Vestas Wind Systems
ESRS disclosure
Tags Tree
- Has your company identified transition events over short-, medium-, and long-term time horizons, and assessed whether its assets and business activities are exposed to these events, in accordance with Disclosure Requirement E1-9 and ESRS 2 IRO-1? Please provide an explanation of the processes used to identify and assess material climate-related impacts, risks, and opportunities, ensuring alignment with climate-related public policy goals where applicable.
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Question Id: E1.IRO-1_10
Transition risks and opportunities are identified through literature review, and engagement of internal and external subject matter experts. A list of sector-specific risks only is applied, however, market and opportunities are identified alongside a list of sector-specific opportunities related to resource efficiency, energy sources, products, service, and markets.
Afterwards, these risks and opportunities are ranked based on their potential impact on Vestas using a consequence/likelihood scale. The assessment of the potential impact of the most material transition risks and opportunities is based on two different scenarios and assessed across three different time horizons; short term (one-five years), medium term (five-10 years), and long term (10-30 years).
Report Date: 4Q2024Relevance: 85%
- Has the undertaking conducted a screening to determine if its assets and business activities are potentially exposed to transition events, as part of the process to identify and assess material climate-related impacts, risks, and opportunities? Please provide an explanation of whether and how transition events have been identified over the short-, medium-, and long-term, considering that long-term may extend beyond 10 years and align with climate-related public policy goals.
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Question Id: E1.IRO-1_11
Transition risks and opportunities are identified through literature review, and engagement of internal and external subject matter experts. A list of sector-specific risks only is applied, however, market and opportunities are identified alongside a list of sector-specific opportunities related to resource efficiency, energy sources, products, service, and markets.
Afterwards, these risks and opportunities are ranked based on their potential impact on Vestas using a consequence/likelihood scale. The assessment of the potential impact of the most material transition risks and opportunities is based on two different scenarios and assessed across three different time horizons; short term (one-five years), medium term (five-10 years), and long term (10-30 years).
Report Date: 4Q2024Relevance: 85%
- Has the company assessed the extent to which its assets and business activities are exposed and sensitive to identified transition events, considering the likelihood, magnitude, and duration of these events? Provide a detailed explanation of the processes used to identify and assess material climate-related impacts, risks, and opportunities, as required under paragraph 20 (c) of the ESRS regulations. Ensure that the disclosure aligns with the qualitative characteristics of useful information as outlined in ESRS 1 Appendix B.
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Question Id: E1.IRO-1_12
Transition risks and opportunities are identified through literature review, and engagement of internal and external subject matter experts. A list of sector-specific risks only is applied, however, market and opportunities are identified alongside a list of sector-specific opportunities related to resource efficiency, energy sources, products, service, and markets.
Afterwards, these risks and opportunities are ranked based on their potential impact on Vestas using a consequence/likelihood scale. The assessment of the potential impact of the most material transition risks and opportunities is based on two different scenarios and assessed across three different time horizons; short term (one-five years), medium term (five-10 years), and long term (10-30 years).
Report Date: 4Q2024Relevance: 85%
- Has the undertaking utilized climate-related scenario analysis to inform the identification of transition events and the assessment of exposure, specifically considering scenarios aligned with the Paris Agreement and limiting climate change to 1.5°C, such as those provided by the International Energy Agency or the Network for Greening the Financial System? Please detail the processes employed to identify and assess material climate-related impacts, risks, and opportunities, as stipulated in Disclosure Requirement E1-9 and ESRS 2 IRO-1.
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Question Id: E1.IRO-1_13
The scenarios used are the International Energy Agency’s Net Zero Emissions by 2050, representing a climate scenario in line with limiting global warming to 1.5°C, and the Stated Policy Scenario, representing a more conservative benchmark for the future, not taking for granted that governments will reach all stated goals and energy-related objectives.
These scenarios are all relevant to Vestas as they cover both a very optimistic and a more realistic future scenario. Opposite to physical risks, transition risks and opportunities are more extreme in scenarios that assume successful mitigation of the worst effects of climate change, as drastic political and regulatory measures are necessary to change the current path. Therefore, these scenarios prepare companies well to adapt to changes in status quo.
Report Date: 4Q2024Relevance: 80%
- Has your company identified any assets and business activities that are incompatible with or require significant efforts to align with the transition to a climate-neutral economy? If so, please provide a detailed explanation of the processes used to identify these transition risks and opportunities, including any challenges related to significant locked-in greenhouse gas emissions or incompatibility with the requirements for Taxonomy-alignment as per Commission Delegated Regulation (EU) 2021/2139.
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Question Id: E1.IRO-1_14
Transition risks and opportunities are identified through literature review, and engagement of internal and external subject matter experts. A list of sector-specific risks only is applied, however, market and opportunities are identified alongside a list of sector-specific opportunities related to resource efficiency, energy sources, products, service, and markets.
Afterwards, these risks and opportunities are ranked based on their potential impact on Vestas using a consequence/likelihood scale. The assessment of the potential impact of the most material transition risks and opportunities is based on two different scenarios and assessed across three different time horizons; short term (one-five years), medium term (five-10 years), and long term (10-30 years).
Report Date: 4Q2024Relevance: 65%
- Provide a detailed explanation of how climate-related scenario analysis, incorporating a variety of climate scenarios, has been utilized to inform the identification and assessment of physical risks, transition risks, and opportunities over the short, medium, and long term, in accordance with the disclosure requirements outlined in ESRS 2 IRO-1.
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Question Id: E1.IRO-1_15
The scenarios used are the International Energy Agency’s Net Zero Emissions by 2050, representing a climate scenario in line with limiting global warming to 1.5°C, and the Stated Policy Scenario, representing a more conservative benchmark for the future, not taking for granted that governments will reach all stated goals and energy-related objectives.
These scenarios are all relevant to Vestas as they cover both a very optimistic and a more realistic future scenario. Opposite to physical risks, transition risks and opportunities are more extreme in scenarios that assume successful mitigation of the worst effects of climate change, as drastic political and regulatory measures are necessary to change the current path. Therefore, these scenarios prepare companies well to adapt to changes in status quo.
Report Date: 4Q2024Relevance: 70%
- Provide an explanation detailing how the climate scenarios utilized align with the critical climate-related assumptions outlined in the financial statements, as per Disclosure Requirement E1-9 concerning anticipated financial effects from material physical and transition risks and potential climate-related opportunities. Note that quantification of financial effects from opportunities is not mandatory if it does not adhere to the qualitative characteristics of useful information as specified in ESRS 1 Appendix B.
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Question Id: E1.IRO-1_16
The scenarios used are the International Energy Agency’s Net Zero Emissions by 2050, representing a climate scenario in line with limiting global warming to 1.5°C, and the Stated Policy Scenario, representing a more conservative benchmark for the future, not taking for granted that governments will reach all stated goals and energy-related objectives.
These scenarios are all relevant to Vestas as they cover both a very optimistic and a more realistic future scenario. Opposite to physical risks, transition risks and opportunities are more extreme in scenarios that assume successful mitigation of the worst effects of climate change, as drastic political and regulatory measures are necessary to change the current path. Therefore, these scenarios prepare companies well to adapt to changes in status quo.
Report Date: 4Q2024Relevance: 65%
- Provide an explanation for each identified material climate-related risk, specifying whether the entity classifies the risk as a climate-related physical risk or a climate-related transition risk, in accordance with the Disclosure Requirement related to ESRS 2 SBM-3 concerning material impacts, risks, and opportunities and their interaction with strategy and business model.
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Question Id: E1.SBM-3_01
Scope 1 and 2 GHG emissions: The emissions from Vestas' own operations have a material negative impact on the climate, with 105 thousand tonnes of combined scope 1 and 2 emissions in 2024. This actual negative impact occurs in our own operations across the short, medium and long term.
Scope 3 GHG emissions: Scope 3 emissions represent a material negative impact for Vestas, as 98.8 percent of our total greenhouse gas emissions occur in our value chain. In 2024, 7.99 million tonnes of CO2e were emitted from our value chain, and our value chain scope 3 emission intensity was 56.6 kg/MWh. This actual negative impact occurs across the short, medium and long term.
Report Date: 4Q2024Relevance: 50%
- Provide a detailed account of the resilience of your strategy and business model concerning climate change. Include a comprehensive description of the scope of the resilience analysis as per the Disclosure Requirement related to ESRS 2 SBM-3, focusing on material impacts, risks, and opportunities and their interaction with your strategy and business model.
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Question Id: E1.SBM-3_02
Our annual scenario analysis supports our assessment of the resilience of our business against climate change. It covers our entire value chain, prioritising areas we can directly impact. The analysis identifies material impacts, risks, and opportunities. For more information related to the scenarios and time horizons, see section E1-IRO-1, page 65.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed account of the resilience analysis conducted on your strategy and business model concerning climate change. Include specifics on the timing and methodology of the analysis, particularly the application of climate scenario analysis as outlined in the Disclosure Requirement related to ESRS 2 IRO-1 and its associated application requirement paragraphs.
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Question Id: E1.SBM-3_03
Our annual scenario analysis supports our assessment of the resilience of our business against climate change. It covers our entire value chain, prioritising areas we can directly impact. The analysis identifies material impacts, risks, and opportunities. For more information related to the scenarios and time horizons, see section E1-IRO-1, page 65.
Report Date: 4Q2024Relevance: 70%