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 a detailed explanation of the time horizons applied in your resilience analysis, ensuring alignment with the climate and business scenarios used to determine material physical and transition risks, as well as in setting GHG emissions reduction targets. This disclosure should correspond to the requirements outlined in paragraphs AR 11 to AR 12 and should be consistent with the information reported under Disclosure Requirement E1-4.
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Question Id: E1.SBM-3_05
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: 30%