Leading power companies in the race for net zero

Ørsted recognized the future threat that climate change and dwindling resources are bringing to the energy sector and has proven the success that can come with investing and positioning itself at the forefront of change to avoid being left behind with a dying technology.

Targets:

• 98% reduction in Scope 1 and 2 emissions intensity by 98% by 2025, from a 2006 baseline. 
• Achieve a 50% absolute reduction in Scope 3 emissions by 2032, from a 2018 baseline. 
• Reduce Scope 3 absolute emissions from gas sales by 90%. 
• Achieve net zero for Scope 1, 2, and 3 emissions by 2040. 

Strategy:

• Ørsted’s focus over the past two decades has been on a transition from an 85:15 fossil-fuel-based portfolio to an 80:20 renewable portfolio. Having achieved this goal, the company is now looking to expand this to a 100% net zero portfolio. 
• The company is phasing out natural gas from the business portfolio, which today accounts for the majority of its Scope 3 emissions. 
• It also expanded the expectation for strategic suppliers to cover their electricity consumption with 100% renewable electricity by the end of 2025 to apply to all tier 1 suppliers and developed guidelines to support them. 
• Ørsted is exploring how to direct scrap steel from decommissioned assets back into the renewable energy value chain. 

Progress:

• Ørsted has progressed from being one of the most fossil fuel emitting companies in Europe 10 years ago to one of the most sustainable in the world in 2023. The company has prioritized its decarbonization goals and used them to successfully guide its investments into renewables, completely transforming its energy portfolio. 
• Henrik Poulsen (former CEO) announced his vision back in 2008 that by 2040 the 85:15 fossil fuel to renewables ratio would be reversed. The company recognized that its fossil-fuel-centric business model could not remain sustainable in the long term as resources reduce and climate stress increases. 
• The company directed its investments towards offshore wind technology and by 2022 91% of heat and power generation was from green sources, generating 15.1GW of renewable capacity. 
• The company is using scrap steel as a short to medium-term solution to reduce its mining impacts. However, it recognizes that steel is still a scarce resource and is exploring alternative recycling opportunities from decommissioned assets. 

Targets:

• Reduce absolute Scope 1, 2, and 3 GHG emissions by 65% by 2030, from 2020 baseline. 
• Reduce Scope 1, 2, and 3 emissions by 90 % by 2039, from a base year of 2020. 
• Achieve neutrality for imported energy direct and indirect emissions by 2030. 
• Neutralize residual emissions and reduce absolute emissions by 90% by 2039. 
• Achieve net zero emissions by 2040. 

Strategy:

• Invest in 100% renewable technology generation, with $19.7 billion of investment planned for 2023-2025. 
• Invest in expanding its energy storage capacity and promoting new technologies. 
• Divert investment, from the $29 billion planned for networks during 2023-2025, toward 100% smart and robust grid operation as part of a decarbonized and electrified energy system. 

Progress:

• Iberdrola progressed by 36% toward its net zero Scope 1, 2, and 3 targets in 2022, with 30.7 million tonnes of CO₂ emissions avoided. 
• 81% of the owned installed capacity is emission-free. 
• 72% of the owned installed capacity is from renewable energy sources, which equates to 41246MW of owned renewable energy capacity. 
• 2.5 million trees planted in 2022. 
• Portfolio now contains 0% assets with biodiversity assessments and neutrality plans. 
• 50% of the energy consumed in its corporate buildings in 2022 was renewable. 
• 28% of the total light vehicle fleet is now ‘sustainable’. 

Targets:

• Reduce specific emissions from all Scope 1 and 2 GHG emissions by 50% by 2030. 
• Reduce Scope 3 emissions by 30% by 2030, from a 2019 baseline. 
• Achieve net zero for carbon emissions by 2040. 

Strategy:

• RWE intends to expand its renewables portfolio and green generation capacity to 50 gigawatts internationally by 2030. 
• The company will direct >$54 billion of investment towards this by 2030. 
• Phasing out coal-fired power generation and lignite-based electricity generation by 2030. 
• Prioritize directing investments toward green hydrogen production. 

Progress:

• 85% of RWE’s investments meet 'green investment' criteria. 
• Between 2012 and 2022, RWE reduced the CO₂ emissions of its generation portfolio by 54%. 
• RWE has diversified its portfolio to include a wide range of renewables including offshore and onshore wind, solar, hydropower, pumped storage, batteries, biomass, and biogas. 
• In the UK and Germany, the last hard coal-fired power plants have already been taken off the grid. 
• RWE is currently converting the coal-fired plants in the Netherlands into biomass energy plants. 
• Progression towards green hydrogen remains a key focus. 
• RWE is currently working on 30 hydrogen projects across Germany, the Netherlands, and the UK.