Vestas Wind Systems
ESRS disclosure: ESRS E1 \ DR E1.IRO-1 \ Paragraph 21
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- 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%
- 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%