CASE STUDY Orsted Danish green In 2009, Orsted realized that fossil Orsted started to transition its fuels were not environmentally business model in 2012 in the energy firm Orsted sustainable or financially viable. The following ways: is a global leader company devised three critical goals 1. Moving from offshore drilling to in offshore wind. in its transition to green energy tech: offshore building of wind farms. To phase out coal by 2023, Orsted was a leader in North Sea Named the world’s second most generate nearly 100% green offshore drilling. The company sustainable company in the energy by 2025, and focus decided to build offshore wind Corporate Knights Global 100 Index entirely on renewables. farms and retain key staff. This in 2021, its mission is to create a world To become the global leader facilitated a radical shift to that runs entirely on green energy. in offshore wind and develop renewables. Ten years ago, Orsted was one of innovation and large-scale 2. Investing in high tech capabilities. the most fossil fuel-intensive energy deployment of onshore wind, Investment costs were so high companies in Europe. Since then, it solar energy, and storage that the Danish government has reduced its carbon emissions by solutions, delivering green energy provided Orsted with subsidies to 86% and aims to be carbon neutral to hundreds of millions of people facilitate its move to wind farms. by 2025. worldwide. 3. Generating predictable recurring To phase out natural gas trading revenue sources. Traditional activities, increase the green revenues from fossil fuels were share of power traded, and work volatile due to geopolitical with suppliers to reduce carbon factors and fluctuating emissions from manufacturing commodity prices. Thanks to and installing renewable energy. the subsidies it receives on its wind-based energy, Orsted moved fixed pricing to 81% of its portfolio in 2018. If government policies were to change in line with the Paris Agreement, then two thirds of the world’s known fossil fuel reserves could not be burned. This could lead to changes in the value of investments held by banks and insurance companies in sectors like coal, oil and gas. Source: Bank of England 11