Transitioning to renewables is more than possible - just as Ørsted

As environmental concerns have grown in relevance in recent years, prioritising sustainability has gone from being a commendable goal to an indispensable requirement. For any business seeking to remain relevant in the latter half of the 2020s, there simply is no alternative to a focus on green issues. The story of Ørsted, formerly DONG, is an object lesson in how this necessity can be met and the rewards for embarking seriously upon such a mission.

The rebranding, while borne out of necessity - DONG was an acronym standing for Danish Oil and Natural Gas - was, as we will see, a springboard for so much more than just that need. The rewards for embarking sincerely on a fully-fledged renewal have been more than just reputational. Indeed, in a country where environmental needs are taken more seriously than perhaps any other, they have been transformative for the company and represent a model for others to follow.

The need for change

Up until 2017, DONG was an energy production company with an eye on a sustainable future but with interests in the fossil fuel sector including coal. The need for change, in retrospect, was clear as this status was unsustainable in more ways than one. From an environmental point of view, the need to move away from coal, oil and gas was clear particularly for a company that had expressed the intention to move from an 85/15 split between fossil fuels and renewables to vice-versa.

While the environmental - and arguably moral - imperative for a switch was clear, it also needs to be recognised that there was a commercial consideration in play. The global trend has been in the direction of sustainability since at least the turn of the century, and for any energy company with an eye on the future, it is a trend that is impossible to ignore. From whatever angle one chooses to view it, the need for change has been an inevitability as much as a choice.

The transition to renewable energy - one which is still ongoing in Ørsted’s case - has been a key strategic move to ensure the twin goals of long-term sustainability and market viability in the energy sector. Perhaps no other industry has been, or will be, the focus of quite as much attention as this one in our present day, so the necessity and the benefit of this change is well seen.

The rebranding journey

Effective rebranding is a delicate balance. Take too much of an authorial role and you risk only speaking to yourself; accept too much external advice and you can end up with something that says nothing by trying to say too much. So when DONG was looking to find its brand for the future, it was important that it struck this balance just right. 

This was achieved by growing its own internal branding team, which grew to 20 members, but also seeking advice from two sources outside the company. The first, focused on the design side, was Danish agency Kontrapunkt, which understood the Danish heritage of functional elegance in design. They also spoke to Oregon-based ad agency Wieden and Kennedy, best known for their work with Nike, to ensure that their rebrand met with international standards.

The rebrand was also going to have to take account of the fact that, as oil and natural gas were to become part of their past and renewables their future, DONG was no longer an appropriate name. A board meeting was called to decide on whether there would be a name change. As fractious as these things can be - changing something as fundamental as a name is not something that happens lightly - the name Ørsted was unanimously accepted.

This was something of a masterstroke. The name was in honour of 19th-Century Danish physicist Hans Christian Ørsted, in many ways the father of electromagnetics. Louise Ryberg, the head of design on the project, highlights the synergy of using his name: “With the story and the legacy – there is such a valid history behind that name.” A meaningful change, rather than change for its own sake, made this rebranding step a genuine positive in a necessary process.

Visual and Strategic Brand Overhaul

One of the key questions when rebranding is whether you go for a full rebrand or keep the changes to a minimum to retain identity. That’s a question that faced Ørsted when it came to changing their brand. Could they change the name and keep the look of their old branding? It was decided that they shouldn’t. Indeed, Ryberg didn’t even think of it that way, instead considering what it would look like if they kept the name and simply changed the branding. In the end: “[It] wasn’t right. It’s because our company has changed and we need to reflect in our brand what our company does; therefore, we have to change everything.”

And so they did. Here, Kontrapunkt were worth their weight in gold. Their expertise in the Danish approach to design resulted in them lobbying for a custom typeface. It was a significant consideration because, when Ørsted release marketing materials, they tend to use the written word a lot. The typeface that was eventually designed is hallmarked by a lot of upward curves, reminiscent of wind - the core of the renewable offer that Ørsted was moving forward with. A quick look at the letter “W” on any of their posters shows exactly what Kontrapunkt were going for, and nobody could deny that it has worked.

Taglines were also important to the overall rebrand. Two in particular were decided upon by the rebranding team. The first was “Love your home”, while the second was “Let’s create a world that runs entirely on green energy”. In tandem, these taglines were hugely indicative of what the new brand represents. While “love your home” could, in isolation, be about anything - from furnishings to appliances - it tapped into the way customers feel about the environment. Something that we all have a stake in.

The latter tagline, with its altruistic and aspirational leaning, was also important. It doubles as a mission statement while being something with which external and internal stakeholders could get on board. A world that runs entirely on green energy is certainly what Ørsted are working towards, and is fundamental to the idea of loving your home.

Public Perception and Market Position

The thinking behind a rebrand is of course crucial in evaluating it in real time, but after it is complete, the only real evaluation that matters is “Did it work?”. That’s the question that Ørsted need to answer in the present day. So did it? Well, it is generally accepted that from a creative and aspirational point of view, it really did. As DONG, it has often been commented on that even when they used bright, engaging colours, there was always some black there. For a company trying to distance itself from a past in fossil fuels, this was never ideal. Customers and design specialists agree that the move to softer colours and sweeping typeface has been a success.

What about the more practical side of things: How has Ørsted’s market position been affected by the rebrand? Well, perhaps nothing better summarises where the impact has been than the consistent success of Ørsted in leading not just Denmark, but the world in its embrace of clean, green energy. In January of this year, it was - not for the first time - ranked by sustainable economy experts Corporate Knights as the most sustainable energy developer worldwide. In a nation as wedded to the importance of sustainability as Denmark, this is an important accolade to receive.

Future Outlook

This is, of course, a story half told. The future is of equal importance to what has already been achieved, and as part of Ørsted’s overhaul, an eye on the future is of fundamental importance. The company has set ambitious goals and so far has met them admirably. At the time of writing, they produce 95% of their energy from renewable sources, but that is not an end goal. By 2025 they want to be producing 99% in this way and to achieve true Net Zero. By 2040, they are aiming for no carbon emissions at all. These aren’t just working aims - they’re promises to the world that has witnessed their existing successes.

Conclusion

When Ørsted embarked on their corporate branding overhaul, success was not guaranteed. It never is. There were a number of decisions to be made, in terms of how much outside advice they accepted and how much they changed about the business’s identity. There was also an operational ambition to be achieved at the same time. The bare numbers, demonstrating their success in adopting more renewable approaches, are one hallmark of their achievement. Their multiple accolades in public recognition are another.

Perhaps more important than any of the above, however, is the fact that it has installed Ørsted as an example for others to follow, both in terms of centring global sustainability and in the power of strategic rebranding. Ørsted will continue to be the focus of attention from across the world, and they’ve demonstrated that this is something for which they’re more than ready.