by Vincent Kratz, Leuphana University of Lüneburg, Germany.
When discussions around the energy transition turn theoretical, one company provides a powerful real-world example of what radical change can look like. Ørsted, once known as DONG Energy, started as a traditional fossil-fuel provider heavily dependent on oil, coal and gas. Today, it ranks among the world’s most sustainable companies and is considered a global role model for green transformation. The question is: how did a state-owned utility on the brink of financial crisis reinvent itself so drastically?
The answer lies in a combination of strategic decisions, responsible governance and an entrepreneurial mindset. For decades, DONG focused on fossil fuels, even as early experiments with wind energy in the 1990s showed potential. But rising public concern about coal projects in Germany, a severe revenue loss during the 2012 oil price crisis and a growing awareness of climate risks pushed the company to rethink its business model. Under new leadership, Ørsted sold all oil and gas activities, reduced its organizational size and shifted its focus on offshore wind. By 2017, the company had completed its exit from fossil fuels and relaunched under the name Ørsted, signaling a new identity centered on renewable energy.
This change was not just operational – it required a reorganization of how the company was led. Ørsted built a governance structure that aligned management with its sustainability ambitions. The Board of Directors was intentionally diversified across gender, nationality, educational background and brought together the expertise needed to guide the company’s green strategy. The Group Executive Team took responsibility for implementing that strategy in day-to-day decision-making. At the same time, Ørsted committed itself to environmental protection, reducing emission-intensive resources, safeguarding human rights in its supply chain and supporting local communities. Sustainability was no longer an add-on, but the core of how the company defined itself.
What makes Ørsteds’ case interesting is how entrepreneurial its transformation was. Although the company is over 50 years old, its mindset is start-up driven: taking risks, experimenting and entering emerging markets early. Offshore wind, which later became one of the cheapest renewable technologies, was still expensive and uncertain. Yet Ørsted decided to invest anyway. The company built on its early experience on having constructed the first offshore wind farm back in 1991 and scaled the technology to a commercial level never seen before.
This entrepreneurial orientation continued throughout the company’s expansion. Ørsted pursued new opportunities such as onshore wind, solar power, energy storage and green hydrogen, including large projects in Denmark, Taiwan and the United States. Instead of seeing the transition to renewables as a single goal, the company treated it as an ongoing process of learning and innovation.
Digitalization played a major role in this development. Modern offshore wind operations depend on real-time data, automated inspections and advanced weather analytics. Ørsted introduced digital tools for remote monitoring, smart warehousing and portfolio management, and even partnered with AI company Halfspace to develop a predictive model capable of identifying and predicting failures across different types of power plants. These technologies improved efficiency and strengthened Ørsted’s ability to operate globally.
In essence, Ørsted’s story shows what is possible when strategic thinking, responsible management, entrepreneurship and digital competence come together. It also illustrates what future managers and decision-makers need to learn: Sustainable transformation is achievable when organizations are willing to rethink their identity, act with courage and build the capabilities needed for a rapidly changing world.
