Ørsted announced today that it has joined forces with a growing group of global corporations that are driving climate action throughout global supply chains in line with science-based emissions reduction targets. The group currently includes Ericsson, IKEA, Telia, BT Group, Unilever, Nestlé, Telefónica, Microsoft, Tech-Mahindra, Ragn-Sells, Scan Global Logistics and Mastercard.
The 1.5°C Supply Chain Leaders was founded by the Exponential Roadmap Initiative (ERI) together with Ericsson, IKEA, Telia, BT Group and Unilever and is supported by the We Mean Business Coalition and United Nations’ Race to Zero. It is accelerating the movement for all companies to ask their suppliers to halve emissions by 2030 and cascade this ask to their suppliers, aiming to get all companies on the same compass direction. The group supports suppliers on their journey by removing blockers through collaboration, and supports small and medium-sized enterprises (SMEs) globally through the SME Climate Hub.
Mads Nipper, CEO at Ørsted, said: “By joining ERI and the 1.5°C Supply Chain Leaders, we reinforce our strong commitment to decarbonising at the speed and depth required by global climate goals. To achieve our science-based net-zero target by 2040, we simply have to reach net-zero supply chains. Getting there will take transformative action and collaboration with our partners. As Ørsted continues to grow from the leader in offshore wind to a global green energy major, we want our commitment to science-aligned climate action to help catalyse and inspire other companies and suppliers across the world to do the same.”
One of the most challenging aspects for large corporations with science-based emission reduction targets is to address the emissions in their global supply chains. The 1.5°C Supply Chain Leaders work together with their suppliers and business partners to develop concrete resources and tools and make them openly available, aiming to support other companies to accelerate their journey towards net-zero, for example by supporting them to shift to renewable energy.
“We are delighted to welcome Ørsted to the initiative, as a front runner taking action to decarbonise in line with science while also contributing to transform the global energy system towards 100% green energy. Collaboration is crucial for large corporations to halve emissions in their supply chains towards net zero,” said Johan Falk, CEO & Co-founder, Exponential Roadmap Initiative.
The 1.5°C Supply Chain Leaders will also encourage small and medium-sized suppliers to make the SME Climate Commitment and take climate action through the SME Climate Hub, a one-stop-shop for businesses with fewer than 500 employees to make an internationally recognised climate commitment and access free, practical resources to support them on their net zero journey.
“Corporations from every industry and region of the world are committing to net-zero ambition because it’s good for business, people and the planet, but they won’t be able to reach their net-zero targets if their suppliers don’t decarbonize too. I applaud Ørsted for its bold leadership in tackling supply chain emissions through the 1.5C Supply Chain Leaders, and call on other corporations to follow suit in the lead-up to COP27,” said María Mendiluce, CEO of the We Mean Business Coalition.
The 1.5°C Supply Chain Leaders have made the following commitment:
- We have all committed to reducing our greenhouse gas emissions across our value chain in line with the 1.5°C ambition. We integrate climate in our business strategy and drive climate action as part of our wider role in society (as members of the Exponential Roadmap Initiative and/or Business Ambition for 1.5°C).
- We will work together with our suppliers and business partners to join us on this journey by taking action aiming to halve greenhouse gas emissions before 2030, reaching net-zero before 2050 and communicate progress annually, e.g. as outlined in the SME Climate Commitment. To promote, reward and inspire action, we plan to make climate related targets and performance a key supplier purchasing criteria within one year.
- We recognise the challenge this poses for our suppliers and we will support them, working together to reach our shared goals. In addition, we will support SMEs globally through the SME Climate Hub with tools, knowledge and best practice for implementing a robust climate strategy, to support broad action.
About Ørsted: The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Moreover, Ørsted provides energy products to its customers. Ørsted is the only energy company in the world with a science-based net-zero emissions target as validated by the Science Based Targets initiative (SBTi), and Ørsted aims to deliver a net-positive biodiversity impact from all new renewable energy projects it commissions from 2030 at the latest. Ørsted ranks as the world’s most sustainable energy company in Corporate Knights’ 2022 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 7,016 people. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2021, the group’s revenue was DKK 77.7 billion (EUR 10.4 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and Twitter. Find out more at: www.orsted.com
About the Exponential Roadmap Initiative: The Exponential Roadmap Initiative is for innovators, transformers and disruptors taking action in line with 1.5°C, with the mission to halve emissions before 2030 through exponential climate action and solutions. The Exponential Roadmap Initiative is an accredited partner of the United Nations’ Race to Zero, and a founding partner of the 1.5°C Supply Chain Leaders and the SME Climate Hub. Find out more at: https://exponentialroadmap.org/
About 1.5°C Supply Chain Leaders: The 1.5°C Supply Chain Leaders work together to drive climate action throughout global supply chains and support small and medium-sized enterprises (SMEs) through the SME Climate Hub, understanding the need to work with and support suppliers to halve emissions before 2030 and achieve net zero emissions before 2050. The 1.5°C Supply Chain Leaders was founded by the Exponential Roadmap Initiative together with Ericsson, IKEA, Telia, BT Group and Unilever and is supported by the We Mean Business Coalition and United Nations’ Race to Zero. Find out more at: https://exponentialroadmap.org/supply-chain-leaders/
About the SME Climate Hub: The SME Climate Hub is an initiative of the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations Race to Zero campaign. In collaboration with Normative and the Net Zero team at Oxford University, the SME Climate Hub provides tools and resources to enable SMEs to make a climate commitment, take action, and measure their progress towards emissions reductions. The SME Climate Commitment is the official pathway for small and medium sized businesses to join the United Nations global Race to Zero campaign. Find out more at: www.smeclimatehub.org
About the UNFCCC Race to Zero Campaign: Race to Zero is the UN-backed global campaign rallying non-state actors – including companies, cities, regions, financial and educational institutions – to take rigorous and immediate action to halve global emissions by 2030 and deliver a healthier, fairer zero carbon world in time. All members are committed to the same overarching goal: reducing emissions across all scopes swiftly and fairly in line with the Paris Agreement, with transparent action plans and robust near-term targets. Find out more at: https://racetozero.unfccc.int
About the We Mean Business coalition: We Mean Business is a global coalition of nonprofit organizations working with the world’s most influential businesses to take action on climate change. The coalition brings together seven organizations: BSR, CDP, Ceres, The B Team, The Climate Group, The Prince of Wales’s Corporate Leaders Group and the World Business Council for Sustainable Development. Together we catalyze business action to drive policy ambition and accelerate the transition to a zero-carbon economy. Find out more at: wemeanbusinesscoaltion.org
About the 1.5°C Business Playbook: The 1.5°C Business Playbook guides companies and organisations of all sizes to exponential climate action and helps them align with the 1.5°C ambition. It is a concrete tool to facilitate the first step of halving emissions, which is grounded in the latest science and focuses on simplicity and speed. Find out more: exponentialbusiness.org
For more information or interviews, please contact: Anna Almberg, Press contact, Exponential Roadmap Initiative, Email: email@example.com, Tel: +46 (0)7 09 81 67 82