Vestas Wind Systems
ESRS disclosure: ESRS E1 \ DR E1.IRO-1 \ Paragraph 21
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- Does the undertaking's process for identifying and assessing material climate-related impacts, risks, and opportunities include an explanation of whether and how the identification of climate-related hazards and the assessment of exposure and sensitivity are informed by high emissions climate scenarios, such as those based on IPCC SSP5-8.5, relevant regional climate projections, or NGFS climate scenarios with high physical risk like "Hot house world" or "Too little, too late"?
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Question Id: E1.IRO-1_07
Changes in specific climate variables are assessed using three of IPCC’s Shared Socioeconomic Pathways (SSP) SSP 1-2.6, SSP 2-4.5, and SSP 5-8.5. SSP 1-2.6 is an aggressive mitigation scenario, where consumption is focused on minimising material resources and energy usage, and net-zero is reached after 2050. SSP 2-4.5 is a ‘middle of the road’ scenario, where emissions remain around current levels until mid-century from where they decline towards 2100. SSP 5-8.5 is a high-emission, worst-case scenario, where fossil-fuel development and dependence continue throughout the 21st century.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed explanation of the processes utilized to identify and assess material climate-related impacts, risks, and opportunities. Specifically, describe how climate-related scenario analysis, incorporating a variety of climate scenarios, has been employed to inform the identification and assessment of physical risks and transition risks and opportunities over the short, medium, and long term, as required under ESRS 2 IRO-1, paragraphs 20 (b) and 20 (c).
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Question Id: E1.IRO-1_08
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 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%