How do energy companies align sustainability goals with corporate strategy?

: evidence from Galp and Ørsted

Abstract

In the energy transition, the real bottleneck is not ambition but organizational alignment. This dissertation examines how energy companies align sustainability goals with corporate strategy through a qualitative and comparative study of Galp and Ørsted. Drawing on 12 semi-structured interviews and verified corporate disclosures, the research uses pattern matching and explanation building to trace a common mechanism chain from intent to portfolio rules over to governance and incentives on to controls/KPIs and dynamic capabilities. The findings show two viable alignment pathways. Galp follows a returns-disciplined, transitional path, visible in their industrial site Sines with regular site reviews and EU-taxonomy KPIs, while Ørsted takes a mission-centered, transformational path, shown by its biodiversity metrics and assured green-finance reports. A contingent explanation clarifies why pathways differ. The legacy asset base, ownership, policy credibility, and capability endowment shape feasible speed and risk posture. Across cases, governance design (line ownership versus novelty-tiered approvals) proved to be a stronger driver of alignment speed than overarching goals. The results provide an actionable alignment pathways toolkit with design levers (target granularity, incentive weights, novelty-tiered approvals, pilot-to-scale gateways, capability coalitions, financing structures and communications cadence) that help managers make sustainability more investable, governable, and improvable. Overall, the dissertation advances a mechanism-based, context-sensitive account of strategic alignment in the energy transition and offers practical insights for execution.

Date of Award	16 Oct 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Parada (Supervisor)