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 your company's capacity to modify or adapt its strategy and business model in response to climate change over the short, medium, and long term. This should include an assessment of your ability to maintain access to finance at a reasonable cost of capital, the potential to redeploy, upgrade, or decommission existing assets, the capability to shift your products and services portfolio, and the initiatives to reskill your workforce. This disclosure should align with the resilience analysis results as required under paragraph 19 (c) and should address the anticipated financial effects from significant physical and transition risks, as well as potential climate-related opportunities, in accordance with Disclosure Requirement E1-9 and ESRS 2 SBM-3.
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Question Id: E1.SBM-3_07
Our annual scenario analysis supports our assessment of the resilience of our business against climate change. It covers our entire value chain, prioritising areas we can directly impact. The analysis identifies material impacts, risks, and opportunities. For more information related to the scenarios and time horizons, see section E1-IRO-1, page 65.
Report Date: 4Q2024Relevance: 60%