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Orsted 2023

In this backtest, we are looking at Orsted, the Danish multinational energy company headquartered in Fredericia. The data was pulled on 3 October 2024. There is strong alignment between Orsted's reported materiality in its 2023 annual report and Mettle's OSMA analysis. We find E2 Pollution to be material, while Orsted finds S1 Own Workforce and S2 Workers in the Value Chain to be material. This may be due to Orsted only surveying internal stakeholders in depth.

Alignment of Topic Materiality​

Orsted 2023

Comparing the two assessments, there is significant agreement in what is material and what isn't material. Orsted arguably over reports S1 Own Workforce and S2 Workers in the Value Chain due only 'lightly updating' their 2022 materiality assessment and taking proxies instead of engaging with external and industry stakeholders.

Topic Materiality over time​

2023

2024

Unsurprisingly, E1 Climate Change is the most material topic consistently. G1 Business conduct becomes more material, overtaking E4 Biodiversity. The threshold for immaterial is between E2 Pollution and S4 Consumers and end users.

Which sub-topics are showing shifts in materiality​

E1.3 Energy is the standout emering subtopic that would need to be reflecting in IRO reporting. Noticeably, all the other material subtopics, while still material, have lost volumes in the first three quarters of 2024.

Materiality of Non-ESRS subtopics​

Developed using SASB taxonomy and Mettle's own unique Trust, Reputation, Thematic models. The taxonomies intentionally have some overlap with each other and with the ESRS taxonomy. Key to this analysis is identifying new topics not specified in ESRS, but meeting the requirement to determine anything else that is material. In Orsted's use case, Mettle would recommend Leadership and Cost of Living be included in material topics to be reported.