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.

Question

Accepted Answer

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).

Vestas Wind Systems

ESRS disclosure: E1.IRO-1_10

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