In line with Vestas' Safety, Quality, Health, and Environmental (SQHE) Policy and Health, Safety, and Environment (HSE) framework, we have a commitment to proactively identify and manage all material IROs related to climate change mitigation and adaptation, and to promote risk-based thinking and acting. Our SQHE Policy and HSE framework together serve as the key policy anchors to manage all environmental IROs identified throughout the environmental sections of the sustainability statement i.e. E1, E3, E4 and E5.

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.