- Thomas Thune Andersen, Chairperson of Ørsted, Lloyd's Register Group, Lloyd's Register Foundation and VKR Holding presented his vision of a green future for business
- Hinton Lecturer called on engineers, governments, business and citizens to think greener and develop solutions that actively improve nature
- Inclusive culture in the profession essential to retain vital engineering skills
Engineering and commercial teams can develop successful solutions that are not only environmentally sound but also make good business sense, Thomas Thune Anderson told the Royal Academy of Engineering when he gives the annual Hinton Lecture – The winds of change: engineering a greener future – in London yesterday evening (Tuesday 9 May).
Andersen, who is Chairperson of the Danish renewable energy company Ørsted as well as Lloyd's Register Group, Lloyd's Register Foundation and VKR Holding, outlined how Ørsted pivoted from black to green energy in 2017, highlighting how a shared vision with social purpose, a shift in mindset and a systems approach can create a more sustainable world.
Ørsted’s decision to transform Danish Oil & Natural Gas (Dong energy) from an energy company based on coal and oil to one primarily based on renewables included taking a leap of faith. United by a shared desire for a more sustainable future, they sold their well-established oil and gas business that generated over 50% of revenue to focus on offshore wind which, at the time, generated just 15-20% of cash flow.
Today Ørsted is the largest offshore wind company in the world and among the largest global renewable energy companies with over 15 GW of capacity installed. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi).
Andersen explained that Ørsted was able to undergo its green transformation partly due to the existence of a supportive policy environment. “In particular, and very much so in the UK, there was sufficient visibility and certainty of offshore wind policy support and capacity volumes to allow investment and innovation at scale, which led to a virtuous cycle of technology maturity and reducing costs,” he said. “Removing the oil and gas business was like crossing a stream. Each time you stood on a stepping stone, you picked it up and threw it away. There was no way back to something that was more comfortable. You had to keep going.”
Andersen also shared his passion for nature positive engineering and called on engineers, governments, business and citizens to think even greener in coming up with solutions that actively improve nature. He told his audience that engineers can create conversations around nature positive engineering by encouraging others across industry to commit to the approach. “In a world full of fake news and conspiracy theories, engineers are trusted. We need facts and figures from trusted sources more than ever. Energy production and use are responsible for 73% of global greenhouse gas emissions. Transforming how we power our world is vital. Energy transformation sits at the heart of this,” he said.
Andersen also chairs Lloyd’s Register and its charitable arm, Lloyd’s Register Foundation, which uses commercial profits to fund interventions and accelerate technology to tackle safety risks globally. The Foundation is active in 142 countries and has delivered 235 grants to the value of £160m. It works closely with the Academy and co-founded the Engineering X programme with global impact, including a focus on global engineering skills and safety expertise.
He called for the engineering community to work towards greater diversity, reinforcing the message in a recently published Academy report Inclusive Cultures in Engineering 2023 that the engineering profession needs to accelerate its drive to become more inclusive if the UK is to continue to be a key player in the global race for engineering skills.
Andersen concluded: “If businesses can find the courage to put long-term value creation before short-term profits, we can build a more sustainable world. I see a real opportunity for us to move towards a world where business is actually a force for good and plays a leading role in positively impacting and transforming the global economy into a more inclusive, equitable and regenerative system. Ultimately how can we all work together to create the kind of organisations that young people want to work for to be part of a force for good.”
Dr Hayaatun Sillem CBE, CEO Royal Academy of Engineering said: “We share Thomas Thune Andersen’s overarching view that in an ever-changing world, engineering plays a critical role in tackling society’s greatest challenges. Using new approaches and diversity of thought, engineers can change the world we live in for the better.
“Thomas shares an important lesson that with a strong sense of purpose and drive to take your stakeholders with you, it is possible for businesses to drive the transformational change needed to decarbonise.”
Notes for editors
1. Thomas Thune Andersen will join a live audience at the Royal Academy of Academy to deliver the 42nd annual Hinton Lecture 18.00 BST on Tuesday 9 May. The lecture will also be live streamed to a global audience https://raeng.org.uk/events/2023/may/hinton-lecture-2023.The Hinton Lecture is the Academy’s flagship annual lecture, named after the late Lord Hinton of Bankside OM KBE FRS FREng, the first President of the Academy.
2. Our green energy transformation: Ørsted was once one of the most coal-intensive energy companies in Europe. Today, we’re ranked one of the world’s most sustainable companies, and a global leader in the transition to green energy. https://orsted.co.uk/
3. Lloyds Register Foundation is an independent global charity that supports research, innovation, and education to make the world a safer place. Its mission is to use the best evidence and insight to help the global community focus on tackling the world’s most pressing safety and risk challenges. www.lrfoundation.org.uk
4. Engineering X, an international collaboration that bring together some of the world’s leading problem-solvers to address the great challenges of our age. Our global network of expert engineers, academics and business leaders are working in partnership to share best practice, explore new technologies, educate, and train the next generation of engineers, build capacity, improve safety and deliver impact. https://engineeringx.raeng.org.uk/
5. he Royal Academy of Engineering is harnessing the power of engineering to build a sustainable society and an inclusive economy that works for everyone. In collaboration with our Fellows and partners, we’re growing talent and developing skills for the future, driving innovation and building global partnerships, and influencing policy and engaging the public. Together we’re working to tackle the greatest challenges of our age. https://raeng.org.uk/