Ørsted Community Benefit Funds: Long-term investment in coastal communities
Project overview
In the United Kingdom (UK), Ørsted has committed to sharing the value of offshore wind directly with the communities that host its projects. Through its Community Benefit Funds (CBFs), the company has allocated over $14.7 million to support more than 800 local initiatives[1] across areas such as environmental conservation, education, community services, recreation and skills development. The funds, administered by independent charity GrantScape, are shaped by local advisory groups to reflect community priorities and are administered through transparent, competitive processes.
In 2024, Ørsted began piloting a social return on investment (SROI) assessment across three of its funds – Hornsea 3, Walney Extension and the East Coast Community Fund – to quantify the social value created and guide future fund allocation strategies.
Approach
Ørsted worked through community consultation to structure the CBFs to deliver sustained support and long-term value to communities in areas in which projects are constructed and operated. From the outset, each fund was developed through a participatory process: Ørsted and GrantScape conducted local consultations to identify funding priorities tailored to each region’s needs, ranging from youth programmes in Grimsby to wildlife conservation on the East Coast.
Community input is embedded at every stage. Local advisory panels, made up of residents and civil society leaders, review project proposals and determine funding allocations. This has helped ensure strong uptake – securing local trust while avoiding “one-size-fits-all” investments.
In 2024, Ørsted launched its SROI pilot to evaluate not just how funds are spent, but how much measurable social value they generate. The pilot includes two tiers of analysis:
- Strategic assessments of the overall fund.
- Thematic deep dives analyses into five categories: environmental initiatives, community services, public facilities, recreation and skills development.
The evaluation uses data-based modelling to assess how much social value and return per pound invested the project delivered. For example, one early finding from the SROI pilot analyzing the skills funds suggests that especially initiatives nurturing soft skill development have the potential to generate a significantly high social impact due to the broad relevance of skills such as improved communication, work readiness and professional confidence.
Ørsted is using the pilot to answer three key questions:
- Where or through which themes does Ørsted create the greatest impact and why?
- What are the indicators Ørsted can utilize to inform further development of its community funds?
- Can Ørsted use the SROI framework to build the foundation for an outcome-based approach to its community investments?
Business and economic value
A 2022 industry study showed that infrastructure projects with strong local buy-in are 2.5 times more likely to meet budget and schedule targets.[2] Ørsted’s long-term CBF model directly reduces development risk by fostering positive relationships with communities, minimizing local opposition and facilitating local investment in community infrastructure and the local community themselves, leaving a positive lasting legacy in the region.
The SROI framework also provides measurable data that reinforces Ørsted’s ESG profile – supporting access to green finance and aligning with investor expectations for transparent impact reporting. The company’s approach has helped secure favourable financing terms and strengthened its position in competitive lease auctions.
Skills-related investments through the funds are also addressing a sector-critical constraint: workforce shortages in offshore wind. By supporting science, technology, engineering and mathematics (STEM) education, apprenticeships and maritime training programmes, Ørsted is not only building local capacity, but securing its own talent pipeline for future operations.
Moreover, local governments report that mechanisms such as Ørsted’s funds have increased civic participation and strengthened community cohesion[3] – outcomes that reduce the likelihood of delays, litigation or negative press, all of which can carry real financial cost. Ultimately, the CBFs support Ørsted in securing the social licence for building and operating its projects.
Additional information
List of dedicated regional funds:
- Burbo Bank Extension Community Fund: Approximately £225,000 annually, supporting projects in Merseyside and North Wales.
- East Coast Community Fund: Around £465,000 per year, including a £75,000 Skills Fund, benefiting areas along Yorkshire, Lincolnshire and North Norfolk coasts.
- Walney Extension Community Fund: Providing £600,000 approximately per year, with £100,000 ring-fenced for a dedicated skills fund for communities in Cumbria and Lancashire.
- Hornsea 3 Community Fund: Launched with £700,000 approximately per year, divided into a main Community Fund (£500,000), a Skills Fund (£100,000) and a Legacy Fund (£100,000) for capital green projects.
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