8PATHWAY TWO, OPTION TWO: COMPLETE TRANSFORMATION OF THE BUSINESS MODEL
“We want to create a world that runs entirely on green energy—in a way that works for people and planet.” 1
—Mads Nipper, Group President and CEO, Ørsted
The second transformation strategy of Pathway Two takes a bold, enterprise‐wide transformational approach. This strategy develops a long‐term strategic plan to transform a company into a net zero enterprise. The objective is to reinvent or redesign completely the company’s business model, and quite possibly its purpose and vision. Developing new no‐ and low‐carbon products and services naturally flows from reinventing or redesigning the business model.
Pathway Two, Option Two companies need to combine comprehensive climate risk management over a long‐term planning horizon with scenario analysis and cash flow forecasting. Pathway Two, Option Two companies also need to rethink their capital allocation strategies (see Exhibit 8.1).
Fifteen years ago, Ørsted was a fossil fuel–based oil and gas company based in Denmark with high carbon intensity. Since 2006, Ørsted has transformed its business model from being one of the most carbon intensive oil and gas energy providers in Europe to being a global leader in renewable energy. The company has made a complete end‐to‐end ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
