Ørsted

See pages 44-52 for complete governance framework, Board of Directors composition and responsibilities, and Group Executive Team structure. The governance framework includes clear roles for the Board of Directors in oversight of sustainability matters and risk management.

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. 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 assessment is carried out on an ongoing basis in all business segments and regions as part of our daily business operations. 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. We will also continue our work to manage future breakaway profiles for asset projects by scrutinising financial commitments before taking final investment decision (FID).

Our strategic aspiration is to be the world's leading green energy major. This aspiration builds on three strategic pillars: 1) One of the world's leading developers, constructors, and generators of renewable assets, 2) The leading talent platform in renewable energy, 3) Globally recognised sustainability leader. 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 heat and power plants. For more details on our business model, see pages 65-66.

Our three strategic sustainability priorities – decarbonisation, biodiversity, and community 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. See pages 67-74 for detailed description of material impacts, risks and opportunities.

In 2024, we conducted a double materiality assessment (DMA) to identify and assess our material sustainability-related impacts, risks and opportunities (IROs). The CSRD mandates reporting on environmental, social, and governance (ESG) practices and adherence 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. Based on the DMA performed in 2024, the magnitude of the identified sustainability-related financial risks were below the magnitude of the enterprise risks. See pages 67-74 for detailed methodology and results.

See page 60 for ESRS disclosure requirements covered in our sustainability statement. We have identified seven of the ten ESRS topical standards under the CSRD to be material. These are 'Climate change' (ESRS E1), 'Biodiversity and ecosystems' (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).

See page 91 for details on our SBTi-validated climate targets. Science-based 2040 net-zero target, validated by SBTi. GHG emissions intensity targets: -77% by 2030, -99% by 2040 (g CO₂e/kWh, Scopes 1-3 excl. gas sales).

See page 81 for anticipated financial effects from material physical and transition risks and potential climate-related opportunities.

Net-positive biodiversity impact from all new renewable energy projects commissioned from 2030, at the latest.

See page 108 for anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities.

See page 116 for actions and resources related to resource use and circular economy. 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.

E5-4 Resource Inflows

Technical Materials for Construction of New Assets

Ørsted discloses resource inflows based on technical materials used in the construction of new offshore and onshore renewable energy projects (offshore wind, onshore wind, solar PV, and battery storage assets) above 100 MW. Material inflows reflect assets currently under construction within the reporting year 2024.

Material Composition Overview

An illustrative example of the material composition for an average Ørsted offshore wind farm shows:

• 63% Steel
• 26% Concrete
• 4% Glass fibre and plastics
• 4% Critical raw materials (3% copper and 1% other materials)
• 3% Iron

Secondary Materials in Steel Production

Approximately 80% of the steel sourced for production of steel plates for foundations comes from Europe, where supplier data indicates that, on average, 35% of the material used in these plates derives from scrap. While Ørsted accounts for geographic variability (reflected in the range of 20-35%), current estimates place the company at the upper end.

Sustainable Biomass

Ørsted sources certified sustainable wooden biomass for use as fuel at CHP plants. In 2024, 100% of wooden biomass was certified sustainable (baseline in 2016: 61%). In addition to wooden biomass, the company uses residual straw sourced from Danish agriculture as a waste product from local farms.

Methodology

The technical materials data is tracked through in-house LCA analysis (highest maturity for offshore assets), supplemented with external verified studies for BESS, solar PV, and onshore wind. Material usage is accounted for when main components are recognised as installed. For offshore wind projects, foundations are recognised when fitted, and wind turbine generators (WTGs) are recognised at time of takeover certification (TOC). For solar assets, materials are mapped to the installation of solar panels. For battery storage systems, materials are recognised upon installation of battery packs.

Resource outflows

Ørsted reported on the recyclability of its renewable energy assets:

Recyclability of offshore wind farms:

• Calculated the recyclability rate of materials embedded in a representative sample of offshore wind farms to understand which materials and components can be processed for recycling upon retirement
• Specific recyclability percentages were not disclosed in the report

Design and end-of-life approach:

• Renewable assets are built of highly durable materials
• Working to ensure reuse and recycling of materials where feasible
• Resource management policy covers developing circular value chains with suppliers
• 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, developing decommissioning or waste management plans to ensure maximal reuse or recycling at end-of-life in accordance with the waste hierarchy

Specific initiatives:

• In the decommissioning of wind farm Owenreagh 1 in Northern Ireland, turbine towers were sent for reuse while blades were sent to be recycled, reflecting commitment to not send blades to landfill
• Investigating opportunities and partnerships to improve the degree of recyclability of assets while working on actions that allow for replacement of non-recyclable content

See page 116 for anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities.

Waste

Total waste generated (2024):

Waste diverted from disposal:

Waste directed to disposal:

Waste management approach:

Ørsted has a 'Waste management policy' covering all activities and locations. The policy outlines waste management processes and provides detailed definitions of key aspects of waste management assurance. The QHSE department is responsible for its ongoing implementation.

The company follows the waste hierarchy to address the negative impact of materials wasted. Total waste generated increased by 7% from 2023 to 2024, primarily due to an increase in non-hazardous waste. Waste diverted from disposal increased by 11%, while waste directed to disposal decreased by 1%.

As of 2024, 71% of total waste generated was diverted from disposal, with recycling accounting for 51% of total waste. The company is working on actions related to the avoidance, reduction, and recycling of wasted materials as assets reach end-of-life stage.

See page 124 for processes for engaging with own workforce and workers' representatives about impacts.

See page 124 for processes to remediate negative impacts and channels for own workforce to raise concerns.

See page 124 for taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities.

See page 124 for targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities.

Gender balance (women:men): 34:66 in 2024, compared to 35:65 in 2023 and 33:67 in 2022. In 2024, 37% of all new hires were women. Gender balance in the Board of Directors and the Group Executive Team: 40% women, 60% men. Gender balance target: 40:60 women:men in our total workforce by 2030.

See page 137 for processes to remediate negative impacts and channels for value chain workers to raise concerns.

See page 137 for targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities.

See page 145 for processes to remediate negative impacts and channels for affected communities to raise concerns.

See page 145 for taking action on material impacts on affected communities. Training a local offshore wind workforce: In the US, we developed a workforce development programme that has provided 335 union workers with the necessary credentials for working offshore. 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.

See page 145 for targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities.

See page 153 for management of relationships with suppliers. We have entered 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. Our process for vetting new suppliers is thorough, and we have strict credit risk policies in place to manage credit and counterparty risks.