 
ambition. In addition, we track and disclose pro-
gress towards our decarbonisation efforts through 
a suite of SBTi-validated climate targets, including 
near-term targets for 2025 and 2030 as well as long 
term targets for 2040. As part of the SBTi valida-
tion process of our interim targets, we updated the 
baseline year for our scope 1-2 emissions intensity 
target to 2018, replacing the original targets of 
reducing the scope 1-2 emissions intensity by 98 % 
by 2025 and by 99 % by 2030 from a 2006 base-
line. From the updated 2018 baseline, we now aim 
to achieve a 93 % reduction in scope 1 and 2 GHG 
­emissions intensity by 2025 and progress towards a 
96 % reduction by 2030. Our interim scope 1-3 GHG 
emissions intensity target outlines a reduction 
­trajectory of ~77 % by 2030. These interim targets 
serve as critical waypoints that chart our overall 
pathway to achieving net-zero by 2040.
 
·	 Climate advocacy: As part of our efforts to advance 
policies and frameworks that accelerate the transi-
tion to renewable energy, we actively engage with 
policy-makers and industry peers.
Addressing transition risks from locked-in emissions
Locked-in emissions refer to future emissions 
resulting from existing or planned infrastructure 
and assets. In our case, such emissions are tied to 
our gas sales ­activities. This is primarily due to our 
binding contractual obligations for offtake volumes 
of natural gas from the gas fields operated by the 
Danish ­Underground Consortium (DUC).
We recognise the importance of tackling the impacts 
of our legacy business, as locked-in emissions pose  
a significant transition challenge if left unadressed. 
To guide progress toward our net-zero goals, we have 
set an absolute emissions reduction target for scope 3 
emissions from gas sales, aiming to reduce emissions by 
~67 % by 2030 (baseline 2018) and by ~90 % by 2040. 
To mitigate potential risks associated with locked-in 
emissions, we focus on the following:
·	 Measurable performance: We track and disclose 
progress towards our absolute reduction targets for 
gas sales. The targets are aligned with the 1.5 °C 
pathway, and we aim to remain on track to deliver 
on our net-zero ambition.
·	 Avoiding additional locked-in emissions: We do not 
enter into new gas sourcing agreements that would 
contribute to additional locked-in emissions.
As a renewable energy company committed to driving 
the energy transition, we aim to address the challenges 
posed by our legacy business. These efforts reflect our 
commitment to achieving net-zero emissions by 2040 
and making a meaningful contribution to the global 
renewable energy transition.
As of 31 December 2024, we are not excluded from 
the Paris-aligned Benchmark (PAB), providing further 
evidence for the successful transition away from 
fossil fuels.
Second transition wave: 
Decarbonising our supply chains
Having shown substantial progress in transitioning 
away from fossil fuels to renewable energy gener-
ation, we are now entering the second wave of our 
transformation: addressing emissions from our value 
chains. Already today, power from offshore wind 
farms has 99 % lower GHG emissions than power from 
coal. However, the large scale of renewable energy 
projects creates both a need and an opportunity to 
further decarbonise, particularly by addressing emis-
sions, such as steel production, maritime fuels, and 
manufacturing processes. Achieving our 2040 net-zero 
target will require close collaboration with suppliers 
and industry peers.
This wave is characterised by the following:
·	 Value chain decarbonisation road map: We con-
tinuously revise and improve our company-wide 
decarbonisation roadmap to stay aligned with 
the latest developments and support informed 
decision-making.
·	 Active supplier engagement: We work closely with 
key suppliers to drive the integration of decarboni-
sation into their strategies and operations.
·	 Partnerships: We work to establish strong partner­
ships and collaborate with key suppliers to support 
the decarbonisation of our value chain. Strategic 
partnerships, such as our collaboration with ­Dillinger, 
play a vital role in securing access to lower-emissions 
steel for critical components like offshore wind 
monopile foundations.
·	 Tracking and measuring: We continue to improve our 
in-house life cycle assessment capabilities to ­measure 
and monitor value chain emissions reductions effec-
tively. We maintain detailed emissions reporting both 
internally and externally, with external reports being 
subject to limited assurance.
Governance and oversight of the transition plan
Matters related to the transition plan are addressed 
within our sustainability governance framework. 
 
The elements of our transition plan are fully disclosed 
in our annual report, which is presented to shareholders 
for approval at the annual general meeting (AGM), 
providing them with an opportunity to offer feedback.
The way forward
Our vision supported by our strategic ambition 
remains clear: to create a world that runs entirely on 
green energy. Achieving this ambition requires us to 
remain attuned to a market environment increasingly 
shaped by national climate ambitions, regulatory 
developments, and the need to proactively identify 
and manage material sustainability impacts, risks, 
and opportunities that influence our long term 
resilience and competitiveness.
As the interlinkages between rising global tempera-
tures, biodiversity loss, resource scarcity, and affected 
communities become more pronounced, they are 
driving shifts in demand, investment priorities, and 
expectations for corporate action. Managing these 
sustainability-related dynamics is essential to main-
taining our leadership in the energy transition and 
securing our organisation’s adaptability in a trans-
forming market. 
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We continue to leverage advanced technologies 
and scalable solutions to optimise renewable energy 
­integration and supply chain decarbonisation, as 
outlined in our innovation report. Additionally, as 
highlighted in our first climate advocacy report, we 
actively engage in shaping policies to align global 
energy needs with the 1.5 °C goal set by the Paris 
Agreement. The ­climate advocacy report includes an 
assessment of our most important industry associa-
tions in terms of their alignment with this goal. 
Guided by our ‘Just transition policy’, we are commit-
ted to inclusivity by safeguarding workers, support-
ing communities, and protecting ecosystems as we 
advance the global energy transformation. By collab-
orating closely with local communities, we strive to 
create opportunities, foster socio-economic growth, 
and ensure that the renewable energy transition is 
fair and brings meaningful benefits to all involved. 
Through innovation, advocacy, and a focus on equity, 
we aim to lead this transition responsibly. //
// ESRS 2, SBM-3; E1, SBM-3 and IRO-1  
Resilience analysis
Scope of the resilience analysis
As a global leader in renewable energy, we employ 
a comprehensive approach to assessing and man-
aging climate-related transition and physical risks, 
ensuring not only alignment with evolving regulatory 
requirements but also the resilience of our business 
model and strategy. Thus, identifying and addressing 
climate-related impacts, risks, and opportunities are 
at the core of our vision to create a world that runs 
entirely on green energy. 
Our approach to resilience analysis consists of two 
main components: 
1.	Assessing and managing transition risks and oppor-
tunities, which include macroeconomic, political, 
technological, and market developments associated 
with the global shift to a low-carbon economy. 
2.	Conducting physical climate risk assessments to 
evaluate how climate-related hazards (chronic and 
acute), including extreme weather events and long-
term climate changes, may impact our operations.
Transition risks and opportunities 
Transition risks stem from a shift to a low-carbon 
economy and encompass factors such as new regu-
lations, technological innovation, changing market 
dynamics, and shifting consumer preferences. Over 
the past decades, we have effectively mitigated these 
risks by transforming our business model from fossil 
fuels to renewable energy, aligning our operations 
with a 1.5 °C climate trajectory. This proactive shift 
has positioned us well to capitalise on the increasing 
demand for renewable energy deployment. Neverthe-
less, we recognise that a key challenge to the overall 
industry is the possibility of insufficient political support 
for a continued renewable energy build-out, which is 
critical to the global energy transition. 
Insufficient political or regulatory support for renewable 
energy deployment has also been assessed as part of 
the financial part of our double materiality assessment. 
Transition risks are particularly relevant to our opera-
tions in the US, where changes in investment conditions, 
reductions in subsidies, or shifting policy priorities could 
increase uncertainty for future projects. This is why 
Transition plan highlights
Governance
·	 Board level oversight of transition efforts.
·	 Executive incentives linked to climate  
performance indicators.
Financial planning
·	 Capital alignment with climate goals and 
a 1.5 °C world – 99 % of CAPEX allocated 
in 2024 is classified as sustainable.
Strategy
·	 Renewable energy deployment  
aligned with global, regional, and 
national level decarbonisation goals  
and a 1.5 °C pathway.
Targets
·	 Comprehensive suite of SBTi-validated 
near-term and long-term climate targets 
(intensity and absolute), supported by 
Ørsted-specific climate targets.
Scenario analysis
·	 Addressing climate-related physical  
and transition risks, such as extreme 
weather events and climate variability,  
and regulatory and political shifts, 
respectively.
Scope 1, 2, and 3 accounting  
with limited assurance
·	 Detailed greenhouse gas emissions 
reporting, which is subject to limited 
assurance.
Risks and opportunities
·	 We monitor climate-related risks, such as 
changes in the regulatory and political 
landscape, and assess design safeguards 
and business case impacts.
·	 Renewable energy deployment as a busi-
ness model to mitigate climate change.
Policy engagement
·	 Active engagement with policymakers, 
industry stakeholders, and communities 
to support the renewable energy 
transition. Advocacy aligned with the 
goal of the Paris Agreement.
Value chain engagement
·	 Engaging key suppliers on climate, 
representing 50 % of procurement spend. 
Vision
·	 To create a world that runs entirely  
on green energy.
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monitoring changes to political and regulatory stability 
is critical for our long-term planning and investment.
Our approach to managing risks ensures that global 
trends – such as inflation, interest rate fluctuations, 
supply chain disruptions, and geopolitical uncertainties 
– are monitored and factored into our strategic 
planning and day-to-day operations. Please see the 
section ‘Enterprise risk management’ in this report 
for more details on how the most material enterprise 
risks for 2024 are impacted by global trends.
Physical climate risks
These risks arise from physical impacts of climate 
change, including acute events, such as extreme 
weather (e.g. hailstorms, typhoons, flooding, and heat- 
and coldwaves), and chronic changes (e.g. changing 
temperatures and wind patterns).
Physical climate risks for us include chronic risks, such 
as the dependency of renewable energy generation 
on natural resources like wind patterns, and acute 
risks, such as the increasing severity and frequency of 
extreme weather events. Chronic risks may lead to 
greater uncertainty in production estimates over time, 
while acute risks could result in, for example, extended 
temporary shutdowns and increased maintenance 
and repair requirements. 
Therefore, we assess the resilience of our assets 
towards the occurrence of climate-related hazards. 
Our climate risk assessment links directly to our 
efforts to ensure fulfilment of the ‘do no significant 
harm’ requirements of the EU taxonomy for climate 
change adaptation while also focusing on design 
­safeguards and business case risks.
Methodology of the resilience analysis
Transition risks and opportunities
Transition risks, including macroeconomic, business, 
and geopolitical risks, are managed through our 
‘­Enterprise risk management (ERM) framework’, sup-
ported by dedicated teams. This framework provides 
a high-level, principle-based structure for addressing 
all risks to which Ørsted may be exposed. The ERM 
framework sets the standards for individual risk frame-
works across the organisation, ensuring that risks 
are ­identified and managed in line with the ­appetite 
for risk. 
Complementing the ERM framework is the double 
materiality assessment (DMA), which serves as both 
an assessment methodology and a focused lens 
for driving sustainability-related matters. Risks are 
assessed on an ongoing basis as part of our day-
to-day business. The derived insights, including 
the DMA outcomes, are synthesised to provide a 
comprehensive view of sustainability-related risks 
and opportunities, ensuring alignment with our 
strategy and business model. 
Emerging risks, such as shifts in the political landscape, 
are part of the ERM framework and are monitored 
by dedicated, regionally split teams, which oversee 
region-specific developments.
Physical climate risks
In 2024, we extended our comprehensive analysis, 
conducted in 2023, to a number of assets that started 
generating in 2024. This process included mapping 
climate projections for new assets against 2023 data 
to identify and assess any significant differences in 
projected trends. A full reassessment of the portfolio 
was deemed unnecessary, as the underlying projec-
tion data, sourced from CMIP (used in IPCC reports), is 
only updated every few years. Our latest assessment 
is based on CMIP6, which we will continue to use until 
CMIP7 is released. In addition, there have been no sig-
nificant changes to either our business case assump-
tions for generating assets related to climate change 
risks or our internal methodology for assessing these 
risks, which would require a full reassessment.
We assess physical risks from two perspectives: design 
safeguards and business case impacts. The design 
safeguard evaluation ensures the structural integrity 
and resilience of assets against climate hazards using 
region-specific data. Our analysis focuses on offshore, 
onshore, and bioenergy assets that have reached final 
investment decision, representing critical components 
of our portfolio. 
 
The business case impact assessment is conducted 
at a high-resolution, asset-by-asset level under the 
SSP5-8.5 worst-case scenario. This conservative 
approach ensures resilience measures address severe 
climate risks and protect long-term operational 
and financial stability. The scope includes offshore 
and onshore assets currently generating across our 
operating markets, representing the majority of our 
­climate risk exposure.
Our physical climate risk assessment analyses data 
based on the remaining operational lifetimes of our 
assets, which extend up to 35 years. This period is 
­considered medium term in climate projections, as 
significant climate changes are not typically observed 
in the short term. The long-term horizon, defined as 
2060 onwards, is not applicable under our current 
methodology, as all existing assets are scheduled for 
decommissioning before that time.
For the purposes of meeting financial materiality 
assessment requirements, we have also considered 
the following time horizons: short term (covering the 
current reporting year and the next year), medium 
term (from the end of the short-term period to five 
years), and long term (more than five years). Apply-
ing these horizons did not lead to any changes in the 
results of the assessment. It is important to note that, 
in the context of climate change, these time horizons 
are relatively short term and may not fully reflect the 
scale of risks that develop over extended periods.
Results of the resilience analysis
Transition risks and opportunities
Transition risks and opportunities are integral to the 
business cases for our investments in new assets, tech-
nologies, and activities. We actively monitor ­market 
developments and regularly update our business 
cases to ensure alignment of mitigation actions with 
evolving conditions, maintaining a focus on delivering 
value to our investors. 
In particular, we recognise the potential for political 
shifts in the US to impact the prioritisation of renew-
able energy policies. To address this risk, we maintain 
continuous monitoring of political developments and 
regulatory frameworks, adapting our strategies to 
align with changing circumstances. By closely engag-
ing with stakeholders and leveraging our diversified 
portfolio and global operations, we aim to ensure resil-
ience and flexibility in responding to such transitions. 
This proactive approach allows us to remain well-­
positioned in the face of evolving political landscapes.
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Physical climate risks
The results of the physical climate risk assessment 
show that all our assets are structurally protected 
against physical risks from climate change. This is 
achieved through a combination of design safeguards 
and mitigation measures, including active collabora-
tion with wind turbine manufacturers to tailor designs 
to local conditions, and conducting stress tests for 
extreme scenarios during the design process. These 
measures are particularly effective in addressing 
acute physical risks such as heatwaves, coldwaves, 
frost, cyclone, and typhoons. 
From a business case perspective, the most significant 
climate risks for our portfolio are changes in wind 
patterns and, to a lesser extent, air temperature, 
as these factors directly affect energy production. 
While our analysis indicates only minor deviations 
in asset values compared to projections based on 
historical climate data, we recognise the materiality 
of climate change risks due to their unique nature. 
These risks develop gradually over time, with impacts 
that can compound, and are characterised by a 
fat tail distribution – meaning they involve a low 
probability of extreme events with potentially severe 
consequences. This underscores the importance of 
continuous improvement in assessment methodologies 
to better capture these dynamics and their potential 
implications. We therefore acknowledge the need for 
further investigation going forward as we strive to 
reduce uncertainties associated with our assessments. 
In addition, to mitigating risks through design safe-
guards and business case considerations, our risk 
management strategy incorporates estimated 
­maximum loss (EML) assessments to quantify potential 
financial exposures and ensure sufficient insurance 
protection and financial resilience against unfore-
seen extreme events.
The way forward
Balancing progress and challanges
We have demonstrated the ability to adapt our 
­strategy and business model to address climate 
change by aligning projects and their associated 
financing with the EU taxonomy for sustainable 
­activities. This approach ensures that financing is 
directed toward sustainable initiatives, support-
ing the transition to a low-carbon economy while 
­maintaining access to affordable financing. 
Additionally, we work closely with key ­stakeholders 
to support this alignment, reinforcing our capacity to 
redeploy resources and decommission assets effec-
tively as part of our long-term strategy. We remain 
dedicated to a robust understanding of climate-­
related risks. To support this, we plan to re-run the 
full climate risk assessment for our asset port­folio 
in 2025, incorporating updated ­methodologies. 
This approach ensures our climate-related risk 
­management ­practices remain thorough, efficient, 
and aligned with the observed level of risk.
While we are committed to driving a just transition 
towards renewables, we recognise that various 
factors, including macroeconomic conditions and 
technological advancements, influence the pace 
of progress. To mitigate these risks and capitalise 
on opportunities, we advocate for political support 
and initiatives that foster stable macroeconomic 
conditions, ensuring the continued deployment of 
renewable energy.
Classification of climate-related hazards, cf. the TCFD classification  
and the EU taxonomy’s Climate Delegated Act
Relation
Chronic
Acute
Temperature
✓	 Changing temperature  
(air, freshwater, marine water)
✓	 Heatwave
✓	 Heat stress
✓	 Coldwave/frost
✓	 Temperature variability
✓	 Wildfire
×	 Permafrost thawing
Water
✓	 Changing precipitation patterns and types  
(rain, hail, snow/ice)
✓	 Drought
✓	 Precipitation or hydrological variability
✓	 Heavy precipitation  
(rain, hail, snow/ice)
✓	 Ocean acidification
✓	 Flood (coastal, fluvial,  
pluvial, groundwater)
✓	 Saline intrusion
×	 Glacial lake outburst
✓	 Sea level rise
✓	 Water stress
Wind
✓	 Changing wind patterns
✓	 Cyclone, hurricane, typhoon
✓	 Storm (including blizzards,  
dust, and sandstorms)
✓	 Tornado
Solid mass
✓	 Coastal erosion
×	 Avalanche
✓	 Soil degradation
✓	 Landslide
✓	 Soil erosion
✓	 Subsidence
✓	 Solifluction
✓  Hazard included in assessment  ×  Hazard not relevant to include due to geographical location of assets
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Adapting to a dynamic landscape
In addition to the above, we recognise that global 
transition-related events can alter the foundation 
for our assumptions. As the global renewable energy 
market continues to expand in the coming years, 
advancements in grid management, energy ­storage, 
and emerging technologies are expected to shape 
the renewable energy landscape. To adapt to this 
dynamic environment, we actively monitor ­political, 
legal, technological, market, and reputational 
developments to assess their potential effects on 
our business.
We will continue the ongoing integration of the DMA 
and our ERM framework to support a consistent and 
well-anchored assessment of risks across Ørsted. //
// E1-2 
Policies related to climate change
To manage our impacts, risks, and opportunities 
related to climate change, we are guided by our 
vision to create a world that runs entirely on green 
energy. As such, climate change mitigation efforts 
have been at the core of our operations for many 
years, ­eliminating the necessity for a stand-alone 
climate policy. 
We continue to focus on delivering measurable 
change through setting internal targets, milestones, 
and decision-making mechanisms, tracked through 
relevant KPIs. The need for the development of 
­policies will be assessed continuously to ensure the 
­effectiveness of our efforts. 
While we do not have a stand-alone climate policy, our 
commitment to mitigating climate change, deploying 
renewable energy, and promoting efficient energy sys-
tems is embedded in our sustainability ­commitment. 
Introduced in 2016, this commitment reflects a 
systems-­based approach to addressing climate change, 
recognising that social and governance factors are 
critical to ­successfully delivering reliable and modern 
energy systems to society. This perspective is applied 
across our organisation and is also reflected in our  
‘Code of ­conduct for business partners’. The sustainability 
­commitment is overseen by the Group Executive Team.
 
While the sustainability commitment does not out-
line the specific steps required to address the identi-
fied IROs, it has effectively set the direction for our 
first transition wave: shifting away from fossil fuels. 
To ensure continued alignment with our strategy and 
vision, we have incorporated climate-related KPIs in 
the remuneration framework of the Group ­Executive 
Team. In 2024, the short-term bonus programme 
includes metrics linked to scope 1 and 2 emissions 
reductions and the external climate rating from the 
Carbon Disclosure Project (CDP). //
// E1, GOV-3 
Incorporating climate-related considerations into 
the executive remuneration framework ensures that 
incentives are aligned with both financial perfor-
mance and climate objectives. As a renewable energy 
company, our financial metrics inherently reflect 
­climate performance, reinforcing the link between 
executive pay and our decarbonisation efforts.
A key financial metric linked to executive 
remuneration is EBITDA. The majority of EBITDA (91 %) 
is taxonomy-aligned, generated through activities 
that contribute to climate change mitigation under 
the EU taxonomy framework. This highlights the 
connection between executive remuneration and 
renewable energy growth, supporting our long-term 
decarbonisation ambition.
Beyond financial performance, a portion of executive 
remuneration is linked to climate-specific considerations, 
including our scope 1-2 emissions intensity target. The 
proportion of recognised remuneration linked to these 
climate-specific considerations was 1.9 % for the CEO, with 
corresponding figures for the Executive Board as ­follows: 
1.6 % for the CCO, 1.4 % for the CFO, and 1.5 % for the Chief 
HR Officer. Further details on the methodology, includ-
ing how climate-related performance is factored into 
remuneration, can be found in our remuneration report. //
// E1-3
Actions related to climate change
Our actions, as outlined in our transition plan, are 
underpinned by our broader commitment to deploying 
renewable energy projects and directing capital 
towards economic activities classified as ­sustainable 
under the EU taxonomy. In 2024, we have ­allocated 
DKK 46,800 million in capital expenditures to 
taxonomy-­aligned activities. Further, we have taken 
final investment decisions on 1.8 GW of new projects, 
demonstrating our commitment to growth within the 
EU sustainable framework. 
Our actions are organised under key decarbonisation 
levers – strategic approaches designed to address 
­climate change impacts, risks, and opportunities. 
Decarbonisation lever 1:  
Deploying renewable energy 
Our primary decarbonisation lever aligns with a key 
climate change-related opportunity and a positive 
impact: the deployment of renewable energy assets. 
This approach not only supports our core business 
model by capitalising on financial opportunities but 
also maximises our positive impact on climate change 
by increasing the availability of renewable energy.
Key action 1.1
Renewable capacity installed
In 2024, we continued to expand our renewable 
energy portfolio, reaching a total of 18.2 GW of 
installed capacity, with a pipeline of 7.6 GW in decided 
(FID’ed) capacity. 
We reached commercial operations for several major 
projects: the offshore wind farms Greater Changhua 1 
and 2a (900 MW), South Fork (132 MW), the solar 
PV assets Sparta Solar (250 MW) and Mockingbird 
(471 MW), the remaining part of Old 300 (73 MW), and 
the combined solar PV (300 MW) and battery storage 
(300 MW/1,200 MWh) asset Eleven Mile. These projects 
directly contribute to increasing renewable energy 
capacity, supporting the growing demand for renew­
able electricity. 
We are committed to deploying renewable energy 
over the long term as part of our core business strategy, 
with our build-out ambition serving as a key milestone 
that underscores our focus on expanding renewable 
energy capacity and aligning with our long term 
climate ambitions.
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Decarbonisation lever 2:  
Reducing emissions from operations
Our second decarbonisation lever includes a ­number 
of actions that each address the actual negative 
impacts on climate change from our own operations 
(fossil-based energy consumption at our CHP plants, 
and our scope 1 and 2 emissions). 
The associated actions undertaken in 2024 are 
­outlined below: 
Key action 2.1
Phasing out coal
We achieved a significant milestone in our decarbon-
isation journey by shutting down our last coal-fired 
combined heat and power plant in Esbjerg, Denmark. 
This marks a major step in reducing fossil-based 
energy consumption at our CHP plants and lowering 
our scope 1 and 2 emissions from operations, which 
have already been significantly lowered. Between 
2018 and 2024, we have reduced our scope 1 and 2 
emissions intensity by 88 % and remain on track to 
achieve our SBTi-­validated target of 93 % in 2025.
We continue to identify additional ways to drive 
down emissions within our operations. The following 
actions, although supplementary, are deemed relevant 
contributions towards our climate objective.
Action 2.1
Electric vehicles fleet
To support our target of achieving a fully electric vehicle 
fleet by the end of 2025, we transitioned additional 
fossil fuel-powered vehicles to electric ­vehicles in 
2024. As a result, 73 % of our vehicle fleet is now fully 
electric. This transition is underpinned by a strategic 
decision to discontinue the acquisition or leasing of 
fossil fuel-powered vehicles, ensuring alignment with 
our decarbonisation objectives.
Action 2.2
Heavy-lift (cargo) drones for offshore maintenance 
In 2024, we deployed heavy-lift (cargo) drones (HLCD) 
for the first time during an operational campaign at the 
Borssele 1 & 2 Offshore Wind Farm to enhance main-
tenance efficiency. This innovation delivers significant 
cost and time savings while reducing GHG emissions by 
minimising vessel journeys and optimising operations. 
The use of drones allows cargo to be delivered directly 
to the nacelle in just four minutes per wind turbine, 
compared to approximately six hours using conven-
tional methods, enabling tasks to be completed 10-15 
times faster. Additionally, this approach eliminates the 
need to shut down turbines during delivery, reducing 
work disturbances and further improving efficiency. 
Decarbonisation lever 3:  
Reducing emissions from our supply chain
Stakeholders, including regulators, investors, and 
customers, are increasingly attentive to emissions across 
the entire value chain, making it a key area of focus 
for organisations seeking to align with the evolving 
sustainability landscape. 
For us, reducing scope 3 emissions from the renewable 
energy supply chain is an important step in supporting 
the global energy transition. It is the second wave 
of transition efforts towards delivering on our 2040 
science-­based net-zero target. 
Addressing emissions in the value chain also offers 
opportunities to manage risks associated with 
resource availability and supply chain disruptions. 
By working with suppliers to explore lower-emissions 
alternatives and support innovations like circular 
practices, we can make progress in reducing emissions 
while contributing to broader sustainability efforts. 
Although eliminating value chain emissions will largely 
require systemic changes and long-term efforts by 
national and regional regulatory advancements, we 
are committed to making incremental progress in this 
area. This links directly to our broader decarbonisation 
strategy and aligns with global ­climate goals.
Key action 3.1
Continued improvement of our company-wide 
roadmap 
In 2024, we initiated a project to update our company-­
wide decarbonisation roadmap to support our ambition 
of achieving net-zero emissions by 2040. This roadmap 
will continue to provide clear interim milestones and 
help identify potential new areas where immediate 
progress can be achieved. This approach ensures a solid 
foundation for long-term systematic change through 
measurable progress and targeted actions. 
Key action 3.2
Offtake agreements for lower-emissions steel
Decarbonising our value chain requires close col­
laboration with key partners and suppliers. In 2024, 
we reinforced our partnership with Dillinger, Europe’s 
largest heavy steel plate producer. Under this agree-
ment, Dillinger will offer Ørsted access to the first 
­production of lower-emission steel, contingent on 
availability and commercial terms and conditions. 
The steel plates are a critical component of the off-
shore wind monopile foundations. 
This partnership underscores a long term commit-
ment to decarbonise main components for our off-
shore assets. We anticipate procuring lower-emissions 
steel from Dillinger’s plant in Dillingen, Germany, in 
2027-2028, reflecting the time required to implement 
this initiative. 
Key action 3.3
Supplier engagement and procurement strategy
We work closely with suppliers to drive the inte-
gration of decarbonisation into their strategies and 
­operations, a cornerstone of our supplier engagement 
efforts. Our focus is on key high-impact ­suppliers, 
representing over half of our total procurement 
spend and encompassing the most carbon-intensive 
­segments of our supply chain. We extend clear expec-
tations to adopt science-based targets (through SBTi), 
provide transparent climate reporting (through CDP), 
and transition to renewable electricity for their energy 
needs. For selected high-impact segments, we have 
introduced climate requirements into our standard 
contracts and tender criteria. 
Our supplier engagement and procurement strategy is 
an ongoing initiative without a fixed end date, evolving 
with the growth of our project portfolio and supplier 
base. This approach ensures that new suppliers in high-
impact segments are systematically included in our 
sustainability efforts.
Since the implementation of our strategy, we have 
nearly doubled the number of key suppliers with 
whom we actively engage, while also broadening the 
focus of our collaboration to encompass circularity 
in addition to decarbonisation. These efforts not only 
drive progress toward our 2040 net-zero target but 
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also contribute to the resilience of supply chains. 
To embed sustainability matters into procurement 
practices, we have a dedicated organisational set-up 
that enables clear focus on driving sustainable 
procurement. 
Action 3.1
Uniform methodology for product carbon footprint 
(PCF) for offshore assets
In 2024, we continued our collaboration with ­Carbon 
Trust to develop a standardised carbon footprint 
methodology for offshore assets across the full life 
cycle. The methodology provides sector-specific 
­guidance for the application of international PCF 
and life cycle assessment standards. 
Establishing an industry-wide uniform ­methodology 
will ensure a consistent approach to measuring the 
environmental impact of offshore wind projects 
throughout their entire life cycle, from material sourcing 
to decommissioning. By supporting such initiatives, 
we aim to enhance transparency and drive improve-
ments across the industry.
Decarbonisation lever 4:  
Beyond value chain mitigation 
In addition to reducing our scope 1-3 emissions toward 
our 2040 net-zero target, we take further steps to 
finance and develop nature-based projects that 
­contribute to climate action outside our value chain. 
These efforts are not a substitute for reducing our 
scope 1-3 emissions; rather, they complement and 
reinforce our commitment to achieving emissions 
reductions as part of our holistic approach to 
­climate action. By supporting nature-based projects, 
we also advance our efforts to address a possible 
positive impact: carbon removal through nature-based 
projects, which supports broader climate action and 
­sustainability objectives.
Action 4.1
Nature-based projects in the Gambia
In 2024, we have continued to advance our ­portfolio 
of nature-based carbon removal projects by ­planting 
approximately 40 million propagules in the ­Gambia, 
equivalent to around 4,000 hectares, thereby 
­contributing further to the restoration of vital eco­
systems and mitigating climate change. The project 
is in partnership with the Gambia Department of 
Parks & Wildlife Management and three local NGOs 
to restore mangrove populations.
To ensure carbon credits contribute meaningfully to 
climate action, they must meet additionality, i.e. that 
the project would not occur without financial ­support, 
and permanence, i.e. that the mangroves remain 
intact. We actively support the Gambia project with 
a dedicated team and financial backing. Though 
resource-intensive and time-consuming as mangroves 
mature, this approach ensures project integrity. //
Decarbonisation levers and actions highlights
Decarbonisation lever 1:  
Deploying renewable energy
Key action 1.1. Installed renewable capapcity
Expanded renewable energy portfolio to 18.2 GW  
of installed capacity in 2024.  
 
Advanced our pipeline to a total of 7.6 GW in 
decided capacity (1.8 GW added in 2024).
Decarbonisation lever 2:  
Reducing emissions from operations
Key action 2.1. Phasing out coal
Shutting down our last coal-fired combined heat  
and power plant in Esbjerg, Denmark.
Action 2.1. Electric vehicle fleet
Achieved 73 % electrification of our vehicle fleet.
Action 2.2. Heavy-lift (cargo) drones  
for offshore maintenance
Deployed heavy-lift drones at Borssele 1 & 2  
in 2024, boosting efficiency and cutting costs  
and emissions.
Decarbonisation lever 3:  
Reducing emissions from supply chain
Key action 3.1. Improvements to company-wide 
roadmap 
Launched project in 2024 to update the roadmap  
for achieving net-zero by 2040 with clear milestones 
and targeted actions.
Key action 3.2. Offtake agreements  
for lower-emissions steel 
Strengthened partnership with Dillinger in 2024  
to secure access to lower-emissions steel, supporting  
decarbonisation of offshore wind monopile 
foundations.
Key action 3.3. Supplier engagement  
and procurement strategy
Continuously engage high-impact suppliers to 
adopt science-based targets, report climate data, 
transition to renewable electricity, and meet climate 
requirements in contracts and tenders.
Action 3.1. Uniform methodology for product carbon 
footprint (PCF) for offshore assets 
Worked with Carbon Trust in 2024 to standardise  
carbon footprint methodology for offshore assets.
Decarbonisation lever 4:  
Beyond value chain mitigation
Action 4.1. Nature-based projects in the Gambia  
Continued to advance our nature-based carbon 
removal projects in 2024, planting 40 million 
mangrove propagules to restore 4,000 hectares and 
­support carbon removal and ecosystem restoration.
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Share of renewable energy 
generation
%
2022
2025
2006
2024
2023
91
99
17
97
93
Installed renewable  
capacity 
GW
//
2022 2023 2024
2026
15.1
15.7
18.2
22
Scope 1-3 greenhouse gas emissions  
intensity (excl. gas sales)
g CO2e/kWh
2022
2030
2023 2024
2040
2018 //
Science-based 
targets
322
75
147
<2.9
80
127
-77 %
-99 %
Scope 3 greenhouse gas emissions from  
gas sales
Mt CO2e
2022
2030
2023 2024
2040
2018 //
//
Science-based 
targets
24
8
7
<2.4
4
4
-67 %
-90 %
Scope 1-2 greenhouse gas emissions  
intensity
g CO2e/kWh
2022
2025
2023
2030
2024
2040
2018 //
Science-based 
targets
136
60
10
38
6
16
<1
-93 %
-96 %
-99 %
SBTi-validated climate targets 2018-2040
Targets related to climate change
Delivering on our 2040 net-zero ambition 
In 2021, we became the first energy company to set a science-based 
net-zero target covering scope 1-3 emissions by 2040. Since then, we 
have made measurable progress and remain on track to meet our 
near-term scope 1-2 emissions intensity target. 
To provide a more detailed trajectory for our decarbonisation efforts, 
we developed a portfolio of new near-term targets for 2030, using the 
same KPIs as our 2040 targets. In 2024, the Science Based ­Targets 
initiative (SBTi) validated our interim 2030 targets. 
The SBTi’s target validation team classified the ambition of these 
­targets across scopes 1-3 as aligned with a 1.5 °C trajectory, reflecting 
alignment with the most ambitious goal of the Paris Agreement. 
This validation underscores the credibility of our approach and 
further reinforces our commitment to leading the energy transition 
towards a net-zero future.
Our portfolio of climate targets outlines a clear pathway to reducing 
emissions across our value chain. It also includes a cap on emissions from 
natural gas sales, building on the reductions we have already achieved.
Delivering on our strategic ambition:  
renewable energy deployment 
We remain dedicated to advancing the global shift toward 
renewable energy. We are on course to achieve a 99 % share 
of renewable energy generation in 2025. This commitment 
is further supported by our strategic focus on expanding 
renewable energy capacity, with an ambiton of reaching 
installed renewable capacity of 22 GW by 2026. //
// E1-4
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ESRS ref.
SBTi and entity-specific climate targets
Unit
Scope
Target value
SBTi 
target value
Target year
Baseline year
2024
Baseline value
Δ
SBTi-validated climate targets
// E1-4, 34(a-e)
Scope 1-2 GHG emissions intensity 1
g CO2e/kWh
Own operations
 10 
93 %
2025
2018
16
136
(88 %)
// E1-4, 34(a-e)
Scope 1-2 GHG emissions intensity 1
g CO2e/kWh
Own operations
 6 
96 %
2030
2018
16
136
(88 %)
// E1-4, 34(a-e)
Scope 1-2 GHG emissions intensity 1
g CO2e/kWh
Own operations
 1 
99 %
2040
2018
16
136
(88 %)
// E1-4, 34(a-e)
Scope 1-3 GHG emissions intensity (excl. gas sales)
g CO2e/kWh
Own operations and value chain
 75 
77 %
2030
2018
127
322
(61 %)
// E1-4, 34(a-e)
Scope 1-3 GHG emissions intensity (excl. gas sales)
g CO2e/kWh
Own operations and value chain
 <2.9 
99 %
2040
2018
127
322
(61 %)
// E1-4, 34(a-e)
Scope 1-3 GHG emissions intensity (sold electricity)
g CO2e/kWh
Own operations and value chain
 24
90 %
2030
2018
38
244
(84 %)
// E1-4, 34(a-e)
Scope 3 GHG emissions from gas sales
Mt CO2e
Value chain
 8 
67 %
2030
2018
4
24
(83 %)
// E1-4, 34(a-e)
Scope 3 GHG emissions from gas sales
Mt CO2e
Value chain
 <2.4 
90 % 
2040
2018
4
24
(83 %)
// E1-4, 34(a-e)
Scope 3 GHG emissions
Mt CO2e
Value chain
 14 
50 %
2030
2018
9
29
(69 %)
Other climate targets
Entity spec.
Share of renewable energy generation
%
Own operations
 99
-
2025
2018
97
75
22 %p
Entity spec.
Coal and coal products used in thermal heat and power generation
ktonnes
Own operations
 0 
-
2025
2019
228
588
(61 %)
Entity spec.
Share of electric vehicles in company vehicle fleet
%
Own operations
 100 
-
2025
2019
73
21
52 %p
Business driver target
Entity spec.
Installed renewable capacity 2 
GW
Own operations
22
-
2026
2024
18.2
18.2
0
Climate-related targets 
1	 As part of the SBTi validation process of our interim targets, we 
updated the baseline year for our scope 1-2 emissions intensity 
target from 2006 to 2018.
2	 Renewable capacity installed by Ørsted accumulated over time  
and not adjusted for divestments
92
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ØRSTED ANNUAL REPORT 2024
|  ESRS E1

ESRS ref.
Energy consumption
Unit
2024
2023
Δ
// E1-5, 37(a)
Total energy consumption from non-renewable sources
MWh
2,384,997
4,850,134
(51 %)
Entity spec.
Non-renewable fuels used in thermal heat and power generation
MWh
2,211,856
4,690,323
(53 %)
// E1-5, 38(a)
Fuel consumed from coal and coal products
MWh
1,449,425
3,782,295
(62 %)
// E1-5, 38(c)
Fuel consumed from natural gas
MWh
606,373
745,742
(19 %)
// E1-5, 38(b)
Fuel consumed from crude oil and petrolium products
MWh
156,058
162,286
(4 %)
Entity spec.
Other fossil sources (oil, gas, and diesel for vessels and vehicles)
MWh
168,062
155,309
8 %
// E1-5, 38(e)
Consumption of purchased or acquired heat from fossil sources
MWh
5,079
4,502
13 %
// E1-5, 37(c)
Total energy consumption from renewable sources
MWh
13,620,470
10,718,308
27 %
Entity spec.
Renewable fuels used in thermal heat and power generation
MWh
13,143,806
10,090,651
 30 %
// E1-5, 37(c)(i)
Fuel consumed from biomass
MWh
13,131,089
10,074,047
 30 %
// E1-5, 37(c)(i)
Fuel consumed from biogas
MWh
12,717
16,604
(23 %)
// E1-5, 37(c)(ii)
Consumption of purchased or acquired electricity and heat from renewable sources
MWh
476,664
627,657
(24 %)
// E1-5, 37 
Total energy consumption
MWh
16,005,467
15,568,442
3 %
// E1-5, AR34
Share of non-renewable energy consumption
%
15
31
(16 %p)
// E1-5, AR34
Share of renewable energy consumption
%
85
69
16 %p
// E1-5, 40
Energy intensity from activities in high climate impact sectors
MWh/DKKm
225
196
15 %
Entity spec.
Electric vehicles in company vehicle fleet
%
73
65
8 %p
§  Accounting policies
Energy consumption from non-renewable 
sources
Energy consumption from non-renewable 
sources includes all fossil fuels used at 
combined heat and power (CHP) plants 
(lower caloric values), oil, gas and diesel for 
­vessels and vehicles as well as consumption of 
purchased or acquired heat from fossil sources.
Energy consumption from renewable sources 
Energy consumption from renewable sources 
includes all renewable fuels used at combined 
heat and power (CHP) plants (lower caloric 
values) as well as purchased and consumed 
electricity and heat from renewable sources 
(electricity used at CHP plants, other facilities, 
and administrative buildings). 
For consumption related to administration and 
other processes, we calculate direct consump-
tion on the basis of invoices. Our own electricity 
consumption is 100 % covered by renewable 
energy certificates.
Heat consumption is split between renewable 
and non-renewable sources based on a cal-
culation using data from Danish heat sources 
(we only use district heating in Denmark).
Energy consumption from high climate 
impact sectors 
The total energy consumption of Ørsted 
falls under NACE code D35 ‘Electricity, gas, 
steam and air-conditioning supply’ as defined 
in ­Commission Delegated Regulation (EU) 
2022/1288. Similarly, the revenue figure used 
to derive the intensity shown is the total group 
revenue, given that all revenue is deemed to 
be derived from activities under NACE code 
D35 ‘Electricity, gas, steam and air condition-
ing supply’.
Electric vehicles in the company vehicle fleet
Ørsted is a member of the Climate Group’s 
EV100 initiative. The statement is prepared on 
the basis of the EV100 guidelines.
Total energy consumption increased by 3 % in 2024 
compared to 2023.
Total energy consumption from non-renewable 
sources decreased by 51 % in 2024 compared to 2023. 
This was mainly driven by 62 % lower fuel consumption 
from coal at our CHP plants. 
Energy consumption
Share of renewable energy consumption
%
2024
85
69
2023
The lower consumption of coal compared to 2023 
was mainly driven by the shut down of the coal-based 
Esbjerg Power Station from September 2024 as well 
as our other coal-based generation capacity in Q4 
2024. In addition, we have resumed biomass usage at 
Studstrup Power Station, replacing coal consumption 
since April 2023.
Total energy consumption from renewable sources 
increased by 27 % in 2024 compared to 2023. 
The increase was primarily driven by 30 % higher 
fuel ­consumption from biomass at our CHP plants, 
driven by improved spreads from decreasing wood 
pellet prices as well as increased biomass usage at 
Studstrup Power Station in 2024, as we have resumed 
using ­biomass after the fire in the wood pellet silo that 
lead to lower biomass usage in 2023.
The 15 % increase in energy intensity from activities 
in high climate impact sectors is due to a 3 % increase 
in total energy consumption (numerator) and a 10 % 
reduction in revenue (denominator). 
93
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|  ESRS E1

Gross scope 1, 2, 3, and total GHG emissions  
Scopes 1, 2, and 3
ESRS ref.
Greenhouse gas (GHG emissions), tonnes CO2e 
2024
2023
Δ
// E1-6, 48(a), 50(a)
Direct GHG emissions (scope 1)
733,299
1,584,822
(54 %)
// E1-6, 48(b)
Covered by the EU Emissions Trading System, %
92
96
(4 %p)
// E1-6, 44(b), 49(a), 50(a)
Indirect GHG emissions (scope 2), location-based
58,925
92,960
(37 %)
// E1-6, 44(b), 49(b), 50(a)
Indirect GHG emissions (scope 2), market-based 1
875
701
25 %
// E1-6, 44(c)
Indirect GHG emissions (scope 3)
9,043,386
5,631,417
61 %
// E1-6, 51
C1: purchased goods and services
528,954
327,854
61 %
// E1-6, 51
C2: capital goods
3,050,022
91,140
3,247 % 
// E1-6, 51
C3: fuel- and energy-related activities
1,390,869
1,314,390
6 %
// E1-6, 51
C4: upstream transportation and distribution
630
234
169 %
// E1-6, 51
C5: waste generated in operations
2,841
2,660
7 %
// E1-6, 51
C6: business travel2
22,972
18,111
27 %
// E1-6, 51
C7: employee commuting
12,330
12,577
(2 %)
// E1-6, 51
C9: downstream transport and distribution
2,591
2,496
4 %
// E1-6, 51
C11: use of sold products
4,032,177
3,861,955
4 %
// E1-6, 52(a)
Total GHG emissions (location-based) 3
9,835,610
7,309,199
35 %
// E1-6, 52(b)
Total GHG emissions (market-based) 3
9,777,560
7,216,940
35 %
Entity spec.
Scopes 1, 2, and 3 (excl. gas sales)
5,745,383
3,354,985
71 %
Entity spec.
Scope 3 (excl. gas sales)
5,011,209
1,769,462
183 %
Entity spec.
GHG emissions outside of scopes 1-3 4
4,626,264
3,584,996
29 %
// E1-6, AR43(c)
Direct biogenic carbon emissions 
4,598,412
3,544,231
30 %
// E1-6 AR45(e)
Indirect biogenic carbon emissions 
27,852
40,765
(32 %)
// E1-6, 50(b)
GHG emissions not accounted for under the consolidated group 
// E1-6, 50(b)
Scope 1 emissions
30,635
-
-
// E1-6, 50(b)
Scope 2 emissions (location-based)
10,063
-
-
// E1-6, 50(b)
Scope 2 emissions (market-based) 5
10,063
-
-
1	 We cover 100 % of our own electricity consumption with unbundled 
renewable electricity certificates.
2	 We have obtained carbon dioxide emissions data directly from our 
air travel suppliers, which account for 0.2 % of the total scope 3 
emissions.
3	 Total GHG emissions including scope 2 GHG emissions measured 
using the location-based and market-based method, respectively.
4	 According to the GHG Protocol, emissions data for direct carbon 
­emissions from biologically sequestered carbon (e.g. carbon dioxide 
from burning ­biomass) shall be reported separately from scopes 1-3.
5	 We do not purchase renewable certificates for the scope 2 emissions 
not financially consolidated. 
Scope 1
Scope 1 greenhouse gas (GHG) emissions decreased 
by 54 % from 2023 to 2024. The main driver was the 
53 % decrease in the non-renewable fuels used in the 
heat and power generation, where coal consumption 
decreased by 62 %.
In 2024, 92 % of our scope 1 GHG emissions were 
­covered by the EU Emissions Trading System. 
Scope 2
Location-based scope 2 GHG emissions decreased 
by 37 % from 2023 to 2024, primarily driven by 
less purchased power for the electric boilers at our 
CHP plants.
 
All electricity purchased and consumed by Ørsted 
is covered with certificates, ensuring it has been 
produced using renewable sources. Therefore, our 
­market-based scope 2 GHG emissions from power 
consumption amounted to zero tonnes carbon dioxide 
equivalents. The remaining 875 tonnes carbon dioxide 
equivalents come from the fossil-based share of our 
heat consumption.
Scope 3
Scope 3 GHG emissions increased by 61 % from 2023 
to 2024. This increase was primarily driven by the 
increase in emissions from capital goods (category 2), 
as we commissioned four large solar farms in the US, 
two offshore wind farms in Taiwan, and one offshore 
wind farm in the US in 2024, whereas we only commis-
sioned four onshore wind farms in 2023.
GHG emissions outside of scopes 1-3
Direct biogenic carbon emissions were 30 % higher in 
2024 than in 2023 due to the 30 % increase in the use 
of sustainable biomass as fuel.
Indirect biogenic carbon emissions decreased by 33 % 
in 2024 compared to 2023, driven by the reduction in 
purchased electricity from renewable sources.
GHG emissions not accounted for under  
the consolidated group
GHG emissions (scopes 1 and 2) from operating activi-
ties that are not accounted for under the consolidated 
group include emissions associated with our operation 
of assets over which we have no or partial ownership. 
These include offshore wind farms where we own part 
of the wind farm as well as some smaller onshore 
wind farms where we have no ownership, but over-
see ­operations. All these assets are renewable assets, 
implying the key driver of the emissions reported is 
fuel from the vessels and vehicles used to operate 
these assets. 
94
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|  ESRS E1

GHG emissions intensity (scopes 1 and 2)
Our scope 1 and 2 GHG emissions intensity (energy 
generation), decreased by 58 % in 2024 compared to 
2023. The decrease was the result of a 54 % decrease 
in scope 1 emissions due to lower non-renewable 
fuels used in thermal heat and power generation 
(­numerator) and an 8 % increase in total heat and 
power generation (denominator).
Our scope 1 and 2 GHG emissions intensity (revenue) 
was reduced by 50 %, and our scope 1 and 2 GHG 
emissions intensity (EBITDA) was reduced by 73 %, 
­following the 58 % reduction in GHG emissions 
(numerator), the 10 % reduction in revenue, and the 
71 % increase in EBITDA (denominators).
GHG emissions intensity (scopes 1, 2, and 3)
Our scope 1, 2, and 3 (excluding gas sales) GHG 
emissions intensity (energy generation) increased by 
59 % from 2023 to 2024. The increase was mainly 
driven by the 183 % increase in scope 3 (excluding 
emissions from gas sales), partially offset by 54 % 
lower scope 1 emissions and an 8 % increase in total 
heat and power generation (denominator). 
Our scope 1, 2, and 3 GHG emissions intensity 
­(revenue) increased by 50 % (for intensity based on 
location-based scope 2 emissions) and 52 % (for 
intensity based on market-based scope 2 emissions). 
The increase was mainly driven by a 61 % increase in 
total scope 3 emissions and a 10 % reduction in ­revenue, 
partially offset by 54 % lower scope 1 emissions.
Gross scope 1, 2, 3, and total GHG emissions 
GHG emissions intensity
ESRS ref.
GHG emissions intensity
Unit
2024
2023
Δ
GHG emissions intensity (scopes 1 and 2)
Entity spec.
GHG emissions intensity, energy generation
g CO2e/kWh
16
38
(58 %)
Entity spec.
Offshore
g CO2e/kWh
2
2
0 %
Entity spec.
Onshore
g CO2e/kWh
0
0
-
Entity spec.
Bioenergy & Other
g CO2e/kWh
61
141
(57 %)
Entity spec.
GHG emissions intensity, revenue
g CO2e/DKK
10
20
(50 %)
Entity spec.
GHG emissions intensity, EBITDA
g CO2e/DKK
23
85
(73 %)
GHG emissions intensity (scopes 1, 2, and 3)
Entity spec.
GHG emissions intensity 1, energy generation
g CO2e/kWh
127
80
59 %
// E1-6, 53
GHG emissions intensity 2, revenue
g CO2e/DKK
138
92
50 %
// E1-6, 53
GHG emissions intensity 3, revenue
g CO2e/DKK
138
91
52 %
1	 Excludes scope 3 emissions from gas sales. Calculated using market-based scope 2 emissions.
2	 Calculated using location-based scope 2 emissions.
3	 Calculated using market-based scope 2 emissions. 
§  Accounting policies
Direct GHG emissions (scope 1)
Scope 1 emissions are reported based on the Green-
house Gas (GHG) Protocol and cover all direct 
emissions of greenhouse gases from Ørsted: carbon 
­dioxide, methane, nitrous oxide, and sulphur hexa­
fluoride. The direct carbon emissions from the com-
bined heat and power plants are determined based 
on the fuel quantities used in accordance with the 
EU Emissions Trading System (ETS). Carbon dioxide 
and other greenhouse gas emissions outside the 
EU ETS scheme are primarily calculated as energy 
­consumption multiplied by emission factors.
Indirect GHG emissions (scope 2)
Scope 2 emissions are reported based on the GHG 
Protocol and include indirect GHG emissions from 
the generation of power, heat, and steam purchased 
and consumed by Ørsted. Scope 2 emissions are 
primarily calculated as the power volumes purchased 
multiplied by country-specific emission factors. 
Location-based emissions are calculated based on 
average country-specific emission factors. ­Market-
based emissions take into account renewable 
power purchased and assume that regular power 
is delivered as residual power. 
Indirect GHG emissions (scope 3)
Scope 3 emissions are reported based on the GHG 
Protocol, where the accounting for scope 3 inventory 
is split into 15 subcategories (C1-C15): 
C1 is categorised spend data multiplied by relevant 
spend-category-specific emission factors.
C2 includes upstream GHG emissions (cradle to 
operations) from acquired and installed wind, solar, 
and storage assets in the month when they reached 
commercial operation date (COD).
C3 is calculated based on actual fuel consumption 
and power sales to end customers multiplied by 
relevant emission factors. We use separate emission 
factors for green and regular power sales.
C4 only includes fuel for helicopter transport. 
Emissions from other transport types are included 
in the emission factors we use for ­purchased goods 
and services.
C5 is calculated based on actual waste data 
multiplied by relevant emission factors.
C6 is calculated based on mileage allowances for 
employee travel in own cars and GHG emissions from 
plane travel provided by our travel agent.
C7 is calculated based on estimates of the distance 
travelled and travel type (e.g. car or train).
C9 is calculated based on volumes of residual 
­products, estimated distances transported, and 
­relevant emission factors for transport.
C11 is calculated based on actual sales of gas to 
both end customers and wholesalers as reported 
in our ESG consolidation system. The different types 
of gas sold have specific upstream and downstream 
emission factors. 
The subcategories C8, C10, and C12-C15 are not 
­relevant for Ørsted.
GHG emissions outside of scopes 1-3
Direct carbon emissions from burning biomass is 
reported outside of scopes 1-3, as per the GHG 
Protocol. The direct biogenic carbon emissions 
are calculated by multiplying the volume of used 
biomass with the corresponding carbon emission 
factors. The indirect biogenic emissions have been 
estimated based on our consumption of electricity 
and heat produced using biomass. 
GHG emissions not accounted for under  
the consolidated group
As per the ESRS, we include scope 1 and 2 emissions 
from assets where we have no or only partial owner-
ship, but maintain full operational control. The GHG 
emissions include emissions associated with fuel 
usage (scope 1) and electricity consumption (scope 2) 
when operating renewable assets.
GHG emissions intensity (scopes 1 and 2)
This is calculated as total scope 1 and scope 2 
(market-­based) emissions divided by total heat and 
power generation, revenue, and EBITDA, respectively.
GHG emissions intensity (scopes 1, 2, and 3),  
generation, and net revenue
GHG intensity based on energy generation is calcu-
lated as the total scope 1, scope 2 (market-based), 
and scope 3 (excluding gas sales) emissions divided by 
total heat and power generation. The calculation of 
GHG intensity based on net revenue divides the total 
scope 1-3 GHG emissions (numerator) with the total 
net revenue as shown in the financial statements 
(denominator).
95
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|  ESRS E1

Global warming potential  
of greenhouse gases
	 CH4, N2O, SF6
Intergovernmental Panel  
on Climate Change (IPCC): 
Climate Change 2021,  
The Physical Science Basis
Carbon emissions from fossil 
fuels at CHP plants
	 Coal, oil, natural gas
Danish Energy Agency: Standard­
faktorer for brændværdier 
og CO2-emissioner (Standard 
factors for calorific value and 
carbon emissions), 2023
Carbon emissions from fossil 
fuels outside CHP plants
	 Diesel, petrol, fuel oil, jet fuel
American Petroleum Institute 
(API): Compendium of green-
house gas emission methodolo-
gies for the natural gas and oil 
industry, 2021
Carbon emissions from  
power purchased
	 In Denmark
EnerginetDK, 2023: Generel 
deklaration og Miljødeklaration, 
2021 (General declaration and 
environmental declaration, 2022)
Carbon emissions from  
power purchased
	 In other European countries
Association of Issuing Bodies 
(AIB): European Residual Mixes, 
2023 (2022 data)
Carbon emissions from  
power purchased
	 In countries outside Europe
Institute for Global Environ-
mental Strategies (IGES): list of 
grid emission factors, 2023
US Environmental Protection 
Agency (EPA): US EPA 2024 
(eGRID2022 data)
Biogenic emissions from  
combustion of biomass
	 GHG emissions outside of 
scopes 1-3, biomass and 
biogas
UK Department for Environ-
ment, Food & Rural Affairs 
(DEFRA), UK government GHG 
conversion factors for company 
reporting, 2023
Use of sold products
(category 11) 
	 Emissions from end-use  
of gas
UK Department for Environment, 
Food & Rural Affairs (DEFRA): 
UK government GHG conversion 
factors for company reporting, 
2023
Capital goods (category 2)
	 Wind farms, offshore
The model is based on the ISO 
14040 Life cycle assessment 
standard (1) and applied in the 
openLCA software. The mod-
elling is conducted using the 
Environmental Footprint 3.0 
LCIA (life cycle impact assess-
ment) method, and the impacts 
of each activity/material come 
from the ecoinvent environmen-
tal database, version 3.8.
	 Wind farms, onshore
Siemens, Environmental Product 
Declaration: a clean energy 
solution – from cradle to grave. 
Onshore wind power plant 
employing SWT-2.3-108
	 Solar PV
CdTe: First Solar, Environmental 
Product Declaration: Series 6 
Photovoltaic Module, NEPD-
2993-1671. EPD-Norge, 2021
Mono-si: NREL, An Updated 
Life Cycle Assessment of 
Utility-­Scale Solar Photovoltaic 
Systems. National Renewable 
Energy Laboratory, 2021
	 Battery storage
Peralta, M., & Barron, J., "Carbon 
footprint and energy payback 
of photovoltaic technologies: 
A review of trends and gaps," 
­Journal of Cleaner Production, 
Vol. 426, 2024.
Fuel- and energy-related 
activities (category 3)
	 Emissions from regular power 
sales and upstream supply 
chain for fuels
Association of Issuing Bodies 
(AIB): European Residual Mixes, 
2023 (2022 data)
UK Department for Environment, 
Food & Rural Affairs (DEFRA): 
UK government GHG conversion 
factors for company reporting, 
2023
Purchased goods and services 
(category 1)
	 Supply chain emission  
factors depending on 
­product categories
US Environmental Protection 
Agency (EPA): Supply Chain 
Greenhouse Gas Emission 
Factors, USD 2018
Business travel (category 6)
	 Assumptions: ‘average car’, 
‘unknown fuel type’
UK Department for Environment, 
Food & Rural Affairs (DEFRA), 
UK government GHG conversion 
factors for company reporting, 
2023
GHG emissions calculation factors
References for calculation factors used in the 2024 data set (page 94)
Scope 1 emissions
Scope 2 emissions
Biogenic emissions
Scope 3 emissions
  	
Comment
(Italic)	
Source
96
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|  ESRS E1

Overview by country 
Overview by country
Unit
Denmark
The UK
Germany
The 
Netherlands
The US
Taiwan
Poland
Other 
countries
2024
2023
Δ
Installed renewable capacity 
MW
3,061
5,795
1,387
752
5,825
945
-
405
18,170
15,731
16 %
Offshore wind power 
MW
1,006
5,692
1,346
752
162
945
-
-
9,903
8,871
12 %
Onshore wind power 
MW
-
83
27
-
3,215
-
-
401
3,726
3,717
0 %
Solar PV power 
MW
-
-
14
-
2,108
-
-
4
2,126
1,028
107 %
Battery storage
MW
1
20
-
-
340
-
-
-
361
61
492 %
Bioenergy
MW
2,054
-
-
-
-
-
-
-
2,054
2,054
0 %
Decided (FID’ed) renewable capacity 
MW
-
3,152
1,249
-
2,137
920
-
180
7,638
8,323
(8 %)
Offshore wind power
MW
-
2,852
1,166
-
1,628
920
-
-
6,566
6,672
(2 %)
Onshore wind power 
MW
-
-
67
-
259
-
-
44
370
100
270 %
Solar PV power
MW
-
-
16
-
-
-
-
136
152
1,179
(87 %)
Battery storage
MW
-
300
-
-
250
-
-
-
550
300
83 %
P2X
MW
-
-
-
-
-
-
-
-
-
72
(100 %)
Awarded and contracted renewable capacity
MW
-
2,400
-
-
-
-
2,753
-
5,153
3,720
39 %
Sum of installed, FID’ed, and awarded/contracted capacity
MW
3,061
11,347
2,636
752
7,962
1,865
2,753
585
30,961
27,774
11 %
Power generation capacity
MW
2,658
2,908
837
376
5,172
598
-
351
12,900
12,511
3 %
Offshore wind power
MW
561
2,830
800
376
96
598
-
-
5,261
4,986
6 %
Onshore wind power
MW
-
78
22
-
3,215
-
-
351
3,666
3,707
(1 %)
Solar PV power
MW
-
-
15
-
1,861
-
-
-
1,876
1,018
84 %
Thermal power
MW
2,097
-
-
-
-
-
-
-
2,097
2,800
(25 %)
Heat generation capacity, thermal
MW 
2,864
-
-
-
-
-
-
-
2,864
3,353
(15 %)
Power generation
GWh
6,583
10,519
2,414
1,333
14,556
2,220
-
811
38,436
35,572
8 %
Heat generation
GWh
6,919
-
-
-
-
-
-
-
6,919
6,587
5 %
Share of renewable energy generation
%
91
100
100
100
100
100
-
100
97
93
4 %p
Greenhouse gas emissions (scopes 1 and 2)
ktonnes CO2e
700
18
7
2
2
5
-
0
734
1,586
(54 %)
Greenhouse gas intensity (scopes 1 and 2)
g CO2e/kWh
52
2
3
1
0
2
-
0
16
38
(58 %)
Entity spec.
97
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

Renewable capacity
Unit
2024
2023
Δ
Installed renewable capacity 
MW
18,170
15,731
2,439
Offshore, wind power 
MW
9,903
8,871
1,032
Onshore
MW
6,193
4,785
1,407
Wind power
MW
3,726
3,717
9
Solar PV power 1
MW
2,127
1,028
1,098
Battery storage 1
MW
340
40
300
Bioenergy 2
MW
2,075
2,075
-
Decided (FID’ed) renewable capacity 
MW
7,638
8,323
(685)
Offshore 
MW
6,866
6,672
194
Wind power
MW
6,566
6,672
(106)
Battery storage 1
MW
300
-
300
Onshore 
MW
772
1,579
(807)
Wind power
MW
370
100
270
Solar PV power 1
MW
152
1,179
(1,027)
Battery storage 1
MW
250
300
(50)
P2X3
MW
-
72
(72)
Awarded and contracted renewable capacity 
MW
5,153
3,720
1,433
Offshore, wind power
MW
5,153
3,677
1,476
Onshore, wind power
MW
-
43
(43)
Sum of installed and FID’ed renewable capacity 
MW
25,808
24,054
1,754
Sum of installed, FID’ed, and awarded/contracted renewable capacity 
MW
30,961
27,774
3,187
Renewable capacity
Business drivers
§  Accounting policies
Installed renewable capacity
The installed renewable capacity is calculated 
as renewable capacity installed by Ørsted 
accumulated over time. We include all capacities 
after commercial operation date (COD) has 
been reached, and where we had an ownership 
share and an EPC (engineering, procurement, and 
construction) role in the project. Capacities from 
acquisitions are added to the installed capacity. 
For installed renewable thermal capacity, we 
use the heat capacity, as heat is the primary 
outcome of thermal energy generation, and as 
bioconversions of the combined heat and power 
plants are driven by heat contracts.
Decided (FID’ed) renewable capacity
Decided (FID’ed) capacity is renewable 
­capacity where a final investment decision  
(FID) has been made. 
Awarded and contracted renewable capacity
The awarded renewable capacity is based on 
the capacities which have been awarded to 
Ørsted in auctions and tenders. The contracted 
renewable capacity is the capacity for which 
Ørsted has signed a contract or power purchase 
agreement (PPA) concerning a new renewable 
energy asset. We include the full capacity if 
more than 50 % of PPAs or offtake is secured. 
We only include awarded/contracted capacity 
for projects that we expect to develop.
In 2024, we added 2.4 GW of installed renewable 
energy capacity. We reached COD for the offshore 
wind farms Greater Changhua 1 and 2a (900 MW) 
and South Fork (132 MW), and we commissioned the 
onshore assets Mockingbird (471 MW), Sparta Solar 
(250 MW), the remaining part of Old 300 (73 MW), and 
the Eleven Mile Solar Center with a solar PV capac-
ity of 300 MW and a battery storage capacity of 300 
MW/1,200 MWh. 
We took final investment decisions for the offshore 
wind farm Sunrise Wind (924 MW), the onshore wind 
farms Badger Wind (259 MW) and Farranrory (43 MW), 
and the solar farm Ballinrea (55 MW). Additionally, 
we took final investment decisions for two battery 
energy storage systems (BESS): a BESS colocated with 
Hornsea 3 (300 MW/600 MWh) and the BESS at Old 
300 (250 MW/500 MWh).
1	 Both the solar PV and battery storage capacities are measured  
in megawatts of alternating current (MWAC).
2	 Including thermal heat capacity from biomass and battery  
capacity not in Onshore (21 MW).
3	 In Q2 2024, we took the decision to cease the development  
of our liquid e-fuels project FlagshipONE in Sweden. 
Entity spec.
Q1
Q2
Q3
Q4
Additions for the last 12 months
Installed capacity  Decided (FID’ed) capacity (above 20 MW)  Awarded (offshore) and contracted (onshore) capacity (above 20 MW)
  Delta Sévre-Argent, 
Onshore wind (9 MW)
  Sunrise Wind, 
Offshore wind (924 MW)
  Farranrory, 
Onshore wind (43 MW)
  South Fork,  
Offshore wind (132 MW)
  Old 300, 
Solar PV (73 MW)
  Amberg Süd,   
Solar PV (4 MW)
  Hornsea 4, 
         Offshore wind (4,200 MW)
  Greater Changua 1 and 2a, 
Offshore wind (900 MW)
  Eleven Mile, 
·  Solar PV (300 MW) 
·  Battery storage (300 MW)
  Sparta Solar, 
Solar PV (250 MW)
  Hornsea 3, 
Battery storage (300 MW)
  Mockingbird,   
Solar PV (471 MW)
  Badger Wind, 
Onshore wind (259 MW)
  Ballinrea Solar Farm, 
Solar PV (55 MW)
  Old 300 BESS, 
Battery storage (250 MW)
98
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

Generation capacity
Unit
2024
2023
Δ
Power generation capacity 
MW
12,899
12,511
388
Offshore wind 
MW
5,260
4,986
274
Denmark
MW
561
561
-
The UK
MW
2,830
2,830
-
Germany
MW
799
673
126
The Netherlands
MW
376
376
-
Taiwan
MW
598
516
82
The US
MW
96
30
66
Onshore wind
MW
3,666
3,707
(41)
The US
MW
3,215
3,215
-
Ireland
MW
351
351
-
The UK
MW
78
78
-
France
MW
-
41
(41)
Germany
MW
22
22
-
Solar PV
MW
1,876
1,018
858
The US
MW
1,861
1,004
857
France
MW
-
4
(4)
Germany
MW
15
10
5
Thermal, Denmark (CHP plants)
MW
2,097
2,800
(703)
Heat generation capacity, thermal
MW
2,864
3,353
(489)
Based on biomass 
MW
2,032
2,032
-
Based on coal 
MW
-
1,300
(1,300)
Based on natural gas
MW
1,574
1,617
(43)
Heat generation capacity, electric
MW
249
225
24
Power generation capacity, thermal
MW
2,097
2,800
(703)
Based on biomass
MW
1,232
1,228
4
Based on coal
MW
-
991
(991)
Based on natural gas
MW
882
951
(69)
Based on oil
MW
474
734
(260)
Generation capacity
Business drivers
§  Accounting policies
Power generation capacity
Power generation capacity for an offshore wind 
farm is calculated and included from TOC of 
the individual wind turbines. TOC stands for 
‘take over certificate’, which is the document 
signifying transfer of ownership from the 
contractor to the owner or operator of the asset. 
Power generation capacities for onshore wind 
and solar farms are included after commercial 
operation date (COD) has been reached. 
Generation capacity is financially consolidated.
Heat and power generation capacity, thermal
Thermal heat and power generation ­capacity 
is a measure of the maximum capability to 
­generate heat and power. The capacity may 
change over time with plant modifications. 
For each CHP plant, the capacity is given for 
­generation with the primary fuel mix. Overload 
is not included. CHP plants which have been 
taken out of primary operation and put on 
standby or into conservation are not included.
Fuel-specific thermal heat and power genera-
tion capacities measure the maximum ­capacity 
using the specified fuel as primary fuel at the 
multi-fuel plants. They cannot be added to 
total thermal capacity, as they are defined 
individually for each fuel type for our multi-­fuel 
plants. All fuels cannot be used at the same 
time. Therefore, the total sum amounts to 
more than 100  %.
Our power generation capacity increased by 3 % to 
12,899 MW in 2024. Offshore wind power generation 
capacity increased by 274 MW, primarily due to the 
ramp-up of Gode Wind 3 in Germany, Changhua 1 and 
2a in Taiwan, and South Fork Wind in the US.
Onshore wind power generation capacity decreased 
slightly due to the divestment of the French assets in 
Q2 2024.
Solar PV generation capacity increased by 858 MW 
to 1,876 MW in 2024, mainly driven by the commis-
sioning of Eleven Mile Solar Center, Sparta Solar, 
and ­Mockingbird in the US.
In 2024, thermal power generation capacity decreased 
by 703 MW, mainly due to the closure of the 373 MW 
power generation capacity at Esbjerg Power Station. 
We have also taken the 260 MW unit at Kyndby Peak 
Load Plant (based on oil) and part of the gas-based 
capacity at Avedøre Power Station out of operation 
in 2024.
Heat generation capacity (thermal) decreased by 
489 MW, mainly due to the closure of Esbjerg Power 
Station and part of the gas-based capacity at 
Avedøre Power Station in 2024.
Entity spec.
99
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

Energy business drivers
Unit
2024
2023
Δ
Offshore wind
Wind speed
m/s
10.0
9.8
2 %
Wind speed, normal wind year
m/s
9.9
9.9
0 %
Availability 
%
88
93
(5 %p)
Load factor
%
42
43
(1 %p)
Onshore wind
Wind speed
m/s
7.2
7.2
0 %
Wind speed, normal wind year
m/s
7.4
7.4
0 %
Availability 
%
90
88
2 %p
Load factor 
%
37
36
1 %p
Solar PV
Availability
%
98
98
0 %p
Load factor
%
25
24
1 %p
Other
Degree days, Denmark
Number
2,485
2,585
(4 %)
Energy business drivers 
Business drivers
§  Accounting policies
Wind speeds
Wind speeds for the areas where Ørsted’s 
offshore and onshore wind farms are located 
are provided to Ørsted by an external supplier. 
Wind speeds are weighted on the basis of the 
capacity of the individual wind farms and con-
solidated to an Ørsted total for offshore and 
onshore, respectively. ‘Normal wind speed’ is a 
historical wind speed average (over a minimum 
20-year period).
Availability
Availability is calculated as the ratio of actual 
production to the possible production, which is 
the sum of lost production and actual produc-
tion in a given period. The production-based 
availability (PBA) is impacted by grid and wind 
turbine outages, which are technical produc-
tion losses. PBA is not impacted by market-­
requested shutdowns and wind farm curtail-
ments as these are due to external factors.
Load factor
The load factor is calculated as the ratio 
between actual generation over a period 
­relative to potential generation, which is pos-
sible by continuously exploiting the maximum 
capacity over the same period. The load factor 
is commercially adjusted. This means that the 
offshore wind farm has been financially com-
pensated by the transmission system opera-
tors when it is available for generation, but the 
output cannot be supplied to the grid due to 
­maintenance or grid interruptions. New ­offshore 
wind turbines are included in the calculations 
of availability and load factor once the ‘take 
over certificate’ (TOC) is issued. Onshore wind 
turbines are included once they have passed 
commercial operation date (COD).
Degree days
The number of degree days expresses the dif-
ference between an average indoor tempera-
ture of 17 °C and the outside mean temperature 
for a given period. It helps compare the heat 
demand for a given year with a normal year.
Offshore wind
Offshore wind speeds in 2024 were 2 % higher than in 
2023 and 0.1 m/s higher than in a normal wind year. 
Availability was 5 percentage points lower in 2024 
compared to 2023. The load factor decreased by 
1 percentage point in 2024 compared to 2023. 
Onshore wind
Onshore wind speeds in 2024 were at the same level 
as in 2023, which is 0.2 m/s lower than in a normal 
wind year. Availability was 2  percentage points higher 
in 2024 compared to 2023. The load factor increased 
by 1 percentage point in 2024 compared to 2023.
Solar PV
Availability in 2024 was at the same level as in 2023, 
but the load factor increased by 1 percentage point.
Other
The number of degree days in 2024 was 4 % lower 
than in 2023, indicating that the weather in 2024 
was slightly warmer than in 2023. 
Entity spec.
100
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

Energy generation and sales
Unit
2024
2023
Δ
Power generation
GWh
38,436
35,572
8 %
Offshore wind
GWh
18,599
17,761
5 %
Denmark 
GWh
2,061
1,970
5 %
The UK 
GWh
10,357
10,887
(5 %)
Germany 
GWh
2,356
2,076
13 %
The Netherlands 
GWh
1,333
1,449
(8 %)
The US 
GWh
272
88
209 %
Taiwan
GWh
2,220
1,291
72 %
Onshore wind
GWh
11,959
11,228
7 %
The US 
GWh
10,939
10,124
8 %
Ireland
GWh
759
809
(6 %)
France 
GWh
51
89
(43 %)
Germany
GWh
49
58
(16 %)
The UK
GWh
161
148
9 %
Solar PV
GWh
3,356
2,146
56 %
The US
GWh
3,346
2,131
57 %
Germany
GWh
9
11
(18 %)
France
GWh
1
4
(75 %)
Thermal
GWh
4,522
4,437
2 %
Heat generation 
GWh
6,919
6,587
5 %
Total heat and power generation
GWh
45,355
42,159
8 %
Of which, thermal heat and power generation
%
25
26
(1 %p)
Energy generation and sales 
Business drivers
§  Accounting policies
Power generation
Power generation from wind and solar farms is 
determined as generation sold. 
Thermal power generation is determined as net 
generation sold, based on settlements from the 
official Danish production database. Data for 
generation from foreign facilities is provided by 
the operators.
Heat generation
Heat (including steam) generation is measured 
as net output sold to heat customers.
Gas and power sales
Sales of gas and power are calculated as physi-
cal sales to retail and wholesale customers and 
exchanges. Sales are based on readings from 
Ørsted’s trading systems. Internal sales to our 
combined heat and power (CHP) plants are not 
included in the statement.
Gas sales
GWh
17,372
16,880
3 %
Power sales
GWh
19,967
21,448
(7 %)
Power from renewable sources to end customers 1
GWh
813
881
(8 %)
Regular power to end customers 2
GWh
1,639
1,567
5 %
Power wholesale
GWh
17,515
19,000
(8 %)
1	 Power sold with renewable energy certificates (certificates ensuring 
it has been produced using renewable resources). 
2	 Power sold without renewable energy certificates.
Offshore wind power generation increased by 5 % 
to 18.6 TWh in 2024. The increase was primarily 
due to ramp-up capacity in Taiwan, Germany, and 
the US as well as higher wind speeds.
Onshore wind power generation was 12.0 TWh in 
2024, an increase of 7 % compared to 2023, mainly 
driven by higher generation from the US wind 
farm Sunflower Wind (passed COD in Q3 2023). 
Solar PV generation increased by 56 % due to the 
­commissioning of the US solar sites Sparta Solar, 
Eleven Mile, and Mockingbird.
Thermal power generation increased by 2 % in 2024 
compared to 2023. The increase was mainly driven 
by attractive wood pellet spreads and improved 
technical availability at the power plants compared 
to 2023. This was partially offset by lower power 
generation from the closed down Esbjerg Power 
Station as of August 2024. Heat generation was 5 % 
higher in 2024 compared to 2023, mainly driven by 
the colder weather in the beginning of 2024. 
Gas sales were 3 % higher compared to 2023, mainly 
driven by higher offtake from DUC, due to ramp-up 
of production from the Tyra gas field (not owned by 
Ørsted), partly offset by the expiry of our contract 
with Equinor.
Power sales decreased by 7 % to 20.0 TWh in 2024, 
partly due to lower volumes from ending third-party 
contracts for balancing activities in 2024.
Entity spec.
101
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

The share of renewable heat and power generation 
increased by 4 percentage points to 97 % in 2024. 
The increase was mainly due to a 4 percentage point 
reduction in coal-based generation and a 4 percent-
age point increase in biomass-based generation. 
The coal-based generation decreased due to the shut-
down of the coal-based Esbjerg Power Station and 
the subsequent declining coal usage from Q4 2024. 
In addition, there was lower coal-based generation 
at Studstrup Power Station due to the gradual switch 
back to biomass-based generation from April 2023. 
The share of solar PV-based generation increased by 
2 percentage points due to the new solar farms in the 
US. However, this was offset by a 2 percentage point 
decrease in the share of wind-based generation.
Total heat and power generation by source 
Business drivers
§  Accounting policies
Share of renewable energy generation
The renewable energy share of our heat and 
power generation is calculated on the basis 
of the energy sources used and the energy 
­generated by the different assets.
For combined heat and power (CHP) plants, 
the share of the specific fuel (e.g. sustainable 
biomass) is calculated relative to the total 
fuel consumption for a given plant or unit 
within a given time period. 
The specific fuel share is then multiplied by 
the total heat and power generation for the 
specific plant or unit in the specific period. 
The result is the fuel-based generation for the 
individual plant or unit, for example the sustain-
able biomass-based generation of heat and 
power from the CHP plant unit within a given 
time period.
The percentage shares of the individual 
energy sources are calculated by dividing the 
­generation from the individual energy source 
by the total generation.
The following energy sources and fuels are 
­considered to be renewable energy: wind, 
solar PV, sustainable biomass, biogas, and 
power sourced with renewable energy certi­
ficates. The following energy sources are 
­considered to be fossil energy sources: coal, 
natural gas, and oil.
ESRS ref.
Total heat and power generation by source
2024
2023
Δ
Share of energy generation, % 
Entity spec.
From renewable sources
97
93
4 %p
Entity spec.
From offshore wind 
41
42
(1 %p)
Entity spec.
From onshore wind 
26
27
(1 %p)
Entity spec.
From solar PV 
7
5
2 %p
Entity spec.
From sustainable biomass 
22
18
4 %p
Entity spec.
From other renewable energy sources
1
1
0 %p
Entity spec.
From non-renewable sources
3
7
(4 %p)
Entity spec.
From coal 
2
6
(4 %p)
Entity spec.
From natural gas 
1
1
0 %p
Entity spec.
From other fossil energy sources
0
0
0 %p
Entity spec.
Total heat and power generation, MWh 
45,354,845
42,158,133
8 %
// E1-5, 39
From renewable sources
44,141,989
39,217,892
13 %
// E1-5, 39
From non-renewable sources
1,212,856
2,940,241
(59 %)
Total heat and power generation  
by energy source 2024
%
Offshore wind
41
Onshore wind
26
Sustainable biomass
22
Solar PV
7
Coal
2
Natural gas
1
Other 1
1
1  Other renewable and fossil energy sources
2024
2023
97
93
Share of renewable energy generation
%
102
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  ESRS E1

Taxonomy-aligned revenue (turnover)
The taxonomy-aligned share of revenue in 2024 
was 91 %, an increase of 5 percentage points 
­compared to 2023. This was primarily due to lower 
taxonomy non-­eligible revenue from gas sales and 
coal-based generation. 
Taxonomy-aligned CAPEX
Our taxonomy-aligned share of CAPEX in 2024 
remained at 99 % and is primarily related to our 
wind and solar farms and our storage facilities.
Taxonomy-aligned OPEX
Our taxonomy-aligned OPEX was 86 %, an increase
of 7 percentage points compared to 2023.
Taxonomy-aligned EBITDA
The taxonomy-aligned share of EBITDA in 2024 was 
99 %, an increase of 4 percentage points compared  
to 2023, driven by higher contributions from wind 
power operations and a concurrent decrease in 
non-­eligible EBITDA from gas sales and coal-based 
­generation by our CHP plants.
ESRS or EU ref.
EU taxonomy KPIs, %
2024
2023
Δ
EU 2020/852
Taxonomy-aligned revenue (turnover)
91
86
5 %p
EU 2020/852
Electricity generation using solar PV (4.1) and storage of electricity (4.10)
1
1
0 %p
EU 2020/852
Electricity generation from wind power (4.3)
78
75
3 %p
EU 2020/852
Cogeneration of heat and power from bioenergy (4.20)
12
10
2 %p
EU 2020/852
Taxonomy-eligible but not taxonomy-aligned revenue (turnover)
0
1
(1 %p)
// SBM-1, 40(d)(i)
High-efficiency cogeneration of heat and power from fossil gas (4.30)
0
1
(1 %p)
EU 2020/852
Taxonomy-non-eligible revenue
9
13 1
(4 %p)
// SBM-1, 40(d)(i)
Gas (sales)
6
8
(2 %p)
// SBM-1, 40(d)(i)
Coal (generation) 
1
3
(2 %p)
// SBM-1, 40(d)(i)
Oil (generation and distribution) 
1
0
1 %p
Entity spec.
Other activities 2
1
2
(1 %p)
EU 2020/852
Taxonomy-aligned revenue (turnover) adjusted for green bond financing
88
82 3
6 %p
EU 2020/852
Taxonomy-aligned CAPEX 4
99
99 
0 %p
EU 2020/852
Taxonomy-eligible but not taxonomy-aligned CAPEX
0
0
0 %p
EU 2020/852
Taxonomy-non-eligible CAPEX
1
1
0 %p
EU 2020/852
Taxonomy-aligned CAPEX adjusted for green bond financing 5
69
49 3
20 %p
EU 2020/852
Taxonomy-aligned OPEX
86
79
7 %p
EU 2020/852
Taxonomy-eligible but not taxonomy-aligned OPEX
1
1
0 %p
EU 2020/852
Taxonomy-non-eligible OPEX
13
20 1
(7 %p)
Entity spec.
Taxonomy-aligned EBITDA 
99
95
4 %p
Entity spec.
Electricity generation using solar PV (4.1) and storage of electricity (4.10)
4
4
0 %p
Entity spec.
Electricity generation from wind power (4.3)
91
86
5 %p
Entity spec.
Cogeneration of heat and power from bioenergy (4.20)
4
5
(1 %p)
Entity spec.
Taxonomy-eligible but not taxonomy-aligned EBITDA
0
0
0 %p
Entity spec.
High-efficiency cogeneration of heat and power from fossil gas (4.30)
0
0 
0 %p
Entity spec.
Taxonomy-non-eligible EBITDA 
1
5
(4 %p)
Entity spec.
Gas sales
0
3
(3 %p)
Entity spec.
Coal- and oil-based generation 
0
1
(1 %p)
Entity spec.
Other activities 2
1
1
0 %p
EU taxonomy for sustainable activities 
1	 This number has been restated due to an accounting policy update 
on taxonomy activity 4.30. See page 59 for more details.
2	 ‘Other activities’ primarily consist of trading and non-eligible power 
sales (incl. end customer sales). 
3	 This number has been restated due to an accounting policy update 
on the adjusted revenue/CAPEX KPIs. See page 59 for more details. 
4	 This ratio is applied to gross investments (DKKm 42,808 in 2024) to 
calculate taxonomy-aligned gross investments (see page 35).
5	 This is our taxonomy-aligned CAPEX excluding funding from green 
bonds. The 2024 share implies that 30 % of our taxonomy-aligned 
CAPEX was financed through green bonds, and 69 % was financed 
though our operating cash flow and divestments proceeds.
§  Accounting policies
Taxonomy-aligned revenue (turnover)
Revenue associated with taxonomy-­aligned 
activities as a proportion of our total revenue. 
It is adjusted for green bonds by excluding the 
revenue from our taxonomy-­aligned assets 
financed with green bonds proceeds from the 
taxonomy-aligned revenue (numerator).
Taxonomy-aligned CAPEX
CAPEX related to assets or processes asso-
ciated with taxonomy-aligned activities as a 
proportion of our CAPEX that is accounted for 
based on IAS 16 (73: (e)(i) and (iii)), IAS 38 (118: 
(e)(i)), and IFRS 16 (53: (h)). ­Carbon emission 
allowances and goodwill have been excluded. 
It is adjusted for green bonds by excluding the 
CAPEX financed with green bond proceeds from 
the taxonomy-aligned CAPEX (numerator).
Taxonomy-aligned OPEX 
Maintenance and repair OPEX related to our 
assets or processes associated with taxonomy-­
aligned activities as a proportion of the main-
tenance and repair OPEX of our ‘Other external 
expenses’. We estimate the maintenance and 
repair costs of ‘other external expenses’ using a 
group-level factor based on maintenance and 
repair costs for each business segment.
Taxonomy-aligned EBITDA (entity-specific)
EBITDA associated with taxonomy-­aligned 
activities as a proportion of our total EBITDA. 
Taxonomy-­aligned EBITDA is an entity-specific 
data point. It better reflects our business as 
our gas and power sales business has a large 
­revenue but a small earnings margin, while 
other areas have a higher margin. 
Taxonomy-eligible but not -aligned KPIs
Revenue, CAPEX, OPEX, and EBITDA associated 
with heat and power generation from fossil gas 
(4.30) that is not taxonomy-aligned. 
Taxonomy-non-eligible KPIs
Revenue, CAPEX, OPEX, and EBITDA associ-
ated with taxonomy-non-eligible activities (i.e. 
activities not included in the delegated acts). 
EU taxonomy KPIs
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|  EU taxonomy for sustainable activities

Taxonomy-aligned turnover 
Quantitative breakdown of taxonomy- 
aligned turnover
The primary sources of turnover contributing to the 
numerator of the turnover KPI in 2024 are generation 
and sale of power (DKK 36,693 million), government 
grants (DKK 12,201 million), and the construction of 
offshore wind farms (DKK 7,029 million). 
Code
(2)
Turnover 2024 
(DKKm)
(3)
Proportion 
of turnover 
2024 (%)
(4)
Substantial contribution
Does not significantly harm (DNSH)
Minimum 
safeguards 
(17)
Taxonomy- 
aligned 
proportion of 
turnover, 
2023 (%)
(18)
Category 
enabling 
activity (E) 
(19)
Category 
transi-
tional 
activity (T)
(20)
Economic activities (1)
Climate 
change 
mitigation 
(5) 
Climate 
change 
adaptation
(6) 
Water
(7)
Pollution 
(8)
Circular 
economy 
(9)
Bio- 
diversity 
(10)
Climate 
change 
mitigation 
(11)
Climate 
change 
adaptation 
(12)
Water
(13)
Pollution 
(14)
Circular 
economy 
(15)
Bio- 
diversity 
(16)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar PV technology
CCM 4.1
699
1 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
n.a.
n.a.
Y
Y
Y
1 % 
-
-
Electricity generation from wind power
CCM 4.3
55,093
78 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
75 %
-
-
Storage of electricity
CCM 4.10
243
0 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
0 %
E
-
Cogeneration of heat and power from bioenergy
CCM 4.20
8,348
12 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
Y
n.a.
Y
Y
10 %
-
-
Turnover of environmentally sustainable activities  
(taxonomy-aligned) (A.1)
64,383
91 %
91 %
0 %
-
-
-
-
n.a.
Y
Y
Y
Y
Y
Y
86 %
-
-
Of which, enabling
243
0 %
0 %
0 %
-
-
-
-
n.a.
Y
Y
n.a.
Y
Y
Y
0 % 
E
-
Of which, transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities
High-efficiency cogeneration of heat and power from 
fossil gaseous fuels 2
CCM 4.30
405
0 %
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
1 %
-
T
Turnover of taxonomy-eligible but not environmentally 
sustainable activities (not taxonomy-aligned) (A.2)
405
0 %
0 %
0 %
-
-
-
-
-
-
-
-
-
-
-
1 %
-
-
Turnover of taxonomy-eligible activities (A.1 + A.2)
64,788
91 %
91 %
0 %
-
-
-
-
-
-
-
-
-
-
-
87 % 3
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy-non-eligible activities (B)
6,246
9 %
TOTAL (A + B)
71,034
100 %
CCM	
Climate change mitigation
Y	
Yes (taxonomy-eligible and taxonomy-aligned activity  
with the relevant environmental objective)
N	
No (taxonomy-eligible but not taxonomy-aligned  
activity with the relevant environmental objective)
N/EL	
Not eligible (taxonomy-non-eligible activity for the  
relevant environmental objective)
EL	
Eligible (taxonomy-eligible activity for the relevant 
­environmental objective)
1	 We have not assessed our taxonomy-eligible activities against the 
substantial contribution criteria for climate change adaptation, as 
the primary objective of our activities is to contribute to climate 
change mitigation.
2	 We have not assessed our gas-based generation activities for 
alignment. 
3	 This number has been restated according to our updated accounting 
policy regarding taxonomy activity 4.30. See ‘Basis for preparation’ 
on page 59 for more details.
104
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  Taxonomy-aligned activities

Taxonomy-aligned CAPEX 
Quantitative breakdown of taxonomy- 
aligned CAPEX
The primary sources of CAPEX contributing to the 
numerator of the CAPEX KPI in 2024 are additions 
from property, plant, and equipment in Offshore, 
Onshore, and partly in Bioenergy (DKK 46,782 million).
CAPEX plan
Taxonomy-aligned CAPEX for 2024 remains at 
99 %, maintaining the level achieved in 2023. Given 
our commitment to deploying renewable energy 
projects in alignment with the EU taxonomy, a 
separate CAPEX plan is not deemed necessary.
Code
(2)
CAPEX 2024 
(DKKm)
(3)
Proportion 
of CAPEX 
2024 (%)
(4)
Substantial contribution
Does not significantly harm (DNSH)
Minimum 
safeguards 
(17)
Taxonomy- 
aligned 
proportion of 
CAPEX, 
2023 (%)
(18)
Category 
enabling 
activity (E) 
(19)
Category 
transi-
tional 
activity (T) 
(20)
Economic activities (1)
Climate 
change 
mitigation 
(5) 
Climate 
change 
adaptation
(6) 
Water
(7)
Pollution 
(8)
Circular 
economy 
(9)
Bio- 
diversity 
(10)
Climate 
change 
mitigation 
(11)
Climate 
change 
adaptation 
(12)
Water
(13)
Pollution 
(14)
Circular 
economy 
(15)
Bio- 
diversity 
(16)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
Manufacture of hydrogen
CCM 3.10
746
2 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
Y
n.a.
Y
Y
1 %
-
-
Electricity generation using solar PV technology
CCM 4.1
4,566
10 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
n.a.
n.a.
Y
Y
Y
12 %
-
-
Electricity generation from wind power
CCM 4.3
37,867
80 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
76 %
-
-
Storage of electricity
CCM 4.10
1,531
3 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
8 %
E
-
Cogeneration of heat and power from bioenergy
CCM 4.20
2,090
4 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
Y
n.a.
Y
Y
2 %
-
-
CAPEX of environmentally sustainable activities (tax-
onomy-aligned) (A.1)
46,800
99 %
99 %
0 %
-
-
-
-
n.a.
Y
Y
Y
Y
Y
Y
99 %
-
-
Of which, enabling
1,531
3 %
3 %
0 %
-
-
-
-
n.a.
Y
Y
n.a.
Y
Y
Y
8 %
E
-
Of which, transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities 
High-efficiency cogeneration of heat and power from 
fossil gaseous fuels2
CCM 4.30
19
0 %
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
0 %
-
T
CAPEX of taxonomy-eligible but not environmentally 
sustainable activities (not taxonomy-aligned) (A.2)
19
0 %
0 %
0 %
-
-
-
-
-
-
-
-
-
-
-
0 %
-
-
CAPEX of taxonomy-eligible activities (A.1 + A.2)
46,819
99 %
99 %
0 %
-
-
-
-
-
-
-
-
-
-
-
99 %
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CAPEX of taxonomy-non-eligible activities (B)
268
1 %
TOTAL (A + B)
47,087
100 %
CCM	
Climate change mitigation
Y	
Yes (taxonomy-eligible and taxonomy-aligned activity  
with the relevant environmental objective)
N	
No (taxonomy-eligible but not taxonomy-aligned  
activity with the relevant environmental objective)
N/EL	
Not eligible (taxonomy-non-eligible activity for the  
relevant environmental objective)
EL	
Eligible (taxonomy-eligible activity for the relevant 
­environmental objective)
1	 We have not assessed our taxonomy-eligible activities against the 
substantial contribution criteria for climate change adaptation, as 
the primary objective of our activities is to contribute to climate 
change mitigation.
2	 We have not assessed our gas-based generation activities for 
alignment. 
105
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  Taxonomy-aligned activities

Taxonomy-aligned OPEX 
Code
(2)
OPEX 2024 
(DKKm)
(3)
Proportion 
of OPEX 
2024 (%)
(4)
Substantial contribution
Does not significantly harm (DNSH)
Minimum 
safeguards 
(17)
Taxonomy- 
aligned 
proportion of 
OPEX, 
2023 (%)
(18)
Category 
enabling 
activity (E) 
(19)
Category 
transi-
tional 
activity (T) 
(20)
Economic activities (1)
Climate 
change 
mitigation 
(5) 
Climate 
change 
adaptation
(6) 
Water
(7)
Pollution 
(8)
Circular 
economy 
(9)
Bio- 
diversity 
(10)
Climate 
change 
mitigation 
(11)
Climate 
change 
adaptation 
(12)
Water
(13)
Pollution 
(14)
Circular 
economy 
(15)
Bio- 
diversity 
(16)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (taxonomy-aligned)
Electricity generation using solar PV technology
CCM 4.1
125
4 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
n.a.
n.a.
Y
Y
Y
3 %
-
-
Electricity generation from wind power
CCM 4.3
2,157
70 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
63 %
-
-
Storage of electricity
CCM 4.10
1
0 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
n.a.
Y
Y
Y
0 %
E
-
Cogeneration of heat and power from bioenergy
CCM 4.20
373
12 %
Y
N 1
N/EL
N/EL
N/EL
N/EL
n.a.
Y
Y
Y
n.a.
Y
Y
13 %
-
-
OPEX of environmentally sustainable activities  
(taxonomy-aligned) (A.1)
2,656
86 %
86%
0 %
-
-
-
-
n.a.
Y
Y
Y
Y
Y
Y
79 %
-
-
Of which, enabling
1
0 %
0 %
0 %
-
-
-
-
n.a.
Y
Y
n.a.
Y
Y
Y
0  %
E
-
Of which, transitional
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A.2 Taxonomy-eligible but not environmentally sustainable activities 
High-efficiency cogeneration of heat and power from 
fossil gaseous fuels 2
CCM 4.30
17
1 %
EL
EL
N/EL
N/EL
N/EL
N/EL
-
-
-
-
-
-
-
1 % 
-
T
OPEX of taxonomy-eligible but not environmentally
sustainable activities (not taxonomy-aligned) (A.2)
17
1 %
1 %
0 %
-
-
-
-
-
-
-
-
-
-
-
1 % 
-
-
OPEX of taxonomy-eligible activities (A.1 + A.2)
2,673
87 %
87%
0 %
-
-
-
-
-
-
-
-
-
-
-
80 % 3
-
-
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OPEX of taxonomy-non-eligible activities (B)
414
13 %
TOTAL (A + B)
3,087
100 %
Quantitative breakdown of taxonomy-aligned OPEX
The sources of OPEX contributing to the numerator of 
the OPEX KPI in 2024 stem from the estimated main-
tenance and repair costs of ‘other external expenses’ 
in Offshore (DKK 1,720 million), in Onshore (DKK 563 
million), and partly in Bioenergy (DKK 373 million).
Maintenance and repair OPEX estimation
We have calculated an estimation of the maintenance 
and repair costs of ‘other external expenses’ using a 
group-level factor based on maintenance and repair 
costs for each business segment.
CCM	
Climate change mitigation
Y	
Yes (taxonomy-eligible and taxonomy-aligned activity  
with the relevant environmental objective)
N	
No (taxonomy-eligible but not taxonomy-aligned 
activity with the relevant environmental objective)
N/EL	
Not eligible (taxonomy-non-eligible activity for the  
relevant environmental objective)
EL	
Eligible (taxonomy-eligible activity for the relevant 
­environmental objective)
1	 We have not assessed our taxonomy-eligible activities against  
the substantial contribution criteria for climate change adaptation, 
as the primary objective of our activities is to contribute to climate 
change mitigation.
2	 We have not assessed our gas-based generation activities for 
alignment. 
3	 This number has been restated according to our updated accounting 
policy regarding taxonomy activity 4.30. See ‘Basis for preparation’ 
on page 59 for more details.
106
Sustainability statements  |  Environment
ØRSTED ANNUAL REPORT 2024
|  Taxonomy-aligned activities

§  Accounting policies
Taxonomy-eligible activities
We have identified our taxonomy-eligible 
activities by screening the economic activi-
ties in the Climate Delegated Act (Commis-
sion Delegated Regulation (EU) 2021/2139), 
the Complementary Climate Delegated 
Act (Commission Delegated Regulation (EU) 
2022/1214), the Environmental ­Delegated 
Act (Commission Delegated Regulation 
(EU) 2023/2486), and the amendments to 
the ­Climate Delegated Act (Commission 
­Delegated Regulation (EU) 2023/2485).
Six activities in the delegated acts have been 
identified as eligible for Ørsted:
·	 Manufacture of hydrogen (3.10).
·	 Electricity generation using solar  
PV technology (4.1).
·	 Electricity generation from wind  
power (4.3).
·	 Storage of electricity (4.10).
·	 Cogeneration of heat/cool and power  
from bioenergy (4.20).
·	 High-efficiency cogeneration of heat and 
power from fossil gaseous fuels (4.30).
Taxonomy-aligned activities
Regulation (EU) 2020/852, article 3, sets out 
criteria which an economic activity must meet 
to qualify as environmentally sustainable 
(taxonomy-aligned):
·	 Comply with technical screening criteria 
(TSC) for substantially contributing to one or 
more of the six environmental objectives.
·	 Comply with TSC for doing no significant 
harm (DNSH) to the other five environmental 
objectives.
·	 Comply with minimum safeguards covering 
social and governance standards.
Taxonomy alignment of our eligible ­activities 
has subsequently been assessed against 
annex I of the Climate Delegated Act. The 
TSC for the environmental objectives have 
been assessed per activity. Minimum safe-
guards have been assessed on Group level. 
However, we have not assessed our gas-based 
heat and power generation activities (4.30) for 
taxonomy-alignment.
Substantial contribution
Climate change mitigation
We have assessed and documented whether 
our taxonomy-eligible activities (3.10, 4.1, 4.3, 
4.10, and 4.20) fulfil the substantial contribu-
tion criteria to climate change mitigation.
For activity 3.10, the future manufacturing 
process of hydrogen was calculated to meet 
the life cycle greenhouse gas (GHG) emis-
sion savings requirement in article 25(2) and 
annex V to Directive (EU) 2018/2001. The 
­calculation of life cycle GHG emission savings 
follows the methodology referred to in article 
28(5) of Directive (EU) 2018/2001, and the 
quanti­fication methodology has been verified 
by an independent third party. The quantified 
life cycle GHG emission savings are subject 
to final verification by an independent third 
party upon an asset’s operation.
For activities 4.1, 4.3, and 4.10, our solar and 
wind farms and our storage facilities auto-
matically fulfil the substantial contribution 
criteria to climate change mitigation as we 
generate electricity using solar PV ­technology 
and wind power, and as we construct and 
operate electricity storage facilities.
For activity 4.20, the sustainable biomass 
used at our combined heat and power (CHP) 
plants complies with the criteria in article 29, 
paragraphs 2-7, of Directive (EU) 2018/2001 
and with the GHG emission savings criteria.
Climate change adaptation
We have not assessed our taxonomy-eligible 
activities against the substantial contribu-
tion criteria for climate change adaptation, 
as the primary objective of our activities is to 
­contribute to climate change mitigation.
Do no significant harm (DNSH)
Climate change adaptation
We have assessed and documented how 
asset resilience towards different chronic 
and extreme climate hazards and their future 
development, as projected by IPCC, is an 
integrated part of our project development 
and have confirmed that our assets are 
resilient and able to withstand projected 
climate changes during the assets’ lifetimes.
It is assessed that all relevant eligible 
activities comply with the criteria set out 
in appendix A to annex I of the Climate 
­Delegated Act. 
Sustainable use and protection of water and 
marine resources
We are legally required to conduct environ-
mental impact assessments (EIAs) as part 
of all our projects to ensure that potential 
impacts on water and marine resources are 
avoided, mitigated, and addressed appro-
priately. During this process, we consider 
environmental degradation risks related to 
preserving water quality and avoiding water 
stress. We have internal processes on legal 
compliance concerning water to ensure all 
assets live up to the requirements. In addi-
tion, we have a water policy, establishing our 
approach to responsible water management.
For activity 4.3, we work to ensure that 
­construction of offshore wind does not 
­hamper the achievement of good environmen­
tal status as set out in Directive 2008/56/EC,  
taking measures to prevent or mitigate impacts 
in relation to the directive’s descriptor 11 
(noise/energy).
It is assessed that all relevant eligible 
activities comply with the criteria set out 
in appendix B to annex I of the Climate 
Delegated Act.
Transition to a circular economy
Renewable assets are built of highly durable 
materials. To ensure reuse and recycling of 
materials where feasible, we have a resource 
management policy and internal waste 
management processes in place. To ensure 
we further transition to a circular economy, 
we have implemented a strategic approach 
focused on: (i) using fewer virgin resources, 
(ii) using resources better and longer, and (iii) 
recirculating resources upon end of life. For all 
projects, we will develop decommissioning or 
waste management plans to ensure maximal 
reuse or recycling at end-of-life in accordance 
with the waste hierarchy.
Pollution prevention and control
We are legally required to conduct EIAs 
to ensure that potential pollution impacts 
are avoided, mitigated, and addressed 
appropriately, and that pollution requirements 
are integrated into our environmental permit 
conditions. We have internal processes in 
place to fulfil these legal requirements. 
For activities 3.10 and 4.20, it has been 
assessed that emissions are within or lower 
than the emission levels associated with the 
best-available-techniques (BAT-AEL) ranges 
set out in relevant best-available-techniques 
(BAT) conclusions. No significant cross-media 
effects have been identified.
It is assessed that all relevant eligible 
activities comply with the criteria set out 
in appendix C to annex I of the Climate 
Delegated Act.
Protection and restoration of biodiversity 
and ecosystems
We are legally required to conduct EIAs as 
part of all our projects to ensure potential 
impacts on biodiversity and ecosystems 
are avoided, mitigated, and addressed 
appropriately. Our biodiversity policy and 
internal processes ensure all our assets 
live up to the requirements. We have also 
committed to ensuring that all new renewable 
energy projects we commission from 2030 
onwards deliver a net-positive biodiversity 
impact, which we aim to achieve through our 
biodiversity efforts. 
For activity 4.3, we work to ensure that the 
construction of offshore wind does not hamper 
the achievement of good environmental 
status as set out in Directive 2008/56/EC, 
taking appropriate measures to prevent or 
mitigate impacts in relation to the directive’s 
descriptors 1 (biodiversity) and 6 (seabed 
integrity).
It is assessed that all relevant eligible 
activities comply with the criteria set out 
in appendix D to annex I of the Climate 
Delegated Act.
Minimum safeguards
Our human rights policy sets out our commit-
ment to respect human rights and lives up 
to the UN Guiding Principles on Business and 
Human Rights and OECD’s guidelines for mult­
inational enterprises, including the principles 
of the Declaration of the International Labour 
Organization on Fundamental Principles and 
Rights at Work and the International Bill of 
Human Rights, both in our own operations 
and in our supply chain.
Together with our good governance practices 
and policies, our systematic due diligence 
approach ensures we have robust minimum 
safeguards in place on human rights, corruption, 
taxation, and fair competition. 
Taxonomy KPIs
Our accounting policies for the taxonomy KPIs 
are based on our interpretation of annex I to 
the Disclosures Delegated Act (­Commission 
Delegated Regulation (EU) 2021/4987) and 
available guidelines from the European 
Commission.
Linkage principle
The revenue, CAPEX, OPEX, and EBITDA 
associated with our taxonomy-aligned 
activities have been determined. In allocating 
the financial numbers to the numerator, a 
‘linkage principle’ has been applied, stipulating 
that any revenue, CAPEX, OPEX, or EBITDA 
that can be justifiably linked to an identified 
taxonomy-aligned activity can be classified 
as taxonomy-aligned and thereby included in 
the numerator of the respective KPI.
Double counting
We have avoided double counting across 
economic activities in the allocation of the 
numerator for revenue, CAPEX, OPEX, and 
EBITDA by using activity-specific factors to 
allocate the financials across our taxonomy 
activities. The factors are either 100 %, 0 %, 
or a value in between where we have used 
proxies to split the financial numbers into 
taxonomy-­aligned or non-eligible activities. 
Here, the factors cannot sum to more than 
100 %, which eliminates the possibility of ­double 
counting the resulting financial numbers.
Proxies
Where the financial numbers are not appro-
priately split into the correct activity in the 
financial account set-up, proxies have been 
used to split the numbers. Two proxies have 
been used:
1) The ratio of purchased power volumes  
from renewable versus non-renewable 
assets – applied to revenue and EBITDA 
from balancing activities.
2) Bioenergy’s share of renewable energy  
generation – applied to revenue, EBITDA, 
CAPEX, and OPEX related to the CHP plants.
For more details on our taxonomy-aligned KPIs, 
see our accounting policies on page 103. 
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|  Taxonomy-aligned activities

Own operations
Upstream value chain
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
// ESRS 2, SBM-3
Our material impacts, risks, and opportunities (IROs)
E4 Biodiversity and ecosystems
Natural resources exploitation 
and land- and freshwater-use 
change from mining
Negative impact 
Species population size 
decrease and extinction risk 
increase due to mining
Negative impact 
Temporary disturbances to 
habitats during construction
Negative impact 
Biodiversity restoration, 
research, and innovation 
initiatives 
Positive impact
Opportunity
Ecotoxicity from mining
Negative impact 
Habitat loss from land  
degradation due to mining
Negative impact 
Land- and sea-use  
change from coal and  
gas extraction
Negative impact 
Temporary displacement 
or loss of species during 
construction
Negative impact 
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// ESRS 2, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right and on the next page 
are descriptions of our material IROs related 
to biodiversity and ecosystems, including how 
we manage them. 
The impacts primarily originate from our 
renewable energy business activities but also 
partly from our legacy business relating to 
coal and gas. 
These impacts occur both through our busi-
ness relationships with suppliers and through 
our own activities of constructing our renew-
able assets. 
Material IRO description
How do we manage the IRO?
 
Natural resources exploitation and land-use and freshwater-use change from mining
Negative impact (upstream value chain)
 
Ecotoxicity from mining 
Negative impact (upstream value chain)
These negative impacts concern natural resources exploitation in 
our supply chain related to mining and refining processes of metals 
and minerals. 
Mining of metals and minerals in our supply chain is a direct impact 
driver of biodiversity loss through land-use and freshwater-use 
change and ecotoxicity from run-off. It also impacts ecosystems 
through land degradation. 
We have completed a mapping to 
help us understand potential negative 
impacts on biodiversity that we may 
have in our value chain. We continue 
to explore ways to identify and miti-
gate impacts across our value chain, 
including our first attempt at mapping 
impacts from high impact commodi-
ties (HICs) in our upstream value chain.
Land-use and sea-use change from coal and gas extraction
Negative impact (upstream value chain)
This negative impact concerns natural resources exploitation in  
our supply chain related to coal and gas extraction. 
Our supply chain has adverse impacts on biodiversity through 
land-use change due to mining and refining processes of coal and 
through sea-use change from extraction and refining processes of 
gas that we primarily source from the North Sea.
We are working towards ­managing 
our biodiversity-related negative 
impacts in our value chain.  
In 2024, we closed our last coal-fired 
CHP plant, eliminating the impact 
from coal from 2025.
Material IRO description
How do we manage the IRO?
 
Habitat loss from land degradation from mining 
Negative impact (upstream value chain)
For details related to this IRO, see ‘natural resources exploitation’ impact.
 
Biodiversity restoration, research, and innovation initiatives
Positive impact 1 (own operations)
Opportunity 1 (own operations)
This positive impact relates to our habitat and ecosystem 
­restoration efforts, including our efforts to protect and restore 
wider supportive ecosystems, e.g. salt marshes. We conduct  
species restoration efforts as well as research on habitats,  
species, and innovation, e.g. biodiversity monitoring and track-
ing. The impact positively affects the environment by restoring 
species, ecosystems, and habitats. 
We also see this as an opportunity to attract patient capital 
and secure favourable conditions when accessing financing on 
capital markets or through business partnerships. 
We have implemented several 
biodiversity pilot projects, monitoring 
plans, and innovative initiatives to 
work towards achieving our 2030 
net-positive ambition. The most 
recent one being the launch of 
our ‘Biodiversity measurement 
framework’, which will allow us to 
measure and assess impacts on 
biodiversity at an asset level, across 
offshore and onshore operations.
Temporary disturbances to habitats during construction
Negative impact (own operations)
This negative impact concerns the disturbances of habitats 
­during the construction of our renewable energy assets. 
Construction of renewable energy projects causes temporary 
disturbances to habitats due to ground preparation and the 
presence of infrastructure.
At an asset level, we prefer to 
always have a biodiversity action 
plan in place, which helps us map 
out our negative impacts and 
plan out our mitigating actions 
accordingly. 
Direct impact drivers of biodiversity loss
Impacts on the extent and condition of ecosystems
1  The positive impact and opportunity also fall under the sub-topic ‘Impacts on the state of species’.
→
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Material IRO description
How do we manage the IRO?
 
Species population size decrease and global extinction risk increase due to mining 
Negative impact (upstream value chain)
This negative impact is linked to natural resources exploitation in 
our supply chain related to mining and refining processes of metals 
and minerals. 
Mining of metals and minerals in our supply chain impacts ecosystems 
through land degradation, which can lead to habitat loss and impacts 
species by causing a decrease in species population size and poten-
tially extinction.
We have completed a mapping to help us 
understand potential negative impacts to 
biodiversity that we may have in our value 
chain. We continue to explore ways to identify 
and mitigate impacts across our value chain, 
including our first attempt at mapping 
impacts from high impact commodities 
(HICs) in our upstream value chain.
 
Temporary displacement or loss of species during construction
Negative impact (own operations)
This negative impact concerns the disturbances of species during the 
construction of our renewable energy assets. 
Construction of renewable energy projects causes temporary displace-
ment of species, or, in some instances, loss of species through adverse 
impacts on foraging, breeding, and wintering areas.
At an asset level, we prefer to always have 
a biodiversity action plan in place, which 
helps us map out our negative impacts and 
plan out our mitigating actions accordingly. 
When we identify overlaps with e.g. an 
IUCN Red-listed species, an action plan is 
developed to ensure that we reduce harm to 
this species or any threatened species.
Impacts on the state of species
Transitioning away from fossil fuels to renewable 
energy is fundamental to solving the biodiversity 
crisis, as climate change is a main driver of biodiversity 
loss. The space required for the renewable energy 
transition is significant, and, with a nature in crisis, 
it is vital that we make sure our energy projects 
benefit nature. In 2024, we continued taking action 
to deliver on our ambition to achieve a net-positive 
biodiversity impact from all new renewable energy 
projects from 2030.
For an overview of how we have structured this chapter, 
please see page 61. Our IROs are highlighted in italics.
// E4-1  
Transition plan 
At Ørsted, we believe that transitioning to ­renewable 
energy can be part of a solution to the biodiversity 
crisis, provided it is done correctly. As we continue 
our renewable energy build-out, we are determined 
to leave nature as a whole in a better state than we 
found it. Therefore, our ambition is to take direct 
action to be able to achieve a net-positive ­biodiversity 
impact from projects commissioned from 2030 
onwards. In 2024, we took the first steps towards this 
by launching our ‘Biodiversity measurement framework’, 
further aligning our efforts with global public policy 
targets like the Global Biodiversity Framework. 
When developing renewable energy projects, we 
always adhere to local and national regulations 
and policies, including those related to biodiversity. 
This helps ensure that we are also taking our local 
­stakeholders and their interests into consideration. 
Through our double materiality assessment (DMA), 
we have identified material biodiversity-related 
impacts and an opportunity in our business, both in 
our own operations and in our value chain. Identifying 
and assessing these impacts help us to understand 
how we can continue to strengthen resilience across 
our operations, which we also assess using the 
methodology of the Taskforce on Nature-related 
Financial Disclosures (TNFD). //
// E4, IRO-1
Processes to identify and assess material 
impacts, risks, and opportunities 
Impact assessments of own sites and value chain
During the project development phase of all our 
offshore and onshore assets where we are responsible 
for development, we conduct early risk screenings 
and develop environmental impact assessments (EIAs) 
or equivalent plans to assess the potential impacts 
on biodiversity and ecosystems at the locations 
of potential new assets. This is then followed by 
the legally required impact assessment processes, 
providing data on the biodiversity and ecosystems 
present at the site location. Based on these findings, 
we can develop action plans to mitigate our impacts 
and outline ­restoration measures. Insights from the early 
risk screenings inform the biodiversity and ecosystem-­
related impacts, risks, dependencies, and opportunities 
identified and assessed in the DMA for sites in our own 
operations. This process highlights the importance 
of early assessments at the beginning of each of our 
projects to avoid and mitigate potential impacts on 
biodiversity and ecosystems. 
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We have not identified any material dependencies on 
biodiversity and ecosystems, although soil stability at 
our sites constitutes the most significant dependency. 
Regarding our transitional and physical risks, we 
have mapped out our exposure and have not found 
significant risks from biodiversity and ecosystems that 
are not already covered in our mitigation processes 
and biodiversity action plans. 
Additionally, we have not identified any systemic risks 
to our business model that are not addressed through 
our established practices or the implementation of 
measures to reach our biodiversity ambition. A key 
outcome of our biodiversity programme has been 
the development of our ‘Biodiversity measurement 
framework’, which will ensure that we can capture all 
potential impacts and risks to biodiversity and eco­
systems when developing new renewable energy pro-
jects starting from 2024 and thus avoid the majority 
of impacts and risks to our operations. 
We have not completed an assessment of how 
­systemic risks to society have been considered in the 
assessment of biodiversity and ecosystems-­related 
risks yet. However, we have begun the work of under-
standing the correlation of these risks, how they impact 
our projects, and what we can do to mitigate them.
The assessment of our upstream value chain that 
was completed in 2022 using the Global ­Biodiversity 
Score tool is still relevant today. The results pro-
vided an overview of impacts based on our most 
used ­materials (incl. minerals and metals) and how 
each material impacts the environment, focusing 
on biodiversity. The assessment did not include an 
assessment of how the biodiversity impacts from our 
upstream value chain affect local communities, but 
it did provide an essential first step in our work with 
the Science Based Targets Network (SBTN) frame-
work and our progress towards being ready to set 
­science-based targets for nature. 
Our continuous work to identify and mitigate ­potential 
impacts and risks of our assets to biodiversity and 
ecosystems continues to inform our DMA. In this pro-
cess, we base the identification and scoring of IROs on 
the knowledge gathered across all our offshore and 
onshore assets, enabling a cross-business assessment 
of impacts, risks, dependencies, and opportunities.
Management of impacts in our own operations
At Ørsted, we have sites located in or near biodiversity-­
sensitive areas. However, our activities at these sites 
only have temporary negative impacts during the 
­construction phase, with no material impacts during 
operations, cf. the outcome of our DMA. 
By following the steps of our new measurement 
framework, conducting environmental assessments, 
implementing appropriate mitigation measures, and 
applying our ‘Biodiversity policy’, we will be able 
to avoid any impacts related to the deterioration 
of biodiversity or natural habitats within our own 
operations. 
We adhere to the mitigation hierarchy in the develop-
ment of new projects, prioritising to avoid biodiversity 
impacts wherever feasible. For impacts that ­cannot 
be entirely avoided, we focus on minimising and 
­mitigating them to the extent possible. An example of 
this is avoiding sensitive habitats during the routing of 
and installation of cables for offshore projects. Post 
construction, any residual impacts that could not be 
fully mitigated are addressed through species-specific 
or habitat-specific restoration. These efforts aim to 
restore biodiversity and habitat functioning to at least 
pre-construction baseline levels and are our measures 
towards achieving a net-positive impact.
This means that the majority of our impacts on bio­
diversity occur during the construction phase, and are 
appropriately mitigated, while during the operational 
phase, we have very limited impact on biodiversity 
that we are not able mitigate.
One example of an impact that we are sometimes 
unable to mitigate during the operational phase of an 
offshore wind farm, which we have assessed as imma-
terial, is the collision of airborne mobile species, such 
as birds or bats, with wind turbine blades. In cases 
where this impact cannot be mitigated through loca-
tion or design, operational management plans are 
put in place, for example through enhanced monitor-
ing campaigns, often in conjunction with local stake-
holder groups.
Vulnerable species and critical habitat types are iden-
tified during the early screening phase of a project, 
allowing us to plan our project development around 
these factors, implementing the mitigation hierarchy 
and ensuring we are undertaking the actions needed 
to avoid and mitigate impacts on biodiversity. //
// E4, SBM-3
Material impacts and opportunities 
related to biodiversity and ecosystems
Site locations in our own operations
We have completed an assessment of all our opera-
tional assets in collaboration with The Biodiversity 
Consultancy, using their Biodiversity Risk Screening 
Kit (BRiSK). This assessment focused on biodiversity- 
and ecosystem-related impacts, risks, dependencies, 
and opportunities at an asset level, helping us to better 
understand which sites are material in this respect. 
It takes a variety of factors into account that ­indicate 
impacts on biodiversity on a scale ranging from low 
over medium to high. These factors include species, 
designated areas (including protected areas and 
key biodiversity areas (KBAs)), ecoregion intactness, 
water pollution, and marine habitats, amongst others. 
The assessment highlights a list of matters, indicating 
that there are potential negative impacts on biodiver-
sity if nothing is done to avoid or mitigate these. 
From that output, we have found that the majority 
of the identified risks have already been identified 
through our EIA or equivalent processes as well as 
mitigated as a part of our biodiversity action plans. 
Therefore, we are taking all necessary steps to limit 
risks and negative impacts on biodiversity and ecosys-
tems at all our site locations. When we identify over-
laps with e.g. an IUCN Red-listed species, an action 
plan is developed to ensure that we do no significant 
harm to this species, nor any threatened species, both 
during construction and the operational phase. 
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Site locations without material impacts
In total, we have 63 operational sites across our 
portfolio of renewable energy assets (i.e. offshore 
and onshore wind, solar PV, and power stations) that 
currently overlap with or are adjacent to protected 
areas or KBAs. This is the majority of our assets and 
is connected to the fact that a buffer zone has been 
applied (25 km for offshore assets, 10 km for onshore 
assets), increasing the amount of overlaps with both 
protected areas and KBAs. Through our mitigation 
planning and restoration of impacts, we have found 
that we have no negative impacts on biodiversity and 
ecosystems at these sites.
Site locations with temporary material impacts
In addition to the operational sites, we had 12 assets 
under construction in 2024, which were identified as 
material sites that temporarily have activities nega-
tively affecting biodiversity-sensitive areas. These sites 
are listed in the table on page 114 and include nine off-
shore wind and three solar PV projects. At the offshore 
construction sites, biodiversity impacts were primarily 
associated with monopile piling, which generates noise 
pollution, and cable laying, which disrupts ­benthic and 
intertidal habitats. Additionally, the increased vessel 
traffic during construction caused further disruption to 
the ecosystem through noise pollution. 
For the solar PV assets under construction, ­biodiversity 
impacts were primarily due to land clearing and cable 
laying, which caused temporary habitat disruption 
and species displacement. Additionally, the ­operation 
of machinery contributed to noise pollution. All these 
impacts are appropriately managed or mitigated 
through implementation of measures agreed through 
impact assessment and permitting processes.
We have found no negative impacts related to land 
degradation during the operational phase of our 
projects, including desertification or soil sealing. Any 
potential impacts on land degradation are mitigated 
during the construction phase.
Material impacts in our value chain
We have identified material negative impacts in our 
upstream value chain. These impacts are primarily 
direct impact drivers of biodiversity loss due to extrac-
tion of natural resources and mining activities. Further-
more, mining also has negative impacts on the extent 
and condition of ecosystems and thus impacts spe-
cies diversity. As mentioned previously, we used the 
Global Biodiversity Score tool to obtain an overview 
of ­biodiversity- and ecosystems-related impacts in our 
upstream value chain, using global average data for 
our industry. We are dependent on mining of metals 
and minerals to expand the capacity of renewable 
energy assets, just as our peers in the industry. How-
ever, we acknowledge the trade-offs of mining in the 
value chain, which we actively work towards manag-
ing. As mentioned before, we are actively engaging 
with our tier 1 suppliers on their impacts on biodiver-
sity, and we also continuously work towards gathering 
location-specific data on our upstream value chain. //
// E4-2
Policies related to biodiversity  
and ecosystems
Policy scope 
In 2024, we updated our ‘Biodiversity policy’, which 
applies to all sites owned and operated by Ørsted, 
including sites in or near biodiversity-sensitive areas. 
The policy addresses the direct impacts from our 
operations on biodiversity, ecosystem protection, and 
sustainable ocean practices. 
The scope of the policy covers all of Ørsted’s renewable 
energy assets, both offshore and onshore, and includes 
our initial steps towards addressing biodiversity in our 
value chain and the associated dependencies. More 
specifically, we engage with some of our tier 1 suppliers 
on their progress on working with biodiversity, similar 
to our approach with decarbonisation. 
Our biodiversity policy does not currently cover the 
impacts on biodiversity and ecosystems from e.g. raw 
material extraction in our upstream value chain. How-
ever, we are committed to working with our suppliers 
through our ‘Supply chain sustainability programme’ 
on mitigating their impacts on biodiversity, where we 
are currently engaging with our tier 1 suppliers. 
Further tiers down in the value chain, it becomes 
more challenging to mitigate the inherent impacts on 
­biodiversity and, on a broader scale, nature. Through our 
supplier dialogues and continued work towards a more 
sustainable supply chain, we aim to implement mitigating 
actions for biodiversity in our supply chain in the future.
The objective of our policy is to outline the importance 
of biodiversity to Ørsted and how we believe that bio-
diversity is a key part of a sustainable project life cycle. 
The policy also explains the steps we take to protect 
biodiversity throughout an asset’s life cycle, aiming to 
avoid potential impacts and risks to biodiversity – from 
planning and development, through construction, over 
operation and maintenance, and finally to the decom-
missioning and potential repowering phases.
Policy governance
Accountability of the policy lies with the Chief 
Commercial Officer (CCO). To ensure that our policy 
is implemented and taken into account across our 
business, the policy includes an overview of the 
governance structure to support its implementation 
as well as specific third-party standards that support 
our work, e.g. the EU taxonomy for sustainable 
economic activities. 
Interests of key stakeholders
Similar to the development of our biodiversity projects 
(see key actions below), we have also included key 
stakeholder concerns and interests into the scope of 
our biodiversity policy. For example, local communities, 
NGOs, and academia are included in the stakeholder 
engagement steps during the various phases of an 
asset’s life cycle. 
Management and mitigation hierarchy
Our business model is to develop, construct, operate, 
and own renewable assets, and we are committed to 
doing this in an environmentally and socially sustain-
able way. However, we recognise that expanding our 
operations also implies a greater pressure on ­natural 
ecosystems. Therefore, protecting and restoring 
these ecosystems must be part of the solution, and 
we remain fully committed to effectively manage our 
impacts on biodiversity and ecosystems. 
Biodiversity management is an integral part of our 
business model and decision-making processes 
throughout the full life cycle of our projects. This 
ranges from early-stage site selection and planning, 
over project design, construction, operations, and 
eventually to decommissioning. 
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To understand and manage our impacts, we follow 
the mitigation hierarchy. This means we aim to avoid 
harmful action at the outset of an activity, mini-
mise impacts, and take restorative measures where 
impacts cannot be avoided. We also compensate for 
any residual adverse impacts that cannot be restored 
– while recognising that certain environmental 
features are irreplaceable and therefore cannot be 
­compensated. //
// E4-3
Actions related to biodiversity  
and ecosystems
During 2024, we have taken several steps towards 
meeting our ambition of net-positive energy projects 
from 2030 and pursuing our material opportunity 
and positive impact related to biodiversity restoration, 
research, and innovation. 
For several of our biodiversity pilot projects, we 
engage with local communities in our biodiversity- 
and ecosystems-related actions. This was for example 
the case with our Humber Estuary restoration project 
in the UK, which we completed in collaboration with 
the Yorkshire Wildlife Trust and Lincolnshire Wildlife 
Trust. The restoration of the Humber Estuary is an 
example of coastal ecosystem restoration, a nature-
based solution that contributes to the sequestration 
of carbon, while also restoring the natural habitat to 
improve biodiversity. We have not yet incorporated 
indigenous knowledge into our actions; however, this 
is integrated in our new ‘Biodiversity measurement 
framework’ and will be done going forward. As of 
2024, we have not incorporated biodiversity offsets 
in our actions for any of our assets or across other 
operations.
Key actions 
Launching our biodiversity measurement framework
In 2024, we publicly launched our biodiversity meas-
urement framework. This science-based framework 
contributes to the achievement of our biodiversity 
ambition by taking the first steps to ensure that we 
can measure, track, and report both the positive and 
negative impacts on biodiversity. The scope ­covers 
our biodiversity activities for our own operations 
across all geographies. 
Building on the momentum of the launch of our frame-
work, we have worked with the World Economic 
Forum (WEF) to launch the Responsible Renewables 
Infrastructure initiative (RRI). This initiative aims to 
bring together the renewable energy industry to build 
a collective approach for assessing the industry’s 
impacts on biodiversity and local communities. 
The first version of these impact pathway initiatives 
are expected to be completed in 2025, which will 
prompt further development of the measurement 
frameworks that are to be developed. Going forward, 
we will continue to work with the WEF RRI ­coalition on 
building an approach to measure impacts on biodiver-
sity from renewable energy projects.
Piloting net-positive solutions
Firstly, we have also progressed on the continuous 
monitoring across our biodiversity pilot projects. 
Our global portfolio of innovative projects contributes 
with learnings to enhance nature and thereby to 
achieve our net-positive ambition. In Taiwan, for 
example, we have cultivated corals in labs since 2021 
with the purpose of growing them on offshore wind 
turbines, and we finalised preparations in 2024 and 
are ready to deploy the first ones as pilots on some of 
the foundations at the Greater Changhua 1 Offshore 
Wind Farm in 2025. 
Secondly, at our offshore wind site Borssele in the 
Netherlands, we placed cod pipes to simulate reefs 
in 2022. This year, we published a paper based on 
2023 research (together with Wageningen University), 
which found the cod pipes to be highly successful in 
improving the local cod population. These monitoring 
activities provide valuable learnings and proof of the 
effectiveness of our initiatives.
Thirdly, we have developed a new method to install 
offshore wind foundations, reducing noise levels by 
up to 99 %. It represents one of the greatest advance-
ments yet in protective measures for marine life and 
thereby significantly contributes to bringing down 
the temporary negative impact during construction 
activities. The new technology has been successfully 
tested in Germany at the offshore wind farm Gode 
Wind 3. Once industrialised, expectedly in 2030, it 
can also provide a more efficient and cost-effective 
installation.
Other actions
Science Based Targets Network (SBTN)
We have also completed the first two of the five steps 
of SBTN’s methodology to better understand how 
to prioritise our efforts in managing our impacts on 
nature, including biodiversity. The steps are based 
on locating impacts on nature, including ­biodiversity, 
across our upstream value chain and on locating 
direct impacts. Based on this initial assessment 
(step 1), we prioritise our top impacts to assess which 
we should work towards setting science-based targets 
for (step 2). Step 3 consists of measuring a baseline 
across impacts, which is then used to set time-bound 
targets. Going forward, we will work towards setting 
targets for nature and biodiversity. // 
// E4-4
Targets related to biodiversity  
and ecosystems
Delivering on our biodiversity ambition 
In 2021, we adopted an ambition to achieve a net-­
positive biodiversity impact from all new renewable 
energy projects that are commissioned from 2030 and 
onwards. We are on track to meet this ambition with 
the launch of our biodiversity measurement frame-
work in 2024, which allows us to start setting ­baselines 
for priority biodiversity features for upcoming assets 
and providing the means for us to effectively measure 
net gains and losses on biodiversity. 
Currently, we have not adopted any targets for 
biodiver­sity that follows the mandatory minimum 
­disclosure requirements defined in ESRS 2. We are in 
the process of utilising the methodology from SBTN 
to map out where our main impacts are across our 
own operations and upstream value chain on nature 
(with a broader scope beyond biodiversity). Once this 
work is complete, we will proceed with setting targets 
for biodiversity. // 
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Country
Asset
Asset type
Area (hectare)
Applied 
buffer zone 
(km)
Overlap 
with KBAs 
(number)
Overlap 
with protected 
areas (number)
Impacts during construction
Germany
Borkum Riffgrund 3
Offshore wind
 7,500 
25
0
4
Piling, cable laying, vessel traffic, noise pollution, 
sedimentation, temporary displacement of  
species, and temporary disturbances to habitats.
Gode Wind 3
Offshore wind
 1,800 
25
1
7
The US
Revolution Wind
Offshore wind
 33,500 
25
1
52
South Fork Wind
Offshore wind
 5,500 
25
0
1
Taiwan
Greater Changhua 1
Offshore wind
 10,900 
25
0
0
Greater Changhua 2a
Offshore wind
 5,900 
25
0
0
Greater Changhua 2b
Offshore wind
 6,700 
25
0
0
Greater Changhua 4
Offshore wind
 11,700 
25
0
0
The US
Sparta Solar
Onshore solar
 1,051 
10
0
0
Land clearing, temporary disturbances to 
habitats, temporary displacement of species, 
cable laying, operating machinery, and noise 
pollution.
Mockingbird
Onshore solar
 2,086 
10
0
3
Old 300
Onshore solar
 1,410 
10
0
3
Badger Wind
Onshore wind
 12,600 
10
0
4
Site locations with temporary material impacts  
As described in the overview with our material 
impacts, risks, and opportunities (IROs), we have two 
material impacts within our own operations, both 
related to assets under construction during 2024. 
We temporarily impact protected areas negatively 
and risk disturbance to habitats and displacement 
or loss of species. The name of the sites, the size of 
them, including the buffer zones, and the number of 
­protected areas are listed in the table. 
§  Accounting policies
During our DMA, we concluded that we have 
material impacts on biodiversity, which happen 
during the construction phase of our projects. 
Therefore, the data presented in this table 
represents material sites with construction 
activities in 2024 where overlaps are present. 
The biodiversity data covers offshore and 
onshore wind farms and solar farms as well as 
their cable routes within the buffer zones.
For offshore wind farms, a buffer zone of 25 km 
is applied, whereas the buffer zone is 10 km for 
onshore wind and solar farms. These buffers 
have been determined based on best practice 
rooted in science and to recognise relevant 
interactions with protected areas for nature 
conservation or key biodiversity areas. 
Data is recognised from the date of the final 
investment decision (FID), and the area in 
hectare is showed for the asset in its entirety. 
The data is sourced from the Integrated 
Biodiversity Assessment Tool (IBAT) using the 
buffer zones mentioned above for offshore and 
onshore assets, respectively. The tool provides 
an output report in which a summarised number 
of overlaps with protected areas and key 
biodiversity areas is presented. This number 
represents any overlaps that should occur within 
the project site itself and within the buffer zone. 
// E4, SBM-3; E4-5
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Alignment with TNFD  
recommendations 
Recommended disclosures
a)  
Describe the board’s oversight of  
nature-related dependencies, impacts, 
risks, and opportunities.
MR 
Corporate governance · pages 44-52
b)  
Describe management’s role in assessing 
and managing nature-related dependen-
cies, impacts, risks, and opportunities.
MR 
Corporate governance · pages 44-52
c)  
Describe the organisation’s human  
rights policies and engagement activities  
as well as oversight by the board and 
management, with respect to Indigenous 
Peoples, local communities, affected and 
other stakeholders in the organisation’s 
assessment of, and response to, nature- 
related dependencies, impacts, risks,  
and opportunities.
SUS
Interests and views of stakeholders ·  
pages 75-76
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
Affected communities · pages 145-151
Governance
a)  
Describe the nature-related dependen-
cies, impacts, risks, and opportunities the 
organisation has identified over the short, 
medium, and long term.
SUS 
Double materiality assessment ·  
pages 67-74
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
b)  
Describe the effect that nature-related 
dependencies, impacts, risks, and oppor-
tunities have had on the organisation’s 
business model, value chain, strategy,  
and financial planning as well as any 
transition plans or analysis in place.
SUS 
Our business model and how we  
create value · page 65
Our strategy and impact on  
sustainability matters · page 66
Biodiversity and ecosystems ·  
pages 109-110
Resource use and circular economy ·  
pages 117
c)  
Describe the resilience of the organisa-
tion’s strategy to nature-related risks and 
opportunities, taking into consideration 
different scenarios.
MR 
Enterprise risk management ·  
pages 27-30
SUS 
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
d)  
Disclose the locations of assets or  
activities in the organisation’s direct  
operations and, where possible, upstream 
and downstream value chain(s) that meet 
the criteria for priority locations.
MR 
Our footprint · page 14
SUS 
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
Strategy
a)  
i.  Describe the organisation’s processes 
for identifying, assessing, and prioritising 
nature-related dependencies, impacts, risks, 
and opportunities in its direct operations. 
ii.  Describe the organisation’s processes 
for identifying, assessing, and prioritising 
nature-related dependencies, impacts, 
risks, and opportunities in its upstream and 
downstream value chain(s).
MR 
Enterprise risk management ·  
pages 27-30
SUS 
Double materiality assessment ·  
pages 67-74
b)  
Describe the organisation’s processes for  
monitoring nature-related dependencies, 
impacts, risks, and opportunities.
MR 
Enterprise risk management ·  
pages 27-30
SUS 
Double materiality assessment ·  
pages 67-74
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
c)  
Describe how processes for identifying, 
assessing, prioritising, and monitoring 
nature-related risks are integrated into 
and inform the organisation’s overall risk 
management processes.
MR 
Enterprise risk management ·  
pages 27-30
SUS 
Double materiality assessment ·  
pages 67-74
Risk and impact management
a)  
Disclose the metrics used by the 
­organisation to assess and manage 
material nature-related risks and 
opportunities in line with its strategy  
and risk management process.
MR 
Strategic ambitions · page 6
SUS
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
b)  
Disclose the metrics used by the 
organisation to assess and manage 
dependencies and impacts on nature.
MR 
Strategic ambitions · page 6
SUS
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
c)  
Describe the targets used by the 
organisation to manage climate- 
related risks and opportunities and 
performance against targets.
MR 
Strategic ambitions · page 6
SUS
Biodiversity and ecosystems ·  
pages 108-114
Resource use and circular economy ·  
pages 116-122
Metrics and targets
MR	
Management’s review
SUS	 Sustainability statements
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Own operations
Upstream value chain
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
//ESRS 2, SBM-3
Our material impacts, risks, and opportunities (IROs)
E5 Resource use and circular economy
Use and depletion of  
virgin materials
Negative impact 
Materials wasted during construction,  
operations, and decommissioning
Negative impact 
Dependence on scarce  
critical raw materials
Risk
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// ESRS 2, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right are descriptions  
of our material IROs related to resource use 
and circular economy, including how we  
manage them. 
The impacts are directly linked to our ­business 
model, as constructing and operating renew-
able energy assets and products require 
materials, and waste is generated during the 
construction, operation, and decommissioning 
phases. 
These impacts occur through our business 
relationships with suppliers and contrac-
tors, who are involved in manufacturing and 
extraction activities, and also through our 
own  waste-generating activities.
Resource inflows, including resource use
Material IRO description
How do we manage the IRO?
Use and depletion of virgin material
Negative impact (upstream value chain)
Increased demand for scarce critical raw materials and necessary  
maturation of supply chains for lower-emissions alternatives 
Risk (upstream value chain)
Nearly all resources sourced from our supply chain and 
embedded in our renewable energy assets are virgin 
materials, many of which are scarce. This reliance increases 
our exposure to risks related to resource depletion and 
reduced material availability. 
Additionally, the growing demand for renewable energy is 
driving increased extraction and processing of virgin raw 
materials, exacerbating the scarcity and depletion of these 
critical resources.
We are exploring ways to reduce our reliance 
on scarce, virgin materials, including improved 
design and maintenance strategies.
We are working with key suppliers on the use 
of recycled materials in our assets, e.g. we have 
early offtake agreements for lower-emissions 
steel through industry-wide initiatives (e.g. 
SteelZero), gradually lowering our need for 
scarce critical materials.
Materials wasted during construction, operation, and decommissioning
Negative impact (own operations)
This negative impact occurs as materials are wasted  
during construction, operation, and decommissioning of 
assets by being sent to landfill or incineration.  
Disposal through landfill or incineration leads to environ-
mental degradation, including pollution and resource loss.
We are constantly investigating opportunities 
and partnerships that will help us improve 
the degree of recyclability of our assets 
while working on actions that allow for the 
replacement of non-recyclable content in our 
assets, ensuring a minimal amount of waste 
goes to landfill and incineration.
Waste
Ørsted’s transition plan, as outlined in the ESRS ‘E1 
Climate Change’ chapter, details how our next phase 
of transformation will focus on reducing GHG emissions 
across our value chain. A crucial step in this transition 
is decoupling our renewable energy deployment from 
the reliance on scarce virgin materials.
While indeed a challenging task, it is one that we 
have been working on for years, focusing on the 
identification of partnerships, initiatives, and actions 
that will help us understand and improve how we 
work with materials over their entire lifetime – from 
extraction to disposal. At the same time, our value 
chain remains complex and resource-intensive, with 
our business model and strategy still highly dependent 
on various resource inflows. This makes resource 
use and circularity a crucial focus area for both our 
operations and long-term performance. 
For an overview of how we have structured this chapter, 
please see page 61. Our IROs are highlighted in italics.
Resource use as part of  
our wider transition
Our resource use is a key driver not only of GHG 
emissions, but also of costs, implying that both finan-
cial and climate performance are impacted by how 
we manage our resource use-related impacts and 
risks. Thus, our ability to measure, track, and report 
high-quality information related to our resource use 
and circularity efforts is the focus of this chapter, 
illustrating our work with resource use, efficiency, 
­sourcing, and treatment at end-of-life.
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// E5, IRO-1
Processes to identify and  
assess material impacts, risks,  
and opportunities 
Screening of assets
As part of our DMA, we frequently screen our assets 
and activities to understand their impacts, risks, and 
opportunities across our value chain. However, as also 
noted in the DMA methodology and due to the nature 
of our assets, we have not undertaken direct con-
sultations with affected communities as part of the 
screening performed to understand our IROs related 
to resource use and circularity.
Going forward, we will increasingly apply our  
methodology for life cycle assessments (LCAs), provid-
ing enhanced insights into our impacts related to the 
use and depletion of virgin materials when constructing 
our assets. 
Furthermore, we have calculated the ­recyclability 
rate of materials embedded in a representative 
­sample of our offshore wind farms, to understand 
which materials and components we can process 
for recycling upon retirement of the wind farms. 
The underlying calculations, prepared in collabora-
tion with the digital ReWind tool facilitated by DNV, 
are important for our further understanding of the 
­negative impact of materials wasted during construc-
tion, operation, and decommissioning. Additionally, the 
­information gathered helps us identify how we can 
turn used materials, such as steel and copper, into 
reusable components, improving our wider resource 
efficiency.
These methodologies, alongside the data available 
to understand our resource dependencies, also allow 
for enhanced mitigation of our risk related to the 
increasing demand for scarce materials and resources 
globally. As outlined throughout this section, we are 
continuously working on initiatives that will enhance 
our resilience towards this risk. Assuming a business-
as-usual scenario, i.e. a scenario where we do not 
manage, or pursue, the transition away from the use 
of scarce virgin materials, the probability of this risk 
materialising is inherently higher. //
// E5-1
Policies related to resource  
use and circular economy
Resource management policy
To govern the identified risk and negative value chain 
impact from using virgin materials, we have adopted 
a ‘Resource management policy’, covering all of our 
activities and locations. The policy’s objective is to 
ensure that we minimise the use and depletion of 
virgin resources by developing circular value chains 
together with our suppliers, where feasible, and guide 
our efforts on sustainable sourcing. It further addresses 
our adherence to the waste hierarchy, prioritising waste 
avoidance by reducing and reusing before recycling. 
Responsibility for the resource management policy lies 
with our senior vice president for the QHSE department.
Sustainable forest biomass policy
We are committed to continuously improving our 
practices to mitigate any potential negative impacts 
related to our use of biomass. All biomass sourced 
for our CHP plants must comply with our internal 
// E5-2
Actions related to resource  
use and circular economy
To support and obtain the underlying objectives of the 
policies that we have in place to manage our ­material 
resource-related impacts and risks, we are continuously 
working to identify new actions as well as progressing 
on the ones we have already commenced. In 2024, 
our focus has been on the continued development 
of partnerships and testing of innovative solutions 
to integrate circularity efforts into our operations. 
As some of our oldest renewable assets reach their 
end-of-life stage, we continue to explore and progress 
on actions related to the avoidance, reduction, and 
recycling of wasted materials. 
Each action listed relates to the identified impacts 
and risks related to resource use and circular ­economy 
but are also closely linked to our decarbonisation 
efforts and actions as outlined in the ESRS ‘E1 Climate 
Change’ chapter, given that the manufacturing of our 
materials constitutes a key source of GHG emissions.
Key actions related to resource inflows
Associated with our use and depletion of virgin mate-
rials impact, we include a quantitative breakdown 
of the key materials that enter our business through 
use in our renewable energy assets. This is an impor-
tant first step in understanding how we can gradually 
increase the use of secondary materials in our assets.
Working with our key suppliers on increasing  
secondary materials in our assets
We engage with our key suppliers on ­decarbonisation 
matters as part of our supplier engagement and 
‘Sustainable forest biomass policy’. This policy man-
dates sourcing of certified biomass under internation-
ally recognised schemes, such as SBP, FSC, or PEFC, 
ensuring the origination from well-managed pro-
duction forests with an ongoing reforestation effort 
and adherence to sustainability standards through 
­independent audits. 
In addition to biomass, we use Danish straw at our 
CHP plants at Studstrup and Avedøre. The straw we 
use is a residue from cereal production and has been 
used for bioenergy in Denmark for decades. All straw 
complies with EU and national sustainability criteria 
addressing soil quality, soil carbon storage, and bio­
diversity. We are audited yearly by an independent 
third party to document that our straw complies with 
relevant sustainability criteria.
Waste management policy
To address our negative impact of materials wasted, 
we have a ‘Waste management policy’, covering all 
our activities and locations. The policy outlines our 
waste management processes and provides detailed 
definitions of key aspects of waste management 
assurance. Our QHSE department is responsible for its 
ongoing implementation. As the policy is the ­steering 
document for our internal way of working with 
waste and thus contains detailed guidance on waste 
­handling and data reporting for our global waste 
operations, the policy is only accessible internally.
Together, these policies address our identified impacts 
and risks, relating both to the upstream and down-
stream part of our value chain and operations. //
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procurement strategy. In 2024, we have extended 
these engagements to also include resource use and 
circularity matters. These two topics naturally over-
lap as we are looking for opportunities to, for example, 
source more scrap steel as a means of increasing our 
usage of lower-emissions steel. As our negative impact 
occurs outside our own operations, we are ­dependent 
on continuous collaboration to make meaningful 
progress that will mitigate both the material nega-
tive impact as well as the risk related to our reliance 
on ­virgin scarce resources, when constructing our 
­renewable energy assets.
As an example of the supplier engagement pro-
gramme development, we initiated a collaboration 
with wind turbine manufacturer Siemens Gamesa to 
use recycled glass fibres for certain new wind turbine 
blades at our Greater Changhua 2b and 4 offshore 
wind farms in Taiwan. 
The intended outcome of our supplier engagement 
and procurement strategy is to have a firm set of 
circularity-­related supplier requirements in place within 
the next four to five years. For selected components, 
recycled materials have already been introduced as 
a sourcing evaluation criterion, ensuring our gradual 
transition away from the use of virgin resources.
Repairing and refurbishing spare parts for our wind 
farms during the operational phase
In alignment with our resource management policy 
objective, we continuously work to reduce, reuse, 
and recycle resources for our assets. As we have a 
large portfolio of offshore wind farms in operation, 
our ability to increase the reuse and refurbishment of 
spare parts during the life time of the assets can both 
lower our use of virgin materials, extend the lifetime of 
the assets, and reduce our operational costs.
In 2024, we have progressed on this action by ordering 
more than 300 refurbished yaw brake calipers on 
our East and West Coast hubs in the UK. Calipers are 
used to hold the nacelle in place when the brakes 
are applied and are a part of the hydraulic system. 
For each caliper we reuse, we also lower the cost 
of our wind farm maintenance. In addition, we have 
set up refurbishment loops for several other minor 
components with a long leadtime to reduce the risk 
of lost production. 
By 2030, we intend to establish fully commercial, 
technically approved refurbishment loops for more 
than 100 of our key minor components, reducing 
our overall need for virgin materials during the 
operational phase of our renewable assets. This is 
further a mitigation measure towards our identified 
risk related to the global increase in demand for various 
scarce critical materials.
Furthermore, to increase the reuse of minor com-
ponents and spare parts, we have successfully con-
ducted a trial on re-selling surplus spare parts from 
our warehouse in the UK into the second-hand market 
via our partner Wind Cluster. With this trial, we now 
have a blueprint set-up to scale our efforts to other 
locations and markets – ensuring the reuse of spare 
parts as well as the generation of revenue. At the 
same time, we are addressing the occurrence of sur-
plus stock in warehouses by improving our forecasting 
and planning.
Key actions related to resource outflows
The materials wasted during construction, operation, 
and decommissioning constitutes a negative impact. 
In general, we see two complementary pathways 
to address waste generation that we must work 
on simultaneously. Firstly, we must consider if our 
waste generation can be avoided in the first place, by 
addressing the challenges at their root cause. This is 
done as we work to design our assets with minimal 
reliance on the use of a specific material, for ­example 
by switching non-recyclable content with more recy-
clable content to allow for proper waste treatment. 
At the same time, we need to ensure that waste is 
diverted from disposal by enhancing sorting and 
collection processes as well as supporting the matu-
ration of reuse and recycling markets for our compo-
nents and materials. 
Transition piece covers for offshore wind farms 
In 2024, we carried out a long-term test and inspec-
tion of a new, recyclable transition piece (TP) cover 
for potential future application at our offshore wind 
farms. The TP cover is temporarily installed to shield 
against water and to save seabirds from getting 
caught during the time between the installation of 
the foundation and the mounting of the wind turbine 
tower, where the inner parts of the foundation are 
exposed to wind and water elements at offshore sites.
Traditionally, these covers are made from a mechani-
cally durable, fibre-reinforced soft PVC, which  
enables longer lifetimes and lower maintenance costs 
but also has proven challenging to recycle. To address 
this challenge, a new design with TP covers made 
from a recyclable polypropylene (PP) plastics was 
therefore introduced by our partner TME, offering 
Resource inflows for an 
average offshore wind farm
Illustrative example of the material  
composition for an average Ørsted offshore 
wind farm 
1 3 % copper and 1 % other materials.
63 %
Steel 
4 % Critical raw materials 1
4 % Glass fibre and plastics
3 % Iron
26 %
Concrete
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a full cradle-to-grave solution that reduces landfill 
waste, displaces virgin material, and thus increases 
the recyclability rates of our wind farms. 
The new TP covers have been thoroughly tested, 
including recycling tests of both the PP material and 
a full TP cover to document its feasibility at end-of-
life. As both tests have confirmed the mechanical 
feasibility of the new material, the next step in 2025 
will be offshore testing of the new design in a pilot 
project while continuing to work with TME on setting 
up a take-back system for the TP covers as well 
as documenting the environmental impacts of the 
new design. 
With the purpose of increasing the recyclability rates 
of our wind farms, this project was born out of an 
internal innovation competition in Ørsted in 2022 
to address the challenge of the hard-to-recycle soft 
PVC material. 
End-of-life management of wind turbine  
blades and solar panels
In 2024, we completed the decommissioning of 
our onshore wind farm Owenreagh 1 in Northern 
Ireland, which had been in operation since 1997 and 
consisted of 10 wind turbines with a total capacity 
of 5 MW. We did so in collaboration with Plaswire, 
with whom we entered into a partnership in 2023. 
­Plaswire ­enables the recycling of wind blades, as 
they ­specialise in the shredding, granulating, and 
re-moulding required to turn the blade material into, 
for example, ­durable polymer. Durable polymer is 
typically used in the construction industry, and as a 
result, some of the retired blades may end up being 
used to produce road marking poles for some of our 
new onshore wind farms in Ireland, replacing the use of 
virgin plastics in our own projects. Similarly, we work 
with the US solar recycling company SOLARCYCLE on 
the treatment of defective and retired solar panels. 
With the installation of various solar assets in the US 
in 2024, we have, where necessary, sent damaged 
panels to SOLARCYCLE for recycling, demonstrating 
our ambition to recycle retired solar panels. 
Our collaborations with Plaswire and SOLARCYCLE 
are examples of how we engage with partners on 
our material resource-related impacts. Over the past 
few years, we have successfully carried out several 
small-scale recycling pilots in the US and the UK and 
will continue to leverage retired blades and panels 
from our assets to help accelerate the maturation 
of ­promising, innovative, recycling technologies and 
solutions in our markets going forward. // 
// E5-3 
Targets related to resource  
use and circular economy
Tracking our transition away from virgin materials 
Based on our identified impacts and risk related to the 
matter of resource use and circularity, we have revis-
ited our ways of tracking the effectiveness of our poli-
cies and actions in 2024. Our location in the value chain 
of renewable energy assets implies that we rely heavily 
on upstream value chain partners to understand and 
quantify the impact we have, which challenges the 
foundation for setting measurable, outcome-oriented, 
and time-bound targets. Consequently, we have not 
yet adopted a formal target related to our impacts on 
and risk from resource use and circularity. 
On the next page, we disclose a range of new indica-
tors related to the resource inflows to our ­business, 
which provides a first foundation for developing 
­relevant targets. As a result, we continue to work 
on establishing one or more measurable reportable 
­targets going forward and expect to communicate 
targets within the next two years. 
Tracking effectiveness of policies and actions 
While we are not communicating any formal targets, 
we are committed to ensuring that we mitigate the 
negative impacts as well as the risk we have related 
to resource use and circular economy through both 
our policies and actions. 
Sustainable biomass and residual straw
As outlined in the ‘Policies related to resource  
use and circular economy’ section of this chapter, we 
are committed to sourcing only certified sustainable 
wooden biomass for use as fuel at our CHP plants.
We have tracked our performance on sustainable 
­biomass since 2016 when our baseline value was 61 % 
of total wooden biomass. 
In 2024, 100 % of our wooden biomass was certified 
sustainable wooden biomass. In addition to wooden 
biomass, we use residual straw sourced from ­Danish 
agriculture. While straw biomass lacks a specific 
certification scheme, our supplied straw is sourced 
as a waste product from local farms, preventing the 
disposal of the resource.
Blades and panels diverted from landfill 
In 2021, we made a commitment to not send any of 
our retired blades to landfill, which was extended to 
also include our solar panels in 2023. 
We believe this is a responsible and natural way of 
working, supporting our resource management policy 
objectives while proactively pushing for the early 
development of capabilities and the maturation of 
recycling markets. //
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Resource inflows
ESRS ref.
Resource inflows, tonnes
2024
Technical materials for construction of new assets 
// E5-4, 31(a)
 Steel
296,200
// E5-4, 31(a)
 Copper
6,900
// E5-4, 31(a)
 Aluminium
5,600
// E5-4, 31(a)
 Plastics
9,700
// E5-4, 31(a)
 Glass fibre
5,900
// E5-4, 31(a)
Rare earth elements
300
// E5-4, 31(a)
Concrete
6,800
// E5-4, 31(a)
Glass
26,600
Technical materials, scrap steel used in steel production
// E5-4, 31(c)
In absolute value
59,200 - 103,700
// E5-4, 31(c)
In percentage, %
20 - 35
§  Accounting policies 
Technical materials for construction  
of new assets
The technical materials for constructing new 
assets are tracked to provide a detailed under-
standing of material usage and composition for 
offshore and onshore renewable energy ­projects 
(offshore wind, onshore wind, solar PV, and 
battery storage assets (BESS)) above 100 MW. 
Material inflows reflect assets currently under 
construction within the reporting year.
Our in-house LCA analysis forms the foundation 
of the methodology, with the highest maturity 
for offshore assets. External verified ­studies 
supplement the project-specific data for 
­battery energy storage systems (BESS), solar 
PV, and onshore wind. 
Material usage is accounted for when main 
components are recognised as installed. This 
process involves detailed mapping of ­materials 
associated with each main component to 
ensure accurate tracking and reporting. For off-
shore wind projects, we track the installation 
progress of foundations, which are recognised 
as installed at the time when they are fitted. 
Wind turbine generators (WTGs) are recognised 
at the time of take over certification (TOC), 
marking the transfer of ownership. Materials 
for other packages, e.g. cables, are mapped 
to the WTGs and recognised when the WTGs 
reach TOC.
For solar assets, materials are mapped to 
the installation of solar panels, with progress 
tracked throughout the installation phase. 
Materials associated with transformers, sub-
stations, array cables, and piles are recognised 
at the time of panel installation. A similar 
split process, as seen in offshore wind, is under 
­consideration for solar assets.
For battery storage systems, materials are 
recognised upon the installation of battery 
packs, specifically at the time of connection.
Understanding our use of resources
We have identified key materials fundamental to the 
construction of our global portfolio of renewable 
energy projects across offshore and onshore wind, 
solar, and battery energy storage systems (BESS). 
To enhance our understanding and management 
of resource inflows, we are actively working with 
­suppliers to explore lower-emissions alternatives and 
aim to establish closer collaboration for obtaining 
data on the composition of their products, including 
the percentage of reused or recycled materials. Steel 
is a primary focus at this stage, given its significant 
role in renewable energy infrastructure and its high 
potential for recyclability.
The use of scrap steel is a norm in steel production, with 
its content varying across geographies and reflecting 
established industry practices. Approximately 80 % 
of the steel we source used in the production of steel 
plates for foundations comes from Europe, where 
supplier data indicates that, on average, 35 % of 
the material used in these plates derive from scrap. 
While we account for geographic variability in our 
presentation, reflected in a range of 20 - 35 %, our 
current estimates place us at the upper end.
Lower-emissions steel offers a dual benefit: It mini-
mises greenhouse gas emissions and, depending on 
the production method, can reduce reliance on virgin 
iron ore. Steel produced via electric arc furnaces (EAFs), 
which use scrap steel as feedstock, significantly low-
ers the need for virgin iron ore compared to traditional 
blast furnace-basic oxygen furnace (BF-BOF) methods 
that rely heavily on it. Even though recycled content 
is widely used in steel production, low-emissions steel 
still has a limited market availability. Closing this gap 
is key to cutting emissions, reducing reliance on virgin 
materials, and advancing a more circular steel indus-
try. Thus, our focus is on sourcing lower-emissions steel, 
as it represents the most impactful opportunity to drive 
meaningful progress in reducing the environmental 
footprint of steel production.
In addition to steel, critical raw materials, such as 
copper, aluminium, and rare earth elements (REEs), 
are essential for renewable energy technologies 
but present negative impacts and risks related to 
the depletion of virgin materials and the scarcity of 
supply. Improving the recyclability of materials such as 
plastics and glass fibres, including composites used in 
wind turbine blades, is a priority to reduce reliance on 
finite resources and ensure sustainable material use.
Addressing these challenges involves implementing 
design changes to optimise resource use, increasing 
the adoption of recycled and recyclable materials 
where feasible, and prioritising the maintenance 
and extension of the lifespan of existing assets and 
components wherever possible.
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Our total waste increased by 5 % in 2024 compared  
to 2023. This was mainly driven by an increase in non- 
hazardous waste of 5 % due to increased amounts  
of ashes at our CHP plants from the increased use  
of biomass.
Resource outflows
ESRS ref.
Waste, tonnes
2024
2023
Δ
// E5-5, 37(b)
Hazardous waste
2,283
2,381
(4 %)
// E5-5, 37(b)
Diverted from disposal
526
679
(23 %)
// E5-5, 37(b)(i)
Preparation for reuse
2
37
(95 %)
// E5-5, 37(b)(ii)
Recycling
476
570
(16 %)
// E5-5, 37(b)(iii)
Other recovery operations 1
48
72
(33 %)
// E5-5, 37(c)
Directed to disposal by waste treatment type
1,757
1,703
3 %
// E5-5, 37(c)(i)
Incineration
1,527
1,399
9 %
// E5-5, 37(c)(ii)
Landfill
-
33
(100 %)
// E5-5, 37(c)(iii)
Other disposal operations 2
230
271
(15 %)
// E5-5, 37(b)
Non-hazardous waste
123,821
118,260
5 %
// E5-5, 37(b)
Diverted from disposal 
110,634
100,740
10 %
// E5-5, 37(b)(i)
Preparation for reuse
107,180
97,351
10 %
// E5-5, 37(b)(ii)
Recycling
2,806
3,086
(9 %)
// E5-5, 37(b)(iii)
Other recovery operations 1
648
303
114 %
// E5-5, 37(c)
Directed to disposal by waste treatment type
13,187
17,520
(25 %)
// E5-5, 37(c)(i)
Incineration
63
79
(20 %)
// E5-5, 37(c)(ii)
Landfill
317
178
78 %
// E5-5, 37(c)(iii)
Other disposal operations 2
12,807
17,263
(26 %)
// E5-5, 37(a)
Total waste
126,104
120,641
5 %
Entity spec.
Diverted from disposal, %
88
84
4 %p
Entity spec.
Directed to disposal, % 
12
16
(4 %p)
Total amount of non-recycled waste
// E5-5, 37(d)
In absolute value
14,944
19,223
(22 %)
// E5-5, 37(d)
In percentage, %
12
16
(4 %p)
1	 Composting and recovery.
2	 Energy recovery.
Total amount of waste diverted from disposal 
%
2024
2023
88
84
§  Accounting policies
Waste by type, disposal method,  
and treatment type
The Global Reporting Initiative (GRI) Standards, 
disclosures 306-3, 306-4, and 306-5, have been 
used as guidance in developing the reported 
data points.
Waste is generally reported on the basis of 
invoices received from waste recipients, sup-
plemented with plant-specific measurement 
methods for commercial facilities, including 
construction activities.
Part of the oil-contaminated wastewater from 
the North Sea oil pipeline has been treated as 
waste and therefore reported as waste and not 
wastewater.
Residual products, e.g. gypsum from the CHP 
plants, which are not handled as waste but sold 
as products, are not included. 
Soil from excavation projects is not included.
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Social
124	
ESRS S1	 Own workforce
137	
ESRS E2	 Workers in the value chain
145	
ESRS E3	 Affected communities
→
Beside Knockawarriga Onshore Wind Farm, County Limerick, 
Ireland, stands a local football club with facilities used by 
170 competitive players. With funding from Ørsted over the last 
three years, the club has installed an electricity supply, invested 
in energy efficient floodlights, bought a robotic lawnmower,  
and set up solar panels on the clubhouse roof. Sports clubs play 
an important role in rural communities like this one, where 
120 children play football every week.
123
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Own operations
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
Our material impacts, risks, and opportunities (IROs)
S1 Own workforce
Flexible working conditions
Positive impact 
Increased voluntary  
turnover
Risk 
Possible work-related  
injuries and fatalities
Potential negative 
impact
Work-induced stress
Negative impact
Unequal gender distribution  
in management
Negative impact
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// ESRS 2, SBM-3; S1, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right are descriptions of our 
material IROs related to our own workforce, 
including how we manage them. 
The impacts are connected to our vision to 
create a world that runs entirely on green 
energy, as human capital is a key resource in 
our business model in order to achieve our 
vision. It requires that our employees have the 
possibility to thrive, perform, and grow. 
We are involved with these impacts through 
our own activities, in all stages of our operating 
model, and across all support functions.
Material IRO description
How do we manage the IRO?
 
Flexible working conditions
Positive impact (own operations)
This postive impact relates to our flexible working culture, 
creating additionality within the many markets where we operate 
and particularly in the US and APAC, as our global standards go 
beyond the norm in many countries outside of Northern Europe. 
A flexible working culture, with initiatives to continuously 
enhance it, is anchored in a strategic decision to keep Ørsted 
a great place to work. This has a positive impact on our own 
workforce as it gives employees the agency/autonomy to make 
the work-life balance decisions that work best for them, their 
team, and their people leader.
We work continually to make Ørsted 
an increasingly flexible workplace.
This is part of our ambition to power 
and create a working environment 
where everyone can thrive, perform, 
and grow. This is implemented 
globally and governed by our internal 
guidelines on flexible workplace.
 
Work-induced stress
Negative impact (own operations)
This negative impact relates to employees experiencing stress 
at work because they are requested to perform working hours 
beyond the contractual terms or in other ways experience 
anxiety and unbalances at work. 
Work-induced stress can cause medical treatment and months 
away from the job.
We monitor work-induced stress on 
an ongoing basis and have several 
measures in place to mitigate this 
impact. We have a ‘Global working 
hour commitment’, describing our 
position on working hours.
 
Possible work-related injuries and fatalities 
Potential negative impact (own operations)
This potential negative impact relates to physical work-­related 
injuries and fatalities. Due to the nature of the utility ­industry, we 
recognise this potential impact to our employees. It ­concerns all 
employees and contractors working at our sites. 
Injuries can cause medical treatment and days or months away 
from the job. This potential negative impact can occur across 
the short, medium, and long term.
We have a robust health and safety 
management system, which is fun-
damental to us and covers all of our 
employees and contractors working 
at our sites. We have a strong safety 
culture, monitor safety performance 
on a monthly basis, and include 
safety targets in bonus schemes.
Material IRO description
How do we manage the IRO?
 
Increased voluntary turnover, potentially due to perceived internal risks or uncertainties
Risk (own operations)
This risk is a specific 2024 short-term risk and relates to 
employees potentially leaving the company due to an increase 
in uncertainties following organisational restructuring. 
Although the organisational restructuring was a managed 
process, such large organisational changes can be a cause of 
uncertainty and job insecurity, which can trigger employees into 
leaving the company pre-emptively. This can lead to an increase 
in the voluntary turnover rate for employees who might choose 
to pursue other opportunities.
To address these challenges,  
we are focused on our internal  
communication and change  
management, strengthening our 
focus on good leadership and  
mental health and reaffirming our  
commitment to transparency and 
the well-being of our workforce.
Working conditions
Unequal gender distribution in management
Negative impact (own operations)
This negative impact relates to the unequal gender distribution 
we have in leadership roles, where we have a target of 
40:60 (women:men). The impact concerns all employees and 
is particularly linked to the three layers of our target. 
If we do not succeed in integrating diversity considerations into 
our succession planning, promoting a balanced representation 
of men and women in leadership positions, we will not achieve 
our gender diversity targets.
We have a dedicated talent manage­
ment team to ensure implementation 
of actions. 
This includes e.g. promoting diversity 
considerations into our succession 
planning and promoting a balanced 
representation of men and women 
in leadership positions. 
Equal treatment and opportunities for all
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At Ørsted, we work actively to ensure a safe and 
inclusive workplace where all employees can thrive. 
We engage with the employees through various 
channels and have an open and transparent culture. 
We are focused on development of our employees’ 
skills and competences and follow up on the general 
well-being of employees through performance 
dialogues at individual level and other measures.
For an overview of how we have structured this chapter, 
please see page 61. Our IROs are highlighted in italics.
// S1, SBM-3
Material impacts and risks  
related to own workforce 
At Ørsted, all employees are part of a safe working 
environ­ment where impacts are identified and ­managed, 
including impacts related to physical injuries and well-­
being of employees. Due to the nature of our ­industry, 
we recognise the impact to employees of potential 
­injuries and fatalities, primarily during the construction 
and operation phases of our assets. Furthermore, we 
­recognise the present impact of work-related stress and 
anxiety experienced among ­employees on a global level.
Ensuring transparent and fair working conditions are 
rooted in our employer value proposition, where fair and 
competitive rewards and employment terms as well 
as a flexible working culture, are foundational factors. 
Our flexible working culture is creating additionality 
within many of the markets where we operate, and 
particularly in our US and APAC regions, as our global 
policies go beyond the norm.
Our ‘Global parental leave policy’ goes far beyond the 
US and APAC norm. For instance, according to a report 
by New America’s Better Life Lab, the median length 
of leave for fathers in the US is just one week, com-
pared to 11 weeks for mothers. This disproportionate 
leave highlights the need for more equitable policies, 
and our approach seeks to address that imbalance 
by offering substantial leave for all parents, aligning 
more closely with global best practices.
For our employees in APAC, entitlements such as 
industry-leading leave and flexible working hours 
go beyond labour and similar companies’ standards. 
As a testament to this, Ørsted Taiwan has received 
a special recognition in the form of the 2024 Work-
Life Balance Award presented by Taiwan’s Ministry of 
Labor, specifically in consideration of our wide-ranging 
and industry-leading policies, supporting the work-
life balance of our employees. This award is one of 
the highest Taiwanese recognitions from the Ministry, 
and it honours Ørsted among 251 other companies, 
where Ørsted is the only energy company to receive 
the award twice, with special recognition of our 
mission to create a greener future, whilst also creating 
a positive impact for society and employees.
In 2024, Ørsted navigated a rapidly evolving industry 
landscape, necessitating organisational adjustments, 
including redundancies, to maintain our competitive 
edge. While both satisfaction and motivation levels as 
well as voluntary turnover remain healthy compared 
to industry benchmarks, the changes have had a 
noticeable impact on employee satisfaction and 
motivation and our voluntary turnover trend. This poses 
a short-term risk of increased voluntary turnover and 
lower morale, satisfaction, and heightened stress. 
To address these challenges, we are focused on our 
internal communication and change management, 
strengthening our focus on good leadership and 
mental health and reaffirming our commitment to 
transparency and the well-being of our workforce.
All employees in our own workforce are included in 
the scope of our disclosures. Our own workforce does 
not include self-employed people or people ­provided 
by third-party undertakings, primarily engaged in 
employment activities. Lastly, due to the nature of 
our operations and the jurisdictions covering our 
­workforce, we are not at risk of either forced labour 
incidents or child labour incidents. // 
// S1-1
Policies
Our commitments to our own workforce as well as 
employee obligations are outlined via global employee 
policies, country-specific policies, and employee 
handbooks. 
Through the adopted policies, we describe our com-
mitments and positions in place for our employees 
as well as obligations expected from employees. 
The objective and key content per policy is unfolded 
below. These policies are owned by the People & 
Culture organisation, with our Chief HR Officer being 
overall accountable for them. All our policies have 
been approved by the Board of Directors. They are 
available for all employees on our intranet, and many 
of these policies are available at orsted.com. 
Regarding specific groups, our global policies are 
applicable to all Ørsted employees globally, unless 
the nature of the policy constitutes a limited eligibility 
scope, such as e.g. our global parental leave ­applicable 
for parents or local variances in policies to reflect local 
legislation or local market practice.
Policies for human and labour rights
Human rights
We see human rights as fundamental principles for 
protecting people’s dignity and ensuring freedom and 
respect both in our own operations, in the companies 
with whom we work, and in the communities where we 
operate. Our commitment to upholding human rights 
is outlined in our ‘Sustainability commitment’, ‘Global 
human rights policy’, ‘Global labour and employment 
rights policy’, ’Stakeholder engagement policy’, and 
‘Just transition policy’. 
Our ‘Global human rights policy’ aligns with the UN 
Guiding Principles on Business & Human Rights (UNGPs), 
the OECD Guidelines for Multinational Enterprises, 
the International Bill of Human Rights, and the 
International Labour Organisation’s (ILO) Declaration 
on ­Fundamental Principles & Rights at Work. 
The policy explicitly highlights our dedication to 
ensuring freedom of association, the right to collec-
tive bargaining, the elimination of forced, trafficked, 
or compulsory labour, the effective abolition of child 
labour, and the elimination of discrimination in employ-
ment and occupation, among other critical issues. 
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Labour and employment rights
With the aim to enhance transparency for our 
­employees within labour and employment rights, 
we have adopted a ‘Global labour and employment 
rights policy’. 
The policy articulates our commitments to actively 
safeguard labour, employment, and human rights 
standards within our own workforce, as described 
in relevant legislation as well as in the International 
Bill of Human Rights and the International Labour 
­Organisation’s (ILO) Declaration on Fundamental 
Principles and Rights at Work. We work to ensure fair 
labour and employment standards for our employees 
across all the markets where we operate. 
The policy also articulates our commitment to social 
dialogue and collective bargaining agreements. 
We respect our employees’ rights to freedom 
of association and to join or refrain from joining 
labour unions and workers’ councils without fear of 
discrimination, harassment, intimidation, retaliation, 
or violence in accordance with national laws. Where 
the right to freedom of association and collective 
bargaining is restricted or prohibited under national 
law, we will not hinder employees from developing 
alternative mechanisms to express their grievances 
and protect their rights regarding working conditions 
and terms of employment. 
We do not seek to influence mechanisms or activities 
of employee representatives while they carry out their 
functions in ways that are not disruptive to regular 
company operations. 
Working time
We see respect for our employees’ labour and employ-
ment rights as core to protecting our employees’ 
human rights but also as the foundation of our com-
pany culture with respect for people. We actively 
work to ensure a sustainable, responsible, and 
inclusive working environment with fair labour and 
employment standards across all the markets where 
we operate. We have therefore adopted and imple-
mented a ‘Global working hour commitment’ describ-
ing ­maximum working hours across jurisdictions with 
inspiration from UN’s Global Compact guidelines. 
Moreover, when entering countries, we have a high 
focus on and a standard process for ensuring that 
local employee handbooks are compliant with local 
legislation, including within the areas of working 
hours, overtime, and overtime payment. 
Flexible working conditions
Striving to make Ørsted an increasingly flexible work-
place is part of our ambition to power and connect a 
working environment where everyone can thrive, per-
form, and grow. In our double materiality assessment 
(DMA), we assessed that our flexible working conditions 
are creating additionality within many of the ­markets 
where we operate, and particularly in the US and APAC.
Our flexible working approach is anchored in our 
strategic focus to ensure that Ørsted is experienced 
as a great place to work. The Group Executive Team 
provides direction and support to work in a flexible and 
inclusive manner, and people leaders and employees 
are empowered to successfully manage flexible 
working plans. Our flexible working approach is 
implemented globally in our internal ‘Global guidelines 
on flexible workplace’ and supplemented by country-
specific guidelines to comply with local requirements 
and regulation.
Another initiative to support this flexible working 
culture is within parental leave. We have implemented a 
‘Global parental leave policy’, which introduces global 
minimum standards on parental leave entitlement for 
all our employees. Our policy is 18 weeks for primary 
caregivers and 12 weeks for secondary caregivers.
We ensure that the topics 'flexibility' and 'work-life 
­balance' are a focus in the ongoing dialogues between 
people leader and employee with the purpose of ­finding 
ideal solutions and adjustments for what works best 
for both the employee, the people leader, and the 
team as a whole. 
Furthermore, when entering new countries, we have a 
high focus on ensuring that local employee handbooks 
are compliant with local legislation as a minimum, and 
that, in general, we strive to follow market practice 
on employment terms in markets and even go above 
and beyond within the areas of flexibility and work-life 
balance. This could include employment terms such 
as parental leave, sick leave, annual leave, and child 
sick leave.
Approach to rights of own workforce
Furthermore, we have the responsibility to safeguard 
the labour conditions of our employees through social 
protection. This encompasses support for circum-
stances such as sickness, unemployment, employment 
injury, parental leave, and retirement. 
We have established a global minimum standard 
of benefits for caregivers, irrespective of gender or 
marital status. In addition, we offer various other 
paid or unpaid family-related leaves, according to 
country provision, local market practice, and potential 
collective bargaining agreements, such as marriage 
leave, compassionate leave, childcare leave, and 
nursing care leave. We have made a commitment 
to offer immediate assistance and financial security 
to employees facing severe illness, with a focus on 
facilitating a timely and responsible return to work.
Aligned with local practices and statutory provisions, 
basic insurance for unemployment and disability 
ensures equitable compensation. Retirement benefits 
are incorporated in our overall remuneration package, 
and, unless local laws dictate otherwise, all employ-
ees are enrolled in a pension scheme through their 
employment at Ørsted.
We work actively towards creating a culture where 
everyone feels safe to voice important matters. 
This includes encouragement to freely express views, 
also to colleagues in higher hierarchical positions, on 
a variety of matters relevant to the employment.
We firmly believe that these principles are integral 
to fostering a just transition to renewable energy. 
Therefore, it is our priority to ensure that adequate 
management systems are in place to identify, prevent, 
mitigate, and remedy any potential adverse human 
rights impacts. In cases where we identify potential 
adverse human rights impacts, we are committed 
to promptly and effectively providing and enabling 
remedies. Our grievance and remediation approach 
includes addressing any adverse human rights impacts 
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on individuals, workers, and communities that we 
have caused or contributed to. // 
// S1-1
Policies related to health and safety
At Ørsted, we prioritise and protect the physical, social, 
and psychological safety of everyone in the workplace. 
We believe that personal health and well-being are 
fundamental drivers for living a balanced life where 
people can realise their potential. Through our robust 
health and safety management system, which is funda-
mental to our operations and to secure a safe system of 
work, we foster a culture that promotes our ­employees’ 
health and safety. All (100 %) of our employees are 
­covered by our health and safety management system.
We have established a ‘Global policy for quality, 
health, safety, and environment (QHSE)’, setting the 
standards for how we protect and ensure the well-­
being of our employees and the sustainability of our 
operations. The policy covers all our employees and 
facilities, with accountability resting with our Head of 
QHSE. We aim to incorporate quality, health, safety, 
and environment in all our decisions and actions, and 
we have implemented workplace accident ­prevention 
procedures to ensure the safety and well-being of 
our employees.
We comply with various ISO standards, including 
ISO 9001 (quality management system), ISO 14001 
(environmental management system), and ISO 45001 
(occupational health and safety management ­system), 
to maintain a robust management system that aligns 
with international best practices. 
Additionally, we have an internal policy on mental 
well-being for all employees, with a focus on enhancing 
the mental well-being of our workforce, mitigating 
mental strain, such as work-related stress and anxiety, 
and providing guidance to employees and leaders on 
addressing these concerns. We have a range of support 
systems and offer our employees a health insurance, 
including access to psychologists and other mental 
health professionals and crisis counsellors as well as 
support on topics such as stress, relationships, family 
issues, and lifestyle management. Accountability for 
our well-being rests with our Chief HR Officer. // 
// S1-4 
Actions for health and safety
Key actions
Prevention of injuries and fatalities
In 2024, we conducted a large campaign called Ørsted 
Safety Days with the objective of implementing 
Ørsted’s life-saving rules. The scope of the campaign 
was for sites, fabrication yards, and offices across all 
regions. All employees and contractors on sites were 
asked to join one of the Safety Day sessions, which 
were facilitated by different people leaders, including 
all Group Executive Team members.
Ørsted’s life-saving rules have been developed in 
collaboration with G+, the Global Offshore Wind 
Health and Safety Organisation, to protect our 
employees, contractors working at our sites, and 
suppliers from serious incidents. The implementation 
of similar life-saving rules has led to a stronger safety 
culture and better general safety performance in other 
industries – the same outcome is expected in Ørsted.
Processes to identify actions
Health and safety is an integral part of the way we 
do business, and health and safety performance is 
being discussed frequently at all levels of the organi-
sation, including within the Board of Directors, Group 
­Executive Team, QHSE Committee, and by local works 
councils and cooperation committees.
As health and safety performance is part of the dis-
cussion on most managerial levels, we are able to 
react quickly to negative trends and sub-standard 
performance and initiate mitigating or preventive 
actions. To support the discussions and decisions, 
frequent health and safety reports are shared inter-
nally, weekly incident updates are communicated, and 
dashboards are constantly updated. Finally, a list of 
top QHSE enterprise risks and a dynamic risk register 
are ongoingly updated and monitored.
Other actions
Preventing stress among employees
We measure the percentage of employees experiencing 
stress and have several measures in place to obtain our 
policy objectives. 
To mitigate that employees are requested to ­perform 
working hours beyond the contractual terms, poten-
tially leading to worker fatigue, increased stress 
­levels, and a higher risk of accidents and health issues, 
we initiated activities in 2024 to support ­people 
­leaders with enhanced and easier accessible data 
and analytics to promote ongoing monitoring of 
­sustainable working hours in compliance with individ-
ual employment terms, local laws, and our ‘Global 
working hour commitment’.
Several geographies have started to track recorded 
time using analytics products, allowing people 
leaders to manage their teams effectively, among 
others highlighting where some employees may 
be overstretched. These analytics products will be 
expanded to all geographies in 2025. 
During the year, several activities have been imple-
mented to improve the mental well-being of our 
employees and contractors working at our sites, 
including the development of new well-being tools 
and guidelines, the relaunch of the tool ‘Howdy’, and 
the roll-out of well-being seminars for people leaders. 
In addition to these global initiatives, several local 
­initiatives have been completed in 2024. // 
// S1-1 (and Danish FSA § 107d)
Policies for equity, diversity,  
and inclusion
Equity, diversity, and inclusion are integral to our 
­culture and the way we do business. To support this, 
we have adopted two policies, an internal guide to 
leaders and an internal guide to employees, aimed 
at the elimination of discrimination and at promoting 
equal opportunities and a culture of inclusion. Account-
ability for these policies rests with our Chief HR Officer.
Diversity and inclusion
We have adopted a ‘Global diversity and inclusion 
policy’ which emphasises equal opportunities for 
all employees in Ørsted. We specifically call out 
identities such as ethnic background, race, religion, 
age, gender, disability, sexual orientation, outlook, 
or social status because these groups have been 
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historically marginalised or disadvantaged (protected 
characteristics). By embedding these principles in the 
way we do business, we promote an environment 
where all employees can thrive and contribute to our 
collective success. 
The key contents of the policy are: ‘Women in manage­
ment’ as we work towards increasing the share of 
women in executive and managerial positions; ‘Sexual 
orientation and gender identity’ where Ørsted among 
other things has adopted the UN’s LGBTI Standards of 
Conduct for Business in 2018; ‘Nationality’ where we 
aim to create an inclusive environment that attracts 
and retains talented people from all backgrounds 
and cultures; and ‘Recruitment’ where all people 
leaders are equipped with non-discriminatory tools 
and ­guidelines for objective recruitment to mitigate 
unconscious bias. 
Bullying, harassment, and discrimination
We have a ‘Global bullying, harassment, and discrim-
ination policy’, supplemented by country-specific 
guidelines, which often include mandatory training. 
Furthermore, to support its implementation, we have 
both a global employee guide and a global people 
leader guide on how to create an inclusive culture, 
which outline proactive measures to prevent bullying, 
discrimination, and harassment. 
The policy covers a potential situation where an 
employee feels subject to bullying, discrimination, 
or harassment from another employee. This policy 
also covers experiences that an employee has 
with an external consultant working under Ørsted 
super­vision. The policy describes acts of bullying, 
discrimination, and harassment in the workplace and 
covers the following grounds for discrimination: sex, 
race, nationality, sexual orientation, gender identity, 
religion, size, ability status, pregnancy status, age, 
ethnic origin, belief, and marital status. We also have 
a statement on non-retaliation: Many employees may 
be afraid to speak up, start a conflict, and share their 
experiences because they are afraid of retaliation. // 
// S1-4 (and Danish FSA § 107d)
Actions related to equity,  
diversity, and inclusion
Key actions 
Unequal gender distribution in management
To mitigate the negative impact of unequal gender 
distribution in leadership roles, we have implemented 
and will continue to implement several key actions. 
We have a dedicated talent management team to 
ensure diversity and equity are considered during the 
organisational review process. This team is crucial for 
promoting diversity considerations into our succession 
planning and promoting a balanced representation 
of men and women in leadership positions. Addition-
ally, we are being more cognisant of our demographic 
data, incorporating this awareness into our strategic 
planning for accountability and continuous improve-
ment. This involves enhancing KPIs and metrics, many 
of which are currently in development and will be 
implemented in 2025. 
Additionally, we will target departments with lower 
representation of women and adopt an intersectional 
approach to our data, considering factors such 
as gender and age in promotions and other parts 
of the employee life cycle. Our strategic planning 
incorporates awareness by integrating and monitoring 
the gender balance of major talent processes, such as 
promotions, new hires, and redundancies.
Tracking effectiveness of actions
With regards to gender diversity, we report to the 
Board of Directors on our metrics related to gender 
on a bi-annual basis. This includes the three levels 
we have under the gender balance target of at least 
40 % women across the Ørsted group and a variety of 
supporting metrics within equity, diversity, and inclusion. 
Our HR business partners and talent acquisition 
partners instruct and inform leaders on talent decisions 
within the context of our gender ambition.
Other actions
Enhanced procedures to prevent discrimination
Our policies include specific commitments related 
to inclusion. To address the exclusion of historically 
marginalised groups, our global talent acquisition 
process was redesigned and launched in 2024, with 
equity, diversity, and inclusion embedded as key 
priorities. The redesign of this recruitment process 
mitigates bias by removing outdated assessments 
and broadening our hiring criteria to value alternative 
skills and experiences. This enables us to attract 
candidates from diverse backgrounds who bring 
unique perspectives and talent to our organisation.
To ensure fairness and consistency, we introduced 
tailored interview guides and business cases, aligned 
with our career framework and assessment standards  
in 2024. Candidates are evaluated on functional, 
behavioural, and leadership competences, mov-
ing away from subjective impressions. Importantly, 
we now hire for ‘culture add’ rather than ‘culture fit,’ 
intentionally seeking to enrich our existing culture 
with diverse identities who bring new contributions 
and diverse voices, rather than merely replicating our 
existing one. // 
// S1-17  
Incidents of discrimination  
and human rights violations
Our Audit & Risk Committee receives quarterly over-
views of all inappropriate and illegal mis­conduct 
cases across jurisdictions that have either been 
managed or are in process locally. This reporting 
includes incidents of discrimination, including harass-
ment, which in 2024 totaled 5 substantiated cases. 
A ­dedicated team in People & Culture is responsible 
for sending Internal Audit an anonymous global over-
view. A dedicated system is used to confidentially 
report on these cases, ensuring country-by-country 
access protection and only to authorised employees. 
For GDPR compliance, all data on employee cases 
are anonymous. 
In 2024, we had zero severe human rights incidents 
connected to our employees. // 
// S1-2 
Processes for engaging with  
our own workforce
At Ørsted, we believe in the importance of gaining direct 
insights and perspectives from our own workforce on 
a wide variety of matters. We see these insights as key 
aspects when outlining decisions and strategies. 
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Global satisfaction survey
Our annual global People Matter survey aims at 
retrieving employees’ perspectives and opinions on 
satisfaction and motivation across almost 70 ques-
tions. The themes assessed within this anonymous sur-
vey include the degree of trust, openness, and trans-
parency felt by our employees with regards to collab-
oration and the management bodies and the level of 
satisfaction within several aspects of the employees’ 
work life and conditions, e.g. job content, physical 
working conditions, compensation and employment 
terms, development opportunities, workload, stress, 
inclusion and diversity, and potential harassment at 
the workplace. 
The results are shared with the Group Executive Team 
for their strategic planning of priorities, activities, 
and follow-up actions. People leaders use the results 
within their respective teams to enable dialogues 
about potential improvement initiatives, ensuring a 
safe and inclusive working environment where every-
one can thrive, perform, and grow.
Pulse surveys 
Another activity deployed during 2024 for gathering 
perspectives of own workforce has been using pulse 
surveys, especially within the areas of equality, 
diversity, and inclusion (ED&I) and well-being. Pulse 
surveys are initiated by people leaders as a way to 
ensure that recurring surveys aiming to check how 
the team is doing in regard to different matters are 
carried out. Results are used as a springboard for 
further dialogue on important themes such as physical 
and mental well-being, workload, harassment in the 
workplace, trust, transparency, etc. As an example, the 
Group Executive Team has carried out global surveys 
during 2024 to check the temperature throughout 
the organisation during periods with organisational 
changes and to take the result into account when 
planning strategies, priorities, and communication 
going forward.
Other types of engagement
Additionally, we have established an easily accessible 
site on our company intranet that outlines various 
options for employee representation on both global 
and local levels. These include various channels for 
employees to voice their opinions and engage both 
with other colleagues and with management. 
Such options include HR business partners, occu-
pational health and safety representatives, differ-
ent local works councils, cooperation committees, 
employment relations representatives, and personal 
development dialogues. Engagement and employee 
representation through more formal bodies, such 
as work councils and employment relations repre-
sentatives, are generally regulated by local legisla-
tion or locally agreed with the respective employee 
­representation body. The frequency of engagement is 
both regularly recurring meetings and extraordinary 
ones, summoned to discuss important topics related 
to the workforce.
In addition, we have the Ørsted IN networks (employee 
resource groups), which collectively create an online 
hub, supporting an inclusive culture within the 
­organisation. The inclusion networks represent differ-
ent groups across our organisation, e.g. within race and 
ethnicity, gender, LGBTQ+, age, and disability. They 
are for anyone who identifies with one of the groups, 
and who supports the equality and inclusion of that 
group. Allies are encouraged to join networks to show 
their support and to expand their knowledge about 
­inclusion of diversity. 
Moreover, different Viva Engage channels are made 
available to our employees, serving the purpose 
of creating global informal dialogues across our 
­organisation on different topics related to our own 
workforce. Employees can freely comment and ask 
direct questions to our management via the Viva 
Engage channels, hosted by different management 
representatives or by other employees.
// ESRS 2, GOV-1
Finally, we successfully completed our first-ever global 
employee election for the employee-elected members 
to the Board of Directors of Ørsted A/S in Q1 2024, 
with participation of employees across our global 
footprint. For more information about ­representation 
of employees in the Board of Directors, see page 48 in 
the ‘Management’s review’. //
Accountability
The overall accountability for the People Matter 
survey, Ørsted IN networks, and HR business partners’ 
engagement rests with the Chief HR Officer. In regard 
to engagement via our formal representation 
bodies, such as works councils, it depends on the 
specific country in scope with whom the operational 
responsibility rests. However, in general, this 
responsibility rests with our Chief HR Officer together 
with the country manager of the respective country. 
For other representative bodies, such as occupational 
health and safety representatives, the operational 
responsibility rests with our Head of QHSE.
Effectiveness of engagement activities
Depending on the different type and channel used 
to create or enhance engagement, different ways to 
measure effectiveness are deployed. 
Most importantly, the People Matter survey is an 
effective tool with a high participation ratio (91 % for 
2024), supported by follow-up activities (incl. sessions 
with HR business partners and HR colleagues locally), 
aimed at actively following up on matters which were 
evaluated particularly low. 
Other ways of testing effectiveness of different 
engagement initiatives include using pulse surveys, 
which are directly aimed at assessing the efficiency 
of the different initiatives set in place to establish 
dialogues with our employees. 
Engagement with vulnerable employees
To gain deeper insights into the perspectives of 
employees who may be particularly vulnerable or 
marginalised, we are taking two significant steps. 
First, we are working to collect more comprehensive 
data across various identity dimensions. In the US, this 
has allowed us to better understand the experiences 
of specific racial and ethnic communities, gender, 
disability, and caregiving status, with the goal of 
expanding this data collection capacity globally.
Secondly, we are re-designing our employee 
engagement survey tools to ensure that these tools 
are equipped to capture insights on equity, diversity, 
and inclusion. This enables us to build a more ­inclusive 
workplace by incorporating the voices and ­experiences 
of all employees into our decision-making processes.
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Additionally, when we focus on advancing, ­promoting, 
and retaining underrepresented or marginalised 
groups, the impact goes beyond our organisation. 
In a global company like ours, ensuring that these 
groups have access to significant roles creates a social 
benefit by ensuring that diverse voices are present 
in decision-making processes, particularly those 
that influence communities worldwide, such as in 
renewable energy.
Internally, it means we are creating equitable access to 
management, which is often difficult to achieve without 
a targeted and intentional approach. This also allows 
employees to see themselves reflected in leadership, 
fostering a sense of inclusion and belonging. We are 
considering this in our recruitment, organisational 
review, and people review processes to ensure that 
our actions create both internal and external value. // 
// S1-3 
Remedy of negative impacts  
and channels to raise concerns
Approach and processes for providing remedy
We work actively to ensure a safe and inclusive 
working environment as all employees deserve to 
be treated with dignity and respect. Employees can 
report grievances and complaints via the designated 
mechanisms, depending on the nature of the incident. 
Regardless of the reporting mechanisms and its 
severity level, we take all incidents seriously and 
handle all cases in a professional and confidential 
manner where all parties’ needs are taken into 
consideration.
Access to remedy helps ensure fairness, justice, and 
protection for individuals and communities. It allows 
people to seek recourse and find a solution when they 
feel that their rights have been violated, promoting a 
more equitable and fairer workplace. If any employee 
feels they have experienced an instance of bullying, 
discrimination, or harassment, they are encouraged to 
seek support. 
We have established various grievance and complaint 
mechanisms for our employees, which are described 
on our intranet and summarised below.
Channels for own employees to raise concerns
We are dedicated to ensuring that our employees 
not only have access to grievance channels but also 
have the knowledge, confidence, and psychological 
safety to utilise them when necessary. Ørsted as 
an organisation has the responsibility to take all 
reported cases seriously and provide fair outcomes 
for investigated cases that take all parties’ needs 
into consideration. We also maintain secure and 
confidential records of reports and outcomes.
All employees have the right to make a complaint 
or raise a grievance without fear of retaliation. 
All ­concerns and complaints raised to People & ­Culture 
are taken seriously and handled confidentially to 
the extent possible. 
Employees can use various mechanisms for raising 
their concerns or complaints. Firstly, an employee can 
always go to their direct people leader for support. 
Secondly, employees can reach out to the People 
& Culture organisation if they have a question or a 
concern via either an HR business partner or a local 
People & Culture colleague. Thirdly, the employees 
can raise their concerns on an anonymous basis in the 
annual People Matter survey. 
Lastly, our Whistleblower Hotline can be used by our 
employees and external stakeholders. Through the 
Whistleblower Hotline, employees are able to file a 
confidential report on inappropriate or illegal conduct 
and can remain anonymous. For more information on 
how we protect whistleblowers against retaliation, 
see ESRS ‘G1 Business conduct’.
Awareness and trust in our grievance mechanisms
We take proactive steps to ensure that our employees 
are aware of and reminded about the grievance mech-
anisms available. This awareness is built into various 
aspects of our employee experience, including:
1)	 code of conduct training:
As part of our mandatory e-learning, we include 
guidance on our grievance and complaints handling 
policy.
2)	 policy:
The employees’ rights and options for support are 
further described in the ‘Grievance and complaints’ 
section in our ‘Global labour and employment rights 
policy’.
3)	 internal information campaigns:
We regularly communicate with our employees 
through various internal channels, including emails, 
newsletters, and our intranet, to remind them about the 
availability of grievance channels and to encourage 
their use. // 
// S1-5 
Targets
Processes for setting targets 
Gender balance
We have a gender target of a 40:60 women:men 
balance across Ørsted by 2030. This target is tracked 
at three levels: senior directors and above, people 
leaders, and all employees. The target ensures we 
carefully consider gender balance when we hire 
and promote talent, and when we review data on 
those leaving the organisation. The process for setting 
the target was set at executive level in 2021 as a 
strategic pillar to identify and execute immediate 
steps for a visible short-term impact on gender balance. 
We track our gender balance targets through a 
dedicated dashboard, which is available to all 
­employees, with certain business groups integrating 
­gender ­tracking within their functions. Additionally, 
we consistently review talent management and talent 
acquisition processes, such as hiring, promotions, and 
redundancies, against our gender targets to ensure 
alignment and progress. These efforts allow us to 
continuously monitor and advance our gender goals 
across the organisation. 
One of the biggest challenges we face is the lack 
of detail needed to fully understand the diverse 
experiences within our gender ambition. For instance, 
while we can track the experiences of women in 
general, our data does not account for important 
factors such as ethnicity, disability, or gender identity, 
dimensions that can significantly shape a person’s 
experience in the workplace. This is one of the key 
lessons we have learnt. Furthermore, we measure 
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women as a broad group, but without the ability to 
track these additional layers, we risk overlooking the 
unique challenges faced by women and individuals 
with intersecting identities. This gap highlights that 
while we may be making progress in some areas, 
there is more work to do to ensure we are not leaving 
anyone behind.
Safety
Ørsted uses the total recordable injury rate (TRIR), 
which means incidents requiring some kind of medical 
treatment per 1,000,000 working hours, as a metric 
to monitor safety performance in order to reduce 
the negative impact on our own workforce and the 
contractors working at our sites.
TRIR is monitored and reported monthly. This includes 
safety presentations on construction projects to the 
Group Executive Team and the Board of Directors. 
Updated TRIR targets are established every year in 
Q4, based on past performance, expected impact 
of improvement initiatives, and expected level and 
complexity of activities in the coming year.
The TRIR targets are proposed by the different 
business areas, validated by the QHSE department, 
and then discussed and approved by the Group 
Executive Team.
Senior management is consequently fully involved 
in monitoring safety performance and establishing 
future targets. If safety performance for a specific 
entity deteriorates, the Group Executive Team is also 
very clear and visible in formulating their expectations 
for improvement and allocating relevant and compe-
tent resources.
Satisfaction
The Group Executive Team has decided our ambition 
for employee satisfaction and motivation, which 
supports one of our four strategic pillars of being the 
leading talent platform in renewable energy. Employee 
satisfaction and motivation should be in the top tier 
(top 25 %). 
Our ambition is unchanged, even though 2024 has 
been a year where we have seen a significant drop 
in satisfaction and motivation, due to the changes 
Ørsted has undergone. It is the responsibility of our 
people leaders to create action plans that focus on 
increasing satisfaction and motivation and getting it 
back to the desired level. // 
Gender balance, people leaders
%, women/men
2030
33/67
40/60
33/67
2024
2023
Gender balance, senior directors and above
%, women/men
2030
24/76
40/60
22/78
2024
2023
// S1-5
Targets
Gender balance, total workforce
%, women/men
2030
34/66
40/60
35/65
2024
2023
Employee satisfaction in top 25 %  
compared to external benchmark group
(Index 0-100)
  Ørsted   
  Ennova benchmark top 25 % 
  Ennova benchmark
2023
2022
2024
2023
2025
2024
Total recordable injury rate (TRIR)
Injuries per million hours worked
8
6
4
2
0
100
75
50
25
0
2.5
2.8
2.7
76/77/74
76/76/73
70/77/73
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People 
ESRS ref.
Number of employees
Unit
2024
2023
Δ
// S1-6, 50(a); SBM-1, 40(a)(iii)
Total number of employees (as of 31 December)
Head count
8,407
9,073
(7 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Denmark
Head count
3,984
4,486
(11 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
The UK
Head count
1,272
1,324
(4 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Malaysia
Head count
792
770
3 %
// S1-6, 50(a); SBM-1, 40(a)(iii)
Poland
Head count
783
779
1 %
// S1-6, 50(a); SBM-1, 40(a)(iii)
The US
Head count
720
747
(4 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Germany
Head count
390
398
(2 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Taiwan
Head count
199
197
1 %
// S1-6, 50(a); SBM-1, 40(a)(iii)
The Netherlands
Head count
105
115
(9 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Ireland
Head count
100
105
(5 %)
// S1-6, 50(a); SBM-1, 40(a)(iii)
Other 1
Head count
62
152
(59 %)
Entity spec.
Number of employees (as of 31 December)
FTE
8,278
8,905
(7 %)
Entity spec.
Average number of employees during the year
FTE
8,496
8,666
(2 %)
Entity spec.
Sickness absence
%
2.1
2.1
(0.0 %p)
Turnover
// S1-6, 50(c)
Number of employees who left the company
Head count
1,190
797
49 %
// S1-6, 50(c)
Employee turnover rate
%
14.3
9.6
4.7 %p
Entity spec.
Number of employees who left the company voluntarily
Head count
723
600
21 %
Entity spec.
Voluntary employee turnover rate
%
8.7
7.2
1.5 %p
Employee satisfaction survey results
Entity spec.
Employee satisfaction 2
Index 0-100
70
76
(6)
Entity spec.
Employee loyalty
Index 0-100
80
84
(4)
Entity spec.
Employees experiencing stress
%
18.8
13.7
5.1 %p
Entity spec.
Employees experiencing bullying, harassment, threats, or violence
%
2.6
2.7
(0.1 %p)
1	 Distribution in other countries 
in 2024:  
Singapore (18)  
Korea (14) 
Spain (9)  
Vietnam (9) 
Sweden (7) 
Norway (4) 
Japan (1)
2	 Our target is to have an 
employee satisfaction survey 
result in the top 25 ­percentile 
compared to an external 
benchmark group.
§  Accounting policies
Number of employees
Employee data is recognised based on records 
from the Group’s ordinary registration systems 
and is determined as the number of employees 
at the end of the reporting period. Employees 
who have been made redundant are recognised 
until the expiry of their notice period, regardless 
of whether they have been released from all or 
some of their duties during their notice period.
 
The number of FTEs is determined as the number 
of employees converted to full-time equivalents.
Following the implementation of the ESRS,  
we are reporting the number of employees as  
a head count. 
Sickness absence
Sickness absence is calculated as the ratio 
between the number of sick days and the 
planned number of annual working days.
Turnover
The employee turnover rate is calculated as the 
number of permanent employees who have left 
the company (excl. divestments) relative to the 
average number of permanent employees in 
the financial year.
Employee satisfaction survey results
Ørsted conducts a comprehensive employee 
satisfaction survey once a year. With a few 
exceptions, all Ørsted employees are invited 
to participate in the survey. The ­following 
employees are omitted from the survey 
results: employees who joined the company 
shortly before the employee satisfaction 
survey, employees who resigned shortly after 
the employee satisfaction survey, interns, 
consultants, advisors, and external temporary 
workers who do not have an employment 
contract with Ørsted.
The number of employees was 7 % lower at the end 
of 2024 compared to 2023. 
Ørsted’s voluntary turnover increased by 1.5 per-
centage points in 2024, whereas the total turnover 
increased by 4.7 percentage points.
The reduction in the total number of employees 
and increased total turnover for 2024 are related to 
organisational adjustments, including redundancies, that 
we have undergone to maintain our competitive edge.
The score for employee satisfaction in the annual 
employee survey was 70, which is 6 index points lower 
than 2023. While satisfaction and motivation levels 
remain healthy compared to industry benchmarks,  
the score is below the Ennova benchmark index of  
73 and below our target of being in the top 25 %  
percentile of an Ennova benchmark group.
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Group Executive Team and Board of Directors
1	 CEO pay ratio shown is based on awarded remuneration and median 
employee base salary. More information on the CEO pay ratio based 
on average employee salary can be found in the remuneration 
report for 2024.
2	 For more information on the remuneration of the Group Executive 
Team and the Board of Directors, see note 2.7 ‘Employee costs‘ in 
the financial statements. 
3	 Part of the remuneration paid to the CEO is based on climate-related 
KPIs. For more information, please see the ESRS ‘E1 Climate Change’. 
§  Accounting policies
Average seniority
Average seniority is calculated as the average 
number of years the Group Executive Team 
(GET) members have been part of the GET.
Remuneration
The CEO pay ratio is calculated as the ratio 
between the CEO’s total awarded remunera-
tion (fixed salary, including personal benefits, 
such as a company car, free telephone, etc.,  
variable salary, and share-based payment  
at grant value) and the median annual base 
remuneration for all employees who have been 
employed for at least 12 months (excl. variable 
pay elements).
Board of Directors
In this section, the Board of Directors includes 
the members elected at the annual general 
meeting (AGM). Under ‘Remuneration of the 
Board of Directors’, the members elected by 
the employees are also included.
For the classification of independent board 
members, we follow the Recommendations on 
Corporate Governance as issued by the Danish 
Committee on Corporate Governance. 
The gender with lowest representation is 
reported under ‘Diversity and pay gap’.
Group Executive Team (GET)
Consists of the Chief Executive Officer (CEO), 
the Chief Financial Officer (CFO), the Chief HR 
Officer (CHRO), the deputy CEO and Chief Com-
mercial Officer (CCO), and the Chief Operating 
Officer (COO).
As per 31 December 2024, the number of members in 
the Group Executive Team was five compared to ten in 
2023. As per 1 February 2025, the number of members 
in the Group Executive Team was reduced to four as 
Mads Nipper stepped down as CEO.
The CEO pay ratio was 28 in 2024. In 2024, the 
methodology for calculating the ratio has changed 
slightly to better align with the requirements under 
the ESRS, implying that the ratio relies on the median 
annual base remuneration of our employees.
With regards to the board and its committees, we 
established the Asset Project Committee in 2024, 
overseeing the planning and execution of asset projects. 
The committee met eight times during 2024.
For additional information on the work of the Board 
of Directors during 2024, please see the section on 
‘Corporate governance’ in the ‘Management’s review’. 
ESRS ref. 
Group Executive Team and Board of Directors
Unit
2024
2023
Δ
Group Executive Team
Entity spec.
Members
Head count
5
10
(5)
// GOV-1, 21(a)
Executives
Head count
4
3
1
// GOV-1, 21(a)
Non-executives
Head count
1
7
(6)
Entity spec.
Average age
Years
54
50
4
Entity spec.
Average seniority
Years
2
1
1
S1-16, 97(b)
CEO pay ratio 1
Ratio
28
-
-
Entity spec.
Remuneration of the Group Executive Team 2
DKK million
64
134
(52 %)
// E1, GOV-3, 13
CEO pay ascribed to climate-related KPIs 3
%
1.9
-
-
Board of Directors
Entity spec.
Members
Head count
6
8
(2)
// GOV-1, 21(a)
Executives
Head count
0
0
0
// GOV-1, 21(a)
Non-executives
Head count
6
8
(2)
// GOV-1, 21(d)
Average age
Years
61
61
0
// GOV-1, 21(d)
Average seniority
Years
5
4
1
// GOV-1, 21(e)
Independent board members
%
83
88
(5 %p)
Entity spec.
Board meetings
Number
15
16
(1)
Entity spec.
Attendance
%
96
94
2 %p
Entity spec.
Remuneration of the Board of Directors 2
DKK thousand
6,430
6,907
(7 %)
Nomination & Remuneration  Committee
Entity spec.
Members
Head count
3
3
0
Entity spec.
Meetings
Number
4
3
1
Entity spec.
Attendance
%
100
100
0 %p
Audit & Risk  Committee
Entity spec.
Members
Head count
3
3
0
Entity spec.
Meetings
Number
6
10
(4)
Entity spec.
Attendance
%
94
100
(6 %p)
Asset Project Committee
Entity spec.
Members
Head count
3
-
-
Entity spec.
Meetings
Number
8
-
-
Entity spec.
Attendance
%
96
-
-
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Diversity and pay gap
ESRS ref.
Diversity, head count
2024
2023
Δ
Entity spec.
Board of Directors, Ørsted A/S, members
6
8
(25 %)
// GOV-1, 21(d)
Gender with lowest representation, %
50
38
12 %p
Entity spec.
Group Executive Team, members
5
10
(50 %)
// S1-9, 66(a)
Gender with lowest representation (female), % 
20
30
(10 %p)
Entity spec.
Senior directors and above
187
175
7 %
Entity spec.
Gender with lowest representation (female), %
24
22
2 %p
Entity spec.
People leaders
1,032
1,054
(2 %)
Entity spec.
Gender with lowest representation (female), % 
33
33
0 %p
Entity spec.
All employees
8,407
9,073
(7 %)
Entity spec.
Gender with lowest representation (female), %
34
35
(1 %p)
All employees per age group, head count
// S1-9, 66(b)
Under 30 years
1,183
-
-
// S1-9, 66(b)
30-50 years
5,624
-
-
// S1-9, 66(b)
Above 50 years
1,600
-
-
§  Accounting policies
Senior directors and above
Consists of the GET, our senior vice presidents, 
our vice presidents, and our senior directors.
People leaders
People leaders are defined as all people with 
direct reports (responsibilities for staff).
All employees
All employees by gender represent the gender 
distribution of the total workforce in Ørsted. 
The reporting covers contractually employed 
employees in all Ørsted companies at the end 
of the reporting period (head count).
Gender pay
Ørsted’s global gender pay gap is calculated 
based on individual gender pay gaps within 
countries where Ørsted has at least 
50 employees. For each country, the differ-
ence of average pay levels between female 
and male employees has been calculated and 
is expressed as the percentage of the average 
pay level of male employees from that country. 
The salaries are reviewed annually, and salary 
increases come into effect on 1 June. Employ-
ees who have been employed for 12 months 
on that date are included in the calculation. 
Each calculated country-specific ratio has 
been indexed to present one global gender pay 
gap. The gender pay gap shows the pay gap 
between men and women without adjusting for 
other factors impacting pay levels (e.g. career 
level and work experience).
Employees per contract type
Employees on permanent contracts include 
all employees on permanent, non-time-bound 
contracts. Employees on temporary contracts 
include all employees on time-bound contracts. 
No employees within Ørsted are employed on a 
non-guaranteed hour basis.
ESRS ref.
Gender pay gap, %
2024
// S1-16, 97(a)
Gender pay gap, average
14
ESRS ref.
Contract type, head count, 2024
Female
Male
Other 1
Not disclosed
Total
// S1-6, 50(a)(b)
Number of employees
2,854
5,553
-
-
8,407
// S1-6, 50(b)(i)
Permanent employees
2,760
5,452
-
-
8,212
// S1-6, 50(b)(ii)
Temporary employees
94
101
-
-
195
// S1-6, 50(b)(iii)
Non-guaranteed hours employees
-
-
-
-
-
The changes made to the Board of Directors in 2024 
means that we now have equal gender representation 
in the Board. However, the reduction of the Group 
Executive Team in 2024 to five members resulted in a 
female representation of 20 %.
1  The gender data presented in this report reflects the binary options 
of ‘male’ and ‘female’ as captured by our data systems. Many of 
these options are based on sex as recorded in official documents and 
do not fully represent the diversity of gender identities.
We have a gender diversity target of 40 % women 
across Ørsted by 2030. The target is tracked at three 
levels: senior directors and above, people leaders, and 
all employees. 
We are committed to equal pay and have a constant 
focus on ensuring equal pay for equal positions and 
competences in relation to all aspects of the salary- 
relevant processes from hiring to promotion. In 2024, 
we have changed our methodology on the gender 
pay gap calculations to reflect the requirements of 
the ESRS. This implies that we report a pay gap based 
on data from nine of the countries where we operate, 
that being Denmark (49 %), Germany (5 %), Ireland (1 %),  
Malaysia (9 %), the Netherlands (1 %), Poland (9 %),  
the UK (15 %), Taiwan (2 %), and the US (9 %).
The gender pay gap of 14 % consists of individual 
gender pay gaps across the countries where 
we operate, and reflects that the differences in 
pay between men and women are impacted by 
differences in gender mix across the career levels in 
the organisation. The share of women in higher-level 
leadership positions are significantly lower than in 
the remaining part of the organisation, resulting in 
average pay for women being lower than average 
pay for men in most countries. 
This year, we have included a breakdown of our 
employees as per their contract type and gender. 
In 2024, 98 % of our employees were employed on 
a ­permanent basis.
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Safety 
ESRS ref.
Safety
Unit
2024
2023
Δ
Entity spec.
Total recordable injuries (TRIs)
Number
85
73
16 %
// S1-14, 88(c)
Own employees
Number
19
23
(17 %)
Entity spec.
Contractor employees
Number
66
50
32 %
Entity spec.
Lost-time injuries (LTIs)
Number
45
36
25 %
Entity spec.
Own employees
Number
11
12
(8 %)
Entity spec.
Contractor employees
Number
34
24
42 %
Entity spec.
Hours worked
Million hours worked
30.9
25.8
20 %
Entity spec.
Own employees
Million hours worked
14.1
14.5
(3 %)
Entity spec.
Contractor employees
Million hours worked
16.8
11.3
49 %
Entity spec.
Total recordable injury rate (TRIR)
Injuries per million hours worked
2.7
2.8
(4 %)
// S1-14, 88(c)
Own employees
Injuries per million hours worked
1.3
1.6
(19 %)
Entity spec.
Contractor employees
Injuries per million hours worked
3.9
4.4
(11 %)
Entity spec.
Lost-time injury frequency (LTIF)
Injuries per million hours worked
1.5
1.4
7 %
Entity spec.
Own employees
Injuries per million hours worked
0.8
0.8
0 %
Entity spec.
Contractor employees
Injuries per million hours worked
2.0
2.1
(5 %)
// S1-14, 88(b)
Fatalities
Number
0
0
0 %
Entity spec.
Permanent disability cases
Number
0
0
0 %
§  Accounting policies
The scoping and consolidation of safety data 
entails that we include 100 % of injuries, hours 
worked, etc., from all operations where Ørsted 
is responsible for HSE safety, including the 
safety of our contractors.
The lost-time injury frequency (LTIF) is cal-
culated as the number of lost-time injuries 
per one million hours worked. The number of 
hours worked is based on 1,667 working hours 
annually per full-time equivalent and monthly 
records of the number of employees converted 
into full-time equivalents. For suppliers, the 
actual number of hours worked is recognised 
on the basis of data provided by the suppliers, 
access control systems at locations, or esti-
mates. Contractor employees are considered 
part of our value chain workers, as defined by 
the ESRS.
LTIF includes lost-time injuries defined as 
­injuries that result in an incapacity to work for 
one or more calendar days in addition to the 
day of the incident.
Total recordable injury rate (TRIR) is calculated 
in the same way as LTIF, but in addition to lost-
time injuries, TRIR also includes injuries where 
the injured person is able to perform restricted 
work the day after the accident as well as inju-
ries where the injured person has received medi-
cal treatment.
Permanent disability cases are injuries resulting 
in irreversible damage with permanent impair-
ment which is not expected to improve. 
Fatalities are the number of employees and 
contractor employees who lost their lives as a 
result of a work-related incident. Fatalities are 
included in both LTIs and TRIs.
The total recordable injury rate (TRIR) decreased by 
4 %, while the lost time injury frequency (LTIF) 
increased by 7 %. 
In 2024, our total number of recordable injuries 
increased by 12 injuries, driven by 16 additional injuries 
recorded among contractor employees compared 
to 2023. The increase in recordable injuries among 
contractor employees is associated with the 49 % 
increase in the number of hours worked among 
contractor employees.
The total number of lost-time injuries (LTIs) increased 
by nine injuries, as the number of lost-time injuries 
increased by ten among our contractor employees, 
while it decreased by 1 for our own employees. 
The total amount of hours worked in 2024 was 20 % 
higher than in 2023 due to the higher humber of 
projects under construction compared to last year.
To ensure the health and safety of our employees 
and contractors, we continue to constantly monitor 
our safety performance and implement relevant and 
effective actions where and when needed.
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Upstream value chain
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
Our material impacts, risks, and opportunities (IROs)
S2 Workers in the value chain
Debt bondage
Negative impact
Possible supplier misconduct  
concerning forced labour
Risk
State-imposed forced  
labour may occur in the 
solar PV supply chain 
Potential negative impact
Excessive working hours  
for supply chain workers
Negative impact
Possible work-related  
injuries and fatalities for  
supply chain workers 
Potential negative impact
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// ESRS 2, SBM-3; S2, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right are descriptions of our 
material IROs related to workers in the value 
chain, including how we manage them. 
The impacts are linked to our strategic 
decision to build out our renewable capacity 
and operations, in which our value chain is 
dependent on manufacturing in less regulated 
countries. 
These impacts occur through our relationships 
with suppliers and contractors in the manufac-
turing of components and extraction of mate-
rials in our supply chain.
Material IRO description
How do we manage the IRO?
 
Excessive working hours for supply chain workers
Negative impact (upstream value chain)
 
Possible work-related injuries and fatalities for supply chain workers
Potential negative impact (upstream value chain)
Our supply chain workers can be subject to excessive working 
hours and be denied adequate breaks. Furthermore, their work 
can result in injuries which might be fatal in rare situations. 
Within our industry, there are regions with weak labour 
protections where workers face a higher risk of significant 
negative physical and mental health impacts due to long 
working hours and poor working conditions. 
The potential negative impact related to injuries and fatalities 
spans across the short, medium, and long term. 
We focus on promoting responsible 
sourcing and respect for labour rights. 
We conduct regular supplier 
assessments, risk-based audits, 
and stakeholder engagements, 
enabling us to monitor and evaluate 
performance relating to working 
hours across the supply chain and 
ensure fair working conditions.
Material IRO description
How do we manage the IRO?
Debt bondage
Negative impact (upstream value chain)
 
State-imposed forced labour may occur in the solar PV supply chain
Potential negative impact (upstream value chain)
 
Forced labour allegations or misconduct in major supply chains  
for renewable energy materials and components
Risk (upstream value chain)
Supply chain workers can end up in debt bondage if they have 
to pay recruitment fees. Specific state-imposed forced labour 
may occur with our suppliers in the solar PV supply chain as 
well as allegations of supplier misconduct related to forced 
labour in major supply chains for main components. 
In regions with weak labour protections, workers face higher 
risk of debt bondage and forced labour, which can negatively 
impact them and their families. 
The potential negative impact related to forced labour in the 
solar PV supply chain spans across the short, medium, and 
long term.
We have particular focus on forced 
labour and supply chain traceability 
in our due diligence approach. 
We conduct regular supplier 
assessments, risk-based audits,  
and stakeholder engagements, 
enabling us to monitor and evaluate 
our suppliers’ conduct.
Working conditions
Other work-related rights
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These impacts are often widespread or systemic 
in contexts where we, or our direct suppliers, have 
sourcing or business relationships. This is also ­relevant 
in commodity supply chains in Africa, Asia, and Latin 
America for essential materials and components 
required for our renewable energy projects, such as 
minerals and metals used in wind turbines, cables,  
and solar panels.
In regions with weak labour protections, workers 
involved in the extraction and mining of these materi-
als face significant health impacts due to long working 
hours, poor working conditions, and heightened vulner-
ability to exploitation. Our material negative impacts 
on value chain workers are linked to the transition to 
renewable operations, where our value chain is depend-
ent on manufacturing in less regulated countries.
Positive impacts
While we do not directly create a material positive 
impact on workers in the value chain, we focus on 
strengthening practices that address our negative 
impacts, enhancing conditions for workers within the 
areas of our operations and supply chain.
Material financial risks
We are aware of a material risk related to forced 
labour allegations of inadequate labour protections and 
oversight in our supply chain for critical components. 
These include minerals and metals, such as rare earth 
elements for wind turbine magnets, copper for export 
or array cables, lithium for batteries, and silica for 
solar panels. These materials are often sourced from 
countries and areas in Africa, Asia, and Latin America, 
where enforcement of labour protections is weaker, 
increasing the risk of forced and child labour. 
This risk largely arises from our renewable energy 
projects’ dependency on workers in our supply 
chain and our dependence on these materials in 
our renewable energy assets, compounded by the 
complex and multi-tiered nature of mining supply 
chains. It disproportionately affects certain groups, 
such as migrant workers, women, young workers, or 
those in unsafe work conditions in mining operations 
in high-risk regions. // 
// S2-1
Policies related to value  
chain workers
Policy key contents
Our commitment to respect human rights, including 
labour rights, and protect value chain workers is out-
lined in our ‘Global human rights policy’, ‘Stakeholder 
engagement policy’, ‘Just transition policy’, and ‘Code 
of conduct for business partners’. 
Our ‘Global human rights policy’ explicitly highlights 
our dedication to ensuring freedom of association, 
the right to collective bargaining, the elimination of 
forced, trafficked, or compulsory labour, the effective 
abolition of child labour, and the elimination of dis-
crimination in employment and occupation, among 
other critical issues.
In addition, our ‘Code of conduct for business partners’ 
is an integrated part of our agreements with our sup-
pliers and counterparties. It is further integrated in the 
evaluation process for our joint venture partners and 
other strategic partners.
The green energy build-out impacts the lives of many, 
including people working across renewable energy 
supply chains. To support a just energy transition, 
we expect the companies we work with to run their 
business and supply chains in compliance with national 
laws and with respect for international labour and 
human rights standards. We need to make sure that 
we respect labour and human rights in everything we 
do, and that we reduce the risk of people in our value 
chain being adversely impacted.
At Ørsted, we want to support a just transition 
through the creation of decent jobs in the renewable 
energy industry. This means jobs providing workers 
with decent wages, secure employment, safe working 
conditions, and a working environment where they 
are free to express their concerns, and where their 
right to organise in trade unions is protected.
For an overview of how we have structured this chapter, 
please see page 61. Our IROs are highlighted in italics. 
// S2, SBM-3
Material impacts and risks related  
to workers in the value chain
We have assessed IROs related to workers in our value 
chain, focusing primarily on our first-tier suppliers’ 
workers but also workers further out in our supply chain, 
by using industry knowledge and internal knowledge 
based on our engagement in various forums. Workers 
in our value chain who are likely to be materially 
impacted by our operations and business relationships 
are included in the scope of our disclosures. 
Types of impacted value chain workers 
Our projects involve a diverse range of workers 
across the value chain, including those in upstream 
activities (such as refining, manufacturing, logistics, 
transportation, and mining and extraction of minerals 
and ­metals) and on-site construction, particularly in 
offshore operations. The latter includes workers at our 
project sites who are not part of our own workforce, 
such as subcontracted or temporary workers. These 
workers are materially impacted by our activities due 
to the nature of their work.
Certain workers within these categories are especially 
vulnerable, such as migrant workers, women, young 
workers, minority ethnic groups, or those in unsafe 
work conditions. As part of our due diligence process, 
we conduct detailed assessments, including interviews, 
to understand how these vulnerable worker groups 
may face increased harm within our value chain. 
Based on our double materiality assessment (DMA), 
we have identified that workers in high-risk sectors 
like logistics, maritime operations, and mining, and in 
particular those working under vulnerable conditions, 
are more likely to experience issues related to unsafe 
employment practices. 
Material impacts
Negative impacts
Our material negative impacts on our suppliers’ and 
sub-contractors’ workers primarily relate to work-
related rights violations, including excessive working 
hours, as well as concerns over safety for all workers 
engaged in our supply chain. There have also been 
known issues related to debt bondage, and state-­
imposed forced labour may occur in the solar PV 
supply chain. 
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These policies are adopted to ensure ethical practices, 
respect human rights, and promote sustainable employ-
ment conditions across our value chain. They address 
key material impacts and risks related to working 
­conditions and other work-related rights. 
Policy scope
The scope of these policies covers all workers across 
our value chain, including those employed by our 
suppliers, contractors, and business partners globally. 
In regions or industries considered high-risk, such 
as Asia, these policies are particularly relevant and 
applicable.
Policy governance
Our Chief Operating Officer (COO) is accountable for 
and oversees the implementation of our ‘Global human 
rights policy’, and our Chief Commercial Officer (CCO) 
is accountable for the implementation of our ‘Just 
transition’ and ‘Stakeholder engagement’ policies. 
In practice, these policies are executed by several 
functions across our Global Stakeholder Relations 
organisation, including our Global Sustainability and 
Regulatory & Public Affairs departments, regional 
Corporate Affairs functions, and onsite project staff. 
Moving forward, we aim to strengthen our governance 
by designating senior management accountability for 
these policies.
Policy monitoring is generally conducted through 
external risk ratings, controversy reports, and 
adherence to the minimum safeguards of the EU 
taxonomy for sustainable activities, which are also 
subject to limited assurance by our external auditors.
Alignment with international standards
We align our policies with relevant internationally 
recognised guidelines and standards. Our ‘Global 
human rights policy’ aligns with the UN Guiding 
Principles on Business and Human Rights (UNGPs), 
the OECD Guidelines for Multinational Enterprises, 
the International Bill of Human Rights, and the 
International Labour Organisation’s (ILO) Declaration 
on Fundamental Principles and Rights at Work. 
Our ‘Just transition policy’ is aligned with the UN 
Global Compact (UNGC) and the ILO Declaration on 
Fundamental Principles and Rights at Work. Our code 
of conduct for business partners adheres to several 
standards and conventions, including the OECD Due 
Diligence Guidance, the Maritime Labour Convention, 
IFC Performance Standards and the previously men-
tioned guidelines. 
Interests of key stakeholders 
Whenever applicable, we shape our policies with 
input from industry experts and leading organisations, 
including the Business and Human Rights Resource 
Centre, which provided valuable insights for our 
‘Global human rights policy’. However, we have not 
engaged directly with value chain workers or their 
representatives when developing our policies.
As we revisit and update our global policies, we 
aim to address this by enhancing our outreach and 
dialogue. Incorporating the perspectives of these key 
stakeholders will enable us to better consider and 
address the interests of those most impacted by our 
operations going forward.
Availability of policies
To promote transparency and inclusivity, we make 
these policies publicly available and share them 
directly with stakeholders affected by our activities 
or involved in their implementation, including business 
partners. We also ensure that they are easily accessible 
through our website and other engagement platforms.
Approach to respecting rights  
of value chain workers
We ensure the respect of human rights, including 
labour rights, across our value chain by conducting 
regular supplier assessments. These assessments 
evaluate labour conditions and the implementation of 
management systems by our suppliers to safeguard 
workers’ rights. Our engagement is designed to detect, 
prevent, and address impacts and risks related to 
human rights violations, with a focus on ensuring fair 
treatment, safe working environments, and compliance 
with international labour standards.
We engage with value chain workers during our assess-
ments to gather insights into their working conditions. 
We also collaborate with suppliers to enhance trans-
parency and accountability, ensuring that workers’ 
voices are heard, and their concerns are addressed.
Through our policies, we commit to provide and 
enable remedies for potential human rights impacts 
by implementing accessible grievance mechanisms. 
These allow value chain workers to report concerns 
or violations, ensuring these channels are user-friendly, 
confidential, and culturally appropriate. Upon receiving 
a grievance, we must promptly investigate the issue 
and engage with the affected parties to gather 
information and consider their perspectives.
If human rights impacts are identified, we strive to take 
immediate action and provide appropriate remedies, 
which may include compensation, restoration of rights, 
or preventive measures. We also invest in training of 
our employees and business partners to raise aware-
ness of human rights issues, e.g. related to bullying and 
discrimination. // 
// S2-1 and S2-4
We are currently not able to fully assess our full value 
chain for instances of non-respect for these principles, 
besides the indications from our external risk ratings 
and controversy reports, which have not identified any 
material incidents. We aim to maintain transparency 
by documenting any reported cases that come to our 
attention related to human rights impacts involving 
workers in the value chain, whether in our operations 
or within our upstream and downstream value chain. // 
// S2-2
Processes for engaging with value  
chain workers about impacts
Engagement with value chain workers
To ensure our decisions and activities are informed by 
the perspectives of value chain workers, we engage 
proactively with them and their representatives, includ-
ing trade unions. The outcome of this engagement 
directly informs our strategies for ­identifying, assess-
ing, and addressing actual and potential impacts on 
workers. Through this collaborative process, we work 
to uphold fair labour practices and to foster safe, 
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dignified, and inclusive work environments across our 
operations and partnerships.
As part of our due diligence process, we engage directly 
with workers or, where needed, through credible 
proxies, such as labour unions with insight into local 
working conditions. These proxies help provide 
important insights into the workers’ situations 
and help ensure our efforts are aligned with their 
needs. This engagement involves regular dialogues 
and consultations to understand their concerns. 
This approach also gives us an understanding and 
insights into perspectives of the workers who may be 
particularly vulnerable, especially migrant workers.
While we do not currently have global framework 
agreements with global union federations, we prioritise 
collective worker representation wherever possible to 
promote open communication and advocate for fair 
conditions across our value chain. 
Engagement with suppliers
Our supplier engagement is guided by the OECD due 
diligence principles and a deep understanding of 
potential sustainability impacts and risks within our 
supply chain. We work closely with key suppliers to 
ensure that our supply chain impacts and risks are 
identified and addressed. Feedback from value chain 
workers is crucial in shaping our risk assessments and 
informing our supplier engagement strategies. 
Our work is based on a systematic and risk-based 
due diligence process used to assess partners’ and 
suppliers’ adherence to our ‘Code of conduct for 
business partners’. We believe in collaborative 
partnerships, expecting business partners to actively 
participate in risk assessments, inspections, monitoring, 
and reporting. 
To evaluate the performance of our suppliers and 
business partners and identify any gaps or adverse 
impacts, we employ a combination of risk screenings, 
extended risk screenings, and code of conduct assess-
ments (conducted either via desktop analysis or onsite 
assessment), which may occur both before and after 
contract signing.
This process evaluates suppliers’ adherence to our 
code of conduct and integrates with our global 
procurement system, encompassing four key steps 
for real progress and continuous improvement:
1.	Commitment: Upon entering a contract with  
Ørsted, suppliers sign and thereby commit to our 
code of conduct.
2.	Risk screening: Based on country risk, category 
risk, and spend, we prioritise business partners for 
­further engagement.
3.	Assessment: We evaluate whether business 
partners adhere to the expectations in our code 
of conduct, reviewing relevant management 
systems and practices. Our engagement typically 
occurs as desktop reviews and interviews during 
the assessment of high-risk suppliers, either 
conducted by our internal assessment team or by 
external auditors with local language and cultural 
expertise. Our supplier assessments are structured 
to occur either prior to or after contract signing 
and are supplemented by follow-up engagements 
as necessary.
4.	Improvement: In cases where gaps are identified, 
our Sustainability Due Diligence & Compliance 
team engages and collaborates with suppliers and 
business partners on improving their adherence to 
our social, environmental, and ethical expectations, 
followed by regular touch points to ensure effective 
implementation of the improvement plan. In cases 
where we identify that business partners intentionally 
fail or repeatedly neglect the improvement 
plans, we reserve the right to terminate ­business 
relationships with the partner in question.
Effectiveness of engagement activities
To measure the effectiveness of our engagements, we 
assess outcomes of our assessments on an ongoing 
basis, including any agreements or remedial actions 
implemented as a result. We continuously work 
to improve our approach and, ultimately, value 
chain worker conditions. The senior operational 
responsibility for overseeing these engagements 
rests with our Chief Procurement Officer, ensuring that 
results are integrated into our broader due diligence 
processes.
In 2024, we have improved the evaluation of our due 
diligence process and are working on optimising it 
alongside relevant internal teams, such as our QHSE 
team. In 2025, we aim to implement the new process 
in the organisation as well as mature the monitoring 
of contracted suppliers.
The commitment to continuous improvement is 
underscored by regular updates to our due diligence 
process, methodology, and incorporation of evolving 
standards into our screening tools. As we navigate the 
dynamic landscape of upcoming legislations within 
due diligence, our goal is to secure compliance and 
meet the highest standards of integrity, transparency, 
and ethical conduct.  //
// S2-3 and S2-4
Remedy of negative impacts  
and channels to raise concerns
Approach and processes for providing remedy
Our approach to managing our negative impacts on 
value chain workers and our processes for identifying 
what is needed and appropriate to respond to these 
impacts emphasise responsible sourcing, the promotion 
of labour rights, and address environmental and social 
impacts and risks. To achieve this, we conduct regular 
assessments, risk-based audits, and stakeholder 
engagements, enabling us to monitor and ensure 
compliance across the supply chain.
Our approach to addressing concerns and grievances 
within our value chain is built on the principles of 
transparency, trust, and effective remediation that 
is proportionate to the grievance that has occurred. 
We continuously work to strengthen our processes for 
providing or contributing to appropriate remediation 
to value chain workers who have been harmed, where 
we have identified that we have caused or contributed 
to a negative impact. //
// S2-3 
Channels for value chain workers to raise concerns
Workers in our value chain have free access to and  
are encouraged to use the Ørsted Whistleblower  
Hotline to confidentially report any inappropriate  
or illegal conduct.
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We are actively working to establish and implement 
additional mechanisms to provide or enable remedy 
for human rights impacts on our value chain workers. 
These mechanisms will be specifically designed for 
value chain workers to raise concerns about labour or 
human rights issues.
Once in place, they will allow value chain workers to 
have better access to reporting any violations, which 
will be promptly reviewed and addressed by our 
­compliance and internal audit teams. Additionally, 
we will collaborate with suppliers to support corrective 
actions, offering guidance and resources to address 
identified issues in alignment with our policies. 
Through our ‘Code of conduct for business partners’, 
we actively support and require all suppliers to 
establish accessible grievance mechanisms for their 
workers, rights holders, and stakeholders. These 
mechanisms must allow for safe and confidential 
reporting of any concerns related to the scope of the 
code of conduct, ensuring that individuals can report 
issues without fear of retaliation.
Monitoring and effectiveness of grievance channels
We work closely with key suppliers to monitor 
issues raised and addressed while also assessing the 
effectiveness of these grievance channels, ensuring 
they are consistently available and trustworthy 
resources for value chain workers. However, currently 
we do not have a formal process in place to assess the 
effectiveness of our mechanisms and communication 
channels specifically for value chain workers.
We are working to establish a global methodology for 
aggregating feedback and grievance management, 
which will also enable us to systematically track and 
monitor the effectiveness of our efforts. ­Specifically, we 
aim to implement a standardised process for receiving, 
addressing, resolving, and providing remedies to value 
chain workers where necessary. We plan to pilot a griev-
ance reporting channel for a select supplier to ­collect 
workers’ grievances via a digital ­solution by 2025.
Awareness and trust in our grievance mechanisms
As part of our ongoing commitment to transpar-
ency and accountability, we assess whether value 
chain workers are aware of and trust the grievance 
mechanisms available to them during our onsite sup-
plier assessments where we conduct interviews with 
­workers. However, our assessments in this area are still 
a work in progress. While we can evaluate workers’ 
awareness during these interviews, we do not yet have 
sufficient comprehensive assessments to fully assess 
their trust in these channels. We are actively working 
to strengthen our approach to ensure greater trans-
parency regarding value chain workers’ grievances.
Further to this, it is our aim to ensure that our Whistle­
blower Hotline is widely available to value chain 
workers, although we cannot be certain that all value 
chain workers are aware of this channel and know 
how to access it. However, we ensure individuals who 
use these grievance mechanisms are protected from 
retaliation, and that all whistleblower reports are 
handled confidentially, in line with our ‘Good ­business 
conduct policy’ and ‘Whistleblower policy’. For more 
information on how we protect whistleblowers 
against retaliation, see ESRS ‘G1 Business conduct’. // 
// S2-4
Actions related to workers  
in the value chain
We work to ensure the health, safety, and well-being of 
all workers in our supply chains while actively mitigating 
negative impacts and risks related to working conditions 
and labour rights. We have identified ­several key areas 
of concern, including excessive working hours, injuries, 
fatalities, debt bondage, withholding of passports, and 
forced labour. Our actions are focused on both prevent-
ing and addressing these negative impacts and risks 
throughout our value chain.
Key actions
In 2024, we took steps to address work-related rights 
and improve working conditions within our supply 
chains to help prevent and mitigate our negative 
impacts and risks.
Human rights training
We identified several key areas requiring attention 
to safeguard workers’ rights within our supply chains. 
One major concern was the issue of excessive working 
hours, prompting us to introduce a series of ­initiatives. 
We have provided human rights training for our 
Marine Inspection team, emphasising the importance 
of appropriate ­working conditions and addressing 
­matters such as bullying, discrimination, harassment, 
and excessive hours.
These efforts aim to guarantee that workers are 
not subjected to undue stress, and that violations 
are promptly detected and rectified. We aim to 
expand this initiative by 2025 to include QHSE site 
representatives, further emphasising the importance 
of respecting labour standards across all project sites.
Safety monitoring practices and training
We have also concentrated on health and safety 
standards, delivering training for wind turbine 
technicians and offshore workers to reduce the risk 
of injuries and fatalities. In addition, we conduct 
regular inspections of supplier performance focused 
on adherence to safety protocols and prevention of 
incidents, including accidents and fatalities.
By 2025, we aim to make our safety monitoring 
practices standard throughout all projects, ensuring 
safe working environments for all personnel during 
the life cycles of our renewable energy projects.
In cases of actual material impacts, such as workplace 
injuries, we work closely with the affected individuals 
to ensure access to medical care, rehabilitation, and 
financial support. Lessons learnt from these incidents 
inform ongoing improvements to our safety protocols.
Blockchain technology pilot project
To increase transparency of our supply chain, we have 
implemented a blockchain technology pilot project to 
track copper usage at our offshore wind farm Hornsea 2.  
Through this pilot, we have improved visibility into 
copper sourcing and are better equipped to identify 
and address supply chain risks related to forced labour 
as well as other social and environmental risks related 
to copper mining. This effort also helps to inform our 
discussions with partners about improving traceability. 
In the coming years, we plan to extend our blockchain 
pilot from copper to other key materials, such as steel.
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Partnership with the Worker Welfare Group
During the year, we have also taken steps to address 
critical work-related rights impacts, including debt 
bondage and forced labour. For instance, we are work-
ing with industry peers through the Worker Welfare 
Group, a partnership focused on labour rights and 
worker welfare requirements within the marine con-
struction sector. 
The Worker Welfare Group has developed a set 
of principles and guidelines to support, in the first 
instance, the Singapore marine construction sector, 
enabling it to meet international standards for worker 
rights and worker welfare, particularly focusing on 
responsible recruitment, improved accommodation, 
better transport, and improved access to grievance 
mechanisms. We have engaged with key stakeholders 
to advocate for systemic improvements and are also 
working with local organisations to facilitate access 
to remedy for workers.
Going forward, we aim to build on our initial learnings 
from the Worker Welfare Group and implement 
the principles for fair treatment of migrant workers 
throughout 2025. This will further strengthen our 
dedication to labour rights and worker welfare. 
Other actions
Participation in the Initiative for Responsible  
Mining Assurance (IRMA)
We actively participate in the Initiative for Responsible 
Mining Assurance (IRMA) to promote responsible 
practices in sourcing critical minerals and third-party 
verification of responsible practices in the minerals 
supply chain. Our collaboration with the IRMA Buyers 
Group will be supported by ongoing discussions 
with suppliers, aiming to enhance traceability and 
accountability across our supply chain.
Engagement in the International Responsible  
Business Conduct (IRBC) Agreement
In 2024, we also focused on reinforcing our commit-
ment to ethical sourcing and ensuring the well-being 
of workers involved in our projects. Our engagement 
in the International Responsible Business Conduct 
(IRBC) Agreement for the Renewable Energy Sector 
has been important in this regard. We collaborated 
with other wind developers and industry partners to 
address risks and impacts tied to workers’ rights, e.g. 
in the minerals and metals supply chains. 
As part of the IRBC, we conducted a maturity assess-
ment against the OECD guidelines. Our efforts led 
to Ørsted being recognised as an industry leader, 
underscoring our dedication to responsible business 
conduct.
Supplier selection criteria 
During 2024, our procurement process has been 
updated to ensure that all relevant offshore supplier 
categories (excluding EU tenders) will go through a 
pre-qualification process that will include an early 
screening and evaluation of our code of conduct 
and QHSE requirements. This will ensure that there 
is an early evaluation and approval of suppliers on 
social and environmental criteria before the sourcing 
process starts.
In addition to the principles of our code of conduct, 
we have commenced the incorporation of climate 
requirements into contractual agreements with 
key suppliers, which entails reporting to the Carbon 
Disclosure Project (CDP), setting science-based climate 
targets, and covering electricity consumption with 
renewable electricity.  //
// S2-5
Targets related to workers  
in the value chain
Currently, we have not set time-bound and outcome-
oriented targets that meet the criteria for effectively 
reducing negative impacts, advancing positive 
impacts, or managing material risks and opportunities 
related to value chain workers. However, we recognise 
the importance of establishing robust targets to drive 
meaningful progress in these areas.
We are working to establish a clear process that will 
involve engaging directly with value chain workers, their 
representatives, or credible proxies. In the meantime, 
we are focused on gathering data and assessing current 
practices to ensure that future targets are effective 
and aligned with stakeholder needs. We are not yet 
fully able to monitor how effectively our policies and 
actions address our material sustainability-related 
impacts and risks for workers in the value chain. // 
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Risk screenings
The number of screenings and due diligence activities 
conducted is determined by the time schedule of the 
individual construction project and the procurement 
priorities from year to year.
There was a 5 % decrease in the number of risk 
screenings performed based on country and category 
risk compared to 2023. Based on the risk screenings 
performed, 42 extended risk screenings were carried 
out with additional risk parameters, including labour 
characteristics related to e.g. migrant workers and 
seafarers’ rights. The reduction in extended risk 
screenings is driven by a high number of recurring 
suppliers assessed previously from a code of conduct 
(CoC) perspective. 
§  Accounting policies
The number of supplier risk screenings and due 
diligence activities conducted is determined by 
the time schedule of the individual construction 
projects and the procurement priorities from 
year to year.
Risk screenings
The Responsible Business Partners Programme 
(RPP) team applies a risk-based due diligence 
framework to identify areas within our code of 
conduct (CoC) for business partners where sup-
pliers need to improve adherence to the code.
Risk screenings are conducted by the RPP  
team on all new sourcing contracts above 
DKK 3 million based on country and category 
risks. Based on the risk screening evaluation, the 
RPP team conducts extended risk screenings 
of selected contracts with additional risk 
parameters, including labour characteristics 
related to e.g. migrant workers’ and seafarers’ 
rights. Screenings and extended screenings also 
take place for suppliers of coal and sustainable 
biomass as well as top-spend suppliers. 
The Business Ethics Compliance (BEC) team 
conducts know-your-counterparty (KYC) 
screenings of all new suppliers and business 
partners to ensure legal compliance.
Due diligence activities conducted
Due diligence activities are carried out by our 
RPP, Health, Safety & Environment (HSE), and 
Marine Inspection teams based on the results of 
individual screenings and risk assessments.
The activities are conducted either as desktop 
assessments or inspections or as on-site assess-
ments or physical inspections, which often 
include a visit to the production facilities by 
Ørsted or a third party.
Assessments also include potential suppliers  
(i.e. no signed contracts yet) as part of the  
tender process.
Supply chain due diligence, number
2024
2023
Δ
Risk screenings
Risk screenings (all contracts above DKK 3 million)
344
363
(5 %)
Extended risk screenings
42
62
(32 %)
Know-your-counterparty (KYC) screenings
884
1,456
(39 %)
Due diligence activities conducted
Code of conduct (CoC) desktop assessments
19
54
(65 %)
Code of conduct (CoC) site assessments
5
9
(44 %)
Health, safety, and environment (HSE) desktop assessments
114
130
(12 %)
Health, safety, and environment (HSE) site assessments
58
117
(50 %)
Desktop vessel inspections
71
61
16 %
Physical vessel inspections
429
404
6 %
The number of know-your-counterparty (KYC) 
screenings, focusing on suppliers’ integrity and legal 
compliance, decreased by 39 %. The decrease is 
linked to a system clean-up led by the Business Ethics 
Compliance team in 2024. 
Due diligence activities 
The number of CoC desktop assessments decreased  
by 65 % in 2024 compared to 2023. The decrease is  
due to an update of our assessment methodology 
within selected business areas. There was also a 12 %  
decrease in the number of health, safety, and environ-
ment (HSE) desktop assessments performed in 2024 
compared to 2023 due to the implementation of new 
sourcing processes and processes for selecting suppliers.
The number of CoC site assessments decreased to 
a total of 5 in 2024 from 9 in 2023 due to a lower 
number of suppliers in high-risk markets. The number 
of HSE site assessments decreased by 50 % in 2024 
compared to 2023 due to reduced project activities 
on-site during 2024. 
The number of desktop vessel inspections increased 
by 16 % and the number of physical vessel inspections 
increased by 6 % in 2024 compared to 2023. The change 
is due to an increase in the execution of offshore projects, 
which has led to an increased number of vessels relevant 
for inspection.
The results from the assessments are managed 
throughout the different programmes, and improvement 
plans are developed and implemented in collaboration 
with the suppliers.
Entity spec.
Supply chain due diligence 
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Own operations
Upstream value chain
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
Our material impacts, risks, and opportunities (IROs)
S3 Affected communities
Pollution from mining may  
affect communities’ health
Potential negative impact
Indigenous People’s rights and  
livelihoods possibly disrespected  
or disrupted by suppliers
Potential negative impact
Increasing local content and 
social impact requirements 
in tender processes
Risk
Improvement to public  
infrastructure improving  
living standards
Positive impact
Local communities’ resistance 
to and concerns with renewable 
energy projects
Risk
Local jobs and educational 
opportunities 
Positive impact
Consent of Indigenous 
communities
Risk
Indigenous People’s rights and 
livelihoods disrespected or 
disrupted during development 
and construction
Negative impact
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// ESRS 2, SBM-3; S3, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the tables to the right and on the next page 
are descriptions of our material IROs related 
to affected communities, including how we 
manage them. 
The material impacts that we have identified 
on affected communities are linked to our 
strategic decision to build out our renewable 
capacity and operations, which includes 
increased construction activities in our own 
operations as well as manufacturing and 
mining activities in our value chain that are 
necessary for the sustainable economy. 
These impacts occur through our relationships 
with suppliers and contractors in manufacturing 
of components and extraction of materials in 
our supply chain and in our own construction 
and operation activities.
Material IRO description
How do we manage the IRO?
 
Pollution from mining may affect communities’ health
Potential negative impact (upstream value chain)
Air, soil, and water contamination from mining of minerals and 
metals may have adverse health effects on local communities 
living close to manufacturing or mining sites. 
Particularly in regions where critical materials are sourced for 
the technologies we use, communities may face significant 
negative health impacts from pollution. 
This potential negative impact can occur across the short, 
medium, and long term.
We engage directly with impacted 
communities, listen to their concerns, 
and provide appropriate remedies 
to support their well-being and 
resilience. 
We continuously work to strengthen 
our processes for providing or con-
tributing to appropriate remediation 
to affected communities.
 
Local jobs and educational opportunities
Positive impact (own operations)
  
Public infrastructure improving living standards 
Positive impact (own operations)
We provide education and upskilling programmes to develop 
competences in renewable energy technologies, which enable 
community members who may be situated next to our operating 
sites to gain employment in our projects. We also invest in 
community infrastructure to enhance public facilities, e.g. ports, 
roads, and community buildings.
Communities can benefit from socio-economic impacts in terms 
of the creation of local jobs and educational opportunities as 
well as an improved standard of living through improvements 
to public infrastructure when renewable energy assets are 
constructed near them.
We actively work to implement  
initiatives that foster community 
development in consultation  
with communities to best address  
local needs.
Material IRO description
How do we manage the IRO?
Local communities’ resistance to and concerns with renewable energy projects
Risk (own operations)
Local community resistance to renewable energy projects – 
if not proactively addressed – can lead to delays in project 
timelines, increased costs from operational disruptions, 
potential legal costs from community lawsuits, and 
political or reputational risks.
We have put a number of mitigation 
measures in place, including the incorpo-
ration of human rights due dilligence in 
early project stages and the launch of a 
‘Community Impact Programme’.
Communities’ economic, social, and cultural rights
Increasing local content and social impact requirements in tender processes
Risk (own operations)
Increasing preferences of authorities for local content 
as opposed to overall social impact in tender processes 
can pose a risk, as meeting these expectations requires 
significant engagement and resources which could, in 
a worst case scenario, lead to economically non-viable 
business cases for renewable project development.
We have developed a people-positive 
framework and are working with World 
Economic Forum-led coalitions for socio-
economic impact, and we are lobbying 
local governments to recognise the 
benefits of it.
→
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Material IRO description
How do we manage the IRO?
Indigenous Peoples’ rights and livelihoods possibly disrespected or disrupted by suppliers 
Potential negative impact (upstream value chain)
Indigenous Peoples’ rights and livelihoods disrespected or disrupted during development and contruction
Negative impact (own operations)
Suppliers and other actors further up in the value chain (e.g. in mining) 
may disrespect Indigenous Peoples’ rights and disrupt their livelihoods. 
Furthermore, Indigenous Peoples are or can be affected by our development 
and construction activities or by our suppliers operating on or near 
Indigenous lands.
Some Native American tribes with traditional or cultural connections to  
the seabed have expressed dissatisfaction with the consultation process  
utilised by the federal government. 
The potential negative impact in our upstream value chain can occur  
across the short, medium, and long term.
We work to minimise these negative 
impacts, recognising the importance 
of protecting Indigenous rights, 
and we are engaging with affected 
Indigenous Peoples. 
This e.g. takes place through our 
community liaison officers and 
project staff, employing different 
types of interaction, such as public 
meetings and consultations to 
facilitate open communication.
Consent of indigenous communities
Risk (own operations)
Failure to ensure consent from Indigenous communities through an 
adequate free, prior, and informed consent (FPIC) process, which can arise 
from insufficient engagement by authorities, business partners, or prior 
stakeholders, amongst others. 
Securing the FPIC of Indigenous communities presents a risk, particularly in 
regions like the US and Australia, where Indigenous Peoples maintain strong 
cultural and ownership ties to their lands. It can result in project delays, 
added costs, and strained relationships that may limit future opportunities 
in these areas.
We build trust with Indigenous 
communities by upholding 
their rights, committing to FPIC, 
addressing concerns early, ensuring 
meaningful engagement, and 
promoting shared benefits through 
co-ownership and inclusivity.
Rights of Indigenous Peoples
Transitioning to a world powered entirely by green 
energy presents a great opportunity for positive 
change on a local and global scale. It has the potential 
to unlock opportunities and create significant value 
for the communities where we operate. However, to 
realise this potential and ensure the pace and scale 
needed for a successful and just renewable energy 
transition, gaining the trust and support of the local 
communities where we build is essential. 
To get there, we are committed to working together 
with communities and strive to not only avoid or 
mitigate negative impacts but also seek ways to 
create a positive, lasting impact which ensures 
that the benefits of this transformation are shared 
equitably. This includes a strong commitment to 
respecting human rights, promoting an inclusive and 
diverse industry, and delivering tangible economic 
and social benefits, providing long-term value to 
those affected by our projects.
For an overview of how we have structured this chapter, 
please see page 61. Our IROs are highlighted in italics.
// S3, SBM-3
Material impacts and risks related  
to affected communities
All affected communities likely to be materially 
impacted by our operations and throughout our value 
chain are included in the scope of our disclosures. 
This includes not only impacts directly connected to 
our own operations but also those throughout our 
value chain, including our business relationships. 
Types of affected communities
We recognise the importance of identifying and 
understanding the diverse communities that may 
be affected by our renewable energy projects. 
Our operations and value chain may impact various 
communities, leading to human rights concerns and 
other social impacts. Through our DMA process, we 
have identified two key groups that are subject to 
our material impacts: Indigenous Peoples and local 
communities.
Indigenous Peoples are affected by our own opera-
tions, such as wind or solar farm development, and 
throughout our value chain, where we may work 
with suppliers operating on or near Indigenous lands. 
They are particularly vulnerable and face heightened 
risks of harm due to their cultural heritage and tra-
ditional land rights. Local communities can also be 
impacted negatively by living near extraction sites 
for minerals and metals used in renewable energy 
infrastructure, such as rare earth elements for wind 
­turbines and solar panels.
Material impacts
Negative impacts
Our material negative impacts on affected 
communities primarily take place in our supply chain. 
This includes negative health implications on local 
communities from air, water, and soil pollution from 
mining activities. Our suppliers’ activities can also 
potentially disrespect Indigenous Peoples' rights and 
disrupt their livelihoods. This can also happen within 
our own operations during the development and 
construction of our wind and solar farms, but we work 
to minimise these impacts, recognising the importance 
of protecting Indigenous rights. 
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In general, our material impacts are widespread and 
systemic, particularly in regions where we develop 
renewable energy projects, or where critical ­materials 
are sourced for the technologies we use. They arise 
as part of the transition to greener and renewable 
operations. This transition includes challenges asso-
ciated with innovation and restructuring, such as the 
increased demand for minerals and metals that are 
essential for renewable technologies. 
Positive impacts
We actively work to implement initiatives that 
foster community development in consultation with 
communities to best address local needs. Involving 
local communities in the planning and development 
phases of renewable energy projects allows us to 
address their concerns, align our activities with 
community interests, and promote shared benefits, 
such as job creation, economic development, and 
enhanced community well-being.
For instance, we provide education and upskilling 
programmes to develop competences in renewable 
energy technologies through community benefit funds. 
This enables community members to gain employ-
ment in our projects or the wider renewable energy 
industry, generating local jobs and fostering innovation. 
Additionally, we invest in community infrastructure to 
enhance public facilities and improve living standards, 
such as the Grimsby Youth Zone in the UK.
Material financial risks
We have identified three key material financial risks 
in our operations that arise from our interactions with 
and dependencies on affected communities. First, local 
community resistance to renewable energy projects – 
if not proactively addressed – may lead to delays in 
project timelines, increased costs from operational 
disruptions, potential legal costs from community 
lawsuits, and political or reputational risks. This risk is 
especially significant for communities in industrialised 
or rural areas that depend on the same natural 
resources, such as land or water, or infrastructure that 
our operations may impact. For instance, for wind or 
solar projects, disputes over reduced access to land 
or sea space or environmental concerns, including 
biodiversity impacts, can hinder progress.
Second, increasing requirements for local content and 
social impact in tender processes pose a risk, as meeting 
these expectations requires significant engagement 
and resources to ensure local communities benefit 
from our projects. 
Third, securing the free, prior, and informed consent 
(FPIC) of Indigenous communities presents a risk, 
particularly in regions like the US and Australia, 
where Indigenous Peoples maintain strong cultural 
and ownership ties to their lands. Failure to ensure 
consent through an adequate FPIC process – due 
to insufficient engagement by authorities, business 
partners, or previous stakeholders – can result in 
project delays, added costs, and strained relationships 
that may limit future opportunities in these areas.
Two of our material risks relate specifically to distinct 
groups rather than to all affected communities. 
First, not securing FPIC is a unique risk for Indigenous 
communities, particularly in regions such as the US and 
Australia. Secondly, in areas where local communities 
rely on the same natural resources – such as land or 
water – used by our operations, there is a heightened 
risk of local resistance. These risks are distinct to these 
specific groups, as their unique connections to the land 
and resources set them apart from broader affected 
communities. // 
// S3-1
Policies related to  
affected communities
Policy key contents
Our commitment to respect human rights and engage 
with communities is outlined in our ‘Global human rights 
policy’, ‘Stakeholder engagement ­policy’, ‘Just transition 
policy’, and ‘Code of conduct for business partners’.
Our ‘Global Human rights policy’ includes specific 
provisions to respect Indigenous land rights, cultures, 
and traditional practices, and it commits us to engaging 
with Indigenous communities early in the planning 
process of our renewable energy projects, ensuring 
their input is considered and incorporated into 
project design and implementation. This includes 
honouring the principles of FPIC as fundamental to 
our engagement strategy.
These policies are adopted to prevent, mitigate, 
and remediate potential negative impacts on local 
communities near our operations and value chain. 
The policies address key material impacts and risks 
related to Indigenous Peoples’ rights and local 
communities’ economic, social, and cultural rights. 
Policy scope
These policies are globally applicable, covering 
our operations and extending throughout our value 
chain, with a particular focus on communities directly 
affected by our activities. Certain aspects of the 
policies are especially relevant to specific regions. 
For instance, obtaining consent from indigenous 
communities is particularly significant in countries 
such as the US and Australia.
Policy governance
For information about the governance of our ‘Global 
human rights policy’, ‘Stakeholder engagement pol-
icy’, and ‘Just transition policy’, please see ESRS ‘S2 
Workers in the value chain’ on page 140. 
Alignment with international standards
We align our policies with relevant internationally 
recognised guidelines and standards relevant to 
Indigenous Peoples and other local stakeholders. 
For more information about the alignment of our 
policies with international standards, please see 
ESRS ‘S2 Workers in the value chain’ on page 140. 
Interests of key stakeholders
For more information about how we incorporate 
the perspectives of key stakeholders into our policies, 
please see ESRS ‘S2 Workers in the value chain’ on 
page 140. 
Availability of policies
For more information about the availability of our 
policies, please see ESRS ‘S2 Workers in the value 
chain’ on page 140. 
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Approach to respecting rights  
of affected communities
Overall, our ‘Code of conduct for business partners’ and 
policies on human rights and stakeholder engagement 
describe our approach to:
·	 respecting Indigenous Peoples, minorities, and other 
vulnerable groups in line with international law and 
standards as described in the UN Declaration on the 
Rights of Indigenous Peoples, including the principles 
of FPIC
·	 respecting land rights of legitimate tenure rights 
holders as set out in the UN Voluntary Guidelines 
on the Responsible Governance of Tenure of Land, 
Fisheries and Forests
·	 ensuring the safety and protection of defenders of 
human rights, the environment, or Indigenous Peoples
·	 mandating that our business partners take 
measures to protect environmental and human 
rights defenders and other interested parties who 
lawfully exercise their freedom of speech.
We engage in early and ongoing dialogue with local 
communities and Indigenous Peoples by hosting e.g. 
consultation sessions, attending community meetings, 
and conducting surveys. This approach helps us 
gather insights to better understand their external 
perspectives on our projects and the local impacts. 
We aim to build an approach based on transparent 
communication, co-creation of mitigation measures, 
and on ensuring that feedback is integrated into 
project planning and execution.
Through our policies, we commit to provide and 
enable remedies for potential human rights impacts 
by implementing accessible grievance mechanisms 
that allow affected individuals and communities 
to report concerns or violations, ensuring these 
channels are user-friendly, confidential, and culturally 
appropriate. Upon receiving a grievance, we must 
promptly investigate the issue and engage with the 
affected parties to gather information and consider 
their perspectives.
If human rights impacts are identified, we strive to take 
immediate action and provide appropriate remedies, 
which may include compensation, restoration of rights, 
or preventive measures. We also invest in training of our 
employees and business partners to raise awareness 
of human rights issues, e.g. related to bullying and 
discrimination. // 
// S3-1 and S3-4
We are currently not able to fully assess our full  
value chain for instances of non-respect for these 
principles, besides the indications from our external 
risk ratings and controversy reports, which have not 
identified any material incidents. We aim to maintain 
transparency by documenting any reported cases 
that come to our attention related to human rights 
impacts involving affected communities, whether 
in our operations or within our upstream and down-
stream value chain. // 
// S3-2
Processes for engaging with affected 
communities about impacts
Engagement with affected communities
We aim to go above the minimum regulatory require-
ments regarding engagement with affected communi-
ties, as we believe these engagements are essential for 
securing and sustaining the social license necessary for 
advancing renewable energy development. To ensure 
that our decisions reflect the perspectives of affected 
communities, we engage proactively with community 
stakeholders and local organisations and seek ongo-
ing dialogue with them, ensuring their voices are heard 
and considered in our decision-­making processes. This 
approach is being integrated across our business func-
tions, markets, and asset projects.  
The outcome of this engagement directly informs our 
strategies for identifying, assessing, and addressing 
actual and potential impacts on affected communities. 
The collaboration also helps us to identify opportunities 
for community investment and support, ensuring that 
the benefits of our projects are aligned with local 
communities’ interests and needs.
It is our responsibility to ensure that affected communities, 
whether directly or indirectly impacted, are considered, 
and that their voices are integrated into the project 
planning. Depending on the specific context of a 
project, we engage either directly with affected 
communities, their legitimate representatives, or 
credible proxies, such as local NGOs or government 
representatives, to gain insights into their needs and 
concerns. 
Engagement occurs at various frequencies and at 
various stages of a project. Our aim is to initiate early 
dialogue during the planning phase to gather the insights 
and concerns of the affected communities. This takes 
place through e.g. our community liaison officers and 
project staff employing different types of interaction, 
such as public meetings and consultations to facilitate 
open communication. When we employ community 
liaison officers in our projects, they often come from the 
communities we engage with, helping us gain a profound 
understanding of the local contexts. We continue this 
dialogue through the development, construction, and 
operation phases of our renewable energy assets. 
We see value in gaining insights into the perspectives 
of vulnerable or marginalised communities, including 
environmental justice communities, to ensure that 
their needs and concerns are appropriately addressed 
in our projects. We have actively engaged with 
Indigenous communities in connection with projects 
both in the US and Australia. Our goal is to secure FPIC 
for projects impacting Indigenous lands or territories, 
respecting their rights and their cultural, intellectual, 
religious, and spiritual property.
Effectiveness of engagement activities
The responsibility for ensuring effective community 
engagement lies with the local project managers and 
directors, who oversee the local engagement processes 
and ensure that community feedback informs our 
project decisions appropriately. Going forward, we will 
work to improve our global governance and oversight 
by implementing full accountability centrally.
At present, we are not fully able to effectively assess 
our community engagement efforts; however, 
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through regular follow-up meetings with community 
representatives, we are able to collect feedback on the 
processes. Where applicable, we document agreements 
and outcomes resulting from these engagements. // 
// S3-3 and S3-4
Remedy of negative impacts  
and channels to raise concerns
Approach and processes for providing remedy
Our approach to managing our negative impacts on 
affected communities and our processes for identifying 
what is needed and appropriate to respond to these 
impacts help us to avoid, mitigate, and remedy negative 
impacts while creating lasting positive impacts for 
these communities.
To effectively remediate material negative impacts, 
including those that may affect Indigenous rights or 
disrupt local livelihoods within our value chain or oper-
ations, we engage directly with impacted communi-
ties, listen to their concerns, and provide appropriate 
remedies to support their well-being and resilience. 
We continuously work to strengthen our processes for 
­providing or contributing to appropriate remediation 
to affected communities where we have identified that 
we have caused or contributed to a negative impact. // 
// S3-3
Channels for affected communities to raise concern
To facilitate our ability to address negative impacts on 
affected communities, we often employ community 
liaison officers who engage with local stakeholders 
to gather feedback and address grievances related 
to our projects, particularly during the planning 
and execution phases. We use various methods and 
channels to collect community input, including hosting 
informational town halls and open forums, telephone 
lines, emails, and social media as well as designated 
drop-off boxes in locations to allow residents to submit 
concerns anonymously. 
Additionally, our Whistleblower Hotline enables 
individuals in affected communities to report any 
­inappropriate or illegal conduct confidentially. 
Furthermore, we actively encourage our business 
partners and contractors to adopt similar channels 
for community engagement through our ‘Code of 
conduct for business partners’ and associated due 
diligence processes, ensuring that our collective 
operations support the needs and concerns of the 
communities we impact. 
Monitoring and effectiveness of grievance channels
We work closely with materially affected communities 
to monitor issues raised and addressed while also 
assessing the effectiveness of these grievance 
channels. We currently assess the effectiveness of our 
mechanisms and communication channels through 
our ongoing dialogue with local stakeholders.
We want to further improve our process of assessing 
the effectiveness of these efforts and are working to 
establish a global methodology for aggregating com-
munity feedback and grievance management. This will 
allow us to systematically track and monitor the effec-
tiveness of our efforts. Specifically, we aim to imple-
ment a standardised process for receiving, addressing, 
resolving, and providing remedies to affected commu-
nities when necessary. We plan to pilot a grievance 
reporting channel for a select supplier to collect 
­workers’ grievances via a digital solution by 2025. 
Awareness and trust in our grievance mechanisms
As part of our ongoing commitment to ­transparency 
and accountability, we assess whether affected 
communities are aware of and trust the grievance 
­mechanisms available to them through ongoing com-
munity engagements. However, our assessments in 
this area are still a work in progress. While we can 
evaluate communities’ awareness during engage-
ments, we do not yet have sufficient ­comprehensive 
assessments to fully measure their trust in these 
channels. We are actively working to strengthen our 
approach to ensure greater transparency regarding 
affected communities’ grievances.
Further to this, it is our aim to ensure that our whistle-
blower hotline is widely available to affected commu-
nities, although we cannot be certain that all affected 
communities are aware of this channel and know how 
to access it. However, we ensure individuals who use 
these grievance mechanisms are protected from retal-
iation, and that all whistleblower reports are handled 
confidentially, in line with our ‘Good business conduct 
policy’ and ‘Whistleblower policy’. For more informa-
tion on how we protect whistleblowers against retali-
ation, see ESRS ‘G1 Business conduct’. // 
// S3-4
Actions related to affected communities
We are working to prevent, mitigate, and ­remediate 
the actual and potential negative impacts on affected 
communities and Indigenous Peoples. Our approach 
includes a variety of initiatives aimed at managing 
impacts and risks and creating positive outcomes, 
ensuring that we address both the economic, social, 
and cultural rights of local communities as well as 
the rights of Indigenous Peoples.
Key actions
Workforce development training programme
Local people and businesses have a vital role to play in 
the growth of the renewable energy industry. In the US, 
we developed a workforce development programme 
that has provided 335 union workers in New York, 
Rhode Island, and Connecticut with the credentials 
necessary to work offshore. 
The training programme finalised in 2024 and was 
delivered in part at the National Offshore Wind Training 
Center (NOWTC), to which we have committed to give a 
USD 10 million founding grant. The programme includes 
a three-part medical evaluation, helicopter underwater 
escape training, and Global Wind Organisation Basic 
Safety Training, each of which are critical for workers 
to safely carry out work in the offshore environment. 
Providing worker safety training is part of Ørsted’s 
first-of-its-kind National Offshore Wind Agreement 
with North America’s Building Trades Unions, and the 
programme shows our ongoing efforts to equip local 
workers with key skills to pursue careers in New York’s 
growing offshore wind industry. 
Community benefit funds
To create a positive impact in local communities, we 
support initiatives that generate local employment, 
provide educational opportunities, and drive enhance-
ments to public infrastructure. 
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One of our major accomplishments this year was 
launching the Hornsea 3 Community Fund to ­support 
local groups and organisations in North Norfolk and 
parts of Suffolk in the UK who work with ­community 
facilities or activities, skills and education, or environ­
mental projects. In September 2024, the fund announced 
its first round of awards, as a total of GBP 249,000 
was distributed to 21 local organisations selected for 
their potential to strengthen community well-being 
and resilience.
These projects include educational initiatives to 
enhance skills, environmental conservation efforts, 
and programmes aimed at improving public health 
and social well-being. Among the funded projects are 
community centres, youth initiatives, and environmental 
programmes focused on boosting local biodiversity. 
The fund is made available as part of our project to 
create the world’s single largest offshore wind farm, 
Hornsea 3, and will award a total of GBP 7 million 
over a targeted ten-year period. 
Our efforts with the Choczewo Community Benefit 
Fund have also progressed, as we moved into the third 
round of awards, aimed at establishing a sustainable 
community investment model to support local groups 
and organisations in the Choczewo Municipality in 
Poland. The funds are granted to projects across 
various areas, including community development, 
safety, local councils, cultural heritage, environmental 
protection, youth engagement, local well-being, 
and infrastructure. The fund is connected to the 
development of our offshore wind farms in the Baltic 
Sea, Baltica 2 and 3, and through it, we will award 
a total of PLN 1 million in grants over three years 
(2023-2025).
Other actions
Global guidelines and grievance management system
In 2024, we laid the foundation for many of the initia-
tives currently in progress for managing our negative 
impact and risks associated with failing to respect 
Indigenous Peoples’ rights and ensuring FPIC in our own 
operations. We began by developing a global guidance 
for social and human rights impact assessments, which 
will allow us to proactively manage these risks and 
impacts before the construction of new projects.
Furthermore, we finalised our internal guidelines for 
free, prior, and informed consent (FPIC), a framework 
designed to ensure respectful and transparent engage-
ment with Indigenous communities. These guidelines 
guarantee that we secure consent from Indigenous 
communities before initiating projects that might 
impact their lands or cultural heritage. 
Going forward, we will be conducting specific assess­
ments on how projects might affect Indigenous 
communities. This will involve engaging with these 
communities early in the planning phase to ensure that 
their needs and concerns are adequately addressed.
We also initiated the creation of a company-wide meth-
odology for systematically addressing community griev-
ances. This system aims to learn from previous incidents 
to improve future community engagements. By 2025, 
we aim to fully implement both the global guidance 
for social and human rights impact assessments and 
the comprehensive grievance management system. 
Initiatives to support Indigenous communities
In 2024, we took several steps to address negative 
impacts related to Indigenous Peoples’ rights and 
livelihoods near offshore wind projects in the US. Local 
Indigenous communities have raised concerns about 
our projects’ effects on cultural viewsheds and marine 
wildlife. To mitigate their concerns, we have provided 
local habitat restorations, granted scholarships 
for local Indigenous youth, and supported cultural 
projects in local parks and museums. To mitigate the 
viewshed impact, we implemented a lighting system 
that minimises light pollution. 
Enhancing local content in tender processes
To address the risk of potential local resistance to 
renewable energy projects, we strengthened our 
strategy for early and transparent engagement with 
local communities. This included enhancing local 
content in our tender processes to align more closely 
with community needs and regulatory expectations.
Pilot initiatives measuring effectiveness of  
our community and biodiversity efforts
Additionally, we completed three pilot initiatives 
during the year to measure the effectiveness of our 
community and biodiversity efforts in delivering 
local social value. These pilots focused on evaluating 
social returns on investment, creating natural, human, 
and social capital, and assessing overall impacts on 
community well-being indicators. Also, the knowledge 
built from these initiatives will constitute the building 
blocks for our future ability to monitor how effectively 
our policies and actions address our material impacts 
and risks related to affected communities. 
Our goal is to further refine how we measure the 
social, economic, and cultural impacts of our projects, 
thereby improving the allocation of investments to 
areas that provide the greatest benefit. Going forward, 
we will also work to fully perform impact assessments 
that incorporate local community feedback. 
Minerals and metals supply chain initiatives
Finally, the potential negative impacts on community 
health and Indigenous Peoples' rights identified in our 
value chain are highly related to our minerals and 
metals supply chain. For more information on how we 
address impacts related to our minerals and metals 
supply chain, see ESRS ‘S2 Workers in the value chain’ 
under ‘Actions’. // 
// S3-5
Targets related to affected communities
Currently, we have not set time-bound and outcome-­
oriented targets that meet the criteria for effectively 
reducing negative impacts, advancing positive impacts, 
or managing material risks and opportunities related 
to affected communities. However, we recognise the 
importance of establishing robust targets to drive 
meaningful progress in this area.
We are working to establish a clear community 
engagement process that will involve engaging directly 
with the affected communities, their representatives, 
or credible proxies. In the meantime, we are focused 
on gathering data and assessing current practices to 
ensure that future targets are effective and aligned 
with stakeholder needs. We are not yet fully able 
to monitor how effectively our policies and actions 
address our material sustainability-related impacts, 
risks, and opportunities for affected communities. // 
151
Sustainability statements  |  Social
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|  ESRS S3

Governance
153	
ESRS G1	 Business conduct
→
Foundations are one of the largest sources of carbon emissions 
in an offshore wind farm’s life cycle. In March 2024, we signed 
a memorandum of understanding with German steel producer 
Dillinger, securing access to the company’s first production of 
lower-emissions heavy plate steel for offshore wind foundations. 
In return, we offer our support to accelerate investment in the 
plant used to produce it.
152
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ØRSTED ANNUAL REPORT 2024

Own operations
 Positive impact 
 Negative impact 
 Risk 
 Opportunity
Our material impacts, risks, and opportunities (IROs)
G1 Business conduct
Constructive political engagement 
through lobbying
Positive impact 
153
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|  ESRS G1

// ESRS 2, SBM-3
Our material impacts, risks,  
and opportunities (IROs)
In the table below is a description of our material  
IRO related to business conduct, including how we 
manage it. 
The positive impact is linked to our strategic decision  
to build out our renewable capacity and operations.  
It occurs through our lobbying activities that primarily 
concern regulation of the energy sector with a view  
to accelerating the deployment of renewable energy  
in a way that underpins urgent climate action, security 
of supply, competitiveness, and nature enhancement. 
Material IRO description
How do we manage the IRO?
 
Constructive political engagement through lobbying
Positive impact (own operations)
This positive impact relates to our lobbying activities and other 
means of political influence that enable us to contribute to the 
development of policies and legislation relating to the build-out  
of renewable energy and the ambition of industry-wide 
decarbonisation (climate advocacy). 
We positively impact the environment and society through our 
lobbying activities that promote the accelerated build-out of 
renewable energy, which is a key technology needed to decarbonise 
society and succeed in limiting global warming to 1.5 °C.
Our global Regulatory & Public Affairs team 
and regional teams perform constructive 
political engagement through lobbying and 
climate advocacy efforts.
Political engagement and lobbying activities
At Ørsted, our approach to business conduct is 
steered by integrity, one of our key guiding principles. 
We commit to transparent and ethical practices 
across our business and operate in compliance with 
laws and regulations, fostering trust and respect 
among our employees and other stakeholders.
We have several key policies to support our corporate 
culture, including our ‘Good business conduct (GBC) 
policy’ and ‘Code of conduct for business partners’, 
which present the rules to be adhered to by our own 
employees and business partners. 
Our double materiality assessment (DMA) identified 
several impacts and financial risks related to business 
conduct. A positive impact related to our political 
influence and lobbying activities was assessed as 
material. However, due to the preventative measures 
that we have in place at Ørsted, risks related to 
corruption and bribery were not assessed as material. 
The following section describes our business conduct 
activities and risk mitigation strategies, which are 
integral to our business practices and fundamental 
to the way we work at Ørsted. 
Business conduct matters
Corporate culture
We are committed to fostering a robust corporate 
culture. This is achieved through a strong leadership 
commitment, targeted communication, and periodic 
global awareness campaigns that make business 
ethics and compliance a visible priority within the 
organisation. 
Good business conduct (GBC) policy
This commitment is reflected in our ‘Good business 
conduct (GBC) policy’. It provides clear guidance on 
the expected behaviour of all employees within the 
company and their interactions with stakeholders and 
business partners, and it addresses key areas such as 
bribery and corruption, facilitation payments, sponsor­
ships and donations, political contributions, gifts and 
entertainment, and conflicts of interest.
The policy is overseen by our Chief Compliance Officer, 
our Compliance Officer for good business conduct, and 
our Compliance Committee, chaired by our CEO. It is avail-
able for all employees, and we have a broad communica-
tion strategy to keep employees informed and engaged in 
upholding our standards of good business conduct, includ-
ing regular communication when the policy is updated. 
Anti-corruption and anti-bribery 
We have a zero-tolerance policy for all forms of 
bribery and corruption. To ensure adherence to this, 
we have several measures in place to enable us to 
successfully prevent, detect, and address allegations 
or incidents of corruption and bribery. We effectively 
identify and manage these risks within our operations 
through a thorough due diligence process where we 
conduct know-your-counterparty (KYC) screenings.
This process evaluates suppliers and other business 
partners for compliance with anti-bribery and 
-corruption regulations, sanctions, government 
watchlists, and adverse media reports. For high-risk 
engagements, such as mergers, acquisitions, and 
joint ventures, we conduct enhanced due diligence, 
assessing additional factors, including sustainability, 
creditworthiness, and brand integrity.
154
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|  ESRS G1

Furthermore, we monitor all activities related to 
sponsorships, donations, gifts, and entertainment 
to ensure strict compliance with our GBC policy 
and only support initiatives with sponsorships and 
donations that are subject to high transparency and 
accountability and are aligned with our overall vision. 
Our Internal Audit team conducts regular audits to 
ensure the effectiveness of our GBC policy and that all 
allegations or incidents of corruption and bribery are 
investigated. In 2024, we experienced no convictions 
and no fines for violation of anti-corruption and anti-
bribery laws.
Employees who fail to adhere to our GBC policy may 
face disciplinary actions, including immediate termi-
nation of employment. It may also result in legal sanc-
tions and reporting to the police. We work proactively 
with people leaders to clarify policies and prevent 
serious non-compliance issues. 
At-risk functions 
In our organisation, certain functions are more suscep-
tible to corruption and bribery due to their involvement 
in critical financial transactions, interactions with key 
business partners and public officials, and geographic 
location. There is also a higher risk when entering new 
markets, particularly in countries with higher corruption 
risks and lower levels of transparency. To address this, 
our compliance monitoring processes ensure the high-
est standards of integrity and adherence to regulations.
Business conduct training 
All new employees are required to participate in an 
e-learning course on business conduct as part of their 
onboarding process, and the course must be repeated 
by all employees every second year. The ­training 
­covers a wide range of topics, including anti-­corruption, 
anti-bribery, and ethical guidelines, and addresses vari-
ous scenarios and ethical dilemmas.
Our Business Ethics Compliance team oversees the 
completion of the e-learning and conducts additional 
ad-hoc training for at-risk functions. The training 
aims to translate our zero tolerance towards bribery, 
corruption, and inappropriate business conduct 
into everyday work and ensure employees are well 
equipped to understand what good business conduct 
means and how to comply with our GBC policy. 
Whistleblowers
Our commitment to business integrity and transparency 
is upheld through the Whistleblower Hotline, where 
both employees and external stakeholders can raise 
concerns about unethical behaviour or wrongdoings. 
It is used for reporting and handling all investigations 
and for liaising with affected areas and stakeholders. 
For more details on the handling of whistleblower 
reports and management of the whistleblower scheme, 
please see the ‘Management’s review’, page 49. 
We outline our commitment to protecting whistle­
blowers against retaliation in our ‘Good business 
conduct ­policy’ and our ‘Whistleblower policy’. Our 
system complies with applicable laws and regulations 
designed to ­protect the rights and freedom of persons 
with respect to the reporting of cases and the asso-
ciated processing of personal data. Whistleblowers 
who choose to remain anonymous cannot be tracked 
or identified.
// G1, IRO-1
Processes to identify and  
assess material impacts, risks,  
and opportunities 
The starting point of our DMA for ESRS ‘G1 Business 
conduct’ identified and assessed several impacts 
and financial risks related to business conduct that 
we recognise are related to our global operations. 
Through our DMA, one positive impact related to our 
political influence and lobbying activities was assessed 
as material.
Our DMA also identified and assessed bribery and 
corruption risks related to our own conduct regarding 
misuse of influence, asset misappropriation, and 
financial reporting fraud as well as bribery and 
corruption risks related to our suppliers and other 
business partners. However, due to the preventative 
measures that we have in place at Ørsted, these 
risks were not assessed as material. We mitigate 
our business conduct-related risks to an acceptable 
level through risk management, as described in the 
text above.  //
// G1-5
Political influence and 
lobbying activities 
To promote the accelerated build-out of renewable 
energy and the goals of the Paris Agreement, our 
global and local Regulatory & Public Affairs teams 
perform constructive political engagement through 
lobbying and advocacy efforts. Our Chief Commercial 
Officer (CCO) is accountable for these activities, with 
day-to-day oversight being performed by our ­Senior 
Vice President of Global Stakeholder Relations and 
Vice President of Regulatory & Public Affairs. We are 
registered in the EU Transparency Register, and our 
identification number is 870817015429-80. 
Our lobbying activities primarily concern ­regulation 
of the energy sector with a view to accelerating 
the deployment of renewable energy in a way that 
underpins urgent climate action, security of supply, 
competitiveness, and nature enhancement. Our main 
positions on these topics include support for climate 
policy agenda goals, namely limiting global heating 
to 1.5 ºC as per the Paris Agreement and supporting 
the expansion of renewables and the phase-out of 
fossil fuels.
Our lobbying activities interact with our material IROs 
related to climate change mitigation, both by helping 
to mitigate our climate-related transition risks and 
by helping to leverage our material opportunity and 
deliver on our positive impact related to renewable 
energy deployment.
Within Ørsted A/S, there is one member of our 
Board of Directors who currently holds a position 
in public administration. No other members of the 
administrative, management, or supervisory bodies 
currently hold a position in public administration or 
have done so for the past two years.  //
155
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ØRSTED ANNUAL REPORT 2024
|  ESRS G1

§  Accounting policies 
Political influence and lobbying activities 
The data covers financial contributions made 
either directly or indirectly to beneficiaries 
that are related to our material impacts, risks, 
and opportunities, which primarily concern 
climate-­related advocacy. External expenses 
are included. Internal expenses, such as salary 
for employees working within this area of 
expertise, are excluded. Our policy does not 
allow for in-kind political contributions, and 
consequently this is not relevant to report. 
The data is gathered from invoices through 
our procurement spend data. A threshold of 
DKK 100,000 has been applied, i.e. smaller 
contributions have not been reported.
Whistleblower cases
Ørsted’s Whistleblower Hotline is available for 
internal and external reporting of suspected 
cases of inappropriate or illegal behaviour. 
Only cases which are closed during the reporting 
year, and which have been reported to the 
Audit & Risk Committee as fully or partially 
substantiated, are reported. Substaniated cases 
are those that provide evidence to support or 
prove the truth of the allegation raised.
 
In 2024, our main advocacy activities took place in 
Europe and the US. We contributed to the European 
industry associations WindEurope and Green Power 
Denmark, both significant industry representatives for 
the renewable energy sector towards policymakers 
who are important in our climate advocacy. Outside 
Denmark, the main advocacy activities for the wind 
energy sector took place through contributions to 
industry associations in the UK, Germany, and the 
Netherlands. In the US, we primarily contributed to the 
trade association American Clean Power. In addition, 
our political influence and advocacy activities in the 
US took place through several lobbying firms in the 
different states where we promote the accelerated 
build-out of renewable energy.
Political influence and lobbying activities 
Political influence, DKK million
2024
The US
23
Political institutions
-
Lobbying firms
12
NGOs and advocacy groups
3
Trade associations and industry organisations
8
Think tanks
-
Europe
21
Political institutions
-
Lobbying firms
3
NGOs and advocacy groups
-
Trade associations and industry organisations
17
Think tanks
1
APAC
0
Global
2
Political institutions
-
Lobbying firms
1
NGOs and advocacy groups
1
Trade associations and industry organisations
0
Think tanks
-
Total
46
// G1-5, 29(b)
In 2024, 14 substantiated cases of inappropriate or 
unlawful behaviour were reported through our whistle­
blower scheme. Ten cases related to good business 
­conduct policy violations, while three cases concerned 
the workplace environment, and one case was classified 
as ‘other’. None of the reported cases were critical to our 
business, nor caused adjustments to our financial results. 
Additionally, no cases required reporting to the police.
Whistleblower cases
Whistleblower cases, number
2024
2023
∆
Substantiated whistleblower cases
14
18
(4)
Cases transferred to the police
0
1
(1)
Entity spec.
156
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ØRSTED ANNUAL REPORT 2024
|  ESRS G1

Consolidated  
financial  
statements
1 January – 31 December 2024
157
Financial statements
ØRSTED ANNUAL REPORT 2024

Notes
1.	
Basis of reporting
1.1	
Significant changes and events ��������������������������������������������������� 163
1.2	
Basis of preparation ��������������������������������������������������������������������������� 164
2.	
Return on capital employed
2.1	
Segment information ������������������������������������������������������������������������� 168
2.2	
Revenue ������������������������������������������������������������������������������������������������������ 171
2.3	
Cost of sales  �������������������������������������������������������������������������������������������� 173
2.4	
Government grants ������������������������������������������������������������������������������ 174
2.5	
Research and development expenditures ������������������������������ 175
2.6	
Other operating income and expenses ������������������������������������ 176
2.7	
Employee costs �������������������������������������������������������������������������������������� 177
2.8	
Share-based payment ������������������������������������������������������������������������ 178
3.	
Capital employed
3.1	
Intangible assets, and property, plant, and equipment���� 181
3.2	
Impairments ��������������������������������������������������������������������������������������������� 185
3.3	
Inventories ����������������������������������������������������������������������������������������������� 188
3.4	
Contract assets and liabilities �������������������������������������������������������� 189
3.5	
Trade receivables ���������������������������������������������������������������������������������� 190
3.6	
Supply chain finance ���������������������������������������������������������������������������� 190
3.7	
Other receivables and other payables �������������������������������������� 191
3.8	
Tax equity liabilities ������������������������������������������������������������������������������ 192
3.9	
Provisions and contingent liabilities �������������������������������������������� 193
3.10	 Non-controlling interests ������������������������������������������������������������������ 196
4.	
Tax
4.1	
Approach to taxes �������������������������������������������������������������������������������� 198
4.2	
Tax on profit (loss) for the year ������������������������������������������������������ 201
4.3	
Deferred tax ��������������������������������������������������������������������������������������������� 203
4.4	
Our tax footprint ����������������������������������������������������������������������������������� 205
5.	
Capital structure
5.1	
Interest-bearing net debt and FFO ���������������������������������������������� 207
5.2	
Equity ������������������������������������������������������������������������������������������������������������ 210
5.3	
Hybrid capital ������������������������������������������������������������������������������������������ 212
5.4	
Liquidity reserve ����������������������������������������������������������������������������������� 213
5.5	
Maturity analysis of financial liabilities ����������������������������������� 214
5.6	
Financial income and expenses ��������������������������������������������������� 215
6.	
Risk management
6.1	
Risk framework �������������������������������������������������������������������������������������� 217
6.2	
Energy price risks ������������������������������������������������������������������������������������ 218
6.3	
Inflation and interest rate risks ������������������������������������������������������ 221
6.4	
Currency risks ������������������������������������������������������������������������������������������ 224
6.5	
Credit risks ������������������������������������������������������������������������������������������������ 227
6.6	
Fair value measurement �������������������������������������������������������������������� 228
6.7	
Energy trading portfolio ������������������������������������������������������������������� 230
6.8	
Categories of financial instruments �������������������������������������������� 231
6.9	
Sensitivity analysis of financial instruments �������������������������� 232
7.	
Other notes
7.1	
Related-party transactions ����������������������������������������������������������� 233
7.2	
Auditor’s fees ������������������������������������������������������������������������������������������� 234
7.3	
Non-IFRS financial measures ��������������������������������������������������������� 235
7.4	
Company overview ����������������������������������������������������������������������������� 237
Contents 
Financial statements
Consolidated financial statements
Consolidated statement of income �������������������������������������������������������� 159
Consolidated statement of comprehensive income .�.�.�.�.�.�.�.�.�.�.� 159
Consolidated statement of financial position .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.� 160
Consolidated statement of shareholders’ equity .�.�.�.�.�.�.�.�.�.�.�.�.�.   161
Consolidated statement of cash flows .�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.�.   162
158
Financial statements
ØRSTED ANNUAL REPORT 2024

Consolidated statement of income
1 January – 31 December
Note
DKKm
2024
2023
2.2, 2.4
Revenue
71,034
79,255
2.3
Cost of sales
(35,963)
(46,624)
Other external expenses
(8,697)
(7,406)
2.7, 2.8
Employee costs
(6,532)
(6,374)
Share of profit (loss) in associates and joint ventures
(68)
(55)
2.6
Other operating income
5,298
10,329
2.6
Other operating expenses
6,887
(10,408)
Operating profit (loss) before depreciation, amortisation, and impairment losses (EBITDA)
31,959
18,717
3.1
Amortisation and depreciation on intangible assets, and property, plant, and equipment
(10,225)
(9,795)
3.1, 3.2
Impairment losses on intangible assets, and property, plant, and equipment
(15,563)
(26,775)
Operating profit (loss) (EBIT)
6,171
(17,853)
Gain (loss) on divestment of enterprises 
(11)
234
Share of profit (loss) in associates and joint ventures
37
36
5.6
Financial income
8,590
12,379
5.6
Financial expenses
(12,181)
(13,822)
Profit (loss) before tax
2,606
(19,026)
4.2
Tax on profit (loss) for the year 
(2,590)
(1,156)
Profit (loss) for the year
16
(20,182)
Profit (loss) for the year is attributable to
Shareholders in Ørsted A/S
(923)
(21,059)
Interests and costs, hybrid capital owners of Ørsted A/S 
717
553
Non-controlling interests 
222
324
5.2
Earnings per share (DKK)
(2.2)
(50.1)
5.2
Diluted earnings per share (DKK)
(2.2)
(50.1)
Consolidated statement of comprehensive income
1 January – 31 December
Note
DKKm
2024
2023
Profit (loss) for the year
16
(20,182)
Other comprehensive income
  Cash flow hedging
6
  Value adjustments for the year
3,426
25,017
5.2
  Value adjustments transferred to income statement
(1,269)
(4,143)
  Exchange rate adjustments
  Exchange rate adjustments relating to net investments in foreign enterprises
6,041
548
6.4
  Value adjustment of net investment hedges
(3,698)
(328)
5.2
  Value adjustments and hedges transferred to income statement
12
(295)
  Tax
  Tax on hedging instruments
276
(4,576)
  Tax on exchange rate adjustments
131
10
  Other
  Share of other comprehensive income from associated companies, after tax
5
6
Other comprehensive income
4,924
16,239
Total comprehensive income
4,940
(3,943)
Comprehensive income for the year is attributable to
Shareholders in Ørsted A/S
3,752
(4,837)
Interest payments and costs, hybrid capital owners of Ørsted A/S 
717
553
Non-controlling interests 
471
341
Total comprehensive income
4,940
(3,943)
Other comprehensive income
All items in ‘Other comprehensive income’ may be recycled to the 
income statement.
Cash flow hedging
Value adjustments for the year for cash flow hedging amounting 
to DKK 3,426 million mainly consist of gains related to the hedging 
of power, partly countered by losses related to the hedging of 
GBP. In 2023, gains related to the hedging of power was primarily 
attributable to value adjustments amounting to DKK 25,017 million. 
The gain of DKK 1,269 million transferred to the income statement 
mainly consists of gains related to the hedging of power. 
Exchange rate adjustments
In 2024, foreign exchange gains relating to net investments in 
foreign enterprises amounting to DKK 6,041 million were primarily 
attributable to an increase in the USD and GBP exchange rate of  
6.7 % and 4.8 %, respectively. A part of the net investment was  
hedged, resulting in losses of DKK 3,698 million.
159
Financial statements
ØRSTED ANNUAL REPORT 2024

Consolidated statement of financial position
31 December
Note
Assets
DKKm
2024
2023
3.1
Intangible assets
2,611
3,426
3.1
Land and buildings
7,977
7,777
3.1
Production assets
138,477
121,643
3.1
Fixtures and fittings, tools, and equipment
2,122
2,042
3.1
Property, plant, and equipment under construction
53,118
48,307
3.1
Property, plant, and equipment
201,694
179,769
Investments in associates and joint ventures
870
960
Receivables from associates and joint ventures
200
77
Other securities and equity investments
344
167
6
Derivatives
960
1,356
4.3
Deferred tax
9,250
8,192
3.7
Other receivables
3,218
3,134
Other non-current assets
14,842
13,886
Non-current assets
219,147
197,081
3.3
Inventories
17,448
10,539
6
Derivatives
4,617
10,473
3.4
Contract assets
324
802
3.5
Trade receivables
9,045
11,107
3.7
Other receivables
9,936
10,530
Receivables from associates and joint ventures
41
74
Income tax
570
483
5.4
Securities
14,532
29,902
5.4
Cash
23,126
10,145
Current assets
79,639
84,055
Assets
298,786
281,136
Note
Equity and liabilities
DKKm
2024
2023
5.2
Share capital
4,204
4,204
5.2
Reserves
(5,164)
(10,251)
Retained earnings
63,098
62,829
5.2
Equity attributable to shareholders in Ørsted A/S
62,138
56,782
5.3
Hybrid capital
20,955
19,103
3.10
Non-controlling interests
10,391
1,906
Equity
93,484
77,791
4.3
Deferred tax
2,433
3,439
3.9
Provisions
17,735
16,908
5.5
Lease liabilities
8,076
7,618
5.1
Bond and bank debt
83,607
79,236
6
Derivatives
8,882
13,763
3.4
Contract liabilities
8,834
3,297
3.8
Tax equity liabilities
16,158
13,610
3.7
Other payables
5,825
6,273
Non-current liabilities
151,550
144,144
3.9
Provisions
2,800
15,955
5.5
Lease liabilities
834
808
5.1
Bond and bank debt
4,101
384
6
Derivatives
7,009
8,449
3.4
Contract liabilities
2,578
2,785
Trade payables
20,827
14,915
3.8
Tax equity liabilities
4,320
3,397
3.7
Other payables
7,106
6,225
Income tax
4,177
6,283
Current liabilities
53,752
59,201
Liabilities
205,302
203,345
Equity and liabilities
298,786
281,136
160
Financial statements
ØRSTED ANNUAL REPORT 2024

Consolidated statement of shareholders’ equity
1 January – 31 December
DKKm
2024
2023
Share 
capital
Reserves 1
Retained 
earnings
Proposed 
dividends
Shareholders 
in Ørsted A/S 
Hybrid 
capital
Non- 
controlling
interests
Total 
Group
Share 
capital
Reserves 1
Retained 
earnings
Proposed 
dividends
Shareholders 
in Ørsted A/S 
Hybrid 
capital
Non- 
controlling
interests
Total 
Group
Equity at 1 January
4,204
(10,251)
62,829
-
56,782
19,103
1,906
77,791
4,204
(26,467)
88,331
5,675
71,743
19,793
3,996
95,532
Comprehensive income for the year:
Profit (loss) for the year
-
-
(923)
-
(923)
717
222
16
-
-
(21,059)
-
(21,059)
553
324
(20,182)
Other comprehensive income:
Cash flow hedging
-
2,129
-
-
2,129
-
28
2,157
-
20,874
-
-
20,874
-
-
20,874
Exchange rate adjustments
-
2,181
-
-
2,181
-
174
2,355
-
(92)
-
-
(92)
-
17
(75)
Tax on other comprehensive income
-
360
-
-
360
-
47
407
-
(4,566)
-
-
(4,566)
-
-
(4,566)
Share of other comprehensive income of 
associated companies, after tax
-
-
5
-
5
-
-
5
-
-
6
-
6
-
-
6
Total comprehensive income
-
4,670
(918)
-
3,752
717
471
4,940
-
16,216
(21,053)
-
(4,837)
553
341
(3,943)
Cash flow hedging of property, plant, and 
equipment under construction
-
(181)
-
-
(181)
-
-
(181)
-
-
-
-
-
-
-
-
Coupon payments, hybrid capital
-
-
-
-
-
(687)
-
(687)
-
-
-
-
-
(546)
-
(546)
Tax
-
40
-
-
40
9
-
49
-
-
-
-
-
2
-
2
Additions, hybrid capital
-
-
-
-
-
5,520
-
5,520
-
-
-
-
-
-
-
-
Disposals, hybrid capital
-
-
-
-
-
(3,707)
-
(3,707)
-
-
-
-
-
(699)
-
(699)
Dividends paid
-
-
-
-
-
-
(369)
(369)
-
-
2
(5,675)
(5,673)
-
(413)
(6,086)
Additions, non-controlling interests
-
558
1,143
-
1,701
-
8,383
10,084
-
-
-
-
-
-
537
537
Disposals, non-controlling interests
-
-
-
-
-
-
-
-
-
-
(4,477)
-
(4,477)
-
(2,555)
(7,032)
Other changes
-
-
44
-
44
-
-
44
-
-
26
-
26
-
-
26
Equity at 31 December
4,204
(5,164)
63,098
-
62,138
20,955
10,391
93,484
4,204
(10,251)
62,829
-
56,782
19,103
1,906
77,791
1  See note 5.2 ‘Equity’ for more information on reserves. 
In addition to the total reserves of DKK -5,164 million, a loss of
DKK 513 million is recognised as part of non-controlling interests.
The loss is related to the hedging of revenue belonging to the 
non controlling interests.
161
Financial statements
ØRSTED ANNUAL REPORT 2024

Consolidated statement of cash flows
1 January – 31 December
Note
DKKm
2024
2023
Operating profit (loss) before depreciation, amortisation, and 
impairment losses (EBITDA)
31,959
18,717
Reversal of gain (loss) on divestment of assets
(349)
(5,745)
Change in derivatives
648
4,274
Change in provisions
(13,057)
8,454
Other items
(129)
287
Change in inventories
(6,534)
3,656
Change in contract assets and liabilities
6,154
461
Change in trade receivables
2,142
1,522
Change in other receivables
1,008
3,834
Change in trade payables
2,821
(5,309)
Change in tax equity liabilities
1,458
374
Change in other payables
(964)
(660)
Interest received and similar items
6,820
8,278
Interest paid and similar items
(7,294)
(6,894)
4.4
Income tax paid
(6,327)
(2,717)
Cash flows from operating activities 
18,356
28,532
Purchase of intangible assets, and property, plant, and 
equipment
(42,654)
(38,203)
Sale of intangible assets, and property, plant, and equipment
4,471
8,189
Divestment of enterprises
942
(3)
Purchase of other equity investments
(163)
(124)
Purchase of securities
(11,588)
(18,285)
Sale/maturation of securities
27,318
13,935
Change in other non-current assets
(134)
(13)
Transactions with associates and joint ventures
22
(247)
Dividends received and capital reductions
27
19
Cash flows from investing activities
(21,759)
(34,732)
Note
DKKm
2024
2023
Proceeds from raising loans 
9,990
17,584
Instalments on loans
(3,407)
(1,580)
Instalments on leases
(736)
(712)
Coupon payments on hybrid capital
(687)
(546)
Repurchase of hybrid capital
(3,707)
(699)
Proceeds from issuance of hybrid capital
5,520
-
Dividends paid to shareholders in Ørsted A/S
-
(5,673)
3.10 
Transactions with non-controlling interests
9,863
(7,061)
Net proceeds from tax equity partners
78
(182)
Collateral posted in relation to trading of derivatives
(13,400) 
(21,829)
 
Collateral released in relation to trading of derivatives
12,166
19,515
Restricted cash and other changes
163
1,448
Cash flows from financing activities
15,843
265
Total net change in cash and cash equivalents
12,440
(5,935)
5.4
Cash and cash equivalents at 1 January
10,144
16,175
Total net change in cash and cash equivalents
12,440
(5,935)
Exchange rate adjustments of cash and cash equivalents
540
(96)
5.4
Cash and cash equivalents at 31 December 
23,124
10,144
Supplementary statements
Our supplementary statements of gross and net investment appear from note 3.0 ‘Capital employed’  
and free cash flows (FCF) from note 2.1 ‘Segment information’.
§  Accounting policies
‘Cash flows from operating activities’ are 
determined using the indirect method as 
operating profit (loss) before depreciation, 
amortisation, and impairment losses adjusted 
for changes in operating items without cash flow 
effect. Trade payables relating to purchases 
of intangible assets, and property, plant, and 
equipment are not recognised in ‘Change in 
trade payables’ but in ‘Purchase of intangible 
assets, and property, plant, and equipment’ 
under ‘Cash flows from investing activities’.
‘Change in tax equity liabilities’ relates to  
cash contributions from tax equity partners 
and repayment hereof through production tax 
credits (PTCs), investment tax credits (ITCs), 
and other tax attributes to tax equity partners. 
See also note 3.8 ‘Tax equity liabilities’.
‘Cash flows from investing activities’ comprise 
payments in connection with the purchase and 
sale of non-current assets and enterprises as 
well as the purchase and sale of ­securities that 
are not recognised as cash and cash equivalents.
‘Cash flows from financing activities’ comprise 
changes in the size or composition of equity and 
loans, including instalments on leases, all trans-
actions with non-controlling interests, and net 
proceeds related to interest-bearing tax equity 
liabilities. Proceeds from the raising of short-
term repo loans are presented net.
Cash flows in currencies other than the func-
tional currency are translated at the average 
exchange rates for the month in question, unless 
these differ significantly from the rates at the 
transaction date.
162
Financial statements
ØRSTED ANNUAL REPORT 2024

Basis of reporting
Note 1
For a detailed discussion on Ørsted’s ­performance and financial position, please refer to the ‘Management’s review’.
1	 As these divestments are with non-­controlling interests, it is not included in 'Cash flow from investing activities' but as 'Cash flow from financing activities' in our statement of cash flows.
 
Impairments 
During 2024, we have recognised a net 
impairment loss of DKK 15.6 billion.  
The main contributors to the net 
impairment loss were construction  
delay and higher expected costs due to 
higher risk assessments for Sunrise Wind 
(DKK 4.3 billion) and Revolution Wind 
(DKK 3.8 billion), lower valuation of 
our seabed leases (DKK 4.1 billion), an 
increase in the US long-dated interest 
rate (DKK 2.7 billion) across our US 
portfolio, and our decision to cease 
execution of FlagshipONE (DKK 1.5 
billion). This was partly offset by a 
reversal on our Sunrise Wind project 
(DKK 1.8 billion) due to its award of a 
higher OREC by the State of New York. 
See note 3.2 ‘Impairments’. 
Onerous contracts and 
cancellation fees
Onerous contracts for FlagshipONE 
In Q2 2024, we decided to cease ­execution 
of FlagshipONE and deprioritise our 
immediate efforts within the liquids e-fuel 
market. In addition to the impairment 
loss recognised on FlagshipONE, we have 
recognised a provision relating to the 
expected contract cancellation fees not 
already covered by the impairment loss. 
The remaining provision was DKK 0.3 
­billion at the end of 2024. 
See note 3.9 ‘Provisions and contingent 
liabilities’.
Onerous contracts for Ocean Wind 1
At the end of 2023, we recognised a 
provision of DKK 15.0 billion related to 
contract cancellation fees for Ocean 
Wind 1. During 2024, we have finalised 
negotiation of several supplier contracts 
with a better outcome than assumed, 
leading to a partly reversal through 
EBITDA. In combination with payments 
and other adjustments, the remaining 
provision for ‘Onerous contracts’ has been 
reduced to DKK 1.6 billion at the end 
of 2024. 
See note 3.9 ‘Provisions and contingent 
liabilities’.
 
Divestments and acquisitions
Divestments
Four operational onshore assets 1
In June, we completed the partial divest-
ment of an 80 % stake in four operational 
onshore wind assets in the US. The trans­
action resulted in ­proceeds of DKK 2 billion. 
See note 3.10 ‘Non-controlling interests’.
Ostwind France
In May, we completed the divestment 
of our Ostwind France onshore business. 
The transaction resulted in proceeds of 
DKK 1 billion. 
See note 3.1 ‘Intangible assets, and 
­property, plant and equipments’. 
Mockingbird
In November, we completed the divest-
ment of a 50 % ownership stake of 
our solar farm Mockingbird in the US. 
The transaction resulted in proceeds 
of DKK 1.1 billion.
See note 2.6 ‘Other operating income and 
expenses’ and note 3.1 ‘Intangible assets, 
and property, plant and equipments’. 
Greater Changhua 4
In December, we completed the farm-
down of a 50 % ownership stake of our 
offshore wind farm Greater Changhua 4 
in Taiwan. The transaction resulted in 
­proceeds of DKK 3.8 billion in 2024. 
As part of the divestment, we also 
entered into a construction agreement 
with the partner.
See note 2.6 ‘Other operating income and 
expenses’ and note 3.1 ‘Intangible assets, 
and property, plant and equipments’. 
Four operational offshore assets 1
In December, we completed the partial 
divestment of an 12.45 % minority stake 
in four operational offshore wind assets 
in the UK. 
The transaction resulted in total 
proceeds of DKK 14.5 billion, split on a 
divestment cash flow of DKK 8.3 billion 
and prepayments included in cash flow 
from operations (CFO) of DKK 6.2 billion. 
As it is a transaction with non-controlling 
interests (NCI), no gain (loss) have been 
included in profit (loss) for the year.
See note 3.10 ‘Non-controlling interests’.
Acquisitions
Sunrise Wind 
In July, we completed the acquisition of 
Eversource’s 50 % interest in Sunrise Wind, 
which was owned jointly by Ørsted and 
Eversource. 
See note 3.1 ‘­Intangible assets, and 
­property, plant, and equipment’.
Significant changes and events
Note 1.1
The financial position and performance of Ørsted was particularly 
affected by the following events and transactions during 2024.
Financial statements  |  Notes
163
ØRSTED ANNUAL REPORT 2024

This section provides an overall description of the 
accounting policies applied in our consolidated 
financial statements as well as the European ­Single 
Electronic Format (ESEF) reporting requirements. 
We ­provide a more detailed description of the 
accounting policies applied in the specific notes. 
Key accounting estimates and judgements as well  
as new and amended IFRS standards and interpreta-
tions are discussed in detail later in this note.
Accounting policies
The consolidated financial statements have been 
prepared in accordance with the IFRS ­Accounting 
Standards as adopted by the EU and further require-
ments in the Danish Financial Statements Act 
(Årsregnskabsloven).
The accounting policies have been applied consist-
ently in the financial year and for comparative ­figures. 
Measurement basis
The consolidated financial statements have 
been prepared on historical cost basis, except for 
derivatives, gas in non-Danish storage facilities, 
financial instruments in the trading portfolio, and 
carbon emission allowances in the trading portfolio, 
which are measured at market value.
Consolidation
The consolidated financial statements comprise 
the financial statements of Ørsted A/S (the parent 
company) and subsidiaries controlled by Ørsted A/S.  
See more in note 7.4 ‘Company overview’. 
The consolidated financial statements have been 
prepared as a consolidation of the parent company’s 
and the individual subsidiaries’ financial statements, 
which have been prepared in accordance with the 
Group’s accounting policies. 
Intra-group income, expenses, shareholdings, balances, 
and dividends as well as realised and unrealised gains 
and losses arising from intra-group transactions are 
eliminated in our consolidated financial statements. 
Unrealised gains and losses resulting from 
­transactions with associates and joint ventures are 
eliminated to the extent of our ownership interest.
 
Entities are accounted for as associates if we hold 
or have the ability to exercise, directly or indirectly, 
20-50 % of the voting rights and do not exercise 
control. However, we carry out a specific assessment 
of our ability to exercise influence, including our ability 
to influence financial and operational decisions and 
thus our return. Entities that satisfy the criteria for 
joint control are accounted for as investments in joint 
ventures, unless the nature of the joint arrangement is 
considered a joint operation. 
Our shares in joint operations are recognised in the 
consolidated balance sheet through recognition of the 
Basis of preparation
Note 1.2
Group’s own assets, liabilities, income, and expenses. 
The proportionate share of realised and unrealised 
gains and losses arising from intra-group transactions 
between fully consolidated enterprises and joint 
operations is eliminated.
Foreign currency translation
The financial statements are presented in million 
­Danish kroner (DKKm), unless otherwise stated.
Exchange differences arising between the exchange 
rate on the transaction date and on the date of 
­payment are recognised in profit (loss) for the year 
as financial income or expenses.
Foreign currency transactions are translated into the 
functional currency defined for each entity, using the 
exchange rates prevailing at the transaction date. 
Receivables, payables, and other monetary items in 
foreign currencies are translated at the exchange rates 
on the balance sheet date. The difference between 
the exchange rate on the balance sheet date and on 
the date at which the receivable or payable arose 
is recognised in profit (loss) for the year as financial 
income or expenses.
Financial statements of foreign subsidiaries, joint 
operations, associates, and joint ventures are 
translated into DKK at monthly average exchange 
rates insofar as these do not deviate materially from 
the actual exchange rates at the transaction dates. 
Balance sheet items are translated at the exchange 
rates on the balance sheet date. 
All exchange differences are recognised in profit 
(loss) for the year, except for exchange differences 
arising on: 
·	 translation of the opening equity of these entities at 
the exchange rates on the balance sheet date
·	 translation of the statements of comprehensive 
income of these enterprises from ‘the average-for-
the-month exchange rates’ to ‘the exchange rates 
on the balance sheet date’
·	 translation of balances accounted for as part of the 
total net investment
·	 translation of the portion of loans and derivatives 
that has been entered into to hedge the net invest-
ment in an enterprise, and that provides an effec-
tive hedge against corresponding foreign exchange 
gains (losses) on the net investment.
The above types of exchange differences are recog-
nised in ‘Other comprehensive income’. Such exchange 
rate adjustments are divided between the equity 
of the parent company and the equity of the non-­
controlling interests.
Financial statements  |  Notes
164
ØRSTED ANNUAL REPORT 2024

On full or partial divestment of the net investment, 
the accumulated exchange rate adjustments are 
­recognised as follows:
·	 Disposal resulting in loss of control: 
The accumulated exchange rate adjustments, 
including any associated hedges, are recognised in 
the profit (loss) for the year if a foreign exchange 
gain (loss) is realised by the selling entity. Any foreign 
exchange gain (loss) is transferred to the item in 
which the gain (loss) from the disposal is recognised. 
The part of the foreign currency translation reserve 
that relates to non-controlling interests is not 
transferred to profit (loss) for the year.
·	 Disposal not resulting in loss of control: 
A proportionate share of the foreign currency 
translation reserve is transferred from the parent 
company shareholders’ share of equity to the 
minority shareholders’ share of equity.
Repayment of balances that are considered part 
of the net investment does not constitute a partial 
­disposal of the subsidiary. 
iXBRL reporting
We are required to file our annual report in the 
­European Single Electronic Format (‘ESEF’) using 
the XHTML format and to tag the consolidated 
financial statements, including notes, using the Inline 
eXtensible Business Reporting Language (iXBRL). 
The iXBRL tags comply with the ESEF taxonomy. 
Where a financial statement line item is not defined 
in the ESEF taxonomy, an extension to the taxonomy 
has been created.
The annual report submitted to the Danish Financial 
Supervisory Authority consists of the XHTML 
document together with certain technical files, all 
included in a ZIP file named Orsted-2024-12-31-en.zip. 
Non-IFRS financial measures
We present financial measures in the consolidated 
financial statements to describe the Group’s finan-
cial performance, financial position, and cash flows. 
We use these financial measures as we believe they 
provide valuable information to our stakeholders 
and management. 
The financial measures should not be considered a 
replacement for the performance measures as defined 
under IFRS, but rather as supplementary information.
The financial measures may not be comparable to 
similar titled measures presented by other companies, 
as the definitions and calculations may be different. 
The financial measures most commonly presented  
in the Ørsted annual report are:
·	 EBITDA and EBITDA excluding new partnerships  
and cancellation fees
·	 funds from operations (FFO)
·	 FFO/adjusted interest-bearing net debt
·	 interest-bearing net debt (NIBD)
·	 adjusted interest-bearing net debt
·	 free cash flow (FCF)
·	 return on capital employed (ROCE)
·	 capital employed
·	 gross investments
·	 net investments.
Our definitions of the financial measures are included 
in note 7.3 ‘Non-IFRS financial measures’.
Basis of preparation
Note 1.2 – continued
Financial statements  |  Notes
165
ØRSTED ANNUAL REPORT 2024

Implementation of new and changed accounting 
standards and interpretations
The International Accounting Standards Board (IASB) 
has issued amended standards that are effective for 
the first time in 2024. None of them required a change 
in our accounting policies or had any material impact 
on our consolidated financial statetements.
New standards and interpretations
IASB has issued new or amended accounting stand-
ards and interpretations that have not yet become 
effective and have consequently not been imple-
mented in the consolidated financial statements for 
2024. Ørsted expects to adopt the accounting stand-
ards and interpretations as they become mandatory. 
In 2024, IASB issued IFRS 18 ‘Presentation and 
­Disclosure in Financial Statements’ which replaces 
IAS 1 ‘Presentation of Financial Statements’. The 
Group is currently working to identify all impacts the 
amendments will have on the primary financial state-
ments and notes to the financial statements. Besides 
that, the new or amended standards or interpretations 
are not expected to have a significant impact on our 
consolidated financial statements. 
Key accounting estimates and judgements
The use of reasonable estimates and judgements is an 
essential part of the preparation of the consolidated 
financial statements.
Given the uncertainties inherent in our business activi-
ties, we make a number of estimates and judgements. 
The estimates and judgements are based on assump-
tions concerning future developments, which affect 
our application of accounting policies and the reported 
amounts of our assets, liabilities, sales, costs, cash flows, 
hedge reserves, and related disclosures. Actual amounts 
may differ from the amounts estimated and judgements 
made, as more detailed information becomes available.
We regularly reassess these estimates and judgements 
based on, among other things, historical experience, 
the current situation in the financial ­markets, and a 
number of other relevant factors, e.g. the updates on 
annual estimated production. Changes in estimates 
are recognised in the period in which the estimate in 
question is revised.
Accounting estimates, judgements, and assumptions 
which may entail a risk of material adjustments in 
­subsequent years are listed in the table above. 
Basis of preparation
Note 1.2 – continued
Note
Key accounting estimates and judgements 
Estimate/judgement
Potential impact from accounting estimates and judgements
2.4
Government grants
Classification of contract for difference (CfD) agreements 
Judgement
   
2.6
Other operating income and expenses
Variable selling prices related to divestments of offshore wind farms and offshore transmission assets 
Estimate
   
Consolidation method for partnerships
Judgement
   
3.2
Impairments
Key assumptions in impairment tests
Estimate
   
3.8
Tax equity liabilities
Recognition of tax equity partnerships
Estimate/judgement
   
3.9
Provisions and contingent liabilities
Assumptions for provisions 
Estimate
   
4.2
Tax on profit (loss) for the year
Recognition of income taxes
Estimate
   
6.1
Risk framework
Valuation of long-term power purchase agreements
Estimate/judgement
 
Hedge accounting
Estimate/judgement
   
Key accounting estimates and judgements and their level of  
­potential impact on the consolidated financial statements. 
The impact relates to objectivity and business practice. 
	
Very objective/market-conforming 
  	
Objective/partially conforming 
    	
Partially subjective/partially distinctive
      	 Subjective/distinctive to Ørsted
In addition, we make judgements when we apply 
the accounting policies. 
Reference is made to the specific notes for further 
information on the key accounting estimates and 
judgements as well as the assumptions applied.
Financial statements  |  Notes
166
ØRSTED ANNUAL REPORT 2024

Return on capital employed (ROCE) is a key ratio, 
showing how profitable our business activities are. 
Our target is an average ROCE of approx. 13 % for 
the Group for the 2024-2030 period.
ROCE was 4.5 % in 2024. Adjusted for impairment 
losses and cancellation fees, ROCE amounted to 
10.1 % in 2024. 
See note 2.1 ‘Segment information’.
Return on  
capital employed
Note 2
Return on capital employed
%
Return on capital employed was  
4.5 % in 2024 against -14.2 % in 2023.
EBITDA and EBIT
DKKbn
-14.2
14.8
8.3
4.5
16.8
EBITDA 32.0
EBIT 6.2
EBIT
DKKm
Impairment losses DKK -15,563 million
Remaining EBIT DKK 14,399 million
Cancellation fees DKK 7,335 million
EBIT of DKK 6,171 million in 2024
4.5 %
32.1
18.7
-17.9
24.3
16.6
2023
2022
2021
2020
2024
19.8
16.2
9.0
2024
2020
2022
2021
2023
Financial statements  |  Notes
167
ØRSTED ANNUAL REPORT 2024

Segment information
Note 2.1
Geographical distribution
Geographical revenue is broken down, as far as 
­possible, by the customer’s geographical location 
based on supply point. 
A significant part of our sales takes place via power 
exchanges and gas hubs in Europe, whose physical 
locations do not reflect the geographical locations of 
our customers. When breaking down these sales by 
geographical location, we use the physical ­locations of 
the exchange or hub since we do not know the physical 
location of our customers in all cases. 
No single customer accounted for more than 10 % of 
our consolidated revenue in 2024 or 2023. 
Non-current assets are broken down geographically, 
based on the physical locations of the assets.
Offshore 
DKKm
Revenue
53,808
EBITDA
26,470
Gross investments
33,023
Primary activities
Development, construction, ownership, and operation of offshore 
wind farms in Europe, the US, and APAC, and development of 
renewable hydrogen in selected core markets. 
Onshore 
DKKm
Revenue
2,720
EBITDA
3,863
Gross investments
7,391
Primary activities
Development, construction, ownership, and operation of onshore 
wind and solar farms in the US and Europe, including integrated 
storage.
Bioenergy & Other 
DKKm
Revenue
15,105
EBITDA
1,082
Gross investments
2,250
Primary activities
Generation of heat and power and delivery of ancillary services  
from CHP plants in Denmark, optimisation of our gas portfolio,  
as well as management of our Danish and Swedish B2B business. 
§  Accounting policies
Our operating segments are consistent with  
our internal reporting to our chief operating 
decision-maker, the Group Executive Team.
The operating segments are managed primarily 
on the basis of EBITDA and investments. 
Financial income, financial expenses, and tax 
are allocated to the operating segments, while 
we manage them at Group level. 
Segment income and segment expenses are 
those items that, in our internal management 
reporting, are directly attributable to individual 
segments or can be indirectly allocated to 
individual segments on a reliable basis.
Revenue
DKKm 2024 (2023)
Total 71,034 (79,255)
GB
TW
DE
Other
DK
US
NL
IR
32,468  (45,694)
2,555  (4,093)
541  (659)
2,958  (2,192)
17,108  (17,149)
3,079  (1,042)
11,534  (7,516)
791  (910)
Revenue, intangible assets, and property, plant, and equipment 
are presented based on the locations of our customers and 
assets as well as the exchanges on which we trade.
Intangible assets and property, plant, and equipment
DKKm 2024 (2023)
Total 204,305 (183,195)
77,474  (69,144)
US
11,749  (11,137)
DK
0  (1,594)
FR
33,175  (28,755)
TW
3,978  (4,335)
NL
45,450  (43,747)
GB
4,693  (4,451)
IR
87  (739)
Other
23,465  (16,996)
DE
4,234  (2,297)
PL
Financial statements  |  Notes
168
ØRSTED ANNUAL REPORT 2024

The column ‘Other activities/eliminations’ primarily covers the 
elimination of inter-segment transactions. It also includes income 
and costs, assets and liabilities, investment activity, taxes, etc., 
handled at Group level.
1  Including the elimination of other activities, the total elimination 
of intra-group revenue amounts to DKK -4,538 million, which 
primarily relates to our Shared Functions services and our B2B 
business activities. 
2024 income statement
DKKm
Offshore
Onshore
Bioenergy
& Other
Reportable
segments
Other 
activities/
eliminations
Total
External revenue
52,528
2,732
15,642
70,902
132
71,034
Intra-group revenue
1,280
(12)
(537)
731
(731) 1
-
Revenue
53,808
2,720
15,105
71,633
(599)
71,034
Cost of sales
(24,628)
(97)
(11,316)
(36,041)
78
(35,963)
Employee costs and other external expenses 
(11,287)
(2,432)
(2,656)
(16,375)
1,146
(15,229)
Gain (loss) on disposal of non-current assets
215
141
(7)
349
-
349
Additional other operating income and expenses
8,421
3,541
(45)
11,917
(81)
11,836
Share of profit (loss) in associates and joint ventures
(59)
(10)
1
(68)
-
(68)
EBITDA
26,470
3,863
1,082
31,415
544
31,959
Depreciation and amortisation
(7,091)
(2,190)
(667)
(9,948)
(277)
(10,225)
Impairment losses
(14,242)
(1,321)
-
(15,563)
-
(15,563)
Operating profit (loss) (EBIT)
5,137
352
415
5,904
267
6,171
Key ratios
Intangible assets, and property, plant, and equipment
127,821
66,359
8,919
203,099
1,206
204,305
Equity investments and non-current receivables
507
444
264
1,215
180
1,395
Net working capital, capital expenditures
(7,005)
(297)
(148)
(7,450)
(4)
(7,454)
Net working capital, work in progress
5,798
-
-
5,798
-
5,798
Net working capital, tax equity
(1,205)
(17,509)
-
(18,714)
-
(18,714)
Net working capital, other items
(5,783)
389
40
(5,354)
4,663
(691)
Derivatives, net
(5,470)
(3,325)
(858)
(9,653)
(661)
(10,314)
Decommissioning obligations
(9,347)
(2,293)
(2,204)
(13,844)
-
(13,844)
Other provisions
(4,037)
-
(619)
(4,656)
(2,035)
(6,691)
Tax, net
6,286
(4,295)
285
2,276
934
3,210
Other receivables and other payables, net
(3,966)
(30)
-
(3,996)
(1,493)
(5,489)
Capital employed at 31 December
103,599
39,443
5,679
148,721
2,790
151,511
Return on capital employed (ROCE), %
4.5
Cash flows from operating activities
12,931
4,459
1,939
19,329
(973)
18,356
Gross investments
(33,023)
(7,391)
(2,250)
(42,664)
(144)
(42,808)
Divestments
11,293
4,430
-
15,723
(43)
15,680
Free cash flow (FCF)
(8,799)
1,498
(311)
(7,612)
(1,160)
(8,772)
Segment information
Note 2.1 – continued
Financial statements  |  Notes
169
ØRSTED ANNUAL REPORT 2024

The column ‘Other activities/eliminations’ primarily covers the 
elimination of inter-segment transactions. It also includes income 
and costs, assets and liabilities, investment activity, taxes, etc., 
handled at Group level.
1  Including the elimination of other activities, the total elimination 
of intra-group revenue amounts to DKK -4,896 million, which 
primarily relates to our Shared Functions services and our B2B 
business activities.
Segment information
Note 2.1 – continued
2023 income statement
DKKm
Offshore
Onshore
Bioenergy
& Other
Reportable
segments
Other 
activities/
eliminations
Total
External revenue
57,062
2,643
19,525
79,230
25
79,255
Intra-group revenue
1,365
(23)
(295)
1,047
(1,047) 1
-
Revenue
58,427
2,620
19,230
80,277
(1,022)
79,255
Cost of sales
(31,773)
(129)
(15,024)
(46,926)
302
(46,624)
Employee costs and other external expenses 
(9,712)
(2,460)
(2,730)
(14,902)
1,122
(13,780)
Gain (loss) on disposal of non-current assets
5,751
-
(6)
5,745
-
5,745
Additional other operating income and expenses
(8,829)
2,948
52
(5,829)
5
(5,824)
Share of profit (loss) in associates and joint ventures
(47)
(9)
1
(55)
-
(55)
EBITDA
13,817
2,970
1,523
18,310
407
18,717
Depreciation and amortisation
(6,815)
(1,957)
(759)
(9,531)
(264)
(9,795)
Impairment losses
(25,526)
(927)
(322)
(26,775)
-
(26,775)
Operating profit (loss) (EBIT)
(18,524)
86
442
(17,996)
143
(17,853)
Key ratios
Intangible assets, and property, plant, and equipment
111,188
62,626
8,132
181,946
1,249
183,195
Equity investments and non-current receivables
770
143
92
1,005
167
1,172
Net working capital, capital expenditures
(3,285)
(1,001)
(256)
(4,542)
-
(4,542)
Net working capital, work in progress
1,705
-
-
1,705
-
1,705
Net working capital, tax equity
(1,365)
(14,446)
-
(15,811)
-
(15,811)
Net working capital, other items
4,513
461
870
5,844
1,950
7,794
Derivatives, net
(3,645)
(6,311)
(738)
(10,694)
311
(10,383)
Decommissioning obligations
(8,840)
(2,062)
(2,075)
(12,977)
-
(12,977)
Other provisions
(16,865)
(2)
(1,022)
(17,889)
(1,997)
(19,886)
Tax, net
2,187
(3,787)
(348)
(1,948)
901
(1,047)
Other receivables and other payables, net
(2,789)
13
.
(2,776)
(1,274)
(4,050)
Capital employed at 31 December
83,574
35,634
4,655
123,863
1,307
125,170
Return on capital employed (ROCE), %
 
(14.2)
Cash flows from operating activities
21,209
609
2,550
24,368
4,164
28,532
Gross investments
(28,613)
(9,069)
(727)
(38,409)
(100)
(38,509)
Divestments
1,500
5
61
1,566
(24)
1,542
Free cash flow (FCF)
(5,904)
(8,455)
1,884
(12,475)
4,040
(8,435)
Financial statements  |  Notes
170
ØRSTED ANNUAL REPORT 2024

Revenue
Note 2.2
Revenue
DKKm
Offshore
Onshore
Bioenergy
& Other
Other 
activities/
eliminations 
2024 
Offshore
Onshore
Bioenergy
& Other
Other 
activities/
eliminations 
2023 
Generation of power
11,935
2,275
5,315
-
19,525
10,585 
2,171
6,306
-
19,062
Sale of power
17,832
3
225
(18)
18,042
25,329
3
395
(288)
25,439
Revenue from construction of wind farms and 
transmission assets
6,991
38
-
-
7,029
6,589
148
-
-
6,737
Generation and sale of heat and steam
-
-
3,380
-
3,380
-
-
3,776
-
3,776
Sale of gas
-
-
4,520
(30)
4,490
-
-
6,296
-
6,296
Distribution and transmission
-
-
373
(2)
371
-
-
309
(1)
308
O&M and other services
4,464
324
378
(549)
4,617
4,045
163
942
(733)
4,417
Total revenue from customers
41,222
2,640
14,191
(599)
57,454
46,548
2,485
18,024
(1,022)
66,035
Government grants
11,637
103
461
-
12,201
9,518
296
364
-
10,178
Miscellaneous revenue
949
(23)
453
-
1,379
2,361
(161)
842
-
3,042
Total revenue
53,808
2,720
15,105
(599)
71,034
58,427
2,620
19,230
(1,022)
79,255
Timing of revenue recognition from customers
At a point in time
21,900
2,640
6,204
(599)
30,145
34,657
2,485
10,722
(1,022)
46,842
Over time
19,322
-
7,987
-
27,309
11,891
-
7,302
-
19,193
Total revenue from customers
41,222
2,640
14,191
(599)
57,454
46,548
2,485
18,024
(1,022)
66,035
Revenue from sale of goods and services
Revenue from sale of goods
49,777
2,691
14,609
(72)
67,005
54,602
2,585
18,736
(303)
75,620
Revenue from sale of services
4,031
29
496
(527)
4,029
3,825
35
494
(719)
3,635
Total revenue
53,808
2,720
15,105
(599)
71,034
58,427
2,620
19,230
(1,022)
79,255
Revenue
The timing of transfer of goods or services to customers is categorised 
as follows:
‘At a point in time’ mainly comprises:
·	 sale of power or gas in the market, e.g. Nord Pool, TTF, NBP, 
and ERCOT
·	 sale of transmission assets from offshore wind farms. 
‘Over time’ mainly comprises:
·	 construction agreements for wind farms and transmission assets
·	 long-term contracts with customers to deliver power, heat, or gas.
Backlog
Order backlog for the construction of wind farms and offshore trans-
mission assets is remaining revenue on construction agreements to 
be recognised in future years. 
The overview does not include revenue from contracts with customers to 
deliver gas, heat, and power, or our operations and maintenance agree-
ments. For these types of goods and services, we recognise the revenue 
that corresponds directly to the value transferred to the customer.
Order backlog
DKKm
2024
2023
31 December
8,643
6,538
Within one year
100 %
99 %
In more than one year
0 %
1 %
Revenue for the year decreased by 10 % to DKK 71,034 
million in 2024. The decrease was mainly due to a 
lower ‘Sale of power’, driven by lower power prices 
across markets and lower volumes sold on third-party 
contracts, and due to a lower ‘Sale of gas’, mainly 
because of lower gas prices.
Revenue from construction agreements was DKK 7,029 
million, mainly relating to the construction of Borkum 
Riffgrund 3 and Gode Wind 3 for partners.
In 2023, revenue from construction agreements mainly 
related to the construction of Borkum Riffgrund 3 for 
partners and the divestment of the ­Hornsea 2 offshore 
transmission asset.
Income from government grants increased in 2024 
due to Hornsea 2 entering the UK subsidy regime 
(CfD), combined with lower power prices, leading to 
a higher subsidy per MWh produced.
Financial statements  |  Notes
171
ØRSTED ANNUAL REPORT 2024

Revenue
Note 2.2 – continued
§  Accounting policies
Revenue is measured based on the consider-
ation specified in a contract with a customer 
(transaction price) and excludes amounts 
collected on behalf of third parties, i.e. VAT. 
We recognise revenue when we transfer con-
trol over a product or service to a customer 
or a partner. 
 
If a part of the transaction price is variable, 
i.e. bonus payments, incentive payments 
for unmissed deadlines, etc., the variable 
consideration is recognised in revenue when 
it is highly probable that the revenue will not 
be reversed in subsequent periods.
 
We adjust the transaction price for the time 
value of money if the payments exceed 
twelve months.
Generation of power
Generation of power is the sale of power 
produced at our own wind farms, solar farms, 
and power stations as well as the sale of 
ancillary services. We recognise revenue 
as the power is produced, since this is when 
delivery to the customers occurs. 
Fees for having CPH plants on standby or 
ready to increase or decrease the generation 
of power to balance the demand and 
supply in the system are considered one 
performance obligation fulfilled over time.
The consideration for the power is due 
when the actual power is delivered to the 
customer.
Sale of power
Sale of power includes revenue from the 
sale of power sourced from other producers. 
This includes the sale of power sourced from 
investor power purchase agreements, third-
party balancing contracts, exchanges, and 
other sales contracts. The sale is recognised 
when the power is delivered to the grid.
Sales contracts for a fixed amount of power 
at a variable price, or where we are exclusive 
suppliers to the customer at a variable price, 
are considered one performance obligation 
with multiple deliveries to be satisfied over 
time. For such contracts and for long-term 
agreements on selling power at a fixed price, 
we recognise revenue in the amount up to 
which we have a right to invoice.
The consideration for the power is due 
when the actual power is delivered to the 
customer.
Revenue from failed own-use power con-
tracts are recognised on a net basis. These 
are contracts settled with delivery of phys-
ical power where the purpose of entering 
into them are hedging or optimisation of our 
revenue
Revenue from construction of wind farms
Revenue from construction of wind farms 
includes development and construction. 
The construction agreements cover the 
­construction phase from design to delivery 
of an ­operational asset. The agreement 
consists of two performance obligations:
·	 Wind farms. 
·	 Offshore transmission assets, if applicable. 
The construction agreements cover our 
partners’ shares of the construction of the 
wind farm and offshore transmission assets, 
if applicable. If our contracts include multiple 
performance obligations, the transaction 
price will be allocated to each performance 
obligation based on the stand-alone 
selling prices. Where these are not directly 
observable, they are estimated based on the 
expected cost-plus margin. 
We recognise revenue over time, using an 
input method to measure progress towards 
complete satisfaction of the performance 
obligation because the customer gains 
control of the wind farm during the 
construction process. The input method 
reflects the ongoing transfer of control. 
The consideration for the construction of an 
offshore wind farm consists of a fixed fee and 
a relatively minor variable fee, depending on 
when the wind farm can be put into operation. 
The consideration for an offshore transmission 
asset is a fixed fee.
After signing the construction agreement, 
we carry out an assessment determining 
when the wind farm is expected to be 
completed. We calculate the size of the 
variable payment on this basis. We only 
recognise the variable fee when it is highly 
probable that a subsequent reversal will 
not take place. 
 
Our partner pays the fixed consideration 
based on a payment schedule. The payment 
schedule is determined and based on the 
expected progress of the construction and 
transfer of control to the customer.
Generation and sale of heat and steam
Heat is sold under long-term heat contracts 
and recognised when the heat is delivered to 
our customer. 
 
The individual heat customer has made 
a prepayment to finance the majority of 
our CAPEX associated with the biomass 
conversion of the CHP plant. The prepayment 
is recognised as a contract liability, and it is 
also recognised as revenue in step with the 
transfer of heat to the customer. 
Payment for the sale of heat consists of 
fixed costs associated with operations and 
maintenance of a CHP plant, fuel costs for 
the generation of heat, and a financial return. 
The consideration is due when delivered.
Sale of gas
Sale of gas is our gas sourced from other 
producers, and it is recognised when the gas 
is transferred to our buyer. The transfer of 
control occurs either when the gas is injected 
into the distribution system or delivered to 
the customer. 
 
Sales contracts for a fixed amount of gas at 
a variable price, or where we are exclusive 
suppliers to the customer at a variable price, 
are considered one performance obligation 
with multiple deliveries to be satisfied over 
time. For such contracts, we recognise revenue 
in the amount up to which we have a right 
to invoice. 
The consideration for the gas is due when the 
gas is injected into the distribution system or 
delivered to the customer.
Distribution and transmission
Fees for distribution and transmission of oil 
and gas is recognised when the product is 
delivered to the buyer, or when the capacity 
is made available. 
Revenue is calculated as the amount to 
which we are entitled when the service is 
delivered to the customer, and consideration 
is payable when invoiced.
O&M and other services 
Revenue from providing services is 
recognised over time as our customers 
simultaneously receive and consume the 
benefits provided. 
For fixed-price contracts, revenue is 
recognised based on the actual service 
rendered at the end of the reporting period 
as a pro­portion of the total services to be 
rendered. This is determined based on the 
actual labour hours spent relative to the 
total labour hours expected.
Fixed-price contracts are invoiced on a 
monthly basis, and consideration is payable 
when invoiced. Variable fee services are due 
after the services are rendered.
Financial statements  |  Notes
172
ØRSTED ANNUAL REPORT 2024

Cost of sales
Note 2.3
Cost of sales
DKKm
Offshore
Onshore
Bioenergy
& Other
Other 
activities/
eliminations 
2024 
Offshore
Onshore
Bioenergy
& Other
Other 
activities/
eliminations 
2023 
Power including certificates 
15,901
5
463
3
16,372
23,500
-
686
(134)
24,052
Costs of constructing wind farms and 
transmission assets
6,971
35
-
-
7,006
6,527
53
-
-
6,580
Biomass
-
-
4,386
-
4,386
-
-
3,753
-
3,753
Coal
-
-
585
-
585
-
-
2,017
(7)
2,010
Gas
-
-
4,361
(5)
4,356
-
-
5,640
(1)
5,639
Distribution and transmission costs
1,501
33
795
(2)
2,327
1,527
37
1,408
(59)
2,913
Other cost of sales
255
24
726
(74)
931
219
39
1,520
(101)
1,677
Total
24,628
97
11,316
(78)
35,963
31,773
129
15,024
(302)
46,624
 
§  Accounting policies
Ørsted constructs offshore transmission assets 
in the UK, which are required to be divested to 
third parties due to EU unbundling regulations. 
The construction costs are presented as inven-
tories and transferred to cost of sales when the 
asset is divested to either a farm-down partner 
or to the buyer appointed by Ofgem.
Cost of sales decreased by 23 % to DKK 35,963 million 
in 2024. The decrease was primarily due to the lower 
power and gas prices across all markets.
‘Costs of construction of wind farms and transmission 
assets’ was DKK 7,006 million, mainly ­related to the 
construction of Borkum Riffgrund 3 and Gode Wind 3 
for ­partners.
In 2023, ‘Costs of construction of wind farms and 
transmission assets’ was DKK 6,580 million, mainly 
related to the construction of Borkum Riffgrund 3 for 
partners and the divestment of the remaining 50 % 
of the Hornsea 2 offshore transmission asset to an 
Ofgem-appointed buyer. 
Financial statements  |  Notes
173
ØRSTED ANNUAL REPORT 2024

Government grants
Note 2.4
Government grants 
DKKm
2024
2023
Government grants recognised in profit (loss) for the year under revenue
12,201
10,178
Government grants recognised in profit (loss) for the year under other operating income
23
26
Government grants recognised in the balance sheet
(23)
(26)
Government grants recognised for the year
12,201
10,178
Energinet, the transmission system operator in 
­Denmark, administers subsidies for environmentally 
sustainable power generation, including biomass 
and offshore wind farms. We treat the subsidies as a 
­government grant, as it is paid by the Danish state.
In the UK, we receive subsidies under two schemes: 
contracts for difference (CfD) and the Renewable 
­Obligation scheme (renewable obligation certificate 
(ROC) regime). We treat the payments from the 
schemes as government grants. 
Feed-in tariffs from our Irish, Dutch, and ­German wind 
farms are also recognised as government grants. 
For subsidies in the US, see note 3.8 ‘Tax equity 
liabilities’. 
Income from government grants increased in 2024 
compared to 2023 due to lower power prices, leading 
to a higher subsidy per MWh produced.
§  Accounting policies
Government grants comprise grants for environ-
mentally sustainable power generation, grants for 
the funding of development projects, investment 
grants, etc. 
Government grants are recognised when there 
is reasonable assurance that the grants will be 
received. 
As grants for power generation are intended as a 
compensation for the price of power, we system-
atically recognise the grants under revenue in line 
with the power generation and thus the related 
revenue.
When we enter into contracts for differences (CfD) 
with governments, we assess the appropriate 
classification at inception as either a government 
grant or a derivative (within the scope of IFRS 9). In 
the assessment, we consider e.g. other price levels, 
duration, flexibility in the start date, and credit 
terms, etc. In this assessment, we put significant 
emphasis on the price levels being sufficiently 
attractive, making it unlikely that the contract 
would result in us becoming a net payer under the 
contract. 
If the contract is deemed to be on market terms,
we classify the contract as a financial instrument.
If the contracts are more attractive than the market 
terms, we classify the contracts as a government 
grant. 
To the extent the CfD contains embedded deriva-
tives, we apply the same assessment to these as 
described above for the host contract.
The settlement payment for the CfD is recognised 
as a ­government grant, which is presented as 
revenue.
  Key accounting judgement
Classification of contract for  
difference (CfD) agreements 
When we enter into contract for difference (CfD) 
agreements with governments whose purpose it 
is to support the build-out of renewable energy, 
we assess the appropriate accounting standards 
to be applied. To determine the appropriate 
classification of the CfD as either a government 
grant or derivative, we consider all the relevant 
facts and circumstances, including price levels, 
duration, flexibility in the start date, production 
requirements, credit terms, etc. 
If the host contract is considered a government 
grant arrangement, we apply the same judgement 
to each individual derivative embedded in the 
CfD. If the embedded derivatives, which would 
otherwise require separation, are assessed to 
provide an additional upside, they are considered 
part of the government grant host contract.
Financial statements  |  Notes
174
ØRSTED ANNUAL REPORT 2024

Research and development expenditures
Note 2.5
Expensed research and development expenditures 2024
DKKm
Offshore 1
Onshore
Bioenergy 
& Other
Total
Research
130
-
-
130
Development
995
430
-
1,425
Total
1,125
430
-
1,555
Expensed research and development expenditures 2023
DKKm
Research
239
-
-
239
Development
1,606
460
1
2,067
Total
1,845
460
1
2,306
1  In 2024, development expenditures in Offshore include P2X development costs of DKK 103 million (2023: DKK 338 million).
§  Accounting policies
Research costs are costs incurred to find new  
or improve existing technologies (e.g. improving 
offshore foundations, optimising the blade 
stability and performance of wind farms, and 
developing new ways of converting renewable 
electrons to renewable molecules and 
synthetic fuels).
Research costs are recognised in the income 
statement as incurred.
Development costs primarly comprise salaries 
(presented in note 2.7 ‘Employee costs’) as well 
as internal and external costs, which can be 
directly or indirectly attributed to design and 
development of offshore and onshore wind 
farms, solar farms, and energy storage facilities.
Development costs are expensed until the 
­capitalisation ­criteria are met. Development 
costs incurred after that are capitalised as 
‘Property, plant, and equipment under construc-
tion’ (see line ‘Additions’ in note 3.1 ‘Intangible 
assets, and property, plant and equipment’).
Financial statements  |  Notes
175
ØRSTED ANNUAL REPORT 2024

Other operating income and expenses
Note 2.6
Other operating income
DKKm
2024
2023
Gain on divestment of assets
605
5,895
US tax credits and tax attributes 
3,547
2,577
Compensations
847
916
Miscellaneous operating income
299
941
Total
5,298
10,329
Other operating expenses
DKKm
2024
2023
Cancellation fees
(7,335)
9,621
Ineffective hedges, etc.
(137)
512
Loss on divestment of assets
256
150
Miscellaneous operating 
expenses
329
125
Total
(6,887)
10,408
Other operating income
In 2024, ‘Other operating income’ was DKK 5,298 mil-
lion, which was DKK 5,031 million lower than in 2023. 
In 2024, ‘Gain on divestment of assets’ primarily 
related to effects from minor adjustments from farm-
downs completed in prior years. In 2023, ‘Gain on 
divestments of assets’ related to the divestment of 
London Array and the 50 % farm-down of Gode Wind 3. 
The increase in ‘US tax credits and tax attributes’ was 
mainly driven by the continuous commissioning of new 
onshore assets having full impact.
‘Compensations’ was primarily compensations 
regarding outages and curtailments from TenneT, 
the German grid operator, and compensations from 
US operating asset performance guarantees.
‘Miscellaneous operating income’ primarily related to 
adjustment of provisions toward partners.
 
Other operating expenses
In 2024, ‘Cancellation fees’ was an income of 
DKK 7,335 million and primarily related to adjust-
ments to the provision for onerous contracts for 
Ocean Wind as well as the decision to cease ­execution 
of ­FlagshipONE. For Ocean Wind, we have finalised 
the negotiation of several contracts with a better 
­outcome than expected, leading to a net-positive 
impact. This was partly offset by costs related to 
­fulfilling and cancelling contracts for FlagshipONE.
In 2023, ‘Cancellation fees’ related to the decision to 
cease the development of Ocean Wind. 
See note 3.9 ‘Provisions and contingent liabilities’ for 
more information about the cancellation fees and 
provisions made in relation to this.
§  Accounting policies
Gains from farm-downs of ownership interests in 
wind farms are recognised on the divestment date 
as other operating income. 
Gains from future construction of the partner’s 
share of the wind farm are recognised over time in 
the income statement in step with construction.  
Divestment of ownership interests in our 
­offshore wind farms
When we divest an ownership interest in an off-
shore wind farm to a partner, we typically also 
enter into agreements on the construction and 
future operation of the offshore wind farm. 
Contracts in connection with a divestment are 
­typically agreements on:
·	 the sale of shares (divestment of assets), referred 	
	 to as a share purchase agreement (SPA)
·	 the future construction of the offshore wind 
farm (construction agreements or construction 
management agreements, if not in operation)
·	 the future operation of the offshore wind farm 
(O&M agreements).
The partnerships are typically establiched as 
joint operations with shared control. If an invester 
obtains a non-controlling interest in our joint 
operator controlled by Ørsted, this is classified as a 
transaction with a non-controlling interest. If such 
a transaction comprises both an equity investment 
and other arrangements, such as power purchase 
agreements, proceeds are allocated between these 
elements on a relative fair value basis. 
  Key accounting estimate
Variable selling prices related to divest­ments of off-
shore wind farms and offshore transmission assets
When we divest an ownership interest in an 
offshore wind farm and an offshore transmission 
asset to a partner, we consider all terms and 
activities in the contracts in order to determine 
the trans­action price.
If the consideration includes a variable amount, 
we estimate the consideration to which we are 
entitled in exchange for transferring the asset, 
the wind farm, and the transmission asset to our 
partner.
The variable considerations are estimated at contract 
inception based on future outcome of events, e.g.: 
·	 the divestment price of the offshore transmission 
asset through a competitive tender process
·	 the winning bid of the tender revenue stream 
through a competitive tender process for offshore 
transmission assets
·	 the impact on production from future wind farms.
We consider ‘the most likely amount’ to provide 
the most appropriate estimate of the expected 
variable consideration. 
  Key accounting judgement
Consolidation method for partnerships
On establishment of partnerships and in connec-
tion with any restructuring of existing partnerships, 
we carry out individual assessments to determine 
whether we control the investee. Significant judge-
ments are applied to determine who controls the 
economically and operationally significant deci-
sions in the partnership, and whether arrangements 
with partnerships are considered a non-controlling 
interest or a financial liability. Relevant items to 
consider typically involve decisions related to 
budget approval, sale of power as well as decom-
missioning and repowering.
For joint arrangements, we subsequently assess 
whether they are joint ventures or joint operations. 
In assessing joint operations, we consider: 
·	 the corporate form of the operation
·	 whether we are only entitled to the net profit 
(loss) or to income and expenses resulting from 
the operation.
In addition, the fact that the parties buy or are 
assigned all output, for example the power gener-
ated, will lead to the structure being considered a 
joint operation if we have joint control.
The assessment of the consolidation method 
determines the recognition of gain or loss on 
divestments as either operating income in the 
income statement or as transactions with a non-­
controlling interest in equity.
Financial statements  |  Notes
176
ØRSTED ANNUAL REPORT 2024

Employee costs
Note 2.7
1  In 2024, the Executive Board consisted of Mads Nipper, Rasmus ­Errboe, 
Trond Westlie (joined on 1 April 2024), and Henriette Fenger Ellekrog. 
2  Ørsted updated its executive management structure effective 
1 April 2024. The Group Executive Team was reduced to five members 
(the Executive Board members and Patrick Harnett). Salaries and 
remuneration for ‘Other members of the Group Executive Team’ in 
2024 include compensation of Patrick Harnett for the period April - 
December 2024 and compensation for the first quarter of 2024 for 
Olivia Breese, Andrew Brown, Anders Zoëga Hansen, David Hardy, 
Per Mejnert Kristensen, Ingrid Reumert, and Varun Sivaram.
3  Mads Nipper’s 2023 remuneration includes a DKK 4.5 million 
expense due to the cancellation of two LTI grants. These grants were 
canceled because the increase in his shareholding was not sufficient 
to satisfy the requirements of the share programme.
The decrease in total remuneration is due to the change in composition 
of the Group Executive Board.
Employee costs
DKKm
2024
2023
Wages, salaries, and remuneration
6,707
6,550
Pensions
563
536
Other social security costs
286
268
Share-based payment
43
32
Other employee costs
174
185
Employee costs before transfer to assets
7,773
7,571
Transfer to assets
(1,241)
(1,197)
Total employee costs
6,532
6,374
Salaries and remuneration for the Group Executive Team  
and the Board of Directors
Executive Board 1
Other members of the
Group Executive Team 2
Board of Directors
Total
DKK 000
2024
2023
2024
2023
2024
2023
2024
2023
Fixed salary
37,969
27,849
12,136
36,278
6,430
6,907
56,535
71,034
Short-term cash-based incentive scheme
4,676
3,711
1,729
5,046
-
-
6,405
8,757
Share-based payment
2,787
6,270 3
1,110
4,622
-
-
3,897
10,892
Pension, social security, and benefits
704
858
2,890
7,650
-
-
3,594
8,508
Salary in notice period
-
8,443
-
12,850
-
-
-
21,293
Severance payment
-
6,210
-
14,309
-
-
-
20,519
Total 
46,136
53,341
17,865
80,755
6,430
6,907
70,431
141,003
Pension plans and number of employees 
Pension plans are defined-contribution plans that do 
not commit Ørsted beyond the amounts contributed. 
In 2024, our average number of employees (FTE) was 
8,496 (2023: 8,666). 
Remuneration of the Group Executive Team
The remuneration of the Group Executive Team is 
based on a fixed salary, personal benefits, such as a 
company car, free telephone, etc., a variable salary, 
and share-based payment. Non-executive members of 
the Group Executive Team also receive a pension.
The members of the Board of Directors are only paid a 
fixed remuneration for their work in Ørsted. In ­addition, 
Ørsted reimburses any travel expenses. 
For more details on the remuneration of the ­Executive 
Board and Board of Directors, please refer to the 
remuneration report: orsted.com/remuneration2024.
Financial statements  |  Notes
177
ØRSTED ANNUAL REPORT 2024

§  Accounting policies
The share programme is classified as an 
equity-­based programme as the programme 
is settled in shares. The market value of the 
PSUs and the estimated number of PSUs 
granted are ­measured at the time of granting 
and recognised:
·  in the income statement under employee 
costs over the vesting period
·  as an offset in the balance sheet under equity 
over the vesting period.
The valuation of the PSUs and the estimate  
of the number of PSUs expected to be granted 
are carried out as a probability simulation 
based on Ørsted’s expected total shareholder 
return relative to ten comparable European 
energy companies. The expectations are 
factored into the market value and are not 
adjusted subsequently. The participants are 
compensated for any dividend payments by 
receiving additional PSUs.
The highest rate (200 %) will be triggered if Ørsted’s 
results, measured as the total return to shareholders, 
outperform those of the comparable companies. 
For each lower ranking, the number of shares granted 
will fall by 20 percentage points. If, for example, 
Ørsted ranks third, the participants will be entitled 
to 160 % of the target. 
If Ørsted ranks 11 in the comparison, no shares will 
be granted to the participants. The right to shares is 
conditional upon continued employment. 
Retention share programme
The target group for the share-based retention 
agreements will typically be employees responsible 
for vital, long-term projects. The use of these share-
based retention agreements will be limited to 25 
concurrent agreements with an individual time frame 
of up to five years. Executive Board members are not 
eligible for these retention agreements. 
The number of retention share units (RSUs) to be 
granted will be determined on the basis of the price 
of Ørsted’s shares at the time of the grant and will be 
limited to an amount corresponding to a maximum 
of six months’ base pay for the employee in question. 
At vesting, each RSU will entitle the employee to one 
Ørsted share free of charge. However, the total value 
of the shares to be received at vesting will be capped 
at a maximum of twelve months’ base pay for the 
employee in question.
Share-based payment
Note 2.8
Executive share programme
The Group Executive Team and a number of other 
senior executives participate in the share programme 
(approx. 160). As a condition for the granting of per­
formance share units (PSUs), the participant must own 
a number of shares in Ørsted corresponding to a por-
tion of the individual participant’s annual fixed salary. 
The portion depends on the employee category, and it 
makes up 75 % of our CEO’s fixed salary. See the table 
above for more information. The participants in the pro-
gramme must invest in Ørsted shares prior to the first 
granting. A build-up period for the shareholding require-
ment of up to five years is allowed. If the particip­ants 
fulfil the shareholding requirement at the time of grant-
ing, they will be granted a number of PSUs each year, 
representing a value of 15-20 % (15-40 % in the US) of 
the annual fixed salary on the date of granting. 
The granted PSUs have a vesting period of approxi-
mately three years. Then, each PSU entitles the holder, 
without payment, to receive a number of shares cor-
responding to 0-200 % of the number of PSUs granted. 
The vesting is conditional upon continued employ-
ment. Assuming no share price development since 
the grant, the value would correspond to 0-30 % or 
0-40 % (0-80 % in the US) of the fixed salary on the 
date of grant. The final number of shares for each par-
ticipant will be determined on the basis of the total 
shareholder return delivered by Ørsted, benchmarked 
against ten comparable European energy companies. 
Required number of locked-up shares relative to fixed salary
CEO
75 % of fixed salary
CFO, COO, CCO, Chief HR Officer
50 % of fixed salary
Other participants
0 % - 25 % of fixed salary
The figure shows the shareholding requirement in percentage of the participants’ fixed salary. A build-up period of up to five years is allowed.
Market value of PSUs and key assumptions  
for valuation in executive share programme
Time of 
­granting 2024
Time of 
­granting 2023
Time of 
­granting 2022
Market value of 1 PSU
487
729
909
Key assumptions
Share price
384
583
835
Average volatility rate, peers
25.9 %
30.6 %
30.2 %
Volatility rate, Ørsted
38.4 %
36.2 %
34.8 %
Risk-free interest rate
2.3 %
2.5 %
0.9 %
Expected term at time of granting
3 years
3 years
3 years
Financial statements  |  Notes
178
ØRSTED ANNUAL REPORT 2024

Share-based payment
Note 2.8 – continued
Development in maximum number of outstanding shares 
‘000
Maximum number of outstanding shares at 1 January 
14
25
234
7
280
233
Compensation for dividends paid (2020, 2021, and 2022 
programmes)
-
-
-
-
-
5
Transfer between categories
-
(22)
22
-
-
-
Vested (2021 and 2020 programmes) 1 
(2)
-
(43)
-
(45)
(65)
Granted (2024 and 2023 programmes)
20
-
265
-
285
167
Cancelled (2021, 2022, 2023, and 2024 programmes)
-
-
(71)
-
(71)
(53)
Share retention programme
-
(1)
15
(7)
7
(7)
Maximum number of outstanding shares at 31 December
32
2
422
-
456
280
DKKm
Market value of share programme at the time of granting
19
2
263
-
284
125
Maximum market value of share programme at 31 December
10
1
137
-
148
105
1  At vesting in 2023 and 2024, Ørsted did not outperform any of the ten 
competitors, and, as a result, the participants did not receive any shares.
2  Members as of 31 December 2024 are included in this category.
Maximum number of outstanding shares at 31 December
‘000
Time of granting
Executive
 Board 2
Other members
of the Group 
Executive Team 2
Senior
executives
Other
employees 
2024
2023
2024 in 
% of share 
capital
Market value 
of shares at 
granting 
DKKm
Years 
until expiry as 
of 2024
1 April 2021
-
-
-
-
-
47
-
-
-
1 April 2022
4
1
74
-
79
89
0.02 %
72
0.3
1 April 2023
7
1
113
-
121
136
0.03 %
88
1.3
1 April 2024
21
-
220
-
241
-
0.06 %
117
2.3
Share retention programme
-
-
15
-
15
8
0.00 %
7
Maximum number of outstanding shares at 31 December
32
2
422
-
456
280
0.11 %
284
The maximum market value of the share programme at 31 December 
is based on the assumption that the participants receive the maximum 
number of shares (i.e. 200 % of the granted PSUs). This requires Ørsted 
to deliver the highest shareholder return, benchmarked against ten 
comparable companies.
Financial statements  |  Notes
179
ØRSTED ANNUAL REPORT 2024

Our capital employed primarily relates to production 
assets, including assets under construction. 
We monitor investment projects closely, as a large 
part of our value is created in the development and 
construction phases.
Capital employed by segment 1
% 2024 
Offshore  70 %
Gross investments by segment 2
% 2024 
Offshore  78 %
Onshore  26 %
Onshore  17 %
Bioenergy & Other  4 %
Bioenergy & Other  5 %
Capital employed
DKKm
2024
2023
Intangible assets, and property, plant, and equipment
204,305
183,195
Equity investments and non-current receivables 
1,395
1,172
Net working capital, capital expenditures
(7,454)
(4,542)
Net working capital, work in progress 3
5,798
1,705
Net working capital, tax equity
(18,714)
(15,811)
Net working capital, other items
(691)
7,794
Derivatives, net
(10,314)
(10,383)
Decommissioning obligations
(13,844)
(12,977)
Other provisions
(6,691)
(19,886)
Tax, net
3,210
(1,047)
Other receivables and other payables, net
(5,489)
(4,050)
Total capital employed
151,511
125,170
Gross and net investments
DKKm
2024
2023
Cash flows from investing activities
(21,759)
(34,732)
Dividends received and capital reductions reversed
(27)
(19)
Purchase and sale of securities, reversed
(15,730)
4,350
Loans to associates and joint ventures, reversed
121
78
Sale of non-current assets, reversed
(5,413)
(8,186)
Gross investments
(42,808)
(38,509)
Transactions with non-controlling  
interests in connection with divestments and 
acquisitions
10,267
(6,644)
Sale of non-current assets
5,413
8,186
Divestments
15,680
1,542
Net investments
(27,128)
(36,967)
Capital employed
Note 3
1  Capital employed by segment is based on capital employed for 
reportable segments of DKK 148,721 million.
2  Gross investments by segment is based on gross investments for 
reportable segments of DKK 42,664 million.
3  ‘Net working capital, work in progress’ consists of inventories related 
to transmission assets, construction agreements, and construction 
management agreements in connection with the construction of 
transmission assets and offshore wind farms for partners as well as 
related trade payables.
Financial statements  |  Notes
180
ØRSTED ANNUAL REPORT 2024

Intangible assets, and property, plant, and equipment
Note 3.1
Intangible assets, and property, plant, and equipment
DKKm
Intangible 
assets
Land and 
buildings
Production 
assets
Fixtures and 
fittings, tools, 
and equipment
Property, plant, 
and equipment 
under construction
Property, plant, 
and equipment
Cost at 1 January 2024
5,177
11,153
189,104
4,040
69,197
273,494
Exchange rate adjustments
17
483
6,944
21
3,425
10,873
Additions
355
555
8,504
562
37,364
46,985
Disposals
(1,139)
(289)
(2,857)
(29)
(4,205)
(7,380)
Adjustment of decommissioning obligations
-
-
(206)
-
439
233
Reclassified assets
-
188
17,143
60
(17,391)
-
Cost at 31 December 2024
4,410
12,090
218,632
4,654
88,829
324,205
Depreciation and amortisation at 1 January 2024
(1,048)
(3,346)
(65,639)
(1,994)
-
(70,979)
Exchange rate adjustments
(1)
(105)
(1,752)
11
(1)
(1,847)
Depreciation and amortisation
(131)
(625)
(8,921)
(548)
-
(10,094)
Disposals
88
24
396
3
55
478
Depreciation and amortisation at 31 December 2024
(1,092)
(4,052)
(75,916)
(2,528)
54
(82,442)
Impairment losses at 1 January 2024
(703)
(30)
(1,822)
(4)
(20,890)
(22,746)
Exchange rate adjustments
(4)
(1)
(149)
-
(1,610)
(1,760)
Impairment losses and reversals
-
(30)
(1,713)
-
(13,820)
(15,563)
Reclassified assets
-
-
(555)
-
555
-
Impairment losses at 31 December 2024
(707)
(61)
(4,239)
(4)
(35,765)
(40,069)
Carrying amount at 31 December 2024
2,611
7,977
138,477
2,122
53,118
201,694
Intangible assets
Intangible assets consist of goodwill of DKK 1,713 
­million (2023: DKK 1,847 million), carbon emission 
allowances of DKK 306 million (2023: DKK 871 
­million), other rights of DKK 463 million (2023: 
DKK 626 million), completed development projects 
of DKK 41 million (2023: DKK 61 million), and 
development projects in progress of DKK 88 million 
(2023: DKK 21 ­million). Recognised goodwill primarily 
relates to Onshore Europe.
Production assets by segment
% 2024
DKK 138,477 million
Offshore
Onshore
Bioenergy 
& Other
58 %
38 %
4 %
Property, plant, and equipment  
under construction by segment
% 2024
DKK 53,118 million
Offshore
Onshore
Bioenergy 
& Other
80 %
14 %
6 %
Financial statements  |  Notes
181
ØRSTED ANNUAL REPORT 2024

Intangible assets, and property, plant, and equipment
Note 3.1 – continued
Intangible assets, and property, plant, and equipment
DKKm
Intangible 
assets
Land and 
buildings
Production 
assets
Fixtures and 
fittings, tools, 
and equipment
Property, plant, 
and equipment 
under construction
Property, plant, 
and equipment
Cost at 1 January 2023
5,707
10,747
179,094
3,076
52,088
245,005
Exchange rate adjustments
9
(47)
159
(23)
(1,551)
(1,462)
Additions
19
551
349
889
36,164
37,953
Disposals
(580)
(114)
(5,125)
-
(1,477)
(6,716)
Adjustment of decommissioning obligations
-
-
(1,803)
-
539
(1,264)
Reclassified assets
22
16
16,430
98
(16,566)
(22)
Cost at 31 December 2023
5,177
11,153
189,104
4,040
69,197
273,494
Depreciation and amortisation at 1 January 2023
(973)
(2,767)
(59,102)
(1,533)
-
(63,402)
Exchange rate adjustments
-
(6)
(586)
(2)
-
(594)
Depreciation and amortisation
(59)
(614)
(8,661)
(459)
-
(9,734)
Disposals
(16)
41
2,710
-
-
2,751
Depreciation and amortisation at 31 December 2023
(1,048)
(3,346)
(65,639)
(1,994)
-
(70,979)
Impairment losses at 1 January 2023
(705)
-
(781)
-
(3,157)
(3,938)
Exchange rate adjustments
2
-
17
-
438
455
Impairment losses and reversals
-
(30)
(1,058)
(4)
(18,190)
(19,282) 1 
Disposals
-
-
-
-
19
19
Impairment losses at 31 December 2023
(703)
(30)
(1,822)
(4)
(20,890)
(22,746)
Carrying amount at 31 December 2023
3,426
7,777
121,643
2,042
48,307
179,769
1  We recognised total impairment losses of DKK 26,775 million for the year. 
Of that amount, DKK 19,282 million are recognised under ‘Property, plant, 
and equipment’ and DKK 7,493 million under ‘Provisions’ as ‘Onerous 
contracts’. See notes 3.2 ‘Impairments’ and 3.9 ‘Provisions and contingent 
liabilities’ for more information.
Production assets by segment
% 2023
DKK 121,643 million
Offshore
Onshore
Bioenergy 
& Other
61 %
34 %
5 %
Property, plant, and equipment  
under construction by segment
% 2023
DKK 48,307 million
Offshore
Onshore
Bioenergy 
& Other
67 %
31 %
2 %
Financial statements  |  Notes
182
ØRSTED ANNUAL REPORT 2024

Lease assets
DKKm
Land and buildings
Production assets
Fixtures and 
fittings, tools, and 
equipment
Property, plant, 
and equipment
Carrying amount at 1 January 2024
5,881
27
1,567
7,475
Exchange rate adjustments
496
1
18
515
Additions
584
-
514
1,098
Disposals
(217)
-
(24)
(241)
Impairment
(30)
-
-
(30)
Depreciation
(540)
(3)
(453)
(996)
Carrying amount at 31 December 2024
6,174
25
1,622
7,821
Lease assets
DKKm
Carrying amount at 1 January 2023
6,409
43
1,157
7,609
Exchange rate adjustments
(45)
1
(32)
(76)
Additions
137
4
814
955
Disposals
(67)
-
-
(67)
Impairment
(30)
-
-
(30)
Depreciation
(523)
(21)
(372)
(916)
Carrying amount at 31 December 2023
5,881
27
1,567
7,475
Contractual obligations by segment
DKKm
0-1 year
1-5 years
5-10 years
2024
2023
Offshore
46,774
43,804
6
90,584
86,015
Onshore
9,588
2,056
2
11,646
10,937
Bioenergy & Other
1,558
137
-
1,695
2,274
Total
57,920
45,997
8
103,925
99,226
Overview of contracts entered into where delivery had not taken place at 31 December 2024.
The obligations are measured at nominal value.
Leases
We mainly lease office buildings, service and installa-
tion vessels, seabeds related to offshore wind farms, 
and plots of land related to onshore wind farms, solar 
farms, and battery storage facilities. 
Seabed leases include variable lease payments, which 
depend on the number of megawatt hours generated. 
However, we have typically agreed on minimum 
lease payments for the seabeds, and these minimum 
payments are included in the lease liabilities. 
Expenses for the year relating to variable lease 
payments not included in lease liabilities were 
DKK 1,132 million in 2024 (2023: DKK 992 million). 
Interests on lease debt expensed in profit (loss) were 
DKK 301 million in 2024 (2023: DKK 308 million). 
Total cash outflow for leases were DKK 2,171 million 
in 2024 (2023: DKK 2,012 million). 
During 2024, we have entered into lease contracts for 
vessels which we will not take delivery of until 2027. 
Consequently, those have not yet commenced as per 
31 December 2024 and therefore not been included in 
the balance sheet.
For a maturity analysis of lease liabilities, we refer to 
note 5.5 ‘Maturity analysis of financial liabilities’.
Contractual obligations
Our contractual obligations for property, plant, and 
equipment at 31 December 2024 mainly related to 
wind turbines, foundations, and cables, etc., for the 
construction of offshore wind farms (primarily ­Borkum 
Riffgrund 3, Greater Changhua 2b and 4, Hornsea 3, 
Revolution Wind, and Sunrise Wind). 
 
The obligations in Onshore mainly related to purchases 
of wind turbines and solar PV modules.
Useful lives
Battery storage
15-30 years
Buildings
20-50 years
Fixtures and fittings, tools, and equipment
3-10 years
Gas transportation systems (marine pipelines)
20-40 years
Offshore wind farms
20-35 years
Onshore wind farms
24-30 years
Production assets, power (thermal), and district heating
20-25 years
Solar farms
25-35 years
Goodwill
Indefinite
Intangible assets, and property, plant, and equipment
Note 3.1 – continued
Financial statements  |  Notes
183
ØRSTED ANNUAL REPORT 2024

Intangible assets, and property, plant, and equipment
Note 3.1 – continued
§  Accounting policies
Intangible assets
Rights are measured at cost less accumulated 
amortisation and impairment losses. Rights 
are amortised on a straight-line basis over 
their estimated future useful lives, which are 
5-20 years.
Goodwill represents the excess of the cost of 
an acquisition over the fair value of the identi­
fiable net assets of the acquired company.  
The carrying amount of goodwill is allocated 
to the Group’s cash-generating units, which 
are the operating segments at the acquisition 
date. Goodwill is not tax deductable. 
Annual impairment tests are carried out for 
goodwill and other intangible assets with 
indefinite useful lives. 
Property, plant, and equipment
Property, plant, and equipment which is not 
a lease is measured at cost less accumulated 
depreciation and impairment losses. Cost of 
property, plant, and equipment is depreci-
ated by using the straight-line method, the 
diminishing-balance method, or the reducing-­
fraction method. The diminishing-balance 
method and the reducing-fraction method 
result in decreasing depreciation over the 
useful life. These methods are used for some 
of our offshore wind farms.
The residual values, useful lives, and methods 
of depreciation of property, plant, and 
equipment are reviewed at the end of each 
financial year and adjusted prospectively, if 
appropriate.
Costs comprise purchase price and any 
costs directly attributable to the acquisition 
until the date the asset is available for use. 
The costs of self-constructed assets comprise 
direct and indirect costs of materials, compo-
nents, sub-suppliers, and labour. Borrowing 
costs relating to both specific and general 
borrowing directly attributable to assets 
under construction with a lengthy construc-
tion period are recognised in costs during the 
construction period. Costs are increased by 
the present value of the estimated obligations 
for demolition and decommissioning of assets 
to the extent that the obligations are recog-
nised as provisions.
Subsequent costs, for example in connec-
tion with replacement of parts of an item of 
­property, plant, and equipment, are recog-
nised in the carrying amount of the asset in 
question when it is probable that future eco-
nomic bene­fits will flow to the Group from 
the expenses incurred. Any residual value of 
the replaced parts is recognised in the income 
statement as loss on disposal of ­non-­current 
assets. Other repair and maintenance 
expenses are recognised in profit (loss) for 
the year as incurred.
Leases
Our lease assets are classified alongside our 
owned assets of similar type under property, 
plant, and equipment. Initially, we measure 
a lease asset at cost, being the initial amount 
of the lease liability. We depreciate our lease 
assets over the lease term. The depreciation 
method used is the straight-line method for 
all our lease assets, except for seabed leases 
where the depreciation method is aligned 
with the depreciation method for the related 
offshore wind farm. Therefore, seabed lease 
assets are depreciated using either the 
straight-line method or the reducing-fraction 
method.
Our lease liabilities are initially measured 
at the net present value of the in-substance 
fixed lease payments for the use of a lease 
asset. If, at inception of the lease, we are 
reasonably certain that we will exercise an 
option to extend a lease, we will include the 
lease payments in the option period when 
calculating the lease liability. We measure 
the lease asset to the value of the lease 
liability at ­initial recognition.
Contracts may contain both lease and 
non-lease components. We allocate the 
consideration in a contract to the lease 
and non-lease components based on their 
relative stand-alone prices. We account for 
non-lease components in accordance with 
the accounting policy applicable for such 
items. Non-lease components comprise 
building services and operating costs of 
leased vessels, etc.
Variable lease expenses are recognised in 
other external expenses in the period when 
the condition triggering those payments 
occurs. Interests of lease liabilities are 
recognised in financial expenses.
Each lease payment is separated into 
repayment of the lease liability and pay-
ment of interests of the lease liability. Debt 
repayments are classified as cash flows 
from financing activities, and payment of 
interests are classified as cash flows from 
operating activities.
Financial statements  |  Notes
184
ØRSTED ANNUAL REPORT 2024

Impairments
Note 3.2
CGUs in Offshore
The cash-generating units (CGUs) are made up of 
individual offshore wind farms or seabeds, each 
of which generates cash flows for the segment 
independently of each other.
Significant CGUs
Europe: Baltica 2, Baltica 3, Borkum Riffgrund 1, 
Borkum Riffgrund 2, Borkum Riffgrund 3, 
Borssele 1 & 2, Gode Wind 1, Gode Wind 2, Gode 
Wind 3, Hornsea 1, Hornsea 2, Hornsea 3, Race 
Bank, Walney, and Walney Extension.
The US: Block Island, Revolution Wind, Skipjack 
Wind (seabed), South Fork, Sunrise Wind, and 
Ocean Wind (seabed). 
APAC: Greater Changhua 1 and 2a and Greater 
Changhua 2b and 4. 
CGUs in Onshore
The CGUs are made up of individual onshore 
wind and solar farms, each of which generates 
cash flows for the segment independently of 
each other.
Significant CGUs
The US: Amazon, Badger, Eleven Mile, Ford Ridge, 
Haystack, Helena Energy Center, Lincoln Land 
Wind, Lockett, Mockingbird, Muscle Shoals, Old 
300, Old 300 BESS, Permian Energy Center, 
Sage Draw Wind, Sparta Solar, Sunflower 
Wind, Tahoka Wind, Western Trail, and Willow 
Springs Wind.  
Europe: Portfolio of projects (including goodwill).
CGUs in Bioenergy & Other
The Danish CHP plants constitute a single CGU, 
as overall production planning is for the entire 
Danish portfolio. In addition, the Danish offshore 
gas pipeline system is deemed to constitute an 
independent CGU.
Significant CGUs
Central CHP plants and the offshore gas pipeline 
system.
Impairment losses on segment level
DKKm
2024
2023
Offshore
14,242
25,526
Onshore
1,321
927
Bioenergy & Other
-
322
Total impairment losses
15,563
26,775
WACC levels
%
2024
2023
Base discount rate applied for 
the US
6.00 – 7.75 %
5.50 – 7.00 %
The base discount rate after tax applied for the value-in-use calculation 
is determined per CGU.
We have updated our impairment calculations as of 
31 December 2024. When estimating the future cash 
flows for the value-in-use ­calculations of our cash-
generating units (CGUs), management has assessed 
relevant assumptions and estimates and taken 
other related risks and inherent uncertainties into 
consideration. 
Following this, we have recognised net impairment 
losses of DKK 15.6 billion in 2024. The main contributors 
to the net impairment loss were construction delay and 
higher expected costs due to a higher risk assessment 
for Sunrise Wind and Revolution Wind, a lower valuation 
of our seabed leases, an increase in the US long-dated 
interest rate across our US portfolio, and our decision 
to cease execution of FlagshipONE. This was partly 
offset by a reversal on our Sunrise Wind project due 
to its award of a higher OREC level by the State of 
New York. In 2023, we recognised impairment losses 
of DKK 26.8 billion, of which DKK 20 billion related to 
the termination of Ocean Wind 1. 
Impairment test
When performing impairment calculations, we have 
reassessed assumptions and estimates in relation to 
relevant risks identified for the individual projects. 
These risks primarily relate to the construction 
schedule, the supply chain, and the ability to qualify 
for the additional 10 % ITC bonus credits. The risks 
could create potential further cost increases, schedule 
delays, delayed revenue, knock-on effects, and other 
business case implications. Our impairment tests 
are based on a probability-weighted assessment of 
the likelihood of these risks. While uncertainties are 
inherent in the assumptions used, the assumptions 
reflect mangement’s best estimate.
The projects with the most significant impairment 
impact and high involvement of estimates and 
uncertainties are described in the following sections, 
along with more general sections.
Sunrise Wind
In 2024, we have recognised a net impairment loss of 
DKK 3.8 billion for Sunrise Wind. The impairment loss 
was primarily driven by the following circumstances:
·	 A negative effect from construction delays and 
increased costs and contingencies due to a higher 
risk assessment (DKK 4.3 billion).
·	 A negative effect from the increase in the long-
dated US interest rate (DKK 1.2 billion).
·	 A positive effect from the award of a higher 
offshore wind renewable energy certificate (OREC) 
level by the State of New York (DKK 1.8 billion).
·	 A negative effect from updated assumptions for the 
expected market prices was offset by the impact of 
acquiring Eversource’s 50 % share of the project at 
a price below the recoverable amount of our 50 % 
share of the project at the end of Q2 2024. 
Financial statements  |  Notes
185
ØRSTED ANNUAL REPORT 2024

Impairments
Note 3.2 – continued
Revolution Wind
In 2024, we have recognised a net impairment loss 
of DKK 4.5 billion for Revolution Wind. The impair-
ment loss was primarily driven by the following 
circumstances:
·	 A negative effect from the construction delay 
of the onshore substation, which has pushed the 
commercial operation date (COD) from 2025 to 
2026, including knock-on impacts on costs and 
progress (DKK 2.1 billion).
·	 Challenges related to the piling of one of the 
offshore substation monopiles and a reassessment 
of the risks related to the offshore scope of the 
project (DKK 1.7 billion).
·	 A negative effect from the increase in the long-
dated US interest rate (DKK 0.5 billion). 
Seabed value of Ocean Wind and Skipjack Wind
When estimating the recoverable amount of the 
seabeds related to Ocean Wind and Skipjack Wind, 
we use the approach ‘fair value less costs of disposal’ 
(FVLCD) to determine if the carrying amounts exceed 
the recoverable amounts. Our valuation indications 
have led to an impairment of DKK 4.1 billion in 2024, 
which has substantially reduced the carrying amount. 
The valuation is based on market-informed valuation 
indications, which among other things are based 
on the price development seen in the latest seabed 
lease auctions. Despite the currently lower valuation, 
we continue to see a strategic optionality in these 
seabeds. 
Estimation uncertainty and sensitivity analyses
Due to the impairments recognised, estimation uncertainty exists 
on the assets impaired. The assumptions with major uncertainties 
include investment tax credits, interest rates, and the supply chain. 
The sensitivity analyses presented in the table show the related 
impact on impairment losses when a change in a given assumption 
increases or decreases the ‘value-in-use’ for our CGUs. The analyses 
are performed with all other assumptions unchanged. 
We have included sensitivity analyses of impairment effects if WACC 
levels or assumptions related to ITC bonus credits change. The high 
probabilities for Revolution Wind and Sunrise Wind qualifying for the 
additional 10 % ITC bonus credits are based on our assessment that 
the onshore substations are located on brownfield sites as defined 
by the current ‘energy community’ guidance. 
If WACC had increased by 50 basis points in the impairment test of 
e.g. Revolution Wind as of 31 December 2024, the impairment loss 
would have been DKK 0.5 billion higher.
If we had not included the probability-weighted additional 10 % ITC 
bonus credits in the impairment test of e.g. Revolution Wind as of 
31 December 2024, the impairment loss would have been DKK 1.3 
billion higher. 
 
CGUs
DKKm
2024
2023
ITC bonus credits 
assumed in impairment tests
Sensitivity impact
DKK billion
Impairment 
losses
Recoverable 
amount
Impairment 
losses
Recoverable 
amount
ITC bonus 
credits
Probability 
weighting
No ITC 
bonus credits
40 % ITC 
bonus credits, 
100 % probability
+50 bps 
WACC
-50 bps 
WACC
Ocean Wind 1
-
n.a.
19,875
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Ocean Wind seabeds
2,584
n.a.
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a
n.a.
Skipjack Wind seabed
1,502
n.a.
-
n.a.
n.a.
n.a.
n.a
n.a.
n.a.
n.a.
Sunrise Wind
3,787
6,511
2,069
2,006
10 %
95 %
(4.0)
0.2
(1.4)
1.4
Revolution Wind
4,463
5,579
2,706
3,723
10 %
95 %
(1.3)
0.1
(0.5)
0.5
South Fork
437
2,871
554
2,993
n.a.
n.a.
n.a.
n.a.
(0.1)
0.1
Block Island
(46)
1,384
322
1,304
n.a.
n.a.
n.a.
n.a.
0.0
0.0
FlagshipONE
1,515
n.a.
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Offshore
14,242
16,345
25,526
10,026
Onshore
1,321
11,501
927
2,667
n.a
n.a
n.a
n.a.
(0.7)
0.5
Bioenergy & Other
-
-
322
n.a.
Total 
15,563
27,846
26,775
12,693
 
Financial statements  |  Notes
186
ØRSTED ANNUAL REPORT 2024

Impairments
Note 3.2 – continued
Other US assets
In 2024, updated market price assumptions have 
resulted in impairment losses of DKK 0.6 billion on 
South Fork, Block Island, and our US onshore assets, 
exclusive of the impact from higher interest rates.
Interest rates
The long-dated US interest rate increased from 
31 December 2023 to 31 December 2024, leading 
to higher WACC levels. The effect from increasing 
interest rates led to an impairment of DKK 2.7 billion 
across our US portfolio.
Ceasing execution of FlaghipONE
In 2024, we took the decision to cease execution of 
FlagshipONE and deprioritised our immediate efforts 
within the liquid e-fuels market. This resulted in an 
impairment loss of DKK 1.5 billion. 
Impairment losses relating to intangible assets
We have not recognised any material impairment 
losses to goodwill or other intangible assets in 2024.
Goodwill primarily relates to Onshore Europe.
§  Accounting policies
For the purpose of assessing impairment losses, ‘Intan-
gible assets’, and ‘Property, plant, and equipment’ are 
grouped at the level for which there are separately 
identifiable cash flows (cash-generating units (CGUs)). 
CGUs including goodwill are assessed for impairment 
yearly or whenever events or circumstances indicate 
that the carrying amount of an asset or CGU may 
not be recoverable. If any indication of impairment 
exists, an estimate of the asset’s or CGU’s recoverable 
amount is made. 
The value of a CGU is impaired if the carrying amount 
exceeds the recoverable amount, which is the higher 
of the estimated value-in-use and the fair value less 
costs of disposal. Value-in-use calculations are based 
on management’s expectations to future cash flows 
from financial forecasts and business plans and include 
a number of assumptions and estimates. Fair value less 
costs of disposal is used for seabeds and is based on 
multiple analyses and discounted cash flow models, 
if a ­business case is available. 
Estimating expected cash flows involves a number of 
assumptions and estimates. In the US, key estimates 
and assumptions for the forecast periods are CAPEX 
(including knock-on effects from supplier delays, etc.), 
inflation, terms of conditions in new power purchase 
agreements, eligibility for bonus ITCs, and tax equity 
arrangements or alternative ways of monetising the 
ITCs and PTCs. All these key estimates and assump-
tions are determined specifically for each CGU and 
are based on current legislation and administrative 
­practices effective by the end of the reporting period. 
The discount rate applied when calculating value-in-
use takes general risks into account and is based on 
the post-tax nominal weighted average cost of capital 
(WACC), whereas the estimated future cash flows are 
adjusted for risks specific to the asset. 
Impairment losses are recognised in the income 
­statement and, except in the case of goodwill, 
reversed if there has been a change in the ­estimates 
used to determine the CGU’s recoverable amount. 
Reversal of an impairment loss is recognised as income 
in the income statement net of depreciation if no 
impairment loss had been recognised for the CGU. 
  Key accounting estimate
Key assumptions in impairment tests
Value-in-use calculations are based on management’s 
expectations about future cash flows from ­financial 
budgets and forecasts and include a number of 
assumptions and estimates. 
These assumptions include construction schedules, 
estimates of future market conditions, CAPEX, market 
prices of energy and commodities, inflation, discount 
rates, useful lives of the projects, tax incentives, 
including the ability to qualify for tax credits from 
the US Inflation Reduction Act, etc.
The market prices applied are based on available 
forward prices for a period of up to five years and our 
best estimate of long-term prices for the remainder 
of the period. 
While there are inherent uncertainties in the assump-
tions, the assumptions reflect management’s best 
estimate over the lives of the Group’s CGUs.
 
Potential consequences of further  
adverse development
In addition to the sensitivities described, further 
adverse developments could lead us to cease 
develop­ment of or reconfigure projects currently 
under development. Besides impairing the capitalised 
value of these projects, ceasing to develop projects 
could lead to compensation to suppliers or other 
stakeholders for cancelling contracts. Costs related 
to cancelling contracts will be recognised as ‘Other 
operating expenses’ in our income statement (part of 
EBITDA) when the obligation arises and to the extent 
these exceed already recognised onerous contracts.
Financial statements  |  Notes
187
ØRSTED ANNUAL REPORT 2024

Inventories
Note 3.3
Inventories 
DKKm
2024
2023
Offshore transmission assets
10,476
3,944
Biomass
581
928
Coal
268
566
Gas
2,915
2,167
Oil
272
339
Renewable certificates
2,775
2,371
Carbon emission allowances 
147
213
Other
14
11
Total inventories
17,448
10,539
Inventories recognised as an expense in ‘Cost of sales’ during the year
16,152
9,626
Inventories measured at fair value are disclosed in note 6.6 ‘Fair value measurement’.
‘Offshore transmission assets’ relate to the ­Hornsea 3 
and Hornsea 4 transmission assets. 
‘Gas’ primarily relates to our gas trade activities. 
 
‘Renewable certificates’ are primarily renewable 
obligation certificates (ROCs), which are issued to 
renewable energy power generators in the UK. 
§  Accounting policies
Offshore transmission assets are recognised 
as inventory until divestment and measured 
at cost. The costs comprise costs of materials 
used in construction, site labour costs, costs 
of renting equipment as well as indirect 
production costs, such as employee costs. 
Gas inventories are carried either at fair value 
or at cost depending on the nature of the 
inventory. For gas storage facilities managed 
on a fair value basis, the gas is recognised at 
fair value less costs to sell. Changes in the fair 
value less costs to sell are recognised in ‘Cost 
of sales’ in the period of the change. 
Purchased carbon emission allowances are 
measured at market value. 
Renewable certificates, which we earn by 
generating power using renewable energy 
sources, are recognised in inventories in step 
with our generation. We measure renewable 
certificates (earned and bought) at cost using 
the first-in, first-out (FIFO) principle. 
Other inventories are measured at cost, deter-
mined on a first-in, first-out basis (e.g. biomass) 
or by net realisable value, if net realisable value 
is lower. 
Inventories are written down to the lower of 
net realisable value and cost price. For offshore 
transmission assets, it is the expected final 
transfer value announced by Ofgem. 
The net realisable value is the sum (discounted) 
which the inventories are expected to generate 
through a normal sale.
Financial statements  |  Notes
188
ØRSTED ANNUAL REPORT 2024

Contract assets and liabilities
Note 3.4
Contract assets and contract liabilities primarily 
related to: 
·	 the construction of offshore wind farms with 
partners, with each party typically owning 50 %  
of the offshore wind farm 
·	 prepayments from heat customers.
Our contract assets primarily related to the 
construction of Greater Changhua 4.
At the end of 2024, current contract liabilities 
primarily related to the farm-down of Greater 
Changhua 4. 
At the end of 2023, current contract liabilities  
related to the construction of Borkum Riffgrund 3  
and Gode Wind 3. 
Non-current contract liabilities related to prepay-
ment of power related to the divestment of an 
equity ­ownership share in a portfolio of four UK 
offshore wind farms and prepayments from heat 
customers.
§  Accounting policies
We recognise a contract asset when we per-
form a service or transfer goods in advance of 
receiving consideration, and the ­consideration 
is conditional. When the consideration is 
­unconditional, and the goods or services are 
delivered, we recognise a receivable. A right 
to consideration is unconditional if only the 
passage of time is required before the payment 
is due. 
Contract assets are measured at the transac-
tion price of the goods delivered or services 
performed less invoicing on account. 
We recognise a contract liability when the 
invoicing on account or expected losses exceed 
the transaction price of the goods or services 
transferred to our customer.
Prepayments from power and heat sales are 
recognised as a contract liability until delivery.
Revenue from contracts with customers 
DKKm
2024
2023
Revenue included in contract liabilities at the  
beginning of the year
(6)
(6)
Revenue from performance obligations satisfied  
in previous years
(21)
(592)
Contract balances
DKKm
Contract assets
Current contract assets
324
802
Total contract assets
324
802
Contract liabilities
Non-current contract liabilities
8,834
3,297
Current contract liabilities
2,578
2,785
Total contract liabilities
11,412
6,082
The table shows the amount of our revenue relating to contract 
­liabilities carried forward (as prepayments and deferred revenue) and 
the amount relating to performance obligations satisfied in a prior 
year (e.g. re-­negotiations or constraints on variable considerations 
that are not recognised until they are highly probable).
Financial statements  |  Notes
189
ØRSTED ANNUAL REPORT 2024

Trade receivables
Note 3.5
Trade receivables 
DKKm
2024
2023
Trade receivables, not due
7,848
10,480
Trade receivables, 1-30 days overdue
563
291
Trade receivables, more than 30 days overdue
647
358
Trade receivables, write-downs
(13)
(22)
Total trade receivables 
9,045
11,107
We continuously perform credit ratings of our 
customers. For customers with a general credit 
risk, a ­write-down of 0-1 % is carried out on initial 
recognition. 
In 2023, we wrote down a loan given to support 
US suppliers in the amount of DKK 571 million 
related to Ocean Wind 1 and 2. Except for this, we 
have not made any write-downs of receivables in 
2024 or 2023.
Reversal of write-downs was DKK 5 million.
§  Accounting policies
We keep our receivables until maturity, and therefore, 
they are measured at amortised cost. 
Write-downs are carried out from initial recognition of 
our receivables. The write-down is calculated as the 
difference between the carrying amount of the receiv-
able and the net present value of expected future cash 
flows from the receivable. The discount rate used is the 
effective interest rate for the individual receivable or 
the ­individual portfolio. 
We apply the simplified approach to the write-down 
of trade receivables, which permits calculating the 
write-down as the full loss during the entire term of 
the receivable.
We have entered into supply chain finance agreements 
with a limited number of suppliers. This provides the 
supplier with the possibility of requesting the partici-
pating banks to pay the invoice before our due date.
 
We expect that more of our suppliers will make use of 
supply chain financing in the future.
‘Trade payables’, for which supplier financing is 
offered, retain their classification in our ­balance sheet.
Liabilities that are part of supply chain financing are 
due 120-180 days after invoice date. Comparable 
­liabilities that are not part of supply chain financing 
are due up to 90 days after invoice date.
Supply chain finance – liabilities paid by supplier finance banks
DKKm
 
2024
2023
Recognised in 
balance sheet
Of which, paid 
by supplier 
finance banks
Recognised in 
balance sheet
Of which, paid 
by supplier 
finance banks
Trade payables
3,256
2,985
1,833
 1,741 
Supply chain finance
Note 3.6
Financial statements  |  Notes
190
ØRSTED ANNUAL REPORT 2024

Other receivables and other payables
Note 3.7
Other receivables
DKKm
2024
2023
Receivables from the divestment of assets and enterprises
513
1,472
Receivables from the divestment of equity investments to non-controlling interests
747
735
Collateral provided in connection with hedging activities (receivable from banks) 
5,533
4,773
Cash, not available for use
317
481
VAT and other indirect tax receivables 
1,580
1,640
Prepayments
1,429
1,265
Deposits
215
308
Other
2,820
2,990
Total other receivables 
13,154
13,664
Of which, working capital
6,400
6,739
Of which, other capital employed
817
1,847
Of which, interest-bearing net debt
5,937
5,078
Other payables
DKKm
M&A related liabilities
2,477
2,753
Payables related to the divestment of assets 1
3,234
2,900
Accrued interest
3,589
3,097
Collateral received in connection with hedging activities (payable to banks) 
76
287
Salary-related items, payable
905
844
VAT and other indirect taxes, payable
501
535
Other deferred income
361
104
Other
1,788
1,978
Total other payables
12,931
12,498
Of which, working capital
3,364
3,306
Of which, other capital employed
6,126
5,854
Of which, interest-bearing net debt
3,441
3,338
1  Mainly related to the divestment of a portfolio of four onshore projects in 2022.
Financial statements  |  Notes
191
ØRSTED ANNUAL REPORT 2024

Tax equity liabilities
Note 3.8
During 2024, we commissioned four solar projects, 
Mockingbird, Eleven Mile Solar Center, Sparta 
Solar, and Old 300, and we received a tax equity 
contribution from our partner for these projects. 
In November 2024, we divested a 50 % ownership 
share of our solar farm Mockingbird.
Tax equity liabilities
DKKm
2024
2023
Balance at 1 January
17,007
16,393
Contribution received from tax equity partners
5,200
2,942
Disposal related to divestment
(587)
-
Tax attributes and PTCs/ITCs recognised in other operating income
(3,434)
(2,531)
Cash paid to tax equity partners
(230)
(219)
Tax equity partners’ contractual return
1,275
965
Exchange rate adjustments
1,247
(543)
Balance at 31 December
20,478
17,007
Of which, working capital
18,714
15,811
Of which, interest-bearing debt
1,764
1,196
§  Accounting policies
Due to the operational and financial nature of the  
tax equity partnerships, we normally have the power 
to affect relevant activites and make decisions for the 
projects as the managing partner in the agreements. 
Therefore, we normally fully consolidate companies 
that have tax equity partners.
The tax equity contribution generally has the char-
acteristics of a liability as the initial contribution is 
repaid, including an agreed return, and the partner 
does not share in the risks of the project in the same 
way as a shareholder. 
As such, the contribution is accounted for as a liability 
and measured at amortised cost. The liability is 
based on the expected method of repayment and is 
divided into: 
·	 a net working capital element to be repaid through 
PTCs or ITCs and other tax attributes 
·	 an interest-bearing debt element expected to 
be repaid through cash distributions.
The partner’s agreed return is expensed as a financial 
expense and is recognised as an increase of the tax 
equity liability. PTCs, ITCs, and other tax attributes 
transferred to the tax equity partner are recognised 
as other operating income. PTCs are recognised in the 
periods earned, while ITCs and other tax attributes 
are recognised on a straight-line basis over the 
estimated contractual length of the partnership. 
In addition to the above, we recognise a liability for 
the expected purchase price for the partner’s post-flip 
rights to cash distributions. This liability is recognised 
at fair value, and adjustments are expensed as a 
financial item. This recognition reflects the intention 
and high likelihood that we will purchase the 
partner’s post-flip rights, and they are part of the 
financial costs of the arrangement.
  Key accounting judgement
Recognition of tax equity partnerships 
On formation of a tax equity partnership, we assess the 
appropriate recognition of the partner’s contribution 
as well as the method of recognition for the elements 
used to repay the partner, such as PTCs, ITCs, and tax 
attributes. 
When assessing the recognition of the partner’s 
contribution, we look at: 
·	 the expected flows of PTCs/ITCs, tax attributes,  
and cash payments to the partner 
·	 the rights and obligations of both us and the tax 
equity partner. 
The deferral of the income related to tax attributes 
and the recognition of the contribution as ­working 
capital or interest-bearing debt are affected by 
our expectation about the size, method, and timing 
of repayments.
Government support in the US 
In the US, PTCs, ITCs, and other tax attributes are used 
to incentivise investment in renewable energy assets 
– similar to subsidies in other countries.
Description of tax equity partnerships 
Tax equity partnerships are characterised by a 
tax equity partner, who contributes an upfront 
payment as part of the initial project investment 
and generally does not have an operational role in 
the project. The partner receives a contractually 
agreed return on the contribution. In order to ‘repay’ 
the initial contribution and the return, a dispropor-
tionate share of the production tax credits (PTCs) 
or the investment tax credits (ITCs) and other tax 
attributes (accelerated tax depreciation and other 
taxable results) are allocated to the partner during 
the first part of the project’s lifetime. The partner 
also receives some cash payment-based percent-
ages specified in the partnership agreements. Once 
the partner receives the agreed return, the agree-
ment flips, and the partner is typically entitled 
to a minor part of the cash distributions from the 
project, unless we repurchase this right from them, 
which is highly likely.
Financial statements  |  Notes
192
ØRSTED ANNUAL REPORT 2024

Provisions and contingent liabilities
Note 3.9
2024
2023
Provisions
DKKm
Decom- 
missioning
obligations
Onerous 
contracts
Other
provisions
Total
Decom- 
missioning
obligations
Onerous 
contracts
Other
provisions
Total
Provisions at 1 January
12,977
15,654
4,232
32,863
14,076
280
5,350
19,706
Exchange rate adjustments
382
214
12
608
62
(675)
11
(602)
Used during the year
(34)
(8,074)
(1,036)
(9,144)
(30)
(4,206)
(824)
(5,060)
Provisions reversed during the year
(88)
(7,663)
(260)
(8,011)
-
-
(1,447)
(1,447)
Provisions made during the year
504
2,531
1,070
4,105
526
20,246
1,150
21,922
Disposals
(86)
-
-
(86)
(349)
-
(12)
(361)
Divestment of enterprises
(7)
-
(1)
(8)
-
-
-
-
Change in estimates
(125)
-
-
(125)
(1,790)
-
-
(1,790)
Interest element of provisions
321
12
-
333
482
9
4
495
Total provisions at 31 December
13,844
2,674
4,017
20,535
12,977
15,654
4,232
32,863
Falling due as follows
In 0-1 year
344
2,031
425
2,800
250
15,007
698
15,955
In 1-5 years
634
266
3,282
4,182
1,499
536
3,350
5,385
After 5 years
12,866
377
310
13,553
11,228
111
184
11,523
Decommissioning obligations by segment
DKKm
0-5 years
5-10 years
10-20 years
After 20 years
2024
2023
Offshore
545
1,853
4,646
2,303
9,347
8,840
Onshore
1
-
37
2,255
2,293
2,062
Bioenergy & Other
432
65
1,352
355
2,204
2,075
Total
978
1,918
6,035
4,913
13,844
12,977
Decommissioning obligations
Decommissioning obligations comprise estimated 
expenses relating to the decommissioning and 
disposal of our offshore wind, onshore wind, and solar 
farms, our battery storage facilities, the restoration 
of seabeds, the decommissioning of our CHP plants, 
the Nybro gas plant, and our oil and gas pipes.
We are obliged to decommission our wind and 
solar farms and restore the surroundings. When 
we ­construct offshore wind farms in cooperation 
with partners, they are liable for their share of the 
decommissioning costs. Therefore, we have only 
included the decommissioning obligations associated 
with our ownership interest in the offshore wind farms.
Other provisions
Other provisions comprise primarily: 
·	 offshore partnership provisions, including 
warranty obligations 
·	 obligations in relation to the divestment of our  
oil and gas business in 2017 
·	 obligations in respect of our own carbon emissions
·	 other contractual obligations.
Financial statements  |  Notes
193
ØRSTED ANNUAL REPORT 2024

Provisions and contingent liabilities
Note 3.9 – continued
Onerous contracts
Onerous contracts primarily related to ceasing 
the development of Ocean Wind 1 where we have 
a provision of DKK 1.6 billion at the end of 2024 
(2023: DKK 15 billion) as well as onerous contracts 
in relation to our decision to cease execution of 
FlagshipONE. The provision relates to cancellation 
fees on contracts. 
In 2024, ‘Provisions reversed during the year’ 
related to Ocean Wind 1, where we have finalised 
the negotiation of several contracts with a better 
outcome than assumed.  
In 2024, ‘Used during the year’ primarily related 
to payments to fulfilling and cancelling contracts 
for Ocean Wind 1 and FlagshipONE. 
In 2023, ‘Used during the year’ primarily related 
to CAPEX spent on construction of Ocean Wind 1 
until the ­termination of the project and other costs 
associated with terminating the project. ‘Used 
during the year’ also related to CAPEX spent on the 
construction of Sunrise Wind.
In 2024, ‘Provisions made during the year’ primarily 
related to updated assumptions related to operations 
and maintenance contracts for offshore transmission 
assets in the UK, higher costs related the construction 
agreement for Borkum Riffgrund 3, and costs related 
to ceasing the Ocean Wind 1 and FlagshipONE 
projects.
Contingent liabilities
Liability to pay compensation 
In case of any environmental accidents or other types 
of damage caused by our gas and oil transport, the 
companies Ørsted Salg & Service A/S and Danish Oil 
Pipe A/S are liable to pay compensation according 
to legislation. This also applies if there is no proof of 
­negligence (strict liability). We have taken out insurance 
to cover any such claims.
Secondary liability
As part of the divestment of our oil and gas business 
in 2017, we assumed a secondary liability regarding 
the decommissioning of offshore installations.
Litigation
We are party to a number of court cases and legal dis-
putes. In our assessment, none of these will significantly 
impact Ørsted’s financial position, neither ­individually 
nor collectively.
We have been party to cases relating to the Danish 
competition authorities’ claim that the former Elsam 
A/S and Elsam Kraft A/S (‘Elsam’), now part of Ørsted, 
charged excessive prices in the Danish wholesale power 
market in the period 1 July 2003 to 31 December 2006.
These cases have been resolved in Ørsted’s favour. 
However, in connection with the ­former cases, some 
energy trading companies, some of their customers, 
and others have filed claims for damages, which are 
still pending. The biggest claim was filed in 2007 
§  Accounting policies
Provisions are recognised when the following 
­criteria are fulfilled: 
·	 We have a legal or constructive obligation as  
a result of an earlier event. 
·	 The settlement of the obligation is expected  
to result in an outflow of resources. 
·	 The obligation can be measured reliably. 
Decommissioning obligations are measured at 
the present value of the future liability in respect 
of decommissioning as expected at the balance 
sheet date. The present value of the provision 
and changes in estimate are recognised as part 
of the cost of property, plant, and equipment and 
depreciated together with the associated asset. 
The addition of interest on provisions is recognised 
in the income statement under financial expenses. 
For onerous contracts, a provision is made when 
the expected income to be derived from a contract 
is lower than the unavoidable cost of meeting our 
obligations under the contract. 
Provisions concerning carbon emissions are recog-
nised when our actual emissions exceed our hold-
ing of carbon emission allowances.
  Key accounting estimate
Assumptions for provisions
We continually assess our provisions recognised 
to cover contractual obligations and claims raised 
against Ørsted. Timing, probabilities, amounts, 
etc., which have a bearing on our provisions’ 
estimates, are updated quarterly based on our 
expectations. 
Estimates of provisions are based on our 
­expectations of, for example:
·	 timing and scope of obligation 
·	 future cost level 
·	 legal assessment. 
If deemed material, non-current provisions are 
discounted using either the structural risk-free 
interest rate or the incremental borrowing rate. 
The structural risk-free interest rate is used 
for decommissioning liabilities and onerous 
contracts. It is calculated as the sum of real return 
(gross domestic product growth rate), inflation, 
and inflation premium for other risks. Separate 
structural risk-free interest rates are calculated for 
the UK, the rest of Europe, the US, and Taiwan. 
The outcome of our contractual obligations and 
claims may depend on future events, which are 
uncertain by nature.
Key assumptions in estimating cancellation fees
Measuring the provision for ‘Onerous contracts’ 
related to cancellation fees for Ocean Wind 1 
involves a number of assumptions and significant 
estimates and judgements. On contract level, we 
have assessed the contractual terms and obliga-
tions, including the expexted costs of fulfilling or 
cancelling the contracts. 
To a high degree, the estimation of the total provi-
sion depends on negotiations with subcontractors 
and contractual partners, which impact the settle-
ment of the individual contracts. The measuring 
and estimation of the total provision for ‘Onerous 
contracts’ is based on management’s expectations 
and best estimate of total costs. 
Financial statements  |  Notes
194
ØRSTED ANNUAL REPORT 2024

before the Copenhagen Maritime & Commercial Court, 
amounting to approx. DKK 4.4 billion with addition of 
litigation interest. The case is at the moment under 
preparation for the Maritime & Commercial Court.
Ørsted is involved in ongoing transfer pricing dis-
putes. For further information, we refer to section 
4.1 ‘Approach to taxes’.
Change of control
Some of our activities are subject to consents, permits, 
and licences granted by public authorities. We may 
be faced with a claim for acceptance of any transfer, 
possibly with additional terms and conditions, if the 
Danish state holds less than 50 % of the share capital 
or voting rights in Ørsted A/S. Read more in note 
5.1 ‘Interest-bearing net debt and FFO’.
Provisions and contingent liabilities
Note 3.9 – continued
Financial statements  |  Notes
195
ØRSTED ANNUAL REPORT 2024

§  Accounting policies
Transactions with non-controlling interests 
are accounted for as transactions with the 
­shareholder base. 
Gains and losses on the divestment of equity 
investments to non-controlling interests are 
recognised in equity when the divestment does 
not result in a loss of control. See ‘Consolidated 
statement of shareholders’ equity’ and note 
5.2 ‘Equity’.
For a description of our ‘Key accounting 
judgement’ on ‘Consolidated method for 
partnerships’, see note 2.6 ‘Other operating 
income and expenses’.
Non-controlling interests
Note 3.10
Non-controlling interests 4 
DKKm
Brookfield partnership, the UK
Offshore 1
OONA Energy Partners, the US
Onshore 2 
Other 3 
2024
2023
2024
2023
2024
2023
Statement of comprehensive income
Revenue
8,733
-
418
-
2,241
2,146
EBITDA
6,694
-
935
-
1,247
1,131
Profit (loss) for the year
1,799
-
226
-
403
290
Total comprehensive income
1,817
-
514
-
573
401
Profit (loss) for the year attributable to non-controlling interests
-
-
226
-
191
138
Balance sheet
Non-current assets
22,919
-
9,878
-
4,782
5,219
Current assets
4,572
-
415
-
1,008
895
Non-current liabilities
1,677
-
5,250
-
1,581
1,610
Current liabilities
1,205
-
1,920
-
526
589
Carrying amount of non-controlling interests
6,128
-
2,498
-
1,765
1,906
Statement of cash flows
Cash flows from operating activities
4,982
-
121
-
950
983
Cash flows from investing activities
6,903
-
(60)
-
(175)
(110)
Cash flows from financing activities
(12,011)
-
(20)
-
(821)
(902)
– of which, dividends paid to non-controlling interests
-
-
-
-
(369)
(413)
Transactions with non-controlling interests
DKKm
2024
2023
Transactions with non-controlling interests
Dividends paid to non-controlling interests
(369)
(413)
Acquisition of non-controlling interests 5
-
(7,032)
Divestment of equity investments to non-controlling interests
10,347
(153)
Other capital transactions with non-controlling interests
(115)
537
Total transactions, cf. statement of cash flows
9,863
(7,061)
Divestment of equity investments to non-controlling interests
Changes in receivables relating to the acquisition and divestment  
of non-controlling interests
10,347
(7,185)
Cash selling price, total
10,347
(7,185)
In the table, we provide financial information for subsidiaries with significant non-controlling interests.  
The amounts stated are the consolidated accounting figures of the individual enterprises or groups,  
determined according to our accounting policies. Amounts are stated before intra-group eliminations.
1  In December 2024, we divested a 24.9 % equity stake of our 
50 % share (equivalent to a 12.45 % share) in four UK offshore 
assets: Hornsea 1, Hornsea 2, Burbo Bank Extension, and Walney 
Extension, each represented by an individual holding company 
taking in Brookfield as non-controlling owner. We retain a 37.55 % 
equity ownership stake in these wind farms.
2  In June 2024, we divested an 80 % equity stake in four of our US 
onshore assets: Ford Ridge Wind, Sunflower Wind, Helena Wind, 
and Western Trail Wind to Stonepeak. We retain a 20 % equity 
ownership stake.
3  Primarily related to UK assets: Walney and Gunfleet Sands. 
4  A complete list of all non-controlling interests, their company legal 
names, and country of registration can be found here:  
orsted.com/company-overview
5  During 2023, we acquired the remaining equity in Ocean Wind, Bay 
State Wind, and Lease Area 500.
Financial statements  |  Notes
196
ØRSTED ANNUAL REPORT 2024

2024
DKKm
Profit (loss) 
before tax
Tax
Tax in %
Tax equity, deferred tax liability
-
(1,013)
n.a.
Gain (loss) on divestment of enterprises and assets
(88)
310
352 %
Impairment for the year
(15,563)
1,895
12 %
Cancellation fees
7,335
-
0 %
Other adjustments
-
(1,113)
n.a.
Remaining business
10,922
(2,669)
24 %
Effective tax for the year
2,606
(2,590)
99 %
‘Other adjustments’ include changes in tax rates, movements in uncertain tax positions, tax concerning previous years, and 
unrecognised tax losses. See more regarding Impairments in note 3.2 ‘Impairments’.
The Group’s taxes reflect our business operations 
and applicable tax legislation in the countries where 
we operate.
Tax
Note 4
Development in current and deferred tax asset  
and liabilities (tax, net), 2023-2024 
DKKm
  Tax, net
  Tax on profit (loss) for the year
  Tax on other comprehensive income
  Corporate taxes paid
  Other effects
Corporate income tax paid by 
segment, 2024 
DKKm
  Offshore 
  Onshore 
  Bioenergy & Other
  Ørsted A/S and other activities
  Total
(1,047)
3,210
6,327
407
(2,590)
113
4,802
790
707
28
6,327
6.3 bn
Corporate income tax paid by the 
Group in 2024 totalled DKK 6,327 mil-
lion against DKK 2,717 million in 2023.
6.0 bn
Current corporate income tax in 2024 
totalled DKK 5,990 million against 
DKK 2,876 million in 2023.
99 %
Effective tax rate for the Group for 
2024 was 99 % against -6 % in 2023.
Financial statements  |  Notes
197
ØRSTED ANNUAL REPORT 2024

UN SDG (no. 16)
We are transparent about our approach 
to tax. We actively participate in the 
development of effective, accountable, 
and transparent legislation by our 
engagement with the OECD on Pillar 2.
We endorse the B Team Responsible 
Tax Principles. The B Team is a group of 
business leaders, working to create new 
norms of corporate leadership that can 
build a better world, grounded in sus-
tainability, equality, and accountability 
for companies, communities, and future 
generations.
The Fair Tax Mark accreditation scheme 
seeks to encourage and recognise 
businesses that pay the right amount 
of corporation tax at the right time and 
in the right place. We seek to pay tax 
responsibly and transparently and are 
proud to have qualified for the Fair Tax 
Mark since 2022 with re-accreditation 
in 2023 and 2024.
Approach to taxes
Note 4.1
At Ørsted, we provide user-friendly and transparent 
information about our global tax positions.
We are committed to paying the right amount of tax, 
at the right time, in the right place, and in accordance 
with the tax laws of the countries where we operate. 
We seek to comply not only with the letter of the law 
but also with the underlying tax policy intent.
We believe that taxes are a core part of our corporate 
social responsibility.
For more details on our approach to taxes, we 
refer to our tax policy, which can be found here: 
orsted.com/tax-policy.
Transparency and sustainability
We believe that by providing user-friendly information 
about our tax positions, we contribute to promoting 
public trust in the corporate tax system.
We continue to report our key tax figures with 
inspiration from the Global Reporting Initiative (GRI) 
207: Tax standard when presenting our approach to 
and reporting of tax.
The purpose of our transparency initiatives is to create 
certainty about our tax positions for our stakeholders, 
such as our investors and the local communities where 
we pay our taxes, and where we operate.
Our tax reporting according to our transparency 
intitiatives includes country-by-country key figures 
and total tax contribution figures, which can befound 
here: orsted.com/tax-transparency.
In line with our tax policy, we engage constructively 
in national and international dialogue with govern-
ments, business groups, and civil society to support 
the development of effective tax systems, legislation, 
and administration. We believe that by providing 
­relevant and constructive input, we can contribute 
to an informed discussion on taxes and tax ­policy. 
The purpose of our engagement is to promote the 
­development of future tax legislation and practice 
that supports the green transformation.
During 2024, we have provided our responses to 
several public consultations in the US pertaining to 
the implementation of, and guidance on, the Inflation 
Reduction Act, to ensure the green transformation 
objectives are met also from a tax perspective. 
To promote responsible tax practices, we are 
engaging with CSR Europe to develop a European 
index for responsible tax practices. We participated 
in several panel debates with a view to promoting 
responsible tax practices.
Pillar 2 – minimum effective tax rate of 15 %
In December 2021, OECD released the Pillar 2 model 
rules to reform international corporate taxation. 
We continue to work with the Pillar 2 rules as they 
continuously come into effect in the individual 
countries. Based on our figures, we expect to benefit 
from the temporary safe harbour rules in all of the 
jurisdictions where we operate if the Pillar 2 effective 
tax rate is less than 15 %. The only exception is 
Singapore because of the technical set up of the 
safe harbour rule; however, no Pillar 2 tax is expected 
when calculating the full-scope top-up tax.
Financial statements  |  Notes
198
ØRSTED ANNUAL REPORT 2024

Approach to taxes
Note 4.1 – continued
Tax governance
Taxes are overseen by the Board of Directors, and 
within the Board, the Chair of the Audit & Risk Commit-
tee is accountable for our tax policy. The responsibility 
for tax risk management lies with the CFO and is over-
seen by the Audit & Risk Committee. The day-to-day 
tax management is handled by a centralised global 
tax team.
Our tax function is involved in the planning, implement­
ation, and documentation of all significant business 
decisions and processes to ensure a coordinated 
assessment of all tax compliance and risks. The tax 
function also monitors and regularly updates tax risks 
and related controls.
Complying with tax rules can be complex, as the inter-
pretation of legislation and case law may not always 
be clear-cut and may change over time, giving rise to 
tax risks. Our tax governance and control framework 
ensures appropriate processes and organisational 
structures to identify, assess, monitor, and manage tax 
risks at different levels of the Group. We manage our 
tax risks by preventing unnecessary disputes, which 
we strive to achieve through strong technical posi-
tions, thorough documentation and explanations of 
our positions, robust compliance procedures, and by 
engaging in up-front dialogues with tax authorities.
 
We define a tax risk as any consequence relating 
to the application of our tax policy, day-to-day 
operations, compliance, or external reporting that 
impacts the business in the form of cash liabilities, 
financial reporting misstatements, or reputational 
damage. We continuously update our tax governance 
and control framework to ensure that we are 
aligned with business objectives and stakeholder 
expectations.
We have a standardised review process in place, and 
our controls are continuously reviewed, assessed, and, 
where applicable, substituted by automated processes. 
Tax decisions in relation to matters which are subject to 
approval by the Group Executive Team or the Board of 
Directors are approved by the Head of Tax.
Our tax risk management work includes considering 
uncertain tax positions, e.g. when we have taken a 
position where there is an uncertainty created by a 
comparison of the wording of the law with the expressed 
policy intent or lack thereof or fluctuating or divergent 
application by tax authorities or judicial systems in the 
countries where we operate.
Occasionally, a multinational enterprise like Ørsted 
faces potential double taxation. This occurs when two 
or more tax jurisdictions seek to tax the same business 
income. We believe that profit should only be taxed 
once, and where the value is created, in line with the 
position of the OECD.
 
In response to the tax risks connected to our activities, 
including the controversies described in this section, 
we have made tax-related provisions in accordance 
with IAS 12, IAS 37, and relevant interpretation, such 
as IFRIC 23. The provisions have been calculated 
based on differences in tax rates and statistical risks 
of suffering economic or legal double taxation.
Tax planning and use of tax incentives
To remain competitive, we make use of incentives and 
tax relief implemented by governments where we have 
commercial substance, and our business activities are 
the intended beneficiaries of such incentives and relief. 
We benefit from the R&D tax credit regimes in the US, 
Poland, and Denmark as well as the investment and 
production tax credit regimes in the US.
We only use business structures that are driven by 
commercial considerations and aligned with our 
business­ activities. We do not use so-called secrecy 
jurisdictions or tax havens to avoid taxes. If we establish 
an entity in a low or nil-rate jurisdiction, it will be 
for substantive and commercial reasons. This is the 
case with our Isle of Man entity, which holds a licence 
to develop and build a local offshore wind farm, 
providing renewable energy to the Isle of Man, and 
with our Singapore­ entity, which provides technical­ and 
administrative services to wind farm projects.
Financial statements  |  Notes
199
ØRSTED ANNUAL REPORT 2024

Tax controversies
During 2024, the Danish Tax Agency has opened 
further enquiries on development services in relation 
to non-Danish wind farms.
To date, Ørsted Wind Power A/S has received final 
administrative decisions from the Danish Tax Agency in 
relation to the development services for the offshore 
wind farms Hornsea 1, Walney Extension, Race Bank, 
Borssele 1 & 2, and Hornsea 2. We have also received 
an information request in relation to the development 
services provided for the offshore wind farms Greater 
Changhua 1 and 2a. In all its decisions, the Danish 
Tax Agency claims that Ørsted Wind Power A/S has 
not acted at arm’s length terms when charging fees 
for development services provided to the project 
companies. The ­Danish Tax Agency claims that the 
full value of expected, future cash flows related to the 
offshore wind farms should be taxed in Denmark.
Up until 31 December 2024, the Danish Tax Agency 
has increased Ørsted Wind Power A/S’s tax payments 
to Denmark with DKK 10.8 billion for the income 
years 2015-2018. The amount, which is excluding any 
­interest, is detailed per wind farm in the table below.
The table illustrates the payable tax to Denmark 
per wind farm, should the Danish Tax Agency’s 
position prevail, and the expected corresponding 
adjustments. The Danish tax, plus interests, would be 
payable upfront, and the corresponding adjustments 
would crystalise over the remaining lifetimes of the 
wind farms.
As described in our key accounting estimates on
page 202, we have made provisions for uncertain tax 
positions according to IFRIC 23. In relation to these 
transfer pricing disputes, we have used a weighted 
average of several different scenarios, where the 
base case is that we will win the cases, but a number 
of scenarios include different adjustments, resulting 
in increased tax payable to Denmark. The scenarios 
with additional tax payable to Denmark assumes 
corresponding adjustments.
Approach to taxes
Note 4.1 – continued
Decisions made by the Danish Tax Agency
DKKm
Walney 
Extension
Hornsea 1
Race Bank
Borssele 
1 & 2
Hornsea 2
Total
Potential additional Danish tax payment excluding any interest
2,949
2,337
2,488
1,088
1,950
10,812
Tax value of potential corresponding adjustment
2,651
2,294
2,236
1,180
1,681
10,042
Likely timing of settlement of potential tax in Denmark,
if the Danish Tax Agency prevails
2nd half 
of 2025
2nd half 
of 2025
TBD 1
TBD 1
TBD 1
1	 Timing of settlement is likely to follow the same process and timeline as for Walney Extension and Hornsea 1.
Hornsea 1 and Walney 
Extension tax audit timeline
2016
2017
2019
2022
2021
2015
2018
2020
2023
EU 
arbitration  
start
Final assessment  
from Danish 
Tax Agency
Mutual agreement
procedures 
initiation (MAP)
Appeal to the 
Danish National 
Tax Tribunal
Advance pricing 
agreement (APA) 
application
Danish Tax 
Agency 
terminates 
APA and  
initiates 
transfer 
­pricing 
audit
Tax controversies timeline
Tax controversies related to the development services 
provided from Danish entities to our projects outside of 
Denmark take multiple years to settle. The dispute con-
cerning Hornsea 1 and Walney Extension has currently 
been ongoing for more than nine years from application 
for an advanced pricing agreement, which failed when 
the Danish Tax Agency chose to terminate negotiations 
with the British tax authorites (HM Revenue & Customs) 
and instead initiated an audit. The next step is for the 
cases to be settled in arbitration, which we currently 
expect to happen in the latter half of 2025. Above, we 
have summarised the timeline for Hornsea 1 and ­Walney 
Extension. Also, we have included a status of the other 
projects where a transfer pricing case has started.
Race Bank
We have appealed the administrative decision to the 
Danish Tax Tribunal and submitted a MAP application 
in November 2024. We continue to consider our 
further options in light of the ongoing arbitration case 
regarding Hornsea 1 and Walney Extension, including 
an elaborated appeal to the Danish Tax Tribunal, a 
direct appeal to the court system, or the pursuit of a 
MAP under the double tax treaty between Denmark 
and the UK.
Borssele 1 & 2
We have appealed the administrative decision to the 
Danish Tax Tribunal. We continue to consider our further 
options, including an elaborated appeal to the Danish­ Tax 
Tribunal, a direct appeal to the court system, or a request 
for a MAP under the double tax treaty between Denmark, 
the Netherlands, and the EU Arbitration­ Convention.
Hornsea 2
We have appealed the administrative decision to the 
Danish Tax Tribunal, who put the case on hold until 
the arbitration case regarding Hornsea 1 and Walney 
Extension has been solved. We continue to consider our 
further options, including an elaborated appeal to the 
Danish Tax Tribunal, a direct appeal to the court system, 
or a request for a MAP under the double tax treaty 
between Denmark and the UK.
Greater Changhua 1 and 2a
The Danish Tax Agency issued an information request in 
October 2024. The deadline for the Danish Tax Agency 
to issue a draft administrative decision is on 1 May 2025.
Closed audits
The Danish Tax Agency has closed the audits of Burbo 
Bank Extension and Borkum Riffgrund 2 without 
adjustments.
2024
2025
Expected 
decision 
by the 
arbitration 
panel
Financial statements  |  Notes
200
ØRSTED ANNUAL REPORT 2024

Income tax 
Tax on profit (loss) was DKK 2,590 million in 2024 
against DKK 1,156 million in 2023. The effective tax 
rate was 99 % in 2024 against -6 % in 2023.
The effective tax rate in 2024 was primarily 
affected by:
·	 The non-recognition of a deferred tax liability in 
connection with the reversal of the Ocean Wind 1 
cancellation fee.
·	 The non-recognition of deferred tax assets in 
connection with the cancellation of FlagshipONE.
·	 The non-recognition of deferred tax assets in 
connection with the impairment of projects in the 
US and FlagshipONE.
·	 The recognition of deferred tax liabilities in 
connection with the capitalisation of project costs 
in the US where we have entered into tax equity 
agreements on the following projects:
 
	 Eleven Mile Solar Center
	
Mockingbird
	
Sparta Solar
Tax on profit (loss) for the year
Note 4.2
§  Accounting policies
Tax for the year consists of current tax, changes 
in deferred tax, and adjustments in respect 
of previous years. Tax on profit (loss) for the 
year is recognised in the income statement. 
Tax relating to other items is recognised in 
other comprehensive income.
Our uncertain tax positions are measured by 
using either of the following two methods, 
depending on which method we expect to 
better predict the resolution of the uncertainty:
·	 The most-likely-outcome method is applied 
in cases where there are only two possible 
outcomes.
·	 The weighted-average method is used in 
cases where there are more than two possible 
outcomes. 
Our uncertain tax positions are recognised 
under ‘Income tax’ or ‘Deferred tax’, depending 
on how the realisation of the tax position will 
affect the financial statement.
See more regarding our tax equity partnerships 
in notes 3.8 ‘Tax equity liabilities’ and
4.3 ‘Deferred tax’.
Effective tax rate 
DKKm, %
2024
2023
DKK million
%
DKK million
%
Tax on profit (loss) for the year can be explained as follows
Calculated 22 % tax on profit (loss) before tax
(573)
22
4,186
22
Adjustments of calculated tax in foreign subsidiaries in relation to 22 %
(257)
10
825
4
Tax effect of
Non-taxable income and non-deductible costs, net
 202
(8)
1,519
8
Unrecognised tax assets
(858)
33
(8,084)
(43)
Tax equity contributions
(1,013)
39
874
5
Movements in uncertain tax positions
(31)
1
(251)
(1)
Changes in tax rates
178
(7)
(21)
-
Adjustment of tax concerning previous years
(238)
9
(204)
(1)
Effective tax for the year
(2,590)
99
(1,156)
(6)
The tax equity contribution excludes the Mockingbird 
farm-down impact, which is included in non-taxable 
income and non-deductible costs, net.
The changes in tax rates primarily relate to state tax 
rates in the US. The adjustment of tax concerning pre-
vious years primarily relates to expected adjustments 
to final tax returns regarding previous years.
The effective tax rate in 2023 was primarily affected 
by the largely tax-exempt divestments of the offshore 
wind farms Gode Wind 3 and London Array, the non­
recognition of deferred tax assets in connection with 
the termination of the Ocean Wind 1 project, and the 
recognition of deferred tax liabilities in connection 
with capitalisation of project costs in the US where 
we have entered into tax equity agreements on 
Sunflower Wind, Sparta Solar, and Old 300, and by 
the final build-up recognition of deferred tax liabilities 
on South Fork Wind.
Further, the deferred tax liability previously recognised 
on Ocean Wind 1 was reversed in connection with the 
ceasing of that project.
Financial statements  |  Notes
201
ØRSTED ANNUAL REPORT 2024

Because of the high level of investments and the 
subsequent deferrals of payable tax as a consequence 
of accelerated tax depreciation, our current tax is 
generally lower than the statutory corporate tax rates 
during construction and the initial years after first 
power from a wind farm.
However, as we use the realisation principle on certain 
financial instruments and exchange rate adjustments 
on bonds, losses on these are deferred.
Pillar 2
We expect to benefit from the temporary safe harbour 
rules in all of the jurisdictions where we operate if the 
Pillar 2 effective tax rate is less than 15 %. The only 
exception is Singapore because of the technical set 
up of the safe harbour rule; however, no Pillar 2 tax is 
expected when calculating the full-scope top-up tax.
Tax on profit (loss) for the year
Note 4.2 – continued
  Key accounting estimate
Estimates regarding recognition of 
income taxes
We are subject to income taxes in all the 
countries where we operate. Significant 
judgement and estimates are required in 
determining the worldwide income taxes and 
income tax assets and liabilities, including 
provisions for uncertain tax positions.
While conducting business around the world, 
tax and transfer pricing disputes with tax 
authorities may occur due to the complex 
nature of the tax rules related to the business. 
Judgement is applied to assess the possible 
outcome of such disputes. We apply the 
methods prescribed in IFRIC 23 ‘Uncertainty 
over Income Tax Treatments’ when making 
provisions for uncertain tax positions, and 
the provisions made are based on different 
scenarios with possible outcomes. We consider 
the provisions made to be adequate. The actual 
obligation may deviate and might lead to tax in 
excess of the uncertain tax provisions included. 
This depends on the result of litigations and 
settlements with the relevant tax authorities. 
Ongoing tax disputes, primarily related to 
transfer pricing cases, are included as part of 
‘Income tax’ and ‘Deferred tax’. Estimates in 
respect of transfer pricing cases depend, among 
others, on whether corresponding adjustments 
can be obtained in the relevant jurisdictions, and, 
in terms of disputes regarding project companies 
with partners, whether compensation can be 
obtained from these partners. Any expected 
compensation from partners is included as part 
of ‘Other receivables’.
Income tax
DKKm
2024
2023
Tax on profit (loss) for the year
(2,590)
(1,156)
Tax on other comprehensive income
407
(4,566)
Tax on cash flow hedging of property, plant, and equipment under construction
40
-
Tax on hybrid capital related to equity
9
2
Total tax for the year
(2,134)
(5,720)
Tax on profit (loss) for the year can be broken down as follows
Current tax
(5,990)
(2,876)
Deferred tax
4,355
1,207
Changes in tax rates
178
(21)
Uncertain tax positions
(31)
(251)
Tax on hybrid capital
149
115
Tax equity
(1,013)
874
Adjustment of tax concerning previous years
(238)
(204)
Tax on profit (loss) for the year
(2,590)
(1,156)
Tax on other comprehensive income can be broken down as follows
Current tax
1,104
(1,262)
Deferred tax
(657)
(3,304)
Tax on other comprehensive income
447
(4,566)
Tax on profit (loss) for the year and other  
comprehensive income
In 2024, total tax for the year was DKK 2,134 million, 
consisting of tax on profit (loss) for the year, tax on 
other comprehensive income, tax on cash flow hedging 
or property, plant, and equipment under construction, 
and tax on hybrid capital related to equity.
Current tax
Current tax is the tax incurred by Ørsted on profit 
for the year. This differs from taxes paid because of 
payments or refunds regarding prior years and residual 
payments for the current year.
Financial statements  |  Notes
202
ØRSTED ANNUAL REPORT 2024

Deferred tax
Note 4.3
Significant movements in deferred  
tax assets and liabilities 
Assets
↑  Provisions primarily related to 
German projects. 
 
Provisions regarding 
decommissioning obligation. 
 
Impairment of assets in the US. 
 
Recognition of tax losses. 
 
Net movements of financial 
instruments primarily in Denmark. 
↓  Tax depreciations utilised in the 
UK, Germany, the Netherlands, and 
Ireland on mature operating projects. 
 
Derecognition of tax loss carry- 
forwards in the US.
Liabilities
↑  Tax equity partnerships related 
to Eleven Mile Solar Center, 
Mockingbird, and Sparta Solar. 
 
Adjustments related to our tax equity 
liabilities in the US.
↓  Farm-down of Mockingbird. 
 
Reduction in US tax rate.
Net deferred tax for 2024 primarily consist of
Offshore
Onshore
Bioenergy
& Other
Other activities/ 
eliminations 
Assets
Recognition of impairments and tax loss carryforwards
Financial instruments
Liabilities
Tax equity structures
Accelerated tax depreciation compared to accounting depreciation
Acquisitions
Deferred tax 2024
DKKm
Offshore
Onshore
Bioenergy
& Other
Other activities/ 
eliminations 
Deferred tax 
at 31 December
Deferred tax, assets
9,935
44
792
(1,521)
9,250
Deferred tax, liabilities
-
4,396
193
(2,156)
2,433
Unrecognised tax assets
11,374
426
833
385
13,018
Deferred tax 2023
DKKm
Deferred tax, assets
10,038
64
41
(1,951)
8,192
Deferred tax, liabilities
1,748
3,760
148
(2,217)
3,439
Unrecognised tax assets
9,691
109
33
40
9,873
The table shows the reconciliation of deferred tax to the balance 
sheet by segment. The unrecognised tax asset is primarily due to 
ring-fenced tax losses and other losses not meeting the criteria for 
recognition under IAS 12. These primarily relate to losses in connection 
with the termination of the Ocean Wind 1 project. 
There is no expiry of our unrecognised tax assets. No provision for 
withholding tax on dividends has been included as the amounts where 
a concrete dividend distribution is planned are considered immaterial 
in 2024. ‘Other activities/eliminations’ primarily consist of eliminations 
between segments.
Financial statements  |  Notes
203
ØRSTED ANNUAL REPORT 2024

Deferred tax
Note 4.3 – continued
Development in deferred tax assets and liabilities, 2024
DKKm
Deferred tax 
balances 
at 1 January, 
net
Movements
Deferred tax 
balances 
at 31 
December, net
Assets
Liabilities
Intangible assets
(188)
187
(1)
16
17
Property, plant, and equipment
(1,649)
311
(1,338)
5,135
6,473
Other non-current assets
(302)
274
(28)
-
28
Current assets
(1)
9
8
8
-
Decommissioning obligations
2,206
191
2,397
2,544
147
Other non-current liabilities
381
1,113
1,494
1,734
240
Current liabilities
(369)
456
87
87
-
Tax loss carryforwards
4,675
(477)
4,198
4,198
-
Offset
(4,472)
(4,472)
Total
4,753
2,064
6,817
9,250
2,433
Development in deferred tax assets and liabilities, 2023
DKKm
Intangible assets
(38)
(150)
(188)
18
206
Property, plant, and equipment
(6,134)
4,485
(1,649)
4,709
6,358
Other non-current assets
16
(318)
(302)
5
307
Current assets
-
(1)
(1)
1
2
Decommissioning obligations
2,101
105
2,206
2,212
6
Other non-current liabilities
415
(34)
381
625
244
Current liabilities
3,373
(3,742)
(369)
3
372
Tax loss carryforwards
6,572
(1,897)
4,675
4,675
-
Offset
(4,056)
(4,056)
Total
6,305
(1,552)
4,753
8,192
3,439
The difference in tax and accounting treatment on:
·	 provisions, decommissioning, impairment, depreciations, and our  
tax equity partnerships impact the development of the deferred  
tax balance on property, plant, and equipment
·	 financial instruments and exchange rate adjustments impact  
the development in non-current liabilities.
§  Accounting policies
Deferred tax is recognised in respect of all tempo-
rary differences arising between the tax bases of 
assets and liabilities and their carrying amounts. 
Deferred tax is not recognised in respect of tempo-
rary differences relating to: 
·	 the acquisition of joint operations, including 
licence interests
·	 other items where differences arise at the time of 
acquisition, affecting neither the profit (loss) for 
the year nor the taxable income. However, this 
does not include differences arising in connection 
with company acquisitions, except for right-of-
use assets, lease liabilities, decommissioning, 
restoration, and similar liabilities where the 
­corresponding amounts are recognised as part 
of the costs of the related assets.
Differences arising in connection with company 
acquisitions are recognised.
Deferred tax is measured depending on how we 
plan to use the assets and settle the liabilities. 
We offset tax assets and liabilities when the 
tax assets can be offset against tax liabilities 
in the year in which the deferred tax assets are 
expected to be used. Intragroup gains and losses 
are eliminated when calculating deferred tax. 
In countries where taxes can be offset between 
companies due to joint taxation schemes, we have 
netted within a tax jurisdiction. Where no such 
possibility is feasible, the deferred tax is included in 
the gross amount on a company-by-company level.
Tax losses carried forward in jurisdictions where 
we have a history of losses are recognised based 
on other convincing evidence of future profits. 
The other convincing evidence is based on our 
long-term forecast model approved by the Board 
of Directors.
Adjustments to unrecognised tax assets are 
­recognised in profit (loss) or other comprehensive 
income, depending on the underlying source of 
the adjustment.
Deferred tax is measured based on the tax rules 
and rates applying when the deferred tax becomes 
current tax. Changes in deferred tax because of 
changes in tax rates are recognised in profit (loss) 
for the year. 
Deferred tax (net liabilities) related to tax equity 
structures are recognised as a tax expense in the 
income statement when the tax equity partnership 
agreement is effective. The liability recognised is 
the amount that we expect to take over once the 
contribution from the equity partner is repaid, and 
the tax equity structure flips.
We have adopted the narrow-scope amendments 
to IAS 12 ‘Income taxes’, which provide temporary 
relief from accounting for deferred taxes arising 
from the implementation of the Pillar 2 model rules.
US tax equity partnerships
We have entered into several tax equity partner-
ship agreements in the US. 
The expected value of the deferred tax liability 
related to property, plant, and equipment 
at the flip date in the tax equity partnership 
agreement is included in our accounts when the 
tax equity partnership agreement is effective. 
The deferred tax liability from existing tax equity 
partnerships will gradually be reduced based 
on accounting depreciation after the flip date. 
See more regarding tax equity partnerships in 
note 3.8 ‘Tax equity liabilities’.
Financial statements  |  Notes
204
ØRSTED ANNUAL REPORT 2024

Our tax footprint is an effect of how and where we 
conduct our business.
Local corporate taxes paid
We are continuously making significant investments 
in offshore wind farms in the UK, Germany, the Nether-
lands, the US, and Taiwan (see also our global foot-
print in the ‘Management’s review’), resulting in the 
accumulation of large tax assets in recent years and a 
deferral in paid tax, until our assets are commissioned 
and put into operation. Once the deferral ends, the 
taxable income related to our assets will exceed the 
accounting profit.
For this reason, the applicable corporate tax rate and 
the cash tax paid will always differ, but accumulated 
over the lifetime of the wind farm, they will generally 
be similar, unless the project is subsidised.
Compared to a few years ago, we have an accelerated 
volume of assets being commissioned and put into 
operation, and positive taxable income is generated. 
Even in jurisdictions with large tax loss carry­forwards, 
the application of tax loss carryforward limitation rules, 
e.g. where a minimum share of any positive ­taxable 
income will always be taxed as well as limitations in 
joint taxation, may result in payable taxes.
Our tax footprint
Note 4.4
Payments, corporate taxes
DKKm
  Current year
  Previous years
DK
3,451
MY
51
GB
1,571
TW
428
PL
25
DE
NL
FR
Other
421
289
33
1
Total
6,327
As our business matures, we start to incur corporate taxes in the countries where we operate.
The US is the exception to this development in 
corporate taxes, due to the tax equity set-up in the 
US and the significant amount of tax assets not 
recognised in connection with the termination of 
the Ocean Wind 1 project. The funding in the US is 
carried out applying the US tax equity set-up, which 
effectively means that tax attributes are transferred 
to the tax equity partner as repayment and return 
on investment. See more regarding tax equity 
partnerships in note 3.8 ‘Tax equity liabilities’.
More information regarding our tax footprint can be 
found here: orsted.com/tax-transparency.
IE
57
Financial statements  |  Notes
205
ØRSTED ANNUAL REPORT 2024

Capital structure
Note 5
Capital structure 
To ensure we have the financial strength to 
­operate in the international energy and ­capital 
markets and to secure financing on ­attractive 
terms, we target a solid investment grade rating  
with all three major rating agencies. This includes 
an FFO/adjusted interest-bearing net debt credit 
metric target above 30 %. 
To support a solid investment grade, we have 
taken a number of initiatives. We have e.g. 
decided to pause dividends for the financial years 
2023-2025, and we will accelerate our divestment 
programme.
Financing policy
The aim of our financing policy is to minimise 
liquidity and refinancing risks while minimising 
financing costs and matching the currency 
composition of our debt with our revenue. 
We obtain funding in different markets and 
with different maturities. Our debt is ­primarily 
consolidated in the parent company, where 
cash resources are made available to the Group 
companies via an internal bank.
Cash management and liquidity reserve
A group-wide cash management set-up ensures 
optimal allocation of cash in relation to our day-
to-day operations and investment programme. 
We target a liquidity reserve that ensures ade-
quate coverage of our use of liquidity on a rolling 
12 month forward-looking basis to limit the com-
pany’s sensitivity to unforeseen developments, 
including unrest in the financial markets.
Equity and interest-bearing net debt
DKKbn
  Interest-bearing asset 
  Interest-bearing debt 
  Hybrid capital
  Equity attributable to shareholders in Ørsted A/S 
  Non-controlling interests
2024  43.8 / 101.8 / 21.0 / 61.9 / 10.4
151.3 billion
2023  45.2 / 92.6 / 19.1 / 56.8 / 1.9
125.2 billion
An appropriate capital structure is important to 
ensure we have the ability to raise new debt with 
attractive terms. 
In February 2024, following the release of our annual 
report for 2023, S&P downgraded us from BBB+ to 
BBB. In January 2025, S&P and Fitch changed their 
rating outlook from stable to negative. If our ratings 
should be downgraded by one notch, it will not impact 
Ørsted’s business activities.
In March 2024, we issued a EUR 750 million (DKK 5,593 
million) green hybrid bond. Simultaneously, we redeemed 
EUR 250 million (DKK 1,864 million) in principal amount 
of our hybrid bond due in November 3017. 
In September 2024, we redeemed the remaining 
EUR 250 million (DKK 1,864 million) in principal 
amount of our hybrid bond due in November 3017.
13.2 %
Funds from operations (FFO) relative 
to adjusted interest-bearing net debt 
amounted to 13.2 % at 31 December 2024 
against 28.6 % at 31 December 2023.
58.0 bn
Our interest-bearing net debt totalled DKK 
58,027 million at 31 December 2024 against 
DKK 47,379 million at 31 December 2023.
78.0 bn
Our liquidity reserve totalled DKK 77,991 
million at 31 December 2024 against  
DKK 90,665 million at 31 December 2023.
Financial statements  |  Notes
206
ØRSTED ANNUAL REPORT 2024

Interest-bearing net debt and FFO
Note 5.1
Interest-bearing debt and interest-bearing assets
DKKm
2024
2023
Interest-bearing debt
Bond debt
72,028
70,589
Bank debt
15,680
9,031
Total bond and bank debt
87,708
79,620
Tax equity liability (see note 3.8)
1,764
1,196
Lease liability
8,910
8,426
Other interest-bearing debt
Debt in connection with divestments
3,234
2,900
Debt from receiving collateral under credit support annexes
71
286
Other interest-bearing debt
137
153
Total interest-bearing debt
101,824
92,581
Interest-bearing assets
Securities
14,532
29,902
Cash
23,126
10,145
Receivables from associates and joint ventures
202
77
Cash, not available for use
317
481
Other interest-bearing receivables
Receivables from placing collateral under credit support annexes
4,873
3,854
Receivables in connection with divestments
747
735
Other receivables
-
8
Total interest-bearing assets 
43,797
45,202
Total interest-bearing net debt at 31 December
58,027
47,379
50 % of hybrid capital
10,477
9,552
Other interest-bearing debt, add back
(3,442)
(3,339)
Other interest-bearing receivables, add back
5,620
4,597
Cash and securities not available for distribution, excluding repo loans
710
867
Total adjusted interest-bearing net debt 
71,392
59,056
Funds from operations (FFO)
DKKm
2024
2023
EBITDA
31,959
18,717
Change in provisions and other adjustments
(13,184)
 8,742
Change in derivatives
648
4,274
Variation margin, add back
(1,540)
(7,086)
Reversal of gain (loss) on divestment of assets
(348)
(5,745)
Income tax paid
(6,327)
(2,717)
Interest and similar items, received/paid
(477)
1,385
Reversal of interest expenses transferred to assets
(1,011)
(453)
50 % of coupon payments on hybrid capital
(343)
(273)
Dividends received and capital reductions
27
19
Funds from operations (FFO)
9,404
16,863
Funds from operations (FFO)/adjusted interest-bearing net debt
DKKm
2024
2023
Funds from operations (FFO)
9,404
16,863
Total adjusted interest-bearing net debt 
71,392
59,056
Funds from operations (FFO)/adjusted interest-bearing net debt
13.2 %
28.6 %
FFO/adjusted interest-bearing net debt was 13.2 %. The decrease compared to last year was mainly driven by the payment of cancellation fees 
related to Ocean Wind 1 and an increase in adjusted interest-bearing net debt of DKK 12.3 billion. 
‘Interest-bearing net debt’ totalled DKK 58,027 million compared with DKK 47,379 million in 2023.
Financial statements  |  Notes
207
ØRSTED ANNUAL REPORT 2024

Interest-bearing net debt
Interest-bearing net debt totalled DKK 58,027 million 
at the end of 2024, an increase of DKK 10,648 ­million 
relative to 2023. The increase in interest-­bearing net 
debt consists of an increase in interest-bearing debt of 
DKK 9,243 million and a decrease in interest-­bearing 
assets of DKK 1,405 million.
In June 2024, we obtained a GBP 240 million 
(DKK 2,104 million) loan from Eksfin, the Norwegian 
Export Credit Agency.
Rating
We have a corporate credit rating from all major 
­rating agencies.
Rating
Outlook
Standard & Poor’s
BBB
Negative 2
Moody’s
Baa1 1
Negative 
FItch
BBB+ 1
Negative 2
1   Baa1 and BBB+ are the same rating.
2   Announced in January 2025.
If our ratings should be downgraded by one notch 
to BBB-/Baa2/BBB, it will not significantly impact 
Ørsted’s business activities.
Market value of bond and bank debt
The market value of our bond and bank debt 
amounted to DKK 69,104 million and DKK 14,890 
million, respectively, at 31 December 2024 (2023: 
DKK 68,671 million and DKK 8,711 million, respec-
tively). The market value of issued bonds has been 
determined as the market value at 31 December 
(level 1 – quoted prices).
The market value of bank loans has been 
determined as the present value of expected future 
instalments and interest payments using the Group’s 
current interest rate on loans as the discount rate 
(level 2 – ­observable inputs).
Due to the level of interest rates on average being 
lower at the time of issuance, the market value of our 
bond and bank debt is below the carrying amount.
Loan arrangements and credit facilities
At 31 December 2024, we had bank loan obligations 
totalling DKK 7,533 million (2023: DKK 5,030 ­million) 
and undrawn loan agreements for an aggregate 
amount of DKK 7,117 million (2023: DKK 6,597 
­million) to the European Investment Bank, ­Nordic 
Investment Bank, and Eksfin. The loans offered 
by these ­multilateral financial institutions cofund 
specific energy ­projects with maturities exceeding 
those ­normally available in the commercial banking 
market. In the event of two of the rating agencies 
­downgrading our rating to BBB- or Baa3, we may be 
met with ­cancellation and repayment of these loan 
agreements. In addition, in case of a downgrade to a 
level below investment grade, we may be met with 
demands for cancellation and repayment of any  
drawn amount on our NTD 25 billion credit facility  
in Taiwan as well as demands for replacing existing 
parent company guarantees of an estimated range 
of  up to DKK 15-20 billion by either bank guarantees 
or cash. 
Furthermore, we had non-cancellable credit facilities 
of DKK 37,619 million at 31 December 2024 (2023: 
DKK 44,562 million) with a number of ­Scandinavian 
and international banks. See note 5.4 ‘Liquidity 
reserve’ for ­further details.
In connection with these loan agreements and 
credit facilities, we may be met with demands for 
­cancellation and repayment of any drawn amount 
in the event of shareholders other than a group 
consisting of the Danish state and Danish power 
distribution companies controlling more than 50 % 
of the share capital or voting rights in Ørsted A/S.
Interest-bearing net debt and FFO
Note 5.1 – continued
Changes in interest-bearing debt
DKKm
2024
2023
Interest-bearing debt at 1 January
92,581
77,707
Cash transactions
Proceeds from raising loans
9,990
17,584
Instalments on loans
(3,407)
(1,580)
Instalments on leases
(736)
(712)
Change in other interest-bearing debt and tax equity liability 
671
(1,625)
Non-cash transactions
Raising lease debt, etc.
1,220
872
Foreign exchange adjustments, amortisation, etc.
1,505
335
Interest-bearing debt at 31 December
101,824
92,581
Financial statements  |  Notes
208
ØRSTED ANNUAL REPORT 2024

§  Accounting policies
Bond debt, bank debt, and other payables 
are recognised at inception at market value 
(typically proceeds received) net of transac-
tion costs incurred. In subsequent periods, the 
liabilities are measured at amortised cost, so 
that the difference between the cost (proceeds) 
and the nominal value is recognised in profit 
(loss) for the year as interest expenses over the 
term of the loan, using the effective interest 
rate method.
Financial liabilities are classified as current, 
unless the Group has an unconditional right to 
defer settlement of the liability to at least one 
year after the balance sheet date. 
Interest-bearing net debt and FFO
Note 5.1 – continued
Senior bonds issued at 
31 December 2024
Million, currency
Type of 
financing
Outstanding amount 
Coupon (%)
Time of issue
Maturing
Quoted in
Currency
DKK 
EUR
Green
600
4,474
2.250
June 2022
 June 2028
Luxembourg
EUR
Green
750
5,593
1.500
Nov. 2017
Nov. 2029
London
EUR 
Green
900
6,712
3.250
Sep. 2022
Sep. 2031
Luxembourg
EUR 
Green
750
5,593
2.875
June 2022
June 2033
Luxembourg
EUR
Green
700
5,220
3.625
Feb. 2023
March 2026
Luxembourg
EUR
Blue
100
746
3.625
June 2023
June 2028
Luxembourg
EUR
Green
600
4,474
3.750
Feb. 2023
March 2030
Luxembourg
EUR
Green
700
5,220
4.125
Feb. 2023
March 2035
Luxembourg
GBP 
Green
350
3,157
2.125
May 2019
May 2027
Luxembourg
GBP
-
750
6,764
4.875
Jan. 2012
Jan. 2032
London
GBP 
Green
300
2,706
2.500
May 2019
May 2033
Luxembourg
GBP 
Green
250 1
2,255
CPI+0.375
May 2019
May 2034
Luxembourg
GBP 
Green
375
3,382
5.125
Sep. 2022
Sep. 2034
Luxembourg
GBP
-
500
4,510
5.750
Apr. 2010
Apr. 2040
London
GBP 
Green
575
5,186
5.375
Sep. 2022
Sep. 2042
Luxembourg
NTD
Green
4,000
879
0.920
Nov. 2019
Nov. 2026
Taipei
NTD
Green
4,000
879
0.600
Nov. 2020
Nov. 2027
Taipei
NTD
Green
3,000
659
0.700
Nov. 2020
Nov. 2030
Taipei
NTD
Green
8,000
1,757
1.500
Nov. 2019
Nov. 2034
Taipei
NTD
Green
8,000
1,757
0.980
Nov. 2020
Nov. 2040
Taipei
1  Issued principal is indexed to an outstanding amount of GBP 316 
­million corresponding to DKK 2,846 million at 31 December 2024.  
In addition to senior bonds, we have issued a number of hybrid  
bonds accounted for as equity, see note 5.3 ‘Hybrid capital’.
Maturity profile of issued senior bonds and bank debt
DKK billion
  Issued bonds 
  Bank debt
2028
5.4
2026
10.1
2030
2031
2032
2033
2034
2035+
6.7
6.9
6.9
8.4
8.1
17.5
2025
4.3 
2029
9.7
2027
 4.2 
Financial statements  |  Notes
209
ØRSTED ANNUAL REPORT 2024

Share capital 
Ørsted’s share capital is DKK 4,203,810,800 (2023: 
4,204 million), divided into shares of DKK 10. The share 
capital is unchanged from last year. No shares are 
­subject to special rights or restrictions on voting rights. 
All shares are fully paid up.
Treasury shares
To secure our share programme, we have acquired 
treasury shares in accordance with the authorisation 
approved by the general meeting. The total ­portfolio 
of treasury shares consists of 146,317 shares at 
31 December 2024 (2023: 150,784), corresponding 
to less than 0.1 % of the share capital.
Dividends 
As communicated in the Capital Markets Update on 
7 February 2024, Ørsted has paused dividends for the 
financial years 2023-2025. Consequently, the Board of 
Directors proposes that no dividend be paid out to the 
shareholders for the financial year 2024.
Profit (loss) for the year
Ørsted’s share of profit (loss) in 2024 is allocated to 
retained earnings.
Owners of Ørsted
The Danish state is the principal shareholder with an 
ownership interest of 50.1 %. In addition, Equinor and 
Andel have an ownership interest of 10 % and 5 %, 
respectively. See note 15 ‘Owner­ship information’ in 
the parent company’s financial statements.
Equity
Note 5.2
Earnings per share
DKKm
2024
2023
Profit (loss) for the year
16
(20,182)
Interest and costs, hybrid capital owners of Ørsted A/S
(717)
(553)
Non-controlling interests
(222)
(324)
Ørsted’s share of profit (loss) for the year
(923)
(21,059)
(‘000)
Average number of outstanding shares
420,233
420,227
Dilutive effect of share programme
397
280
Average number of outstanding shares, diluted
420,630
420,507
(DKK)
Earnings per share 
Diluted earnings per share
(2.2)
(2.2)
(50.1)
(50.1)
Financial statements  |  Notes
210
ØRSTED ANNUAL REPORT 2024

Equity
Note 5.2 – continued
Reserves 2024
DKKm
Foreign currency 
translation reserve
Hedging reserve 1
Total 
reserves
Hedging of net 
investments
Hedging of 
revenue
Hedging of 
divestments
Hedging of 
interest
Hedging of 
property, plant, and 
equipment under 
construction
Reserves at 1 January
(384)
(1,601)
(8,615)
(65)
414
-
(10,251)
Exchange rate adjustments
5,867
-
-
-
-
-
5,867
Value adjustments of hedging
-
(3,698)
2,821
284
293
(181)
(481)
Value adjustments transferred to
Revenue
-
-
(403)
-
-
-
(403)
Other operating income
5
-
-
(199)
-
-
(194)
Other operating expenses
7
-
(642)
-
-
-
(635)
Financial income and expenses
-
-
-
-
(25)
-
(25)
Tax
Tax on hedging and currency adjustments
(683)
814
309
(20)
(60)
40
400
Movements for the year
5,196
(2,884)
2,085
65
208
(141)
4,529
Additions, non-controlling interests
-
-
558
-
-
-
558
Total reserves including tax at 31 December
4,812
(4,485)
(5,972)
-
622
(141)
(5,164)
Total reserves excluding tax at 31 December
4,795
(5,753)
(7,358)
-
798
(181)
(7,699)
Reserves 2023
DKKm
Reserves at 1 January
(725)
(1,178)
(26,694)
-
2,130
-
(26,467)
Exchange rate adjustments
531
-
-
-
-
-
531
Value adjustments of hedging
-
(328)
24,950
(41)
108
-
24,689
Value adjustments transferred to
Revenue
-
-
(2,437)
-
-
-
(2,437)
Other operating income – gain on divestment of assets
(80)
21
-
(44)
-
-
(103)
Other operating expenses
-
-
512
-
-
-
512
Financial income and expenses
-
(236)
134
-
(2,308)
-
(2,410)
Tax
Tax on hedging and currency adjustments
(110)
120
(5,080)
20
484
-
(4,566)
Movement for the year
341
(423)
18,079
(65)
(1,716)
-
16,216
Total reserves including tax at 31 December
(384)
(1,601)
(8,615)
(65)
414
-
(10,251)
Total reserves excluding tax at 31 December
(1,093)
(2,053)
(9,827)
(85)
530
-
(12,528)
Foreign currency translation reserve 
The foreign currency translation reserve comprises:
·	 exchange rate adjustments arising on translation of the  
­financial statements of foreign entities with a currency that  
is not the Group’s presentation currency
·	 exchange rate adjustments relating to loans that form part  
of our net investment in such entities 
·	 exchange rate adjustments relating to hedging transactions  
on our net investment in such entities. 
On realisation or partial realisation of the net investment, the 
exchange rate adjustments are recognised in profit (loss) for the 
year if a foreign exchange gain (loss) is realised by the divested 
entity. The ­foreign exchange gain (loss) is transferred to the item 
where the gain (loss) is recognised.
Hedging of revenue
Hedging of revenue includes hedging of energy, currency, and 
­inflation risks associated with revenue.
Share premium reserve
Retained earnings include the share premium reserve of 
DKK 21,279 million (2023: 21,279 million), representing the 
excess amount of subscribed-for share capital over the nominal 
value of these shares in connection with capital injections.
1  Costs of hedging related to the time value of option elements in 
Onshore CPPAs, and basis spread on currency swaps included in 
the hedging ­reserve amounts to a gain of DKK 139 million (2023: 
DKK 239 million). The change from last year primarily relates to 
value adjustments of Onshore CPPAs, which are structured with a 
minimum price per MWh and a mechanism where we retain most 
of the upside from high power prices. 
Financial statements  |  Notes
211
ØRSTED ANNUAL REPORT 2024

We have issued hybrid capital which is subordinate  
to our other creditors. The purpose of issuing hybrid  
capital is to strengthen our capital base and fund  
our investments. We have issued EUR hybrid bonds 
with a total nominal value of EUR 2,350 million  
and GBP 425 million, respectively, equivalent to 
DKK 21,358 ­million (2023: EUR 2,100 million and 
GBP 425 million, respectively, ­equivalent to 
DKK 19,310 million). 
For all our hybrid bonds, we have the right to defer 
coupon payments and ultimately decide not to 
pay them at maturity. Deferred coupon payments 
become payable, however, if we decide to pay 
dividends to our shareholders or pay coupon payments 
on other hybrid bonds. 
As a consequence of the special terms regarding 
the hybrid bonds, these are classified as equity, and 
­therefore coupon payments are recognised in equity.
Hybrid capital
Note 5.3
Hybrid bonds
Green due in 3019
Green due in 3021
Green due in 3022
Green due in 3024
Green due in 3021
Type
Subordinated
Subordinated
Subordinated
Subordinated
Subordinated
Carrying amount
DKK 4,416 million
DKK 3,697 million
DKK 3,692 million
DKK 5,520 million  
DKK 3,630 million
Financial classification
Equity
Equity
Equity
Equity
Equity
Notional amount
EUR 600 million (DKK 4,474 million)
EUR 500 milllion (DKK 3,729 million) 
EUR 500 milllion (DKK 3,729 million) 
EUR 750 million (DKK 5,593 million)
GBP 425 million (DKK 3,833 million)
Issued
December 2019
February 2021
December 2022
March 2024
February 2021
Maturing
December 3019
February 3021
December 3022
March 3024
February 3021
Quoted in
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
First redemption at par
9 December 2027
18 February 2031
8 December 2028
14 September 2029
18 February 2033
Coupon for the first
Eight years fixed at 1.75 0 % p.a.
Ten years fixed at 1.500 % p.a.
Six years fixed at 5.250 % p.a.
5 years and 9 months fixed at 5.125 % p.a.
12 years fixed at 2.500 % p.a.
Coupon in subsequent period is adjusted every 
five years with the five-year euro swap
+1.952 % points from 2027, +2.020 % points 
from 2032, and +2.952 % points from 2047
+1.860 % points from 2031 and +2.610 % points 
from 2051
+2.619 % points from 2028, +2.869 % points  
from 2033, and +3.619 % points from 2048
+2.590 % points from 2029, + 2.840 % points 
from 2034, and +3.590 % points from 2049
Adjusted every five years with the five-year 
benchmark gilt +2.136 % points from 2033 and 
+2.886 % points from 2053
Deferral of interest payment
Optional
Optional
Optional
Optional
Optional
§  Accounting policies
Hybrid capital comprises issued bonds that qualify for treatment 
in accordance with the rules on compound financial instruments 
due to the special characteristics of the bonds. The notional 
amount, which constitutes a liability, is recognised at present 
value, and equity has been increased by the difference between 
the net proceeds received and the present value of the ­discounted 
liability. The carrying amount of the liability ­component 
amounted to nil on initial recognition as the only payment 
­obligation is the repayment of the nominal value in 1,000 years. 
Coupon payments are accounted for as dividends, which are 
recognised directly in equity at the time the payment obligation 
arises. This is because the coupon is discretionary, and therefore 
any deferred coupon lapses upon maturity of the hybrid ­capital. 
Coupon payments are recognised in the statement of cash flows 
within financing activities.
On redemption of hybrid capital, the payment will be ­distributed 
between liability and equity, applying the same ratio as when 
the hybrid capital was issued. This means that the difference 
between the payment on redemption and the net proceeds 
received on issue is recognised directly in equity, as the liability 
portion of the existing hybrid issues will be nil during the first 
part of the life of the hybrid capital.
Financial statements  |  Notes
212
ØRSTED ANNUAL REPORT 2024

Liquidity reserve
Note 5.4
Liquidity reserve, DKKbn
  Cash 
  Securities, available   
  Undrawn, non-cancellable credit facilities
Dec. 2024
Dec. 2023
Liquidity reserve
Liquidity reserve at 31 December 2024 amounted to 
DKK 78.0 billion (31 December 2023: DKK 90.7 billion). 
Collateral and margin postings
When we trade derivatives to execute our hedging 
strategy, we can trade with daily settlement of the 
market value or with settlement at maturity.
To reduce the risk of having to pay large amounts 
for negative market values, we actively manage 
the share of trading with daily settlement. As of 
31 December 2024, 12 % (2023: 12 %) of our power 
and gas trades and 92 % (2023: 88 %) of our currency, 
inflation, and interest rate hedges were settled daily.
Cash, cash equivalents, and securities
Securities are a key element in our liquidity reserve, 
and therefore, investments are mainly made in liquid 
AAA-rated Danish mortgage bonds and, to a lesser 
extent, in other bonds. Most of the securities qualify 
for repo transactions with the Danish central bank, 
‘Danmarks Nationalbank’.
‘Securities not available for use’ comprise securities 
pledged as collateral for: 
·	 short-term repo loans: DKK 4,011 million  
at 31 December 2024 (2023: DKK 0 million)
·	 insurance-related provisions: DKK 392 million  
at 31 December 2024 (2023: DKK 387 million).
At 31 December 2024, we had received cash 
­collateral in the amount of DKK 70 million  
(2023: DKK 286 million) concerning the positive  
market value of derivatives.
‘Cash not available for use’ comprises: 
·	 collateral for power purchase agreements and 
­trading with financial instruments: DKK 269 million  
(2023: DKK 421 million)
·	 collateral for insurance-related provisions:  
DKK 45 million (2023: DKK 41 million)
·	 collateral for other transactions:  
DKK 3 million (2023: DKK 19 million).
Cash and cash equivalents, securities
DKKm
2024
2023
Cash, cf. balance sheet
23,126
10,145
Bank overdrafts that are part of the ongoing cash management
(2)
(1)
Total cash and cash equivalents at 31 December, cf. statement of cash flows
23,124
10,144
Cash can be specified as follows
Cash cf. balance sheet
23,126
10,145
Cash, not available for use
317
481
Securities can be specified as follows
Securities, available
10,129
29,515
Securities, not available for use
4,403
387
Total securities at 31 December
14,532
29,902
The table shows our cash and securities divided into ‘available’ and ‘not available for use’.
Overview of securities
DKKm
Fixed rate
Floating rate
2024
Fixed rate
Floating rate
2023
Maturities
0-2 years
(376) 1
3,383
3,007
3,064
12,032
15,096
2-5 years
710
4,734
5,444
371
8,287
8,658
After 5 years
5,511
570
6,081
2,583
3,565
6,148
Total carrying amount
5,845
8,687
14,532
6,018
23,884
29,902
The table shows our securities split into maturities and fixed or floating interest rates. The overview includes the interest 
rate swaps used to manage the interest rate risk of the securities.
1  For securities maturing within 2 years, the negative value of the interest rate swaps exceeds the value of the securities.
§  Accounting policies
Securities comprise bonds that are monitored, measured, 
and reported at market value on an ongoing basis in 
conformity with the Group’s investment policy. Changes 
in market value are recognised in profit (loss) for the year 
as financial income and expenses. Purchase and sale of 
securities are recognised at the settlement date.
For listed securities, market value equals the market price, 
and for unlisted securities, market value is ­estimated 
based on generally accepted valuation methods and 
market data.
Divested securities where repurchase agreements (repo 
transactions) have been made at the time of sale are 
recognised in the balance sheet at the settlement date 
as if the securities were still held. The amount received is 
recognised as a liability, and the difference between the 
selling price and the purchase price is recognised in profit 
(loss) for the year over the term as interest. The return on 
the securities is recognised in profit (loss) for the year.
The change in liquidity reserve is due to a decrease in available 
securities and undrawn credit facilities of DKK 19,386 million and 
DKK 6,269 million, respectively, partly countered by an increase 
in cash of DKK 12,981 million. The decrease in undrawn credit 
facilities is a consequence of a lower exposure to trades requiring 
the exchange of collateral.
78.0
90.7
Financial statements  |  Notes
213
ØRSTED ANNUAL REPORT 2024

Maturity analysis of financial liabilities
Note 5.5
Maturity analysis of financial liabilities 2024
DKKm
2025
2026
2027-2028
After 2028
Total
Bank loans and issued bonds
  Notional amount
4,260
10,122
9,543
64,225
88,150
  Interest payments
2,611
2,604
4,731
13,931
23,877
Trade payables 
20,827
-
-
-
20,827
Lease liabilities
1,163
975
1,787
11,903
15,828
Tax equity debt
234
259
519
968
1,980
Other non-derivative payables
3,222
1,871
1,206
11,498
17,797
Derivatives
6,531
2,848
4,327
5,775
19,481
Total payment obligations
38,848
18,679
22,113
108,300
187,940
Maturity analysis of financial liabilities 2023
DKKm
2024
2025
2026-2027
After 2027
Total
Bank loans and issued bonds
  Notional amount
408
-
13,388
66,165
79,961
  Interest payments
2,485
2,480
4,762
15,380
25,107
Trade payables 
14,915
-
-
-
14,915
Lease liabilities
1,009
844
1,552
8,634
12,039
Tax equity debt
153
213
443
681
1,490
Other non-derivative payables
4,090
1,730
808
11,390
18,018
Derivatives
7,611
3,445
4,015
7,404
22,475
Total payment obligations
30,671
8,712
24,968
109,654
174,005
The Group’s cash needs in respect of its financial loans and borrowings are shown in the table. The maturity analysis was determined on 31 December. 
The maturity analysis is based on undiscounted cash flows, including estimated interest payments. Interest payments are based on market ­conditions 
and interest rate hedging entered into as of 31 December. The maturity analysis does not include hybrid capital classified as equity.  
At 31 December 2024, we had issued hybrid capital with a notional amount totalling DKK 21,358 million due after 2028.
Financial statements  |  Notes
214
ØRSTED ANNUAL REPORT 2024

Financial income and expenses
Note 5.6
§  Accounting policies
Market value adjustments of interest rate 
and currency derivatives that have not 
been entered into for hedging purposes are 
presented as financial income or expenses.
The accounting policy for the tax equity 
partner’s contractual return is described in  
note 3.8 ‘Tax equity liabilities’.
Net financial income and expenses 1
DKKm
2024
2023
Interest expenses, net
(1,739)
(1,764)
Interest expenses, leasing
(301)
(308)
Interest element of provisions, etc.
(502)
(662)
Tax equity partner’s contractual return
(1,275)
(965)
Value adjustments of derivatives, net
541
1,850
Capital gains/losses on securities at market value, net
434
489
Exchange rate adjustments, net
(750)
(140)
Other financial income and expenses
1
57
Net financial income and expenses
(3,591)
(1,443)
Financial income and expenses 2
DKKm
2024
2023
Interest income from cash, etc.
843
926
Interest income from securities at market value
710
716
Capital gains on securities at market value
783
489
Foreign exchange gains
3,854
4,674
Value adjustments of derivatives
2,372
5,548
Other financial income
28
26
Total financial income
8,590
12,379
Interest expenses relating to loans and borrowings, etc.
(4,604)
(4,167)
Interest expenses transferred to assets
1,011
453
Interest expenses, leasing
(301)
(308)
Interest element of provisions
(113)
(257)
Tax equity partner’s contractual returns
(1,275)
(965)
Capital losses on securities at market value
(349)
-
Foreign exchange losses
(4,538)
(5,042)
Value adjustments of derivatives
(1,897)
(3,470)
Other financial expenses
(115)
(66)
Total financial expenses
(12,181)
(13,822)
Net financial income and expenses
(3,591)
(1,443)
1  The table shows net financial income and expenses, corresponding 
to our internal reporting.  
 
The gain in ‘Value adjustments of derivatives, net’ in 2024 mainly 
consisted of the gains on interest rate swaps, which are not hedge 
accounted. The gain was mostly driven by the increase in interest 
rates. In 2023, ‘Value adjustments of derivatives, net’ included a gain 
of DKK 2,399 million due to hedge ineffectiveness driven by reduced 
funding needs in US. 
 
‘Exchange rate adjustments, net’ are mainly affected by inter-company 
balances between entities with different functional currencies and do 
not impact the statement of cash flows or interest-bearing net debt. 
The negative ‘Exchange rate adjustments, net’ in 2024 were mostly 
driven by the increase in the GBP/DKK exchange rate.
2  Exchange rate adjustments of currency hedging are recognised in 
revenue and cost of sales with a loss of DKK 569 million (2023: a loss 
of DKK 451 million). 
 
Borrowing costs transferred to property, plant, and equipment  
under construction are calculated as the weighted average effective 
interest rate for general borrowing. This amounted to 3.4 % in 2024 
(2023: 3.4 %).
Financial statements  |  Notes
215
ØRSTED ANNUAL REPORT 2024

Risk management
Note 6
Revenue composition of offshore and onshore assets 2025-2030
15 %
Merchant revenue 
35 %
Fixed nominal revenue 
50 % 
Inflation-indexed revenue 
For the period 2025-2030, approximately 85 % of our expected ­revenue from our wind, solar PV, and battery storage 
assets are fixed-price inflation-­indexed or fixed nominal. The remaining 15 % are exposed to fluctuations in power prices.
Energy exposure 2025-2027 2
DKKbn
  Before hedging 
  After hedging
Outright  
power
33.3
16.5
-1.6
-1.0
Gas  
and oil
5.4
4.8
Spread 
(power)
2  Energy exposure before hedging does not include revenue 
from inflation-indexed and fixed nominal prices as these  
do not contain any energy exposure. 
Currency exposure 2025-2029 1
DKKbn
  Before hedging 
  After hedging
1  In 2024, our currency exposure and hedges have been updated 
with our latest view of the expected proceeds from and timing 
of our divestment programme. For USD and NTD, we manage 
our risk to a natural time spread between front-end capital 
expenditures relating to construction projects and long-term 
revenue. In the five year horizon, we are therefore seeing that 
our hedges increase our net exposure, but our hedges reduce 
the risk in the longer horizon.
 
	 We deem EUR to constitute an insignificant risk as we expect 
­Denmark to maintain its fixed exchange-rate policy.
GBP
75.9
19.1
15.1
-8.4
USD
19.0
17.9
NTD
We are exposed to financial and revenue risks in the 
form of energy price and volume risks, inflation and 
interest rate risks, commodity price risks, currency 
risks, credit risks, and liquidity risks as part of our 
business, hedging, and trading activities. Through 
our risk ­management, we monitor and proactively 
manage the risks according to our risk appetite. 
In this note, we describe the origination as well as our 
governance and management of all these financial 
and revenue risks, excluding liquidity risks, which are 
covered in note 5.
For the period 2025-2030, approximately 85 % of our 
expected revenue from our wind, solar PV, and battery 
storage assets are fixed-price inflation-indexed or 
fixed nominal. The remaining 15 % is exposed to 
fluctuations in power prices.
Furthermore, our cash flows denominated in foreign 
currencies are exposed to changes in the value of 
­foreign currencies against Danish kroner.
~ 50 % inflation-
indexed revenue
~50 % of our revenue from offshore and 
onshore assets are fixed price-indexed to 
inflation, mainly from ROC and CfD subsidies 
in the UK and Poland (2023: ~45 %).
~ 35 % fixed 
nominal revenue
~35 % of our revenue from offshore and 
onshore assets are fixed in nominal terms, 
mainly from fixed-price subsidies and CPPAs 
in Continental Europe, Taiwan, and the 
US as well as hedges swapping inflation-­
indexed cash flows to fixed cash flows 
(2023: ~35 %).
~ 15 % merchant 
revenue
~15 % of our revenue from offshore and 
onshore assets are exposed to merchant 
power prices (2023: ~20 %).
DKK -7.6 billion 
The value of our hedging instruments 
(mainly inflation and power) impacting 
EBITDA in the future amounts to a loss of  
DKK 7.6 billion at 31 December 2024  
(2023: DKK 9.9 billion).
Financial statements  |  Notes
216
ØRSTED ANNUAL REPORT 2024

The overall objective of our financial and revenue risk 
management is to:
·	 increase the predictability of our short-term 
income and construction costs
·	 protect our current and future investment 
capacity by stabilising key rating metrics, such 
as FFO/adjusted interest-bearing net debt
·	 protect the long-term real value of the 
­shareholders’ investment in Ørsted.
The governance for managing market, 
credit, and liquidity risks are based on the 
three-lines-of-defence model:
·	 The first line of defence is responsible for our 
ongoing risk management and control, including 
necessary mitigating actions for all risks we take 
on through our business, hedging, and trading 
activities. 
·	 The second line of defence is Group Risk 
­Management, which is responsible for ­challenging 
decisions made by the first line of defence, 
including providing independent risk views and 
advice, as well as monitoring and controlling 
that risks are being managed appropriately.
 
·	 The third line of defence is Internal Audit.
The mandates for first line of defence are established 
­during the business planning processes and evaluated 
­according to our risk appetite. An example is ­deciding 
on the target hedge level for price exposures from 
intermittent power generation as described in note 
6.2 ‘Energy price risks‘. 
In our risk management processes, financial and 
revenue risks are quantified and assessed against 
our risk appetite – alongside decisions on suitable 
risk mitigation measures. Our biggest enterprise 
risks and associated risk mitigation measures are 
presented in the ‘Enterprise risk management’ 
section in the ­‘Management’s review’. 
The Board of Directors overseas our risk management 
through the Audit & Risk Committee and approves 
associated frameworks, mandates, and limits per risk 
factor. See the ‘Corporate governance’ section in the 
­‘Management’s review’ for governance regarding 
our committees.
We govern the accounting treatment and effectiveness 
of hedges by applying hedge accounting on energy, 
commodity, currency, interest rate, and ­inflation 
hedging. 
Risk framework
Note 6.1
§  Accounting policies
Hedge accounting
We apply hedge accounting to our energy, com-
modity, currency, interest, and inflation hedges. 
Almost all of the hedging instruments we use fully 
match the market risk of the exposure we hedge. 
The UK power exposure, for example, is hedged 
using UK power swaps or futures. Thus, the main 
source of ineffectiveness is related to the volume 
and timing of the actual production versus the 
settlement of the hedge. This difference in timing is 
referred to as volume risk and is described in more 
detail on the next page.
To the extent that a risk needs to be hedged, and 
if there is no fully effective instrument ­available 
in the market, analyses are performed of the 
expected effectiveness of the hedging instrument 
before the hedging transaction is concluded. In this 
case, the ratio between the hedged risk and the 
hedging instrument may deviate from the one-to-
one principle and will be determined as the ratio 
which most effectively hedges the desired risk. 
When we conclude a hedging transaction, and each 
time we present financial statements thereafter, 
we assess the correlation between the hedged 
exposure and the hedging instrument. The effective 
change in market value of the hedging instrument is 
recognised as a hedge of future cash flows in other 
comprehensive income in the hedging reserve. 
If the hedged cash flows are no longer expected 
to be realised, the in-full or partially accumulated 
value change is transferred to profit (loss) for the 
year. Ineffective hedges related to energy and com-
modity exposures are recognised in other operating 
expenses. Ineffectiveness related to other hedges 
are recognised in financial income or expenses.
On realisation of the hedged cash flow, the result-
ing gains or losses are transferred from equity and 
recognised in the same item as the hedged item. 
­However, on interest rate and currency hedging of 
proceeds from future loans, the resulting gain or loss 
is transferred from equity over the term of the loan.
For currency swaps, the basis spread is accounted 
for according to the cost of the hedging model.
  Key accounting estimate
Valuation of long-term power  
purchase agreements
When we measure our power purchase agree-
ments at fair value, we use estimates of non-­
observable inputs, such as:
·	 production forecasts
·	 forecasted long-term power prices and 
exchange rates
·	 forecasted inflation expectations.
Hedge accounting
Hedge effectiveness is measured using forecasted 
production as well as estimates regarding 
energy prices, intermittency, interest, currency, 
and inflation. For periods where we are close to 
fully hedged, volume overhedging is possible if 
the forecasted production does not materialise, 
which will lead to recognition of ineffectiveness.
  Key accounting judgement
Valuation of long-term power  
purchase agreements
We measure our power purchase agreements at 
fair value, but they cannot always be measured 
against quoted prices in active markets due to the 
long duration of the contracts. We therefore use 
elements of judgement when measuring the fair 
value, and we aim to limit the use of ­subjective 
estimates and base the fair values on external 
information, including external pricing and bench-
mark services.
 
Hedge accounting
Judgements are used to consider whether fore-
casted transactions are highly probable ­exposures 
as hedged items in a hedge relationship, e.g. 
expected production from wind farms, and judge-
ment is applied as to whether the hedge instru-
ments applied in the hedge relationships identified 
are effective.
Financial statements  |  Notes
217
ØRSTED ANNUAL REPORT 2024

0
1,000
2,000
3,000
4,000
2022
2023
2024
2025
Forward rates
Historical rates
2026
Our main energy price risk stems from our intermittent 
power generation from wind and solar PV assets. 
By nature, this is exposed to volume uncertainty, ­price 
uncertainty, and the often negative correlation between 
the two. We are also exposed to other energy price risks 
through our combined heat and power plants.
Intermittent Offshore and Onshore power generation
Around 15 % of the revenue from our power generation 
in Offshore and Onshore in 2025-2027 is exposed to 
power price uncertainty.
Most of our Offshore assets receive government subsi-
dies, which provide a high degree of revenue certainty 
for pre-determined periods of time. The majority of the 
offshore subsidies that we receive in the UK, ­Central 
Europe, the US, and Taiwan provide us with either floor 
prices or fixed prices per MWh for the power produced. 
Our UK ROC assets receive a fixed subsidy per MWh 
in addition to the revenue generated from selling the 
power generation in the market. Furthermore, some 
of our Offshore assets in Germany will see their floor 
price subsidies drop from EUR 184-194 per MWh to 
EUR 39 per MWh over the next three years. For a very 
small number of our assets in the UK, the government 
subsidies have expired or will expire by the end of 
2027. From early 2025, all Danish assets will be with-
out ­subsidy. We manage some of the revenue risks 
in Offshore using corporate power purchase agree-
ments (CPPAs), which have fixed prices and floor prices. 
These CPPAs cover approx. 10 % of the expected  
Offshore revenue for the period 2025-2027.
A large part of our income in Onshore comes from 
production tax credits (PTCs) or investment tax credits 
(ITCs) related to power generation or investments in the 
US (see note 3.8 ‘Tax equity liabilities’). The tax credits 
are not exposed to a power price risk. However, there 
is a price risk associated with the power produced by 
these assets. In Europe, we have a mixture of subsidised 
and subsidy-free Onshore assets. Like in Offshore, 
we manage some of the Onshore revenue risks using 
CPPAs. The current Onshore CPPAs cover approx. 62 % 
of the expected Onshore revenue for the period 2025-
2027. In general, these CPPAs are structured with a 
minimum price per MWh and a mechanism where we 
retain most of the upside from high power prices.
To mitigate our residual exposure to revenue risks, we 
use fixed-volume hedges. There can be mismatches 
between these hedges and the production profiles of 
our assets. In addition, there tends to be a negative 
correlation between power prices and generation 
volumes, which is driven by the periods when solar 
and wind generation exceeds demand. These risks 
are accounted for in our hedging strategy and poli-
cies. For example, the maximum hedge ratio is 70 % 
when using fixed-volume hedges within the two-year 
horizon we actively manage. This maximum hedging 
level ensures a low probability for not having physical 
power generation behind fixed-volume hedges while 
also providing an adequate level of risk reduction. 
We may hedge beyond the two-year horizon if the 
price level is commercially attractive.
Energy price risks
Note 6.2
The graph shows the historic development in monthly average spot power prices for  
the past three years and the forward rates for 2025 and 2026 as of 31 December 2024. 
The graph covers our main markets where we are exposed to power prices.
1	 Average of DK1 and DK2.
2	 Average of north and west.
Development in power prices, DKK/MWh
  DK 1 
  UK 
  US (ERCOT) 2
Composition of revenue from generation of power in Offshore and Onshore
  Fixed-price subsidy 
  Guaranteed minimum price with potential upside
  As generated CPPAs
  Fixed-volume hedges
  Merchant exposure (after hedges)
2025
The graph shows the split of the expected revenue from generation of power in Offshore 
and Onshore in 2025. The revenue from inflation-indexed or fixed nominal (covered by 
the three darkests blue components in the graph) is 80 %, compared to the 85 % from 
­inflation-indexed or fixed nominal from 2025-2030 shown in section 6.0.
53 %
13 %
14 %
9 %
11 %
Financial statements  |  Notes
218
ØRSTED ANNUAL REPORT 2024

Power generation at our CHP plants
Our portfolio of CHP plants primarily consists of 
biomass-fuelled units in Denmark. The profitability 
of power generation is determined by the difference 
between the selling price of power and the purchase 
price of biomass. If the spreads are attractive, we 
provide condensing power generation in addition to 
CHP generation. The total net price risk associated with 
power from CHP generation for the period 2025-2027 
is DKK 4.8 billion after hedging, covering both heat-
bound and condensing-based generation. We are not 
exposed to price risks related to heat generation.
Energy price risks
Note 6.2 – continued
The graph shows our power exposure towards power prices in different 
markets before hedges for the period 2025-2027.
Power price exposure before hedging  
for 2025-2027, split on markets 
DKKbn
The UK 16.5
The US 7.1
Other 9.7
Risk after hedging
Our energy exposure after hedging for the years  
2025-2027 can be summarised as shown in the table.
Risk after hedging
DKKbn
Effect of price change
+10 %
-10 %
Power: 16.5 sell position
+1.7
-1.7
Spread (power): 4.8
+0.5
-0.5
A 10 % increase in the power price will result in a gain 
of DKK 1.7 billion over the period 2025-2027, all else 
remaining unchanged. Gas and oil activities have a 
limited risk after hedging of DKK 0.0 billion for the 
period 2025-2027.
§	Principles for estimating exposures
Exposure is calculated as the expected production 
(or net purchase/sale) times the forward price for the 
respective years.
Financial statements  |  Notes
219
ØRSTED ANNUAL REPORT 2024

Energy price risks
Note 6.2 – continued
Energy price cash flow 
hedge accounting 2024
DKKm
Contractual 
principal amount
Maturity analysis
Market value
Recognised in 
comprehensive income
Expected transfers to EBITDA
 
2025
2026
After 2026
Asset
Liability
2025
2026
After 2026
EBITDA impact
Power purchase agreements (sell pos.)
9,771
2,001
2,022
5,748
867
(5,413)
(3,795)
(72)
(427)
(3,296)
Power swaps and futures (sell position)
3,750
2,277
1,473
-
897
(1,155)
287
79
208
-
Gas swaps and options (sell position)
768
723
45
-
87
(206)
128
98
30
-
Energy price cash flow
hedge accounting 2023
DKKm
 
2024
2025
After 2025
2024
2025
After 2025
EBITDA impact
Power purchase agreements (sell pos.)
5,378
1,288
973
3,117
135
(7,883)
(6,973)
(852)
(1,066)
(5,055)
Power swaps and futures (sell position)
 7,545
3,617
2,715
1,213
3,476
(6,465)
1,861
1,614
25
222
Power options (buy position)
 171
-
171
-
-
-
(72)
(71)
(1)
-
Gas swaps and options (sell position)
 1,165
456
648
61
172
(314)
(896)
(761)
(62)
(73)
Oil futures (buy position)
 8
8
-
-
-
-
(1)
(1)
-
-
Contracts accounted for at 
fair value through profit or 
loss (EBITDA)
DKKm
2024
2023
Contractual
principal amount
Market
value
Contractual
principal amount
Market
value
Energy 
Power swaps (buy position)
3,071
(409)
 245
2,126
Power options (sell position)
830
(23)
 2,279
(67)
Power purchase agreements (sell pos.)
237
(94)
-
-
Gas swaps and options (sell position)
2,734
406
 1,528
2,395
Oil swaps and options (buy position)
169
(147)
166
(492)
Other (buy position)
740
-
 175
-
Part of the power swaps and futures hedge is managed with a 
dynamic hedge percentage. This relates to power sales sourced 
from purchase agreements with price caps and floors. The risk 
management objective is to protect the margin from price changes.
Ineffective hedges
In 2024, we recognised ineffective hedges with a gain of DKK 137 
million (2023: loss of DKK 512 million) in other operating expenses, 
of which volume-related ineffectiveness related to Offshore 
amounted to DKK 0 million (2023: DKK -418 million), inflation-­
indexed-related ineffectiveness amounted to DKK 0 million  
(2023: A gain of DKK 105 million), and other ineffectiveness 
amounted to a gain of DKK 137 million (2023: DKK -199 million).
Financial statements  |  Notes
220
ØRSTED ANNUAL REPORT 2024

-2
0
2
4
6
8
10
12
2022
2023
2024
Inflation and interest rate risks
Note 6.3
Inflation-indexed revenue in 2025-2030 is partly offset 
by inflation-indexed operational costs
Inflation-indexed 
revenue and hedges
Operational costs 1
~50 % matched
1	 Operational costs are comprised of OPEX, COGS, and DEVEX after  
deduction of income from PTCs and ITCs.
Approximately 85 % of our revenue from Offshore 
and Onshore assets for the period 2025-2030 stem 
from either fixed nominal or inflation-indexed con-
tracts. The long duration of these cash flows exposes 
us towards changes in interest rates and ­inflation, 
particularly for assets where the fixed nominal price 
received is constant regardless of interest rate, infla-
tion, or merchant price level. 
Our risk management builds on the important ­central 
assumption that shareholders prefer exposure to 
inflation-indexed cash flows over nominal cash flows, 
as this protects the real value of their investment. 
We apply an asset and liability management principle 
for handling interest rate and inflation risks. 
Inflation risk
We prefer to invest in assets with inflation-linked 
revenue to mitigate our cost inflation risks. Our cost 
inflation mainly stems from OPEX, COGS, DEVEX, 
and CAPEX, which, to a large extent, increase with 
­inflation. Operational costs are assessed together with 
the inflation-indexed revenue to reduce the net risk. 
In addition, CAPEX is exposed to the price development 
in a number of commodities, most significantly steel 
and copper for wind turbine, foundation, and cable 
contracts. Commodity price risks are first and foremost 
reduced by negotiating fixed-price CAPEX contracts 
and secondly by negotiating CAPEX price-linked to 
indexes or similar that can be hedged in the financial 
markets. The net commodity risk in CAPEX is hedged 
asset by asset following project FID.
Development in inflation and interest rates
%
  USD 10-year interest rate	
  EUR 10-year interest rate 
  UK CPI annual rate
  NTD 10-year interest rate	
  GBP 10-year interest rate
The graph shows the historic development in interest and inflation rates for the past three years. 
The graph covers our main markets where we are exposed to interest and inflation.
Financial statements  |  Notes
221
ØRSTED ANNUAL REPORT 2024

Interest rate risks
We actively match our debt with our assets per 
currency and modified duration. Modified duration 
of both assets and debt is the change in value in 
response to a 1 percentage point change in ­interest 
rates. As a rule of thumb, modified duration is 
matched within ±2 percentage points. For example, 
the fixed nominal cash flows from our Taiwanese 
projects with an average of 7.7 % in modified duration 
are matched with fixed-rate NTD debt with roughly 
8.3 % modified duration. 
For assets in operation and under construction, 
60 % of the lifetime present value of fixed nominal 
cash flow, excluding CAPEX, are matched with 
­corresponding fixed-rate senior and hybrid debt. 
Part of this matching has been done by entering into 
inflation swaps on our inflation-indexed CfD and 
ROC revenue in the UK to match our GBP fixed-rate 
debt. As our portfolio of awarded assets mature, we 
actively consider executing interest rate swaps to 
lock in the interest rates before funding is secured.
Finally, when we farm down part of an asset, we 
normally hedge part of the interest, inflation, and 
currency risks related to the divestment proceeds.
Inflation and interest rate risks
Note 6.3 – continued
Fixed-rate debt and hedges used to protect fixed 
nominal cash flows against interest rate increases 
Fixed-rate debt and hedges 
Assets in operation and under construction 1
~55 %  
matched
For assets in operation and under construction, approximately 55 % of the fixed nominal 
cash flows are matched with a fixed interest rate on our debt and hedge portfolio.
1	 Lifetime present value of fixed nominal cash flows, excluding CAPEX. Assets under 
construction include the Hornsea 3, Borkum ­Riffgrund 3, Revolution Wind, Sunrise 
Wind, and Greater Changhua 2b and 4 offshore wind farms. 
Financial statements  |  Notes
222
ØRSTED ANNUAL REPORT 2024

Inflation and interest rate risks
Note 6.3 – continued
Cash flow hedge accounting 2024 
DKKm
Contractual 
principal amount
Maturity analysis
Market value
Recognised in 
comprehensive 
income
Expected transfers to income statement
 
2025-28
2029-34
After 2034
Asset
Liability
2025
2026
After 2026
EBITDA impact
Inflation swap (pay variable/receive fixed – UK), 
­revenue
22,503
5,231
13,439
3,833
-
(3,024)
(3,513)
(216)
(221)
(3,076)
Financial items impact
Interest rate swap (pay fixed/receive variable – USD), 
future loan issuance 
2,989
-
-
2,989
26
-
702
-
70
632
Interest rate swap (pay fixed/receive variable – NTD), 
future loan issuance
-
-
-
-
-
-
96
5
10
81
Property, plant, and equipment under construction
Metals 
1,456
1,456
-
-
-
(181)
n/a
n/a
n/a
n/a
Cash flow hedge accounting 2023 
DKKm
 
2024-27
2028-33
After 2033
2024
2025
After 2025
EBITDA impact
Inflation swap (pay variable/receive fixed – UK), 
revenue
22,883
6,409
12,818
3,656
-
(3,125)
(3,414)
(202)
(204)
(3,008)
Interest rate swap (pay fixed/receive variable – NTD), 
divestment
4,776
4,776
-
-
-
(85)
(85)
(85)
-
-
Financial items impact
Interest rate swap (pay fixed/receive variable – USD), 
future loan issuance 
3,036
-
-
3,036
-
(142)
530
-
-
530
Interest rate swap (pay fixed/receive variable – NTD), 
future loan issuance
2,639
-
-
2,639
-
(6)
-
-
-
-
Contracts accounted for at fair value 
through profit or loss (financial items) 
DKKm
2024
2023
Contractual
principal amount
Market
value
Contractual
principal amount
Market
value
Interest rate swaps (pay fixed/receive variable)
13,822
200
21,806
(369)
Interest rate swaps are used to adjust the maturity of our bond portfolio.  
For 2023, this includes ineffective USD interest rate swaps with a contractual  
principal amount of DKK 12,148 million. 
We hedge our UK inflation risk related to inflation-indexed revenue 
from ROC and CfD subsidies at an average fixed rate of 3.4 %. 
Furthermore, we hedge the interest and inflation risk related to 
divestments. All the inflation risks that we hedge are separately 
identifiable in the underlying contract.
We have recognised ineffectiveness of DKK 25 million (gain) (2023: 
ineffectiveness gain of DKK 2,297 million in financial income, mainly 
related to US interest rate hedges no longer needed after the 
termination of Ocean Wind 1).
Financial statements  |  Notes
223
ØRSTED ANNUAL REPORT 2024

500
600
700
800
900
1,000
20
21
22
23
24
25
2022
2023
2024
2025
Forward rates
Historical rates
2026
Our cash flows consist of multiple different currencies, 
which expose us to fluctuations in currency exchange 
rates. Our main currency exposures are GBP, USD, and 
NTD. While our exposure to EUR is also significant, we 
deem EUR an insignificant risk as we expect Denmark 
to maintain its fixed exchange-rate policy. 
For GBP, our significant earnings from assets in oper-
ation and expected farm-downs are larger than 
our planned CAPEX, resulting in a net-positive GBP 
­exposure, both in the short and long term. A 10 % 
increase in the GBP/DKK exchange rate will result in 
a gain of DKK 1.9 billion over the period 2025-2029, 
all else remaining unchanged.
For USD, our portfolio of offshore and onshore devel-
opment assets, operating assets, and expected farm-
downs translate to a both short- and long-term net-­
positive USD exposure. 
We primarily manage currency risk by using structural 
risk management tools, such as using local currency 
­sourcing contracts, netting income and expenses in 
the same currency, and issuing local currency debt to 
naturally balance our portfolio. 
More specifically, the currency denomination of new 
debt issuances is aimed at optimising the currency 
composition of net debt with that of forecasted FFO 
to ensure stability in FFO/adjusted interest-bearing net 
debt against adverse movements in exchange rates. 
Debt can be particularly effective in new markets 
to mitigate the time-spread risk since the proceeds 
from the debt issuance can be used to fund and hedge 
­construction costs, while the debt repayment profile 
can be sculpted to match future revenue. 
The residual currency risk after debt and netting 
of exposures are managed via financial derivatives 
according to our desired risk appetite. Our overall 
hedge horizon is five years, covering only highly certain 
cash flows to reduce the risk of hedge ineffectiveness. 
For energy price risks in foreign currencies, we do 
not hedge the exchange rate risk until the energy 
exposure has been hedged. For cash flows that relate to 
subsidised GBP income from our UK offshore wind farms 
less operating expenses, we hedge on a declining level 
over a five-year rolling horizon. The target is to hedge 
100 % of highly certain cash flows in year 1, declining 
by 20 percentage points each year to 20 % in year 5. 
Our currency exposure from production, sales, invest-
ment, and divestment after hedging for the years 
2025-2029 can be summarised as shown in the table.
Risk after hedging
DKKbn
Effect of price change
+10 %
-10 %
GBP: 19.1 sell position
+1.9
-1.9
USD: 8.4 buy position 
-0.8
+0.8
NTD: 18 sell position
+1.8
-1.8
Currency risks
Note 6.4
GBP exposures 1
DKKbn
  Before hedging  
  After hedging
Development in currency rates 2
  GBP/DKK 
  USD/DKK
  NTD/DKK
2025
26.8 
1.0 
2027
2.3
-11.7
2026
9.3
-1.1 
2028
12.6
7.2
2029
25.0
23.7
1  The graph shows our GBP exposure before and after hedges from divestments and investments, 
green certificates, and hedged energy.
2  The graph shows the historic development in spot currency rates for the past three years and 
the forward rates for 2025 and 2026 as of 31 December 2024.
Financial statements  |  Notes
224
ØRSTED ANNUAL REPORT 2024

Currency risks
Note 6.4 – continued
Currency cash flow hedge  
accounting 2024 
DKKm
Contractual 
principal amount
Maturity analysis
Market value
Recognised in 
comprehensive income
Expected transfers to income statement
 
2025
2026
After 2026
Asset
Liability
2025
2026
After 2026
EBITDA impact
GBP forwards and cross-currency swaps
22,864
5,980
5,691
11,193
-
(885)
(942)
(387)
(235)
(320)
Currency cash flow hedge  
accounting 2023 
DKKm
 
2024
2025
After 2025
2024
2025
After 2025
EBITDA impact
GBP forwards and cross-currency swaps
24,191
5,961
6,115
12,115
131
(481)
(331)
(218)
(33)
(80)
USD forwards
3
3
-
-
-
-
-
-
-
-
The GBP exchange rates for hedges impacting EBITDA in 2025 and 2026 are hedged at an average of GBP/DKK 8.5 and 8.5, respectively. 
Ineffectiveness from currency cash flow hedges in 2024 amounts to a loss of DKK -82 million (2023: DKK -134 million), recognised in ­ 
financial items.
Contracts accounted for  
at fair value through profit or 
loss (financial items)
DKKm
2024
2023
Contractual
principal amount
Market
value
Contractual
principal amount
Market
value
Currency
Forward exchange contracts
21,180
1
24,504
(54)
The table shows cash management positions which are not hedge accounted. 
Financial statements  |  Notes
225
ØRSTED ANNUAL REPORT 2024

Hedging of net investments in foreign subsidiaries
Our foreign subsidiaries entail currency risks. We hedge 
these currency risks by raising loans in foreign currencies 
and by entering into forward exchange contracts, 
currency swaps, and options. 
On 31 December 2024, the accumulated exchange 
rate adjustments totalled DKK -972 million (2023: 
DKK -3,146 million), divided between the exchange rate 
adjustment of the net investment of DKK 4,791 million 
(2023: DKK -1,093 million) and the hedging thereof of 
DKK -5,763 million (2023: DKK -2,053 million).
Currency risks
Note 6.4 – continued
Hedging of net investments in foreign subsidiaries
DKKm 
Currency 2024
Net 
investment
Of which, 
non-controlling 
interests
Hedged 
amount 
in currency
Net position
Accumulated exchange 
rate adjustments 
in equity
GBP
62,675
(7,859)
(46,688)
8,128
(1,877)
EUR
31,702
-
-
31,702
30
USD
43,840
(2,498)
(27,282)
14,060
619
NTD
27,821
-
(10,324)
17,497
102
Other
5,704
-
-
5,704
154
Total
171,742
(10,357)
(84,294)
77,091
(972)
Currency 2023
GBP
70,682
(1,876)
(31,197)
37,609
(3,075)
EUR
37,602
-
-
37,602
9
USD
22,809
-
(20,045)
2,764
(301)
NTD
25,778
-
(5,937)
19,841
131
Other
3,853
-
-
3,853
90
Total
160,724
(1,876)
(57,179)
101,669
(3,146)
Net investment hedges 2024
DKKm
Contractual 
principal amount
Maturity analysis
Market value
 
2025
2026
After 2026
Asset
Liability
GBP issued senior bonds
27,960
-
-
27,960
-
-
GBP forwards and cross-currency swaps
18,728
4,162
3,247
11,319
142
(604)
USD bank loans
5,368
-
-
5,368
-
-
USD forwards and cross-currency swaps
21,914
4,919
10,370
6,625
194
(997)
NTD issued senior bonds
5,931
-
879
5,052
-
-
NTD forwards and cross-currency swaps
4,393
4,393
-
-
4
-
Net investment hedges 2023
DKKm
 
2024
2025
After 2025
GBP issued senior bonds
26,669
-
-
26,669
-
-
GBP forwards and cross-currency swaps
4,528
774
1,131
2,623
7
-
USD bank loans
1,332
-
-
1,332
-
-
USD forwards and cross-currency swaps
18,713 
4,926
3,934
9,853
657
-
NTD issued senior bonds
5,937
-
-
5,937
-
-
§  Accounting policies
Hedging of net investments in foreign subsidiaries
Changes in the market value of currency derivatives and 
currency adjustment of loans that are classified as net 
investment hedges in foreign subsidiaries or associates 
are recognised in the consolidated financial statements 
directly in equity within a separate foreign currency 
translation reserve.
No ineffectiveness from net investment hedges in 2024. In 2023, 
ineffectiveness caused by impairments on our US activities was 
recognised with a gain of DKK 236 million in financial items..
The net position expresses the accounting exposure. If, for example,  
the GBP/DKK exchange rate increased by 10 % on 31 December 2024,  
equity would have increased by DKK 813 million, corresponding 
to 10 % of DKK 8,128 million.
Financial statements  |  Notes
226
ØRSTED ANNUAL REPORT 2024

We are exposed to credit risks from our ­hedging 
­activities, construction activities, and all other ­activities 
where a counterparty’s failure to meet their ­obligations 
may cause a loss. A large part of our credit risk is 
towards major international energy companies, 
­suppliers, and banks. 
Our key credit risk management objective is to secure 
that credit decisions are well informed and takes into 
consideration potential future changes to relevant risk 
factors, and to monitor our counterparties closely. Our 
credit policy is to accept unsecured credit exposures to 
investment grade counterparties while we have limited 
or no credit appetite to lower rating classes. Some of our 
main methods for mitigating the credit risks are by having 
minimum rating requirements in our contracts, monitoring 
credit worthiness indicators closely to be able to react 
in due time, and requiring guarantees or other credit-risk-
reducing measures if needed and deemed necessary. 
Where mitigation in accordance with our policies and 
principle is not commercially posible, credit risk can be 
accepted if deemed necessary and balanced.
For the most significant counterparties, an internal 
­rating is assigned in connection with establishing credit 
limits. The rating is based on information from external 
credit rating agencies, publicly available information, 
credit risk information systems, and our own analyses. 
We have not experienced any losses from a major 
counterparty in 2024. In 2023, we wrote down a loan 
to a US supplier amounting to DKK 571 million.
Credit risks
Note 6.5
Credit quality of the Group’s counterparties 1
DKKm
2024
2023
AAA/Aaa
12,485
27,301
AA/Aa
17,623
7,518
A/A
10,262
10,501
BBB/Baa
4,583
9,020
Other
7,962
9,198
Total credit exposure
52,915
63,538
1	 The figures do not reflect our actual credit ­exposure, as the positions are calculated before offsetting our debt to such counterparties. 
At December 31, 2024 Ørsted considered its maximum credit risk to be DKK 52,915 million (2023: DKK 63,538 million).
Offsetting of financial assets
DKKm
Derivatives
Trade
receivables
2024
Derivatives
Trade
receivables
2023
Financial assets
6,795
9,614
16,409
17,775
21,728
39,503
Financial liabilities, offset
(2,402)
(4,916)
(7,318)
(6,911)
(16,849)
(23,760)
Financial assets in the balance sheet
4,393
4,698
9,091
10,864
4,879
15,743
Amounts not offset in the balance sheet
Liabilities with offsetting rights
(1,543)
-
(1,543)
(2,529)
-
(2,529)
Collateral received
(139)
-
(139)
(468)
-
(468)
Net
2,711
4,698
7,409
7,867
4,879
12,746
Offsetting of financial liabilities
DKKm
Financial liabilities
11,153
9,246
20,399
17,864
20,981
38,845
Financial assets, offset
(2,402)
(4,916)
(7,318)
(6,911)
(16,849)
(23,760)
Financial liabilities in the balance sheet
8,751
4,330
13,081
10,953
4,132
15,085
Amounts not offset in the balance sheet
Assets with offsetting rights
(1,543)
-
(1,543)
(2,529)
-
(2,529)
Collateral provided
(5,082)
-
(5,082)
(4,214)
-
(4,214)
Net
2,126
4,330
6,456
4,210
4,132
8,342
A large part of the gross assets and liabilities can be offset due to the nature in trading activities where energy is both purchased and sold  
with a limited number of participants in the energy markets.
§  Accounting policies
We only offset positive and negative values if 
we are entitled to and intend to settle several 
financial instruments net.
Financial statements  |  Notes
227
ØRSTED ANNUAL REPORT 2024

We measure our securities and derivatives at fair 
value. A number of our derivatives, mainly power 
purchase agreements, are measured based on 
unobservable inputs due to the long duration of 
the contracts. 
Valuation principles and process
In order to minimise the use of subjective estimates 
or modifications of parameters and calculation 
models, it is our policy to determine fair value based 
on the external information that most accurately 
reflects the market values. We use pricing services 
and benchmark services to increase the data quality. 
Market values are determined by the Risk Manage-
ment function. 
We use external price providers to ensure a high 
quality of our price curves. Where prices are not 
available, we model the prices based on our prior 
experience and best estimates. Where relevant and 
possible, we ­validate our price curves against ­third-
party data.
Fair value hierarchy 
Market values based on quoted prices comprise 
­quoted securities and derivatives that are traded 
in active markets. The market values of derivatives 
traded in an active market is often settled on a daily 
basis, thereby minimising the market value presented 
on the balance sheet. 
Market values based on observable inputs comprise 
derivatives where valuation models with observable 
inputs are used to measure fair value. 
Fair value measurement
Note 6.6
Fair value hierarchy of financial instruments
DKKm
Assets
Quoted prices 
(level 1)
Observable 
input 
(level 2)
Non-observable 
input 
(level 3)
2024
Quoted prices 
(level 1)
Observable 
input 
(level 2)
Non-observable 
input 
(level 3)
2023
Gas inventory
2,735
-
-
2,735
1,513
-
-
1,513
Total inventory
2,735
-
-
2,735
1,513
-
-
1,513
Bonds
-
14,532
-
14,532
-
29,902
-
29,902
Total securities
-
14,532
-
14,532
-
29,902
-
29,902
Energy derivatives
2,943
559
1,243
4,745
7,485
2,700
559
10,744
Currency derivatives
-
361
-
361
-
749
-
749
Interest and inflation derivatives
-
471
-
471
-
336
-
336
Total derivative assets
2,943
1,391
1,243
5,577
7,485
3,785
559
11,829
Liabilities
Energy derivatives
2,784
752
6,399
9,935
5,397
4,176
8,087
17,660
Currency derivatives
-
2,506
-
2,506
-
489
-
489
Interest and inflation derivatives
-
3,269
-
3,269
-
4,063
-
4,063
Commodity derivatives
-
181
-
181
-
-
-
-
Total derivative liabilities
2,784
6,708
6,399
15,891
5,397
8,728
8,087
22,212
All assets and liabilities measured at market value are measured on a recurring basis.
Market values based on non-observable inputs mainly 
comprise long-term power purchase agreements 
(PPAs) that lock the power price of the expected 
power generation over a period of up to 10-20 years. 
Due to the long duration of these PPAs, power prices 
are not observable for a large part of the duration. 
The most significant non-observable inputs are based 
on US power prices (mainly ERCOT) and German 
power prices.
Estimating as-produced power prices
Since our PPAs are normally settled on the actual 
production, and the power prices available in the 
market are based on a constant production (flat 
profile), we take into account that our expected 
production is not constant, and thus our PPAs will not 
be settled against a flat profile price. For the majority 
of our markets, the flat profile power price can be 
observed for a maximum of four to six years in the 
market, after which an active market no longer exists.
Financial statements  |  Notes
228
ØRSTED ANNUAL REPORT 2024

Valuation techniques and significant 
unobservable inputs 
We use a discounted cash flow model for the valuation 
of power derivatives.
The US power purchase agreements give exposure to 
the long-term US power prices, mainly in the ERCOT, 
SPP, and MISO regions. The power price is ­observable 
for the first four to six years. For the following four 
to six years, the power price is estimated based on 
observable inputs (gas prices and heat rates). For the 
subsequent period, the power price is non-­observable 
and estimated by extrapolating the power price 
towards the U.S. Energy Information Administration’s 
long-term power price forecast, assuming similar 
seasonality as in previous periods. As the majority 
of the remaining contract period is within the period 
when power prices are non-observable, we classify 
the contracts as based on non-observable input.
In Germany and other countries where we have long-
term PPA contracts, the power price is observable 
for up to five years. When power prices are no longer 
observable in the market, we have estimated the 
power price by extrapolating the last year with an 
observable power price, taking expected inflation 
and seasonality into account.
Fair value measurement
Note 6.6 – continued
§  Accounting policies
When the fair value at ‘initial recognition’ differs from the 
transaction price, and the fair value is not purely based 
on observable prices, the difference between the fair 
value at initial recognition and the transaction price is 
deferred and recognised over the lifetime of the PPA. 
Derivatives valued on the basis of unobservable input
DKKm
2024
2023
Market value at 1 January
(7,528)
(14,687)
Value adjustments through profit or loss
(4)
(31)
Value adjustments through other comprehensive income
3,501
3,766
Sales/redemptions
(516)
1,366
Purchases/issues
(294)
750
Transferred from quoted prices and observable input
(35)
-
Transferred to quoted prices and observable input
(280)
1,308
Market value at 31 December
(5,156)
(7,528)
Unobservable input per commodity price
DKKm
US ERCOT power prices
(2,375)
(5,261)
German power prices
(1,406)
(1,484)
US MISO power prices
(487)
(737)
Other power prices
(735)
(37)
Gas prices
(153)
(9)
Total
(5,156)
(7,528)
Overview of significant unobservable inputs and 
sensitivities
Power price (DKK/MWh)
Sensitivity (DKKm)
Weighted
average
Monthly
minimum
Monthly
maximum
+25 %
-25 %
Intermittency-adjusted power price
US ERCOT (2025-2033)
195
69
541
(2,577)
2,928
Germany (2026-2035)
420
320
622
(1,200)
1,200
US MISO (2025-2033)
282
183
460
(399)
595
US SPP (2025-2035)
232
93
419
(436)
683
Ireland (2025-2042)
493
408
842
(228)
228
The table shows the significant unobservable inputs used in the fair 
value measurements categorised as level 3 of the fair value hierarchy, 
together with a sensitivity analysis as at 31 December 2024. 
The asymmetric sensitity on the US price areas is due to some US PPAs 
being structured with a minimum price per MWh and a mechanism 
where we retain most of the upside from high power prices.
If intermittency-adjusted power prices in Germany as of 31 December 
2024 increased/decreased by 25 %, the market value would decrease/
increase by DKK 1,200 million. 
Acquired CPPAs
The initial negative fair value from long-term PPAs 
acquired in a business combination is recognised as 
revenue in profit or loss in the future period to which 
the market value relates. This effectively increases or 
decreases the revenue from the contract price to the 
forward price at the closing date. 
In 2024, we have recognised an income of DKK 148 
million (2023: income of DKK 197 million) related to 
the initial fair value from PPAs. The total amount of 
initial fair value as of 31 December 2024 amounts to 
a negative value of DKK 1,157 million (2023: negative 
value of DKK 1,243 million), which will be recognised 
as revenue in a future period.
Financial statements  |  Notes
229
ØRSTED ANNUAL REPORT 2024

0
20
40
60
80
100
2023
2024
120
The energy trading portfolio receives the exposure 
from our assets and takes that exposure into the 
external market in the most efficient way possible, 
given the mandates shown above. The overview 
of the Group’s energy trading portfolio above is 
the net of the internal exposures received from the 
assets and the external trades in line with internal 
risk management.
The trading portfolio primarily consists of positions 
in power and gas.
The trading portfolio constitutes a smaller part of 
our total portfolio of derivatives, and the associated 
risk is limited.
Energy trading portfolio
Note 6.7
Overview of the Group’s energy  
trading portfolio 1
DKKm
2024
2023
Contractual 
­principal amount
Unrealised 
gain (loss)
Contractual 
­principal amount
Unrealised 
gain/(loss)
Power swaps (sell position)
4,389
229
3,305
(492)
Power options (buy position)
3,778
972
5,906
1,406
Gas swaps and options (sell position)
3,477
(704)
2,138
(312)
Oil swaps and options (buy position)
169
(20)
156
(137)
Other (sell position)
741
12
175
13
Trading mandates 2
VaR limit in 2024: DKK 100 million
Stress limit in 2024: DKK 400 million
Maximum open positions in trading portfolio
VaR indicates the largest loss in one trading  
day at a probability of 95 %. VaR is based on 
data for the past 45 trading days, with the 
heaviest weighting being assigned to the most 
recent trading days.
Stress indicates the largest daily loss we  
risk sustaining with the given portfolio.  
Stress is based on data from 1 January 2006 
to the present day.
·  Max. 6 TWh of power
·  Max. 9.5 TWh of gas
·  Max. 1 million BOE
·  Max. 1.5 million tonnes of carbon emissions
·  Max. 0.5 million tonnes of coal and biomass
Daily positions in the trading portfolio, market trading mandates 
DKKm
  Value at risk (VaR) 
   Board of Directors’ mandate 
1	 The contractual principal amount has been determined as the net 
position per derivative type. The risks associated with our options 
are smaller than for our swaps. The unrealised gain/loss consists of 
both the received exposure from our assets with settlement at matu-
rity and the external trades settled on a daily basis, including the 
settled margin.
2	 Trading activities are carried out under mandates approved by the 
Board of Directors. The mandates comprise a value-at-risk (VaR) 
mandate and a stress mandate as well as a limit for the maximum 
positions measured in energy units per product (power, gas, etc.).
Trading portfolio
The purpose of our trading portfolio is to: 
·	 optimise hedging execution
·	 contribute to increased market insight
·	 profit from short-term fluctuations in energy prices.
§  Accounting policies
Market value adjustments of physical and financial 
contracts relating to energy that are entered into with 
the purpose of generating gains from short-term price 
changes are recognised as revenue.
Financial statements  |  Notes
230
ØRSTED ANNUAL REPORT 2024

Financial instruments are used for various purposes. 
The purpose determines the category, and whether 
the value adjustment of the instrument should be 
­recognised in the profit (loss) for the year or as part 
of the hedging reserve in equity. 
The fair value of financial instruments measured  
at amortised cost is identical to the carrying amount 
with the exception of bank loans and issued bonds 
where the market value is stated in note 5.1 ‘Interest­-
bearing net debt and FFO’.
Categories of financial instruments
Note 6.8
Categories of financial instruments
DKKm
2024
2023
Energy, currency, and interest derivatives
3,360
7,251
Securities
14,532
29,902
Financial assets measured at fair value via the income statement
17,892
37,153
Energy derivatives 
1,851
3,783
Currency derivatives
340
795
Interest and inflation derivatives
26
-
Derivatives (assets) measured at fair value and used as hedging instruments
2,217
4,578
Trade receivables
9,045
11,107
Other accounts receivable
8,004
7,200
Cash
23,444
10,626
Financial assets measured at amortised cost
40,493
28,933
Energy, currency, and interest derivatives
3,426
3,712
Financial liabilities measured at fair value via the income statement
3,426
3,712
Energy derivatives
6,774
14,661
Currency derivatives
2,486
481
Interest and inflation derivatives
3,024
3,358
Commodity derivatives
181
-
Derivatives (liabilities) measured at fair value and used as hedging instruments
12,465
18,500
Bank loans and issued bonds
87,708
79,620
Trade payables
20,827
14,915
Other accounts payable
8,380
8,591
Financial liabilities measured at amortised cost
116,915
103,126
The table shows our financial instruments divided into categories. 
The categories indicate how the financial instruments are recognised in the financial statement.
Financial statements  |  Notes
231
ØRSTED ANNUAL REPORT 2024

The sensitivity analysis in the table shows the effect 
of market value changes, assuming a relative price 
change at 31 December. 
The effect on profit (loss) before tax comprises financial 
instruments that remained open at the balance sheet 
date, and which have an effect on profit (loss) in the 
current financial year. 
Effect on equity before tax comprises financial 
instruments that remained open at the balance sheet 
date, and which are value-adjusted directly in equity. 
Financial instruments include derivatives as well as 
receivables and payables in foreign currencies.
The illustrated sensitivities only comprise the impact 
of our financial instruments. 
If the hedged exposure had been included in the 
sensitivity analysis, the effect of a price change would 
have been reduced or offset entirely.
Net investments and associated hedging of net 
investments in foreign subsidiaries are not included in 
the table, as the effects of the sum of the investments 
and the hedging are considered to be neutral to 
changes in currencies. 
A 10 % increase/decrease in the currencies hedged in 
connection with net investments would reduce/increase 
equity by DKK 8,430 million (2023: DKK 5,718 million).
Sensitivity analysis of financial instruments
Note 6.9
Sensitivity analysis of financial 
instruments 
DKKm 
Price 
change
31 December 2024
31 December 2023
Effect on profit 
(loss) before tax
Effect on equity 
before tax
Effect on profit 
(loss) before tax
Effect on equity 
before tax
Power
+25 %
(187)
(6,736)
(277)
(8,119)
-25 %
438
7,247
562
8,263
Gas
+25 % 
(741)
152
(588)
(127)
-25 % 
741
(152)
588
127
Oil
+25 %
(112)
-
(360)
260
-25 %
112
-
360
(158)
GBP
+10 %
(541)
(2,636)
817
(2,965)
-10 %
541
2,636
(817)
2,965
USD
+10 %
(1,279)
(259)
(2,070)
(662)
-10 %
1,279
259
2,070
662
NTD
+10 %
155
-
(386)
(9)
-10 %
(155)
-
386
9
EUR
+1 %
11
(13)
(212)
(15)
-1 %
(11)
13
212
15
Inflation
+1 %p
-
(1,795)
-
(2,059)
Interest
+1 %p
266
258
620
920
Financial statements  |  Notes
232
ØRSTED ANNUAL REPORT 2024

Other notes
Note 7
Related-party transactions
Note 7.1
Related parties that have control over the Group 
comprise the Danish state, represented by the Danish 
Ministry of Finance.
Other related parties are the Group’s associates and 
joint ventures, members of the Board of Directors and 
the Executive Board, and other senior executives. 
See note 7.4 ‘Company overview’ for an overview of 
our joint ventures and associates.
Related-party transactions are made on arm’s length 
terms. Intra-group transactions have been eliminated 
in the consolidated financial statements. 
The remuneration and share programmes for the 
Group Executive Team and the Board of Directors are 
described in notes 2.7 ‘Employee costs’ and 2.8 ‘Share-
based payment’.
We use the exemption set out in IAS 24.25 concerning 
entities in which the Danish state is a related party, 
and therefore transactions with government-related 
companies are not disclosed. 
There were no other related-party transactions during 
the period.
Joint ventures
DKKm
2024
2023
Dividends received
99
86
Capital transactions, net
94
(222)
Sales of goods and services
26
64
Receivables
109
9
Associates
DKKm
2024
2023
Capital transactions, net
(47)
(54)
Sale of goods and services
6
-
Purchase of goods and services
181
(186)
Payables
(20)
(25)
Financial statements  |  Notes
233
ØRSTED ANNUAL REPORT 2024

Auditor’s fees
Note 7.2
PwC is Ørsted’s auditor appointed by the annual 
­general meeting. PwC audits the consolidated 
­financial statements of Ørsted and our subsidiaries’ 
statutory financial statements in all the countries 
where we are represented, and an audit is required. 
It is our policy that the annual fee for non-audit 
services provided by our statutory auditor cannot 
exceed the annual fee for statutory audit services 
measured at Group level. The cap may be exceeded 
subject to approval by the Audit & Risk Committee.
‘Other assurance engagements’ primarily included 
limited assurance over the sustainabiity statements, 
assurance services related to the issuance of bonds, 
audit of special regulatory financial statements, 
and assurance services related to other reporting to 
third parties.
‘Tax and VAT advice’ primarily included advice in 
­connection with tax due diligence, transfer pricing 
advice, and advice in connection with the preparation 
and review of tax returns.
‘Other services’ included other consultancy services, 
primarily related to vendor due diligence and risk and 
performance mangement advice. 
Fees for services other than the statutory audit 
supplied by PwC Denmark to Ørsted amounted to 
DKK 12 million (2023: DKK 8 million) and consisted of 
assurance ­services related to the issuance of bonds, 
due diligence, risk and performance management 
advice, limited assurance over the sustainability 
statements, and other general accounting, tax, and 
transfer pricing advice.
Auditor’s fees
DKKm
2024
2023
Audit and audit-related fees
Statutory audit
38
43
Other assurance engagements
5
5
Non-audit services
Tax and VAT advice
1
2
Other services
7
4
Total fees to PwC
51
54
Fee for non-audit services in percent of statutory audit fee
24 %
24 %
PwC Denmark non-audit service ratio 
57 %
74 %
The non-audit services provided by the Group auditor in Denmark 
cannot exceed 70 %. The ‘PwC Denmark non-audit service ratio’ in 
2023 includes an assurance service related to a contemplated bond 
issuance for which we have received an exemption from the Danish 
Business Authorities. The ‘PwC Denmark non-audit service ratio’, 
excluding this exempted service, constitues 55 % for 2023. 
Financial statements  |  Notes
234
ØRSTED ANNUAL REPORT 2024

Non-IFRS financial measures
Note 7.3
We present financial measures in the consolidated 
financial statements to describe the Group’s financial 
performance and cash flows. We use these financial 
measures as we believe they provide valuable 
information to our stakeholders and management.
The financial measures should not be considered a 
replacement for the performance measures as defined 
under IFRS but rather as supplementary information. 
The financial ratios are an overview of our financial 
performance and operational efficiency based on 
common ratio types relevant to Ørsted.
Our definitions of the financial measures and 
reasoning for using them are shown in the table.
Description
Reason for the use of the measurement
EBITDA
Reflecting ‘Earnings before interest, taxes, depreciation, amortisation, and 
impairments’. 
Measurement for our core operational performance. Given our capital-intensitive port-
folio of assets, our primary operations are best measured by excluding depreciation and 
­financing costs. Ørsted guides externally on this non-IFRS measure. 
EBITDA adjusted for new partner-
ships and cancellation fees
EBITDA exclusive of the impact from changes in provisions for cancellation fees 
related to ceased development or construction of projects, and exclusive of the 
impact from partial or full divestment of ownership interests in assets in the year 
a transaction closes, covering both the initial gain/loss on the divestment and any 
subsequent earnings under a construction (management) agreement.
Because cancellation fees related to ceased development or construction of projects are 
extraordinary by nature, and because the impact from partial or full divestment of owner-
ship interests in our assets is uncertain and fluctuate between periods, we use this measure 
to track the underlying operational performance.
Gross investments 
Gross investments reflect our total investments in assets and enterprises. It com-
prises cash flows from investing activities, excluding dividends received from asso-
ciates, joint ventures, and equity investments, purchase and sale of securities, loans 
to joint ventures and joint operations, and divestments of assets and enterprises. 
To this is added acquired debt and restricted cash in connection with acquisitions.
Measurement used to monitor the net interest-bearing debt impact of our investment 
activities in assets and enterprises.  
Ørsted guides externally on this non-IFRS measure. 
Net investments
Net investments are gross investments less divestments of assets and enterprises, 
the selling price for non-controlling interests, and subsequent capital injections 
from non-controlling interests. Furthermore, interest-bearing debt transferred in 
connection with a divestment is deducted.
Measurement to monitor the net interest-bearing debt impact of our investment activities 
in assets and enterprises, net of divestments.
Funds from operations (FFO)
EBITDA adjusted for gain (loss) on divestment of assets; variation margin, change 
in provisions and other adjustments; income tax paid; interest and similar items, 
received or paid, including capitalised interest expenses; 50 % of coupon payments 
on hybrid capital; dividends received; and capital reductions. 
Measurement used to monitor our funds, directly and indirectly, generated from our 
operations.
Funds from operations is the numerator in our rating metric.
Net interest-bearing debt (NIBD)
Equals interest-bearing debt to be repaid in cash, including issued bonds, bank 
debt, and lease liabilities, less securities, cash, and other interest-bearing assets.
Measurement of the sum of our interest-bearing assets and liabilites. 
Thus, important for mangement to monitor in order to ensure adequate debt levels.
Adjusted interest-bearing net debt
Adjusted interest-bearing net debt is interest-bearing net debt plus: 
·	 cash and securities not available for distribution (excluding repo loans)
·	 50 % of hybrid capital 
·	 Other interest-bearing debt (add back)
·	 Other interest-bearing receivables (add back)
Measurement used as an indicator of our interest-bearing net debt in a format compara-
ble to the ones used by rating agencies.  
Net interest-bearing debt is the denominator in our rating metric.
FFO to adjusted interest-bearing 
net debt
FFO
Adjusted interest-bearing net debt
Measurement used to monitor our ability to generate funds from our operations which can 
serve our interest-bearing debt.  
It is the metric used by rating agencies when assessing their rating of Ørsted.
Free cash flow  
(FCF)
Free cash flows are cash flows from operating activities and divestments less 
gross investments.
Measurement used as an indicator to see if we can self-fund our growth. 
Financial statements  |  Notes
235
ØRSTED ANNUAL REPORT 2024

Non-IFRS financial measures
Note 7.3 – continued
Description
Reason for the use of the measurements
Return on capital employed (ROCE)
EBIT
Average capital employed
Common measurement to monitor the return generated on the capital invested within  
the company over the duration of the past year.
Proposed dividend per share  
(DPS)
Total proposed dividend
Number of shares at year end
Common formula to monitor the proposed dividend per share issued.
Dividend yield
Dividend per share (proposed)
Share price on the last trading day of the year
Measurement to indicate the return obtained solely from dividends.
Average number of shares
1
Number of days
×
Number of days
∑
i=1
=    X1
Common formula to calculate the average number of shares issued during the year.
Net working capital
Net working capital is inventories, contract assets (net), trade receivables, and 
other current operating assets, less trade payables, other current operating 
liabilities, and working capital elements of tax equity balances.
Common measurement to monitor the capital invested in short-term operating facilities.
Capital employed
Capital employed are all assets and liabilities, except for equity and interest-­
bearing net debt.
Measurement used to monitor the capital tied within the business which is utilised for  
the primary activities of generating profits.
Other definitions
(IFRS financial measure)
Profit (loss) per share
Shareholder’s share of the profit (loss) for the period
Average number of shares
Common measurement to indicate the profit to which each share is entitled.
Diluted profit (loss) per share
Shareholder’s share of the profit (loss) for the period
Average number of shares, including dilutive effect of free shares
Common measurement to indicate the profit to which each share is entitled, including  
any dilutive effects arising from free shares.
Financial statements  |  Notes
236
ØRSTED ANNUAL REPORT 2024

Company overview
Note 7.4
Segment/company
Country
Type 1
Ownership interest
Parent company
Ørsted A/S
Denmark
Offshore
Anholt Havvindmøllepark I/S 4
Denmark
JO
50 %
Borkum Riffgrund 1 Windpark A/S GmbH & Co. oHG
Germany
JO
50 %
Borkum Riffgrund 2 Offshore Wind Farm GmbH & Co. oHG
Germany
JO
50 %
Borkum Riffgrund 3 GmbH & Co. oHG
Germany
JO
50 %
Borssele Windfarm C.V. 2
The Netherlands
JO
50 %
Breesea Ltd 2
The UK
JO
38 %
Burbo Extension PSC Limited
The UK
S
75 %
Elektrownia Wiatrowa Baltica 2 sp. z o.o
Poland
JO
50 %
Gode Wind 1 Offshore Wind Farm GmbH & Co. oHG
Germany
JO
50 %
Gode Wind 2 Offshore Wind Farm P/S GmbH
Germany
JO
50 %
Gode Wind 3 GmbH & Co. oHG 2
Germany
JO
50 %
Greater Changhua Offshore Wind Farm NW Ltd 2
Taiwan
JO
50 %
Greater Changhua Offshore Wind Farm SE Ltd 2
Taiwan
JO
50 %
Greater Changhua Offshore Wind Farm SW Ltd
Taiwan
S
100 %
Hornsea 1 Limited 2
The UK
JO
38  %
Hornsea 1 PSC Limited
The UK
S
75 %
Hornsea Two PSC Limited
The UK
S
75 %
Ocean Wind LLC
The US
S
100 %
Orsted Borssele Holding B.V.
The Netherlands
S
100 %
Orsted Greater Changhua SE Holdings Ltd.
Taiwan
S
100 %
Orsted Hornsea Project Three (UK) Limited
The UK
S
100 %
Orsted North America Inc
The US
S
100 %
Orsted Power (UK) Ltd
The UK
S
100 %
Orsted Race Bank (Holding) Ltd
The UK
S
100 %
Orsted Taiwan Ltd
Taiwan
S
100 %
Orsted West of Duddon Sands (UK) Ltd
The UK
S
100 %
Race Bank Wind Farm Limited 2
The UK
JO
50 %
Revolution Wind, LLC 2
The US
JO
50 %
Sonningmay Wind Limited 2
The UK
JO
38 %
Soundmark Wind Limited 2
The UK
JO
38 %
South Fork, LLC 2
The US
JO
50 %
Sunrise Wind, LLC
The US
S
100 %
Walney (UK) Offshore Windfarms Limited 2
The UK
S
50 %
Walney Extension Limited
The UK
JO
38 %
Walney Extension PSC Limited
The UK
S
75 %
Segment/company
Country
Type 1
Ownership interest
West of Duddon Sands
The UK
JO
50 %
Ørsted Horns Rev 2 A/S
Denmark
S
100 %
Ørsted Wind Power A/S 
Denmark
S
100 %
Ørsted Wind Power Holding A/S 3
Denmark
S
100 %
Onshore
2W Permian Solar, LLC
The US
S
100 %
Badger Wind, LLC
The US
S
100 %
Eleven Mile Solar Center, LLC 5
The US
S
100 %
Haystack Wind Project, LLC
The US
S
100 %
Helena Wind, LLC 2
The US
S
20 %
Lincoln Land, LLC
The US
S
100 %
Mockingbird Solar Center, LLC 2
The US
JO
50 %
Muscle Shoals Solar, LLC
The US
S
100 %
Old 300 Solar Center, LLC
The US
S
100 %
Orsted Onshore Ireland Green Energy Limited
Ireland
S
100 %
Plum Creek Wind, LLC
The US
S
100 %
Sage Draw Wind, LLC
The US
S
100 %
Sparta Solar, LLC
The US
S
100 %
Sunflower Energy, LLC 2
The US
S
20 %
Tahoka Wind, LLC
The US
S
100 %
Western Trail Wind, LLC 2
The US
S
20 %
Ørsted Onshore Holding A/S 3
Denmark
S
100 %
Bioenergy & Other
Ørsted Bioenergy & Thermal Power A/S 3
Denmark
S
100 %
Ørsted Salg & Service A/S 3
Denmark
S
100 %
Shared Functions
Ørsted North America Holding A/S
Denmark
S
100 %
Ørsted Wind Power TW Holding A/S
Denmark
S
100 %
1  S = subsidiary, JO = joint operation.
2  The company is owned through a company which is not owned 
100 % by Ørsted. The disclosed ownership interest is Ørsted’s  
ultimate ownership interest in the company.
3  Subsidiaries owned directly by Ørsted A/S.
4  The company applies the provision in section 5 or section 6 of  
the Danish Financial Statements Act to omit presenting a separate 
annual report.
5  One or more tax equity partners own an insignificant share of  
the company. See note 3.8 ‘Tax equity liabilities’.
Companies without significant activities are not included in the list. 
A full comprehensive list of companies is available at:  
orsted.com/company-overview
Financial statements  |  Notes
237
ØRSTED ANNUAL REPORT 2024

Parent company  
financial statements
239	
Income statement 
239	
Statement of financial position
240	
Statement of changes in equity
241	
Notes
	
	
   1  Basis of reporting
	
	
   2  Employee costs
	
	
   3  Financial income and expenses 
	
	
   4  Tax on profit (loss) for the year and deferred tax
	
	
   5  Property, plant, and equipment
	
	
   6  Investments in subsidiaries
	
	
   7  Receivables from subsidiaries
	
	
   8  Derivatives
	
	
   9  Securities
	
	
10  Loans and borrowings
	
	
11  Other provisions
	
	
12  Related-party transactions
	
	
13  Contingent liabilities
	
	
14  Auditor’s fees
	
	
15  Ownership information
→ 
Offshore wind workers in Barrow-in-Furness, the UK, board a 
boat bound for Walney Extension. A 12.45 % stake in this wind 
farm and in Hornsea 1, Hornsea 2, and Burbo Bank Extension, 
has been divested to Brookfield. This marks significant progress 
in our farm-down programme announced in February 2024, 
unlocking capital while ensuring a high level of value retention.
Financial statements  |  Parent company financial statements 
238
ØRSTED ANNUAL REPORT 2024

Income statement
1 January – 31 December
Statement of financial position
31 December
Note
Income statement
DKKm
2024
2023
Revenue
311
259
2
Employee costs
(52)
(59)
External expenses
(282)
(172)
Operating profit (loss) before depreciation, 
­amortisation, and impaiment losses (EBITDA)
(23)
28
Amortisation, depreciation, and impairment losses 
on property, plant, and equipment
(110)
(113)
Operating profit (loss) (EBIT)
(133)
(85)
Gain (loss) on divestment of enterprises
(66)
791
3
Financial income
21,300
21,262
3
Financial expenses
(17,505)
(15,114)
Profit (loss) before tax
3,596
6,854
4
Tax on profit (loss) for the year
(318)
(1,240)
Profit (loss) for the year
3,278
5,614
Profit (loss) for the year is attributable to
Shareholders in Ørsted A/S, proposed dividends for 
the financial year
-
-
Shareholders in Ørsted A/S, retained earnings
2,561
5,061
Interest and costs, hybrid capital owners of 
Ørsted A/S
717
553
Profit (loss) for the year
3,278
5,614
Note
Assets
DKKm
2024
2023
5
Land and buildings
459
569
5
Property, plant, and equipment
459
569
6
Investments in subsidiaries
100,813
50,864
7
Receivables from subsidiaries
124,228
194,064
4
Deferred tax
579
246
Other receivables
13
13
Financial assets
225,633
245,187
Non-current assets
226,092
245,756
Receivables from subsidiaries
23,064
42,635
8
Derivatives 
6,600
5,092
Other receivables
5,176
4,379
Income tax
1,352
-
Receivables
36,192
52,106
9
Securities
14,140
29,514
Cash
1,318
4,324
Current assets
51,650
85,944
Assets
277,742
331,700
Note
Equity and liabilities
DKKm
2024
2023
Share capital
4,204
4,204
Reserves
622
414
Retained earnings
54,161
51,597
Proposed dividends
-
-
Equity attributable to shareholders in Ørsted A/S
58,987
56,215
10
Hybrid capital
20,955
19,103
Equity
79,942
75,318
11
Other provisions
1,808
1,771
10
Lease liabilities
396
514
10
Bond and bank debt
73,641
69,695
Non-current liabilities
75,845
71,980
11
Other provisions
-
8
Lease liabilities
118
115
Bond and bank debt
7,141
1,281
8
Derivatives
7,260
4,781
Trade payables
50
107
Payables to subsidiaries
105,703
175,457
Other payables
1,683
1,887
Income tax
-
766
Current liabilities
121,955
184,402
Liabilities
197,800
256,382
Equity and liabilities
277,742
331,700
Financial statements  |  Parent company financial statements 
239
ØRSTED ANNUAL REPORT 2024

Statement of changes in equity
1 January – 31 December
Statement of changes in equity
DKKm
Share capital
Hedging 
reserve
Retained 
earnings
Proposed 
dividends
Shareholders 
in Ørsted A/S
Hybrid capital
Total 
Equity at 1 January 2024
4,204
414
51,597
-
56,215
19,103
75,318
Profit (loss) for the year
-
-
2,561
-
2,561
717
3,278
Dividends paid
-
-
-
-
-
-
-
Value adjustments of hedging instruments
-
293
-
-
293
-
293
Value adjustments transferred to financial income and expenses
-
(25)
-
-
(25)
-
(25)
Tax on changes in equity 
-
(60)
-
-
(60)
9
(51)
Coupon payments, hybrid capital
-
-
-
-
-
(687)
(687)
Additions, hybrid capital
-
-
-
-
-
5,520
5,520
Disposals, hybrid capital
-
-
-
-
-
(3,707)
(3,707)
Share-based payments
-
-
3
-
3
-
3
Changes in equity in 2024
-
208
2,564
-
2,772
1,852
4,624
Equity at 31 December 2024
4,204
622
54,161
-
58,987
20,955
79,942
Equity at 1 January 2023
4,204
2,130
46,530
5,675
58,539
19,793
78,332
Profit (loss) for the year
-
-
5,061
-
5,061
553
5,614
Dividends paid
-
-
2
(5,675)
(5,673)
-
(5,673)
Value adjustments of hedging instruments
-
108
-
-
108
-
108
Value adjustments transferred to financial income and expenses
-
(2,308)
-
-
(2,308)
-
(2,308)
Tax on changes in equity 
-
484
-
-
484
2
486
Coupon payments, hybrid capital
-
-
-
-
-
(546)
(546)
Disposals, hybrid capital
-
-
-
-
-
(699)
(699)
Share-based payments
-
-
4
-
4
-
4
Changes in equity in 2023 
-
(1,716)
5,067
(5,675)
(2,324)
(690)
(3,014)
Equity at 31 December 2023
4,204
414
51,597
-
56,215
19,103
75,318
Financial statements  |  Parent company financial statements 
240
ØRSTED ANNUAL REPORT 2024

  Key accounting estimate
In connection with the preparation of the 
financial statements, a number of ­accounting 
­estimates have been made that affect the 
profit (loss) and balance sheet. Estimates are 
regularly reassessed by the management on 
the basis of historical experience and other 
­relevant factors.
Impairment test
If there is any indication that the carrying 
amount is lower than our future earnings  
in a company, we test for impairment as 
described in the consolidated financial state-
ments. The future earnings of the company 
(recoverable amount) are calculated based on 
assumptions concerning significant estimates.
Basis of reporting
Note 1
Accounting policies
The parent company financial statements have been 
prepared in accordance with the provisions of the 
Danish Financial Statements Act (‘Årsregnskabsloven’) 
(reporting class D).
The accounting policies remain unchanged from the 
­previous year.
Unless otherwise stated, the financial statements 
are presented in Danish kroner (DKK).
The parent company accounting policies are con-
sistent with the accounting policies described for 
the consolidated financial statements, with the 
following exceptions.
Foreign currency translation
We recognise exchange rate adjustments of 
­receivables from and payables to subsidiaries as 
financial income and expenses in the income state-
ment when the balances are accounted for as part 
of the total net investment in foreign enterprises. 
­Likewise, we recognise foreign exchange gains and 
losses on loans and derivatives in the income state-
ment as financial income and expenses when they 
have been entered into hedge net investment in the 
foreign enterprises.
Revenue
Rental income comprises income from commercial 
leases and is recognised over the term of the lease. 
Income from services is recognised when delivery has 
taken place.
Dividends from investments
Dividends from subsidiaries and associates are 
recognised in the income statement for the financial 
year in which the dividends are approved at the annual 
­general meeting. If the dividends exceed the total 
income after acquisition, the dividends are recognised as 
a reduction of the cost of the investment under assets. 
Investments 
We measure our investments in subsidiaries and 
associates at cost. If there is any indication that the 
value of a company is lower than our future earnings 
in the company, impairment testing of the company is 
carried out as described in the consolidated financial 
statements. The carrying amount is written down 
to the recoverable amount whenever the carrying 
amount exceeds the future earnings in the company 
(recoverable amount).
If we have a legal or constructive obligation to cover 
a deficit in subsidiaries and associates, we recognise 
a provision for this.
Tax
Ørsted A/S is taxed jointly with its Danish subsidiaries. 
The jointly taxed companies are part of joint taxation 
with the parent company as the management company.
Subsidiaries are included in the joint taxation from the 
date they are consolidated in the consolidated financial 
statements and up to the date on which they are no 
longer consolidated. 
Current tax for 2024 is recognised by the individual, 
jointly taxed companies.
Statement of cash flows
We do not prepare a separate statement of cash flows 
for the parent company. Reference is made to the 
­consolidated statement of cash flows on page 162.
Financial statements  |  Parent company financial statements 
241
ØRSTED ANNUAL REPORT 2024

Employee costs
Note 2
Financial income and expenses
Note 3
Notes 2.7 ‘Employee costs’ and 2.8 ‘Share-based 
payment’ to the consolidated financial statements 
describe the remuneration of the Executive Board 
and the Board of Directors as well as the share-based 
­payment, termination, and bonus scheme for the 
­Executive Board and details on the remuneration of 
the Board of Directors.
The parent company had an average of eleven 
­employees in 2024 (2023: nine employees).
Remuneration of the Board of Directors totals  
DKK 6 million (2023: DKK 7 million).
Employee costs
DKKm
2024
2023
Wages and salaries
43
47
Share-based payment
2
4
Pensions and social costs
1
1
Remuneration 
6
7
Total employee costs
52
59
Salaries and remuneration of the Executive Board
DKK ‘000
Fixed salary
37,969
27,849
Cash-based incentive scheme
4,676
3,711
Share-based payment
2,787
6,270
Pension, incl. social security and benefits
704
858
Salary in notice period
-
8,443
Severance payment
-
6,210
Total
46,136
53,341
Financial income and expenses
DKKm
2024
2023
Interest income from cash, etc.
395
528
Interest income from subsidiaries
11,486
10,516
Interest income from securities at market value
702
707
Foreign exchange gains
2,216
1,356
Value adjustments of derivatives
4,837
8,142
Dividends received
1,664
13
Total financial income
21,300
21,262
Interest expenses relating to loans and borrowings
(3,066)
(2,759)
Interest expenses, leases
(14)
(18)
Interest expenses to subsidiaries
(6,469)
(5,413)
Impairment of investments in subsidiaries
(18)
-
Capital losses on securities at market value
(356)
-
Foreign exchange losses
(1,819)
(1,427)
Value adjustments of derivatives
(5,636)
(5,321)
Other financial expenses
(127)
(176)
Total financial expenses
(17,505)
(15,114)
Net financial income and expenses
3,795
6,148
Financial statements  |  Parent company financial statements 
242
ØRSTED ANNUAL REPORT 2024

Tax on profit (loss) for the year and deferred tax
Note 4
Income tax
DKKm
2024
2023
Tax on profit (loss) for the year
(318)
(1,240)
Tax on changes in equity
(51)
486
Total tax for the year
(369)
(754)
Tax on profit (loss) for the year can be broken down as follows
Current tax
(680)
(1,261)
Adjustments to deferred tax
383
39
Adjustments to current tax in respect of prior years
29
(192)
Adjustments to deferred tax in respect of prior years
(50)
174
Tax on profit (loss) for the year
(318)
(1,240)
Development in deferred tax
DKKm
Deferred tax at 1 January
(246)
(33)
Adjustments for the year recognised in profit (loss) for the year
(383)
(39)
Adjustments to deferred tax in respect of prior years
50
(174)
Deferred tax at 31 December
(579)
(246)
Specification of deferred tax
DKKm
Property, plant and equipment
101
125
Other current assets
-
(1)
Current liabilities
(2)
-
Non-current liabilities
(678)
(301)
Tax loss carryforwards
-
(69)
Deferred tax, asset
579
246
Deferred tax, liability
-
-
Property, plant, and equipment
Note 5
We have entered into leases for office premises, ­primarily 
in Gentofte, Denmark (expiring in 2028).
We have entered into operating leases with subsidiaries 
for sublease of office premises.
In 2024, an amount of DKK 133 million was ­recognised 
(2023: DKK 147 million) in profit (loss) for the year in 
respect of rental income.
Property, plant, and equipment: Land and buildings
DKKm
2024
2023
Cost at 1 January
1,114
1,153
Additions
-
-
Disposals
-
(39)
Cost at 31 December
1,114
1,114
Depreciation and amortisation at 1 January
(545)
(441)
Depreciation and amortisation
(110)
(113)
Disposals
-
9
Depreciation and amortisation at 31 December
(655)
(545)
Carrying amount at 31 December
459
569
Value of leased assets
459
569
Financial statements  |  Parent company financial statements 
243
ØRSTED ANNUAL REPORT 2024

Investments in subsidiaries
Note 6
We have tested investments in subsidiaries for 
impairment by comparing the expected future 
income from the individual subsidiaries with their 
carrying amounts. 
Based on the impairment test in 2024, an impairment 
has been recognised on the investment in Ørsted 
Ventures Europe A/S.
In 2024, ‘Additions’ mainly related to capital injections 
in Ørsted Wind Power Holding A/S and Ørsted Onshore 
Holding A/S.
In 2024, Ørsted A/S received dividend from Ørsted 
Salg & Service A/S. The dividends exceeded the 
total income after acquisition, and therefore the 
cost of the investment has been reduced.
Investments in subsidiaries
DKKm
2024
2023
Cost at 1 January
51,397
51,809
Reductions
(8,356)
-
Additions
58,323
-
Disposals
-
(412)
Cost at 31 December
101,364
51,397
Value adjustments at 1 January
(533)
(533)
Impairment losses/reversals
(18)
-
Value adjustments at 31 December
(551)
(533)
Carrying amount at 31 December
100,813
50,864
Note 7.4 ‘Company overview of the consolidated financial statements’ contains an overview of subsidiaries, etc.
Receivables from subsidiaries
Note 7
Non-current receivables from subsidiaries
DKKm
2023
Cost at 1 January
194,064
163,616
Additions
28,533
50,485
Disposals
(98,369)
(20,037)
Cost at 31 December
124,228
194,064
Financial statements  |  Parent company financial statements 
244
ØRSTED ANNUAL REPORT 2024

Derivatives
Note 8
Ørsted A/S has assumed the subsidiaries’ currency 
risks via forward exchange contracts, which have 
­subsequently been hedged in the market. Furthermore, 
hedging contracts have been concluded to hedge  
the currency risk associated with investments in  
subsidiaries in foreign currencies.
We have also entered into a number of interest rate 
swaps to manage our interest rate risk.
Derivatives at the end of December 2024 mature as 
follows: 2025: DKK -344 million, 2026: DKK -389 million, 
after 2026: DKK 73 million (2023: 2024: DKK 177 million, 
2025: DKK 370 million, after 2025: DKK -236 million). 
All derivatives are classified based on observable 
inputs in the ‘fair value’ hierarchy.
Overview of derivative positions
DKKm
2024
2023
Contractual principal 
amount
Market value
Contractual principal 
amount
Market value
Interest derivatives
12,696
238
25,141
(517)
Currency derivatives
61,205
(898)
39,213
828
Total
73,901
(660)
64,354
311
Assets
6,600
5,092
Equity and liabilities
(7,260)
(4,781)
See note 6.1 ‘Risk framework’ to the consolidated financial statements and the chapter on ‘Enterprise risk management' in the ‘Management’s 
review’ on pages 27-30 for more details on risk and risk management.
Securities
Note 9
Loans and borrowings
Note 10
As of 31 December 2024, we had issued hybrid capital 
with a total notional amount of DKK 21,358 million 
(2023: DKK 19,310 million). The hybrid bonds have a 
1,000-year term and expire as follows: DKK 4,474 million 
in 3019, DKK 7,562 million in 3021, DKK 3,729 million 
in 3022, and DKK 5,593 million in 3024, respectively. 
For further information, see note 5.3 ‘Hybrid capital’ to 
the consolidated financial statements. 
The long-term portion of lease debt amounted to 
DKK 396 million at 31 December 2024 (2023: DKK 514 
million), of which DKK 24 million (2023: DKK 28 million) 
fall due in more than five years. 
The long-term portion of bank loans and issued bonds 
amounted to DKK 73,641 million at 31 December 2024 
(2023: DKK 69,695 million), of which DKK 50,377 mil-
lion (2023: DKK 56,769 million) fall due in more than 
five years.
Securities are a key element in our financial resources, 
and therefore investments are primarily made in liquid 
AAA-rated Danish mortgage bonds and, to a lesser 
extent, in other bonds. Most of the securities ­qualify 
for repo transactions in the Danish central bank, 
‘­Danmarks Nationalbank’. 
All securities are classified based on observable inputs 
in the fair value hierarchy.
Securities
DKKm
2024
2023
Securities, available for use
14,140
29,514
Total securities
14,140
29,514
Financial statements  |  Parent company financial statements 
245
ØRSTED ANNUAL REPORT 2024

Other provisions
Note 11
We have made provisions for non-current liabilities 
totalling DKK 1,808 million (2023: DKK 1,779 million), 
of which DKK 1,808 million fall due in 1-5 years.
The provisions concern the divestment of our oil and 
gas business in 2017.
Related-party transactions
Note 12
Related parties are the Board of Directors, the 
­Executive Board, Ørsted A/S’s subsidiaries, and the 
Danish state.
Remuneration of the Board of Directors and the 
­Executive Board is disclosed in notes 2.7 ‘Employee 
costs’ and 2.8 ‘Share-based payment’ in the consoli-
dated financial statements. 
Our related-party transactions are made on arm’s 
length terms.
Contingent liabilities
Note 13
Guarantees
Ørsted A/S has provided guarantees in connection 
with participation by subsidiaries and subsidiaries’ 
joint operations and joint ventures in the construction 
and operation of offshore wind farms and natural 
gas installations as well as guarantees in respect of 
leases, energy trading activities, purchase, sale, and 
supply agreements, decommissioning obligations, 
farm-downs and other M&A transactions as well as 
secondary liability on decommissioning of offshore 
installations related to the divestment of the oil and 
gas business, etc.
Ørsted A/S acts as guarantor or surety provider  
with primary liability for bank liabilities in certain 
subsidiaries, including guarantees in favour of banks 
and investors, covering credit facilities established 
and bonds issued in Taiwan.
Furthermore, in support of the ratings of Ørsted Salg 
& Service A/S by Moody’s and Ørsted Wind Power 
TW Holding A/S by Taiwan Ratings, Ørsted A/S has 
provided general guarantees covering all obligations 
and liabilities undertaken in the ordinary course of 
­business by these two entities.
Indemnities
Ørsted A/S is taxed jointly with the Danish ­companies 
in the Ørsted Group. As management company, 
Ørsted A/S has unlimited as well as joint and ­several 
liability together with the other jointly taxed ­companies 
for Danish income taxes and withholding taxes 
on ­dividends, interest, and royalties related to the 
jointly taxed companies.
Litigation
Ørsted is involved in ongoing transfer pricing disputes. 
For further information, see section 4.1 ‘Approach 
to taxes’ to the consolidated financial statements. 
Ørsted A/S is not a party to any litigation proceedings 
or legal disputes that could have an effect on the 
company’s financial position, either ­individually or 
collectively.
Financial statements  |  Parent company financial statements 
246
ØRSTED ANNUAL REPORT 2024

Auditor’s fees
Note 14
Ownership information
Note 15
‘Other assurance engagements’ primarily included 
assurance services related to the issuance of bonds.
Auditor’s fees
DKKm
2024
2023
Statutory audit
5
4
Other assurance engangements
1
3
Total fees to PwC
6
7
Ownership information  
31 December 2024
Registered office
Ownership 
interests
Voting 
share
The Danish state represented by the Danish Ministry of Finance
Copenhagen K, Denmark 
50.12 %
50.14 %
Equinor ASA
Stavanger, Norway
10.00 %
10.00 %
Andel A.M.B.A.
Svinninge, Denmark
5.01 %
5.01 %
The table shows the shareholders with ownership interests and voting shares of at least 5 %. The difference between ownership interests and  
voting shares is because voting rights of Ørsted’s treasury shares cannot be exercised.
Financial statements  |  Parent company financial statements 
247
ØRSTED ANNUAL REPORT 2024

Management’s  
statement, auditor’s 
reports, and glossary
249	
Statement by the Executive Board and the Board of Directors 
250	
Independent Auditor’s Reports 
255	
Independent limited assurance report on selected ESG data in the Sustainability statements
257	
Glossary
→ 
The twelve wind turbines that make up South Fork Wind, off the 
coast of New York, the US, are the product of hundreds of skilled US 
workers from across the Northeast. They completed construction 
in March 2024. The offshore wind farm is the first in the Empire 
State, and America’s first at commercial scale, generating enough 
renewable energy to power around 70,000 homes.
Financial statements  |  Management’s statement, auditor’s reports, and glossary
248
ØRSTED ANNUAL REPORT 2024

Statement by the Executive Board and the Board of Directors
The Board of Directors and the Executive Board have today 
considered and adopted the annual report of Ørsted A/S 
for the financial year 1 January – 31 December 2024.
The Consolidated Financial Statements have been 
­prepared in accordance with IFRS Accounting ­Standards 
as adopted by the EU and further requirements in 
the Danish Financial Statements Act, and the Parent 
Company Financial Statements have been prepared 
in accordance with the Danish Financial ­Statements 
Act. The Management’s Report has been ­prepared in 
accordance with the Danish Financial Statements Act. 
In our opinion, the Consolidated Financial Statements 
and the Parent Company Financial Statements give a true 
and fair view of the financial position at 31 December 
2024 of the Group and the Parent Company, of the results 
of the Group’s and the Parent Company’s operations, and 
of the ­consolidated cash flows for 2024.
In our opinion, the Management’s Report includes a fair 
review of the development in the operations and financial 
­circumstances of the Group and the Parent Company, of 
the results for the year, and of the financial position of the 
Group and the Parent Company as well as a description 
of the most ­significant risks and elements of uncertainty, 
which the Group and the Parent Company are facing. 
Additionally, the Sustainability Statements, which are 
part of the Management’s Report, have been prepared, in 
all material respects, in accordance with paragraph 99a 
of the Danish Financial Statements Act. This includes 
compliance with the European Sustainability Reporting 
Standards (ESRS), including that the process undertaken 
by management to identify the reported information 
(the ‘Process’) is in accordance with the description 
set out in the section ‘Double materiality assessment’. 
Further­more, disclosures within EU taxonomy for 
sustainable activities within the environmental section 
of the Sustainability Statements are, in all material 
respects, in accordance with Article 8 of EU Regulation 
2020/852 (the ‘Taxonomy Regulation’).
The year 2024 marks the initial implementation of 
paragraph 99a of the Danish Financial Statements 
Act concerning compliance with ESRS. As such, more 
clear guidance and practice are anticipated in various 
areas, which are expected to be issued in the coming 
years. Furthermore, the Sustainability Statements 
include forward-looking statements based on disclosed 
assumptions about events that may occur in the 
future and possible future actions by the Group. Actual 
outcomes are likely to be different since anticipated 
events frequently do not occur as expected.
In our opinion, the annual report of Ørsted A/S for the 
financial year 1 ­January – 31 December 2024 with the 
file name: Orsted-2024-12-31-en.zip is ­prepared, in all 
material respects, in compliance with the ESEF regulation.
We recommend that the annual report is adopted 
at the annual general meeting.
Skærbæk, 6 February 2025
Executive Board:
Rasmus Errboe
Group President and CEO
Trond Westlie
CFO
Henriette Fenger Ellekrog
Chief HR Officer
Board of Directors:
Lene Skole 
Chair
Julia King, the Baroness 
Brown of Cambridge
Benny Gøbel*
Anne Cathrine Collet Yde*
Andrew Brown
Deputy Chair
Peter Korsholm
Leticia Francisca  
Torres Mandiola*
Annica Bresky
Dieter Wemmer
Ian MacCalder* 
*	Employee-elected board member
Financial statements  |  Management’s statement, auditor’s reports, and glossary
249
ØRSTED ANNUAL REPORT 2024

Independent Auditor’s Reports 
To the shareholders of Ørsted A/S
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Consolidated Financial Statements 
give a true and fair view of the Group’s financial 
position at 31 December 2024 and of the results of 
the Group’s operations and cash flows for the financial 
year 1 January to 31 December 2024 in accordance 
with IFRS Accounting Standards as adopted by the 
EU and further requirements in the Danish Financial 
Statements Act.
Moreover, in our opinion, the Parent Company 
Financial Statements give a true and fair view of the 
Parent Company’s financial position at 31 December 
2024 and of the results of the Parent Company’s 
operations for the financial year 1 January to 
31 December 2024 in accordance with the Danish 
Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-
form Report to the Audit & Risk Committee and the 
Board of Directors.
What we have audited
The Consolidated Financial Statements of Ørsted A/S 
for the financial year 1 January to 31 December 
2024, pages 157-237 and 248-249, comprise the 
consolidated statement of income, the consolidated 
statement of comprehensive income, the consolidated 
statement of financial position, the consolidated 
statement of shareholders’ equity, the consolidated 
statement of cash flows, and the notes to the 
consolidated financial statements, including material 
accounting policy information.
The Parent Company Financial Statements of 
Ørsted A/S for the financial year 1 January to 
31 December 2024, pages 238-249, comprise the 
income statement, the statement of financial position, 
the statement of changes in equity, and the notes, 
including material accounting policy information.
Collectively referred to as the ‘Financial Statements’.
Basis for opinion
We conducted our audit in accordance with 
International Standards on Auditing (ISAs) and the 
additional requirements applicable in Denmark. 
Our responsibilities under those standards and 
requirements are further described in the Auditor’s 
responsibilities for the audit of the Financial 
Statements section of our report. 
We believe that the audit evidence we have obtained 
is sufficient and appropriate to provide a basis for 
our opinion.
Independence
We are independent of the Group in accordance 
with the International Ethics Standards Board 
for Accountants’ International Code of Ethics for 
Professional Accountants (IESBA Code) and the 
additional ethical requirements applicable in 
Denmark. We have also fulfilled our other ethical 
responsibilities in accordance with these requirements 
and the IESBA Code. 
To the best of our knowledge and belief, prohibited 
non-audit services referred to in Article 5(1) of 
Regulation (EU) No 537/2014 were not provided. 
Appointment
We were first appointed auditors of Ørsted A/S on 
19 April 2010 for the financial year 2010. We have 
been reappointed annually by shareholder resolution 
for a total uninterrupted period of engagement of 
15 years, including the financial year 2024. At the 
annual general meeting on 2 March 2020, we were 
reappointed following a tendering procedure.
Key audit matters
Key audit matters are those matters that, in our 
professional judgement, were of most significance  
in our audit of the Financial Statements for 2024.  
These matters were addressed in the context of our 
audit of the Financial Statements as a whole, and in 
forming our opinion thereon, and we do not provide  
a separate opinion on these matters.
Financial statements  |  Management’s statement, auditor’s reports, and glossary
250
ØRSTED ANNUAL REPORT 2024

Partnership agreements 
Key audit matter
How our audit addressed the key audit matter
Divestment of ownership interests in solar and wind farms to a 
partner (farm-downs) in a joint operation or as a non-controlling 
interest, ­including assessment of the consolidation method for the 
retained interests, ­calculation and recognition of the divestment 
gains or losses, as well as ­subsequent recognition of any construction 
agreements, are ­considered complex non-routine transactions.
As part of farm-downs, compensation mechanisms are often  
agreed with the partners, e.g. regarding sales price, potential wake 
and blockage effect compensations, and warranties. 
We focused on this area because farm-downs and the related matters 
are considered complex non-routine transactions, and because 
the assessment of the consolidation method, the recognition and 
measurement of the divestment gain or loss, and the recognition 
of any subsequent construction agreements with the partners, the 
compensation mechanisms, and warranties are based on significant 
judgements and estimates.
Refer to notes 1.2, 2.6 and 3.10 in the Consolidated financial 
Statements.
As part of our audit, we read share purchase agreements for farm-
downs to a partner in a joint operation or as a non-controlling 
interest. 
We challenged the accounting treatment, including the 
consolidation method for the retained interest in solar and wind 
farms and the judgements applied as well as the gain or loss 
statements prepared.
We obtained an understanding of the compensation mechanisms 
and warranties agreed in farm-downs and of any settlements. 
We challenged the significant estimates prepared by Management 
for measuring compensation mechanisms and warranties, hereunder 
by assessing and testing the main data, significant assumptions, 
and models applied, and by evaluating the outcome of previous 
estimates prepared by Management.
We assessed the appropriateness and tested the related disclosures 
provided in the Consolidated Financial Statements.
Impairment of non-current assets
Key audit matter
How our audit addressed the key audit matter
During 2024, Management identified impairment indicators for a 
number of production and development assets (non-current assets) 
due to, amongst others, construction delays, increased CAPEX, 
updated assumptions regarding market prices and costs as well 
as ceased execution of FlagshipONE. Furthermore, Management 
identified impairment indicators due to increased interest rates in 
the US.
On this basis, Management has prepared impairment tests resulting 
in impairment losses recognised for certain production and develop­
ment assets; mainly related to the US offshore and onshore wind 
farm portfolio and FlagshipONE.
The impairment tests are based on Management’s assumptions and 
probability weighting of expected cash inflows and outflows for the 
individual cash-generating units (CGUs), and these cash flows are 
discounted using the relevant discount rates (value-in-use impairment 
models). This requires significant estimates and judgements, amongst 
others related to the future power prices, expected government 
subsidy schemes, impact of the construction delays, market prices 
and costs, and discount rates (WACC). 
For impairment tests related to the seabeds for Ocean Wind and 
Skipjack Wind, Management has applied fair value less cost of 
disposal models, which are based on development in prices seen in 
the latest seabed lease auctions, etc. 
We focused on this area because the impact on the profit for the 
year is significant, and because the impairment tests of non-current 
assets are considered complex non-routine transactions and require 
­significant judgements in determining the assumptions, etc., applied 
in the significant estimates.
Refer to notes 1.2 and 3.1-3.2 in the Consolidated Financial 
Statements.
As part of our audit, we challenged the impairment indicator 
assessments performed by Management. We considered the 
appropriateness of the CGUs defined by Management and the 
methodology used by Management to assess the carrying amount 
of non-current assets assigned to the CGUs. 
We carried out risk assessment procedures in order to obtain an 
understanding of IT systems, business processes, and relevant 
­controls regarding data and assumptions used in the impairment 
tests. For the controls, we assessed whether they were designed 
and implemented to effectively address the risk of material 
misstatement. For selected controls that we planned to rely on, 
we tested whether they were performed on a consistent basis.
We challenged the impairment models prepared by Management 
and tested the mathematical accuracy of the relevant ­value-in-use 
and fair value less costs of disposal models, and we challenged the 
data and significant assumptions, including the probability weight  
of scenarios applied, future power prices, expected government 
subsidy schemes, impact of construction delays, market prices and 
costs, as well as discount rates (WACC). Also, we reconciled the 
carrying amounts to the accounting records.
In assessing the discounting rates (WACCs) and the overall 
methodology applied, we involved our valuation specialists. 
We assessed the appropriateness and tested the related disclosures 
provided in the Consolidated Financial Statements, including the 
sensitivity analysis, expressing the significant estimation uncertainty 
related to the valuation of the CGUs. 
Financial statements  |  Management’s statement, auditor’s reports, and glossary
251
ØRSTED ANNUAL REPORT 2024

Valuation of derivative financial instruments and documentation of hedge accounting
Key audit matter
How our audit addressed the key audit matter
Ørsted applies hedge accounting for derivative financial instruments 
used for hedging of:
·	 energy price, currency, and inflation risks associated with revenue 
(energy hedges) 
·	 commodity price and currency risks associated with the 
construction of wind farms 
·	 interest rate risk associated with loans and divestments. 
We focused on this area because the valuation of the derivative 
financial instruments (including hedging instruments) and the 
assessments of hedge relationships and hedge effectiveness are 
complex and require ­significant judgements and estimates.
On this basis, the valuation of the derivative financial instruments 
and the application of hedge accounting were a matter of most 
­significance in our audit. 
Refer to notes 1.2 and 6.1-6.9 in the Consolidated Financial 
Statements.
We carried out risk assessment procedures in order to obtain an 
understanding of IT systems, business processes, and relevant controls 
regarding derivative financial instruments and hedge accounting. 
For the controls, we assessed whether they were designed and 
implemented to effectively address the risk of material misstatement. 
For selected controls that we planned to rely on, we tested whether 
they were performed on a consistent basis.
We assessed and obtained an understanding of the exposures 
subject to hedging, the hedging instruments applied, the hedge 
relationships, including the methods, data, and assumptions applied 
for documentation of the fair value of hedging instruments, and 
hedge effectiveness. 
We challenged the accounting treatment applied by Management, 
including in relation to the hedging instruments used and the hedge 
reserve recognised in the consolidated statement of comprehensive 
income by reviewing Management’s IFRS 9 hedge documentation, 
including underlying memos and calculations.
We challenged the significant data, assumptions, and models 
applied by Management when assessing the value of the hedging 
instruments, the hedge relationships, and the hedge effectiveness 
by assessing and testing the main data, significant assumptions, and 
models applied.
As part of our audit, we tested, on a sample basis, the valuation of 
the derivative financial instruments and the documentation of hedge 
effectiveness of energy, commodity, interest rate, inflation, and 
related foreign exchange risk hedges. 
In assessing the valuation of the derivative financial instruments and 
application of hedge accounting, we involved our financial instrument 
specialists.
We assessed the appropriateness and tested the related disclosures 
provided in the Consolidated Financial Statements.
Income taxes
Key audit matter
How our audit addressed the key audit matter
Ørsted is subject to income taxes in the countries where they 
operate. Significant judgements and estimates are required in 
determining the income taxes and in measuring income tax assets 
and liabilities, including uncertain tax positions. 
Additionally, Ørsted is a party in tax and transfer pricing disputes 
where Management assesses the possible outcomes and consequently 
recognises provisions for these uncertain tax positions. Ørsted has 
received administrative decisions from the Danish Tax Agency entailing 
additional tax payments and related interests, which ­Management 
disputes and has appealed to the relevant ­authorities. Furthermore, tax 
cases are ongoing impacting corresponding tax adjustments. 
We focused on this area because Management makes significant 
judgments and estimates when calculating and assessing the income 
taxes due to the complex nature of the tax rules related to the 
business activities conducted in different tax jurisdictions. Further­
more, Management makes estimates when measuring the tax 
assets, including when and to which extent these can be utilised in 
the future, and when measuring tax liabilities, including assessing 
deferred taxes in tax equity partnerships. 
On this basis, income taxes were a matter of most significance in 
our audit. 
Refer to notes 1.2 and 4.1-4.3 in the Consolidated Financial 
Statements.
As part of our audit, we evaluated the assumptions applied by 
Management in determining the recognition and measurement 
of income taxes and deferred taxes, including those related 
to tax equity partnerships, while taking into account relevant 
correspondence with tax authorities and external advisors. 
We assessed Management’s judgements and estimates of tax 
balances and carrying amounts as well as the related applied tax 
rates when calculating these. We also assessed the reasonableness 
of the main data and assumptions used to calculate the taxable 
income forecasts underlying the recognition and recoverability of 
the deferred tax assets relating to tax losses carried forward.
We evaluated and tested Ørsted’s processes for recording, assessing, 
and continually reassessing provisions for uncertain tax positions.
During our audit of uncertain tax positions, we obtained and 
reviewed correspondence with relevant tax authorities to consider 
the completeness of the tax disputes and the related provisions. 
We assessed the measurement of the provisions and challenged 
the assumptions used, including the possibility of obtaining 
corresponding tax adjustments, compensations from partners, 
and the likelihood of different outcomes. In addition, we assessed 
relevant opinions obtained by Management from third parties 
related to the tax disputes. 
In assessing income taxes, we involved our tax specialists.
We assessed the appropriateness and tested the related disclosures 
provided in the Consolidated Financial Statements.
Financial statements  |  Management’s statement, auditor’s reports, and glossary
252
ØRSTED ANNUAL REPORT 2024

Statement on Management’s Report
Management is responsible for Management’s Report, 
pages 3-156.
Our opinion on the Financial Statements does not cover 
Management’s Report, and we do not as part of the 
audit express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, 
our responsibility is to read Management’s Report 
and, in doing so, consider whether Management’s 
Report is materially inconsistent with the Financial 
Statements or our knowledge obtained in the audit, or 
otherwise appears to be materially misstated. 
Moreover, we considered whether Management’s 
Report includes the disclosures required by the Danish 
Financial Statements Act. This does not include 
the requirements in paragraph 99a related to the 
Sustainability Statements covered by the separate 
auditor’s limited assurance report hereon.
Based on the work we have performed, in our view, 
Management’s Report is in accordance with the 
Consolidated Financial Statements and the Parent 
Company Financial Statements and has been prepared 
in accordance with the requirements of the Danish 
Financial Statements Act, except for the requirements 
in paragraph 99a related to the Sustainability 
Statements, cf. above. We did not identify any material 
misstatement in Management’s Report.
Management’s responsibilities for the  
Financial Statements
Management is responsible for the preparation of 
Consolidated Financial Statements that give a true 
and fair view in accordance with IFRS Accounting 
Standards as adopted by the EU and further 
requirements in the Danish Financial Statements 
Act and for the preparation of Parent Company 
Financial Statements that give a true and fair view 
in accordance with the Danish Financial Statements 
Act, and for such internal control as Management 
determines is necessary to enable the preparation 
of financial statements that are free from material 
misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management 
is responsible for assessing the Group’s and the 
Parent Company’s ability to continue as a going 
concern, disclosing, as applicable, matters related 
to going concern, and using the going concern basis 
of accounting unless Management either intends to 
liquidate the Group or the Parent Company or to cease 
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the  
Financial Statements
Our objectives are to obtain reasonable assurance 
about whether the Financial Statements as a whole 
are free from material misstatement, whether due 
to fraud or error, and to issue an auditor’s report 
that includes our opinion. Reasonable assurance is a 
high level of assurance, but is not a guarantee that 
an audit conducted in accordance with ISAs and the 
additional requirements applicable in Denmark will 
always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are 
considered material if, individually or in the aggregate, 
they could reasonably be expected to influence the 
economic decisions of users taken on the basis of 
these Financial Statements.
As part of an audit in accordance with ISAs and the 
additional requirements applicable in Denmark, 
we exercise professional judgement and maintain 
professional scepticism throughout the audit. We also: 
·	 identify and assess the risks of material misstate­
ment of the Financial Statements, whether due to 
fraud or error, design and perform audit procedures 
responsive to those risks, and obtain audit evidence 
that is sufficient and appropriate to provide a 
basis for our opinion. The risk of not detecting a 
material misstatement resulting from fraud is higher 
than for one resulting from error, as fraud may 
involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control
·	 obtain an understanding of internal control relevant 
to the audit in order to design audit procedures 
that are appropriate in the circumstances, but 
not for the purpose of expressing an opinion on 
the effectiveness of the Group’s and the Parent 
Company’s internal control
·	 evaluate the appropriateness of accounting 
policies used and the reasonableness of accounting 
estimates and related disclosures made by 
Management
·	 conclude on the appropriateness of Management’s 
use of the going concern basis of accounting and, 
based on the audit evidence obtained, whether 
a material uncertainty exists related to events 
or conditions that may cast significant doubt on 
the Group’s and the Parent Company’s ability to 
continue as a going concern. If we conclude that 
a material uncertainty exists, we are required to 
draw attention in our auditor’s report to the related 
disclosures in the Financial Statements or, if such 
disclosures are inadequate, to modify our opinion. 
Our conclusions are based on the audit evidence 
obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the 
Group or the Parent Company to cease to continue 
as a going concern
·	 evaluate the overall presentation, structure, and 
content of the Financial Statements, including the 
disclosures, and whether the Financial Statements 
represent the underlying transactions and events in 
a manner that gives a true and fair view
·	 plan and perform the group audit to obtain sufficient 
appropriate audit evidence regarding the financial 
information of the entities or business units within 
the group as a basis for forming an opinion on 
the Consolidated Financial Statements. We are 
responsible for the direction, supervision, and review 
of the audit work performed for purposes of the 
group audit. We remain solely responsible for our 
audit opinion. 
We communicate with those charged with 
governance regarding, among other matters, the 
planned scope and timing of the audit and significant 
audit findings, including any significant deficiencies in 
internal control that we identify during our audit.
We also provide those charged with governance with 
a statement that we have complied with relevant 
ethical requirements regarding independence, and to 
communicate with them all relationships and other 
matters that may reasonably be thought to bear on 
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253
ØRSTED ANNUAL REPORT 2024

our independence and, where applicable, actions 
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged 
with governance, we determine those matters that 
were of most significance in the audit of the Financial 
Statements of the current period and are therefore 
the key audit matters. We describe these matters in 
our auditor’s report unless law or regulation precludes 
public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements, 
we performed procedures to express an opinion on 
whether the annual report of Ørsted A/S for the 
financial year 1 January to 31 December 2024 with 
the filename Orsted-2024-12-31-en.zip is prepared, 
in all material respects, in compliance with the 
Commission Delegated Regulation (EU) 2019/815 
on the European Single Electronic Format (ESEF 
Regulation), which includes requirements related to 
the preparation of the annual report in XHTML format 
and iXBRL tagging of the Consolidated Financial 
Statements, including notes.
Management is responsible for preparing an annual 
report that complies with the ESEF Regulation. 
This responsibility includes:
·	 the preparing of the annual report in XHTML format
·	 the selection and application of appropriate iXBRL 
tags, including extensions to the ESEF taxonomy and 
the anchoring thereof to elements in the taxonomy, 
for all financial information required to be tagged, 
using judgement where necessary
·	 ensuring consistency between iXBRL-tagged 
data and the Consolidated Financial Statements 
presented in human-readable format
·	 for such internal control as Management determines 
necessary to enable the preparation of an annual 
report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on 
whether the annual report is prepared, in all material 
respects, in compliance with the ESEF Regulation 
based on the evidence we have obtained, and to issue 
a report that includes our opinion. The nature, timing, 
and extent of procedures selected depend on the 
auditor’s judgement, including the assessment of the 
risks of material departures from the requirements set 
out in the ESEF Regulation, whether due to fraud or 
error. The procedures include:
·	 testing whether the annual report is prepared in 
XHTML format
·	 obtaining an understanding of the company’s 
iXBRL tagging process and of internal control over 
the tagging process
·	 evaluating the completeness of the iXBRL tagging 
of the Consolidated Financial Statements, 
including notes
·	 evaluating the appropriateness of the company’s 
use of iXBRL elements selected from the ESEF 
taxonomy and the creation of extension elements 
where no suitable element in the ESEF taxonomy 
has been identified
·	 evaluating the use of anchoring of extension 
­elements to elements in the ESEF taxonomy
·	 reconciling the iXBRL-tagged data with the audited 
Consolidated Financial Statements.
In our opinion, the annual report of Ørsted A/S for the 
financial year 1 January to 31 December 2024 with 
the file name Orsted-2024-12-31-en.zip is prepared, 
in all material respects, in compliance with the ESEF 
Regulation.
Hellerup, 6 February 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 3377 1231
Anders Stig Lauritsen
State Authorised Public Accountant
mne32800
Thomas Wraae Holm
State Authorised Public Accountant
mne30141
Financial statements  |  Management’s statement, auditor’s reports, and glossary
254
ØRSTED ANNUAL REPORT 2024

Independent Auditor’s Limited Assurance  
Report on the Sustainability Statements
To the stakeholders of Ørsted A/S
Limited assurance conclusion
We have conducted a limited assurance engagement 
on the Sustainability Statements of Ørsted A/S 
(the ‘Group’) included in the Management’s Report 
(the ‘Sustainability Statement’), pages 56-156 
and 248-249, for the financial year 1 January – 
31 December 2024.
Based on the procedures we have performed and 
the evidence we have obtained, nothing has come 
to our attention that causes us to believe that the 
Sustainability Statement is not prepared, in all 
material respects, in accordance with the Danish 
Financial Statements Act paragraph 99a, including: 
·●	compliance with the European Sustainability 
Reporting Standards (ESRS), including that the 
process carried out by the Management to identify 
the information reported in the Sustainability 
Statement (the ‘Process’) is in accordance with the 
description set out in the section ‘Double materiality 
assessment’; and
·●	compliance of the disclosures in the subsection 
EU taxonomy for sustainable activities within 
the ­environmental section of the Sustainability 
­Statement with Article 8 of EU Regulation 2020/852 
(the ‘Taxonomy Regulation’).
Basis for conclusion 
We conducted our limited assurance engagement in 
accordance with International Standard on ­Assurance 
Engagements (‘ISAE 3000 (Revised)’), Assurance 
engagements other than audits or reviews of historical 
financial information (‘ISAE 3000 (Revised)’), and the 
additional requirements applicable in Denmark. 
The procedures in a limited assurance engagement 
vary in nature and timing from, and are less in extent 
than for, a reasonable assurance engagement. 
Consequently, the level of assurance obtained in a 
limited assurance engagement is substantially lower 
than the assurance that would have been obtained had 
a reasonable assurance engagement been performed.
We believe that the evidence we have obtained is 
sufficient and appropriate to provide a basis for our 
conclusion. Our responsibilities under this standard are 
further described in the Auditor’s responsibilities for 
the assurance engagement section of our report. 
Our independence and quality management
We are independent of the Group in accordance with 
the International Ethics Standards Board for Account-
ants’ International Code of Ethics for Professional 
Accountants (IESBA Code) and the additional ethical 
requirements applicable in Denmark. We have also 
fulfilled our other ethical responsibilities in accord-
ance with these requirements and the IESBA Code.
Our firm applies International Standard on Quality 
Management 1, which requires the firm to design, 
implement, and operate a system of quality manage­
ment, including policies or procedures regarding 
compliance with ethical requirements, professional 
standards, and applicable legal and regulatory 
requirements.
Management’s responsibilities for  
the Sustainability Statement
Management is responsible for designing and imple-
menting a process to identify the information reported 
in the Sustainability Statement in accordance with 
the ESRS and for disclosing this Process as included 
in the section ‘Double materiality assessment’ of the 
­Sustainability Statement. This responsibility includes:
·●	understanding the context in which the Group’s activ-
ities and business relationships take place and devel-
oping an understanding of its affected stakeholders;
·●	the identification of the actual and potential impacts 
(both negative and positive) related to sustainability 
matters, as well as risks and opportunities that 
affect, or could reasonably be expected to affect, 
the Group’s financial position, financial performance, 
cash flows, access to finance or cost of capital over 
the short, medium, or long-term;
·●	the assessment of the materiality of the ­identified 
impacts, risks, and opportunities related to sustaina-
bility matters by selecting and applying ­appropriate 
thresholds; and
·●	making assumptions that are reasonable in the 
circumstances.
Management is further responsible for the preparation 
of the Sustainability Statement, which includes the 
information identified by the Process, in accordance 
with the Danish Financial Statements Act paragraph 
99a, including: 
·●	compliance with the ESRS;
·●	preparing the disclosures as included in the 
subsection EU taxonomy for sustainable 
activities within the environmental section of 
the Sustainability Statement, in compliance with 
Article 8 of the Taxonomy Regulation;
·●	designing, implementing, and maintaining such 
internal control that Management determines 
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255
ØRSTED ANNUAL REPORT 2024

is necessary to enable the preparation of the 
Sustainability Statement that is free from material 
misstatement, whether due to fraud or error; and
·●	the selection and application of appropriate 
sustainability reporting methods and making 
assumptions and estimates that are reasonable 
in the circumstances. 
Inherent limitations in preparing  
the Sustainability Statement
In reporting forward-looking information in accordance 
with ESRS, management is required to prepare the 
forward-looking information on the basis of disclosed 
assumptions about events that may occur in the 
future and possible future actions by the Group. Actual 
outcomes are likely to be different since anticipated 
events frequently do not occur as expected.
Auditor’s responsibilities for  
the assurance engagement
Our responsibility is to plan and perform the assurance 
engagement to obtain limited assurance about 
whether the Sustainability Statement is free from 
material misstatement, whether due to fraud or error, 
and to issue a limited assurance report that includes 
our conclusion. Misstatements can arise from fraud or 
error and are considered material if, individually or in 
the aggregate, they could reasonably be expected to 
influence decisions of users taken on the basis of the 
Sustainability Statement as a whole. 
As part of a limited assurance engagement in 
accordance with ISAE 3000 (Revised) we exercise 
professional judgement and maintain professional 
scepticism throughout the engagement. 
Our responsibilities in respect of the Process include:
·●	Obtaining an understanding of the Process, but not 
for the purpose of providing a conclusion on the 
effectiveness of the Process, including the outcome 
of the Process; 
·●	Considering whether the information identified 
addresses the applicable disclosure requirements  
of the ESRS; and 
·●	Designing and performing procedures to evaluate 
whether the Process is consistent with the Group’s 
description of its Process, as disclosed in the section 
‘Double materiality assessment’. 
Our other responsibilities in respect of the 
Sustainability Statement include: 
·●	Identifying where material misstatements are likely 
to arise, whether due to fraud or error; and 
·●	Designing and performing procedures responsive to 
disclosures in the Sustainability Statement where 
material misstatements are likely to arise. The risk 
of not detecting a material misstatement resulting 
from fraud is higher than for one resulting from error, 
as fraud may involve collusion, forgery, intentional 
omissions, misrepresentations, or the override of 
internal control.
Summary of the work performed
A limited assurance engagement involves 
performing procedures to obtain evidence about 
the Sustainability Statement. The nature, timing 
and extent of procedures selected depend on 
professional judgement, including the identification 
of disclosures where material misstatements are 
likely to arise, whether due to fraud or error, in the 
Sustainability Statement.
In conducting our limited assurance engagement,  
with respect to the Process, we: 
·●	Obtained an understanding of the Process by  
performing inquiries to understand the sources  
of the information used by management; and 
reviewing the Group’s internal documentation of  
its Process; and
·●	Evaluated whether the evidence obtained from our 
procedures about the Process implemented by the 
Group’s was consistent with the description of the 
Process set out in the section ‘Double materiality 
assessment’.
In conducting our limited assurance engagement,  
with respect to the Sustainability Statement, we:
·●	Obtained an understanding of the Group’s reporting 
processes relevant to the preparation of its 
Sustainability Statement including the consolidation 
processes by obtaining an understanding of the 
Group’s control environment, processes, and 
information systems relevant to the preparation 
of the Sustainability Statement but not evaluating 
the design of particular control activities, obtaining 
evidence about their implementation or testing 
their operating effectiveness; 
·●	Evaluated whether the information identified by the 
Process is included in the Sustainability Statement;
·●	Evaluated whether the structure and the 
presentation of the Sustainability Statement are 
in accordance with the ESRS;
·●	Performed inquiries of relevant personnel and 
analytical procedures on selected information in 
the Sustainability Statement;
·●	Performed substantive assurance procedures on 
selected information in the Sustainability Statement;
·●	Where applicable, compared disclosures in the  
Sustainability Statement with the corresponding 
disclosures in the Financial Statements and  
Management’s review;
·●	Evaluated the methods, assumptions and data 
for developing estimates and forward-looking 
information; and
·●	Obtained an understanding of the Group’s process  
to identify taxonomy-eligible and taxonomy- 
aligned economic activities and the corresponding 
disclosures in the Sustainability Statement.
Hellerup, 6 February 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 3377 1231
Anders Stig Lauritsen
State Authorised Public Accountant
mne32800
Thomas Wraae Holm
State Authorised Public Accountant 
mne30141
Financial statements  |  Management’s statement, auditor’s reports, and glossary
256
ØRSTED ANNUAL REPORT 2024

Availability
Availability is calculated as the ratio of actual 
production to the possible production, which is 
the sum of lost production and actual produc-
tion in a given period. The production-based 
availability (PBA) is impacted by grid and wind 
turbine outages, which are technical produc-
tion losses. PBA is not impacted by market-­
requested shutdowns and wind farm curtail-
ments, as this is deemed not to be reflective of 
site performance but due to external factors.
Awarded capacity
Offshore capacity that we have been awarded 
in auctions and tenders, but where we have yet 
to sign a PPA and take final investment decision.
Blockage effect
The blockage effect arises from the wind slow-
ing down as it approaches the wind turbines.
Carbon emission allowances
Carbon emission allowances subject to the 
European Union Emissions Trading Scheme 
(EU ETS).
CfD
A contract for difference is a subsidy that 
guarantees the difference between the market 
reference price and the exercise price won.
Commissioning/COD
When our assets are in operation, and the legal 
liability has been transferred from the supplier 
to us.
Contracted capacity
Onshore capacity where we have signed 
PPAs covering more than 50 % of the asset’s 
capacity, but where we have not yet taken 
final investment decision.
CSRD 
Corporate Sustainability Reporting Directive.
Decided (FID) and installed capacity
Installed generation capacity plus capacity for 
assets where a final investment decision has 
been made.
Degree days
Number of degrees in absolute figures in 
difference between the average temperature 
and the official Danish indoor temperature 
of 17 °C.
DMA
Double materiality assessment. 
EPC
Engineering, procurement, and construction. 
The part of our business which handles the 
construction and installation of assets.
ESRS
European Sustainability Reporting Standards.
FID
Final investment decision. When the Board 
of Directors approves major investments for 
construction assets.
Generation capacity
Capacity to generate power or heat. Generation 
capacity for an offshore wind farm is calculated 
and included from TOC of the individual wind 
turbines. TOC stands for ‘take over certificate’, 
which is the document signifying transfer of 
ownership from the contractor to the owner or 
operator of the asset. Onshore capacities are 
included after COD of the entire asset. Genera-
tion capacity is financially consolidated.
Green certificates
Certificate awarded to producers of 
environment-friendly power as a supplement 
to the market price of power in the given 
price area.
Wood pellet spread (WPS)
Represents the contribution margin per MWh 
of power generated at a wood pellet-fired CHP 
plant with a given efficiency. It is determined 
as the difference between the market price 
of power and the cost of the wood pellets 
(including associated freight costs).
Ineffective hedges
When we hedge our exposure with an 
instrument that is not 100 % correlated with 
the exposure, we may see ineffectiveness in 
our hedging. The value of ineffective hedges 
should be recognised in profit and loss 
immediately.
Installed capacity
Installed capacity where the asset has been 
completed and has passed a final test.
Investment tax credits (ITCs)
US federal tax credit based on qualifying 
renew­able investment costs.
Load factor
The load factor is calculated as the ratio 
between actual generation over a period 
­relative to potential generation, which is 
possible by continuously exploiting the 
maximum capacity over the same period. 
The load factor is commercially adjusted.
Offshore transmission assets
Connect offshore generation to the onshore 
grid and typically include the offshore power 
transmission infrastructure, an onshore 
substation, and the electrical equipment 
relating to the operation of the substation.
OREC
Offshore renewable energy certificates are 
issued on the state level in the US. For every 
MWh that an offshore wind farm produces, 
the developer earns one OREC. Offshore wind 
developers sell the ORECs to utilities or other 
companies. The income from these sales helps 
fund the construction and operation of the 
wind farms.
Partnership income
Income originating from our partners’  
purchase of ownership interests in renewable 
assets. Includes both the gain in connection 
with the farm-down and the subsequent 
construction of the wind farm.
Power purchase agreement (PPA)
An agreement between us and a buyer/seller 
to purchase/sell the power we generate, which 
includes all commercial terms (price, delivery, 
volumes, etc.).
Production tax credit (PTC)
US federal tax credit based on eligible power 
­generation in the US. 
ROCs
Renewable obligation certificates issued by 
Ofgem in the UK to operators of accredited 
generating stations for the eligible renewable 
energy they generate. Operators can trade 
ROCs with other parties.
Tax equity
An arrangement where an investor obtains 
rights to federal tax credits and other tax 
attributes in exchange for a cash contribution.
TCFD
Task Force on Climate-Related Financial 
Disclosures.
Transmission network system of use  
(TNUoS) tariffs
Costs related to the use of the transmission 
­networks in the UK based on maximum 
contractual level of transmission access in  
MW (TEC).
TRIR
In addition to lost-time injuries, the total 
recordable injury rate (TRIR) also includes injuries 
where the injured person is able to perform 
restricted work the day after the accident as 
well as accidents where the injured person has 
received medical treatment.
Wake effect
Wake within wind farms and between neigh-
bouring wind farms. There is a wake after each 
wind turbine where the wind slows down. As the 
wind flow continues, the wake spreads, and the 
wind speed recovers.
Wind speed
Shows the wind speed at Ørsted’s wind farms. 
The wind measurements are weighted on the 
basis of our generation capacity and can be 
compared to a normal wind period.
Glossary
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257
ØRSTED ANNUAL REPORT 2024

Ørsted A/S
Kraftværksvej 53
DK-7000 Fredericia 
Tel.: +45 99 55 11 11
CVR no. 36213728
orsted.com
Media Relations
Lina Danstrup
Tel.: +45 99 55 76 96
Investor Relations
Rasmus Keglberg Hærvig
Tel.: +45 99 55 90 95
Design and layout
e-Types with The Agency, Ørsted
Images
All images by Ørsted
Publication
6 February 2025