Wind farms can have a negative impact on biodiversity, but ultimately play a positive role in protecting global biodiversity and ecosystems by replacing traditional energy sources with renewables. By utilizing nature-based solutions and mitigating harm with technology, Vestas collaborates with customers to deliver projects with the lowest impact on biodiversity and ecosystems. The resilience analysis did not identify any material biodiversity risks, opportunities, or dependencies, and strategic focus caters for material impact, with the business currently resilient to changing ecosystem conditions.

The analysis is conducted with time horizons including Physical: 2030, 2050, 2070, Transition: one-five years, five-10 years, 10-30 years for manufacturing facilities, warehouses, and critical suppliers. The assumptions of the analysis are in line with the scenarios used, including future GHG emissions in the atmosphere.

Vestas' primary water consumption is for domestic purposes, with a low environmental impact. However, operational presence in water-scarce regions may stress local water resources. Using geospatial mapping, Vestas identified water consumption in manufacturing facilities in regions with high or extreme water stress. Climate change can lead to water scarcity, but renewable energy helps reduce fossil fuel dependence and mitigate climate change effects.

The analysis is conducted with time horizons including Physical: 2030, 2050, 2070, Transition: one-five years, five-10 years, 10-30 years for manufacturing facilities, warehouses, and critical suppliers. The assumptions of the analysis are in line with the scenarios used, including future GHG emissions in the atmosphere. The resilience analysis did not identify any material biodiversity risks, opportunities, or dependencies, and strategic focus caters for material impact, with the business currently resilient to changing ecosystem conditions.

The 2024 resilience analysis of our strategy demonstrates capability to address material IROs with our current strategic and operational initiatives and to take advantage of material opportunities. The changes to IROs compared to the previous reporting period had not been extensive, thus Vestas has been working with managing and pursuing many of the IROs in a strategic perspective for several years. Nevertheless, it is the first time we assess some of these areas both in terms of financial impact and dependency, and more insight remains to be gained.

The analysis was conducted based on input from our climate and biodiversity resilience analysis, evaluation of mitigation actions, financial impact assessments, and dependency analysis on natural and social resources. All areas were assessed in line with a short-term time horizon that is current year to less than three years, which correlates with our corporate strategy and enterprise risk management approach.

In 2025, the plan is to strengthen this analysis further vis-à-vis material IROs by improving the methodology, including mid- and long-term time horizons in line with the CSRD requirements. Therefore, Vestas has chosen not to disclose a more in-depth analysis overview for 2024 as defined by ESRS 1, SBM-3.