Our biodiversity and ecosystems-related impacts, risks, and opportunities (IROs) are identified through an impact assessment developed in collaboration with third-party experts; utilizing third-party platforms and by consulting internal subject matter experts. The assessment covers our entire value chain. During 2025, we aim to collect more robust data to further refine and support the materiality conclusions.

By engaging third-party experts in the impact assessment, we get access to leading knowledge and platforms, supporting a more thorough analysis and conclusion. The impact of our supply chain is an assessment of land use, climate change, air pollution, water use and water pollution, estimated through sector-country averages based on our procurement spend. Using sector-country averages allows impact assessment across many suppliers, but is based on assumptions of e.g., land use and air pollution levels.

The impact assessment of our own operations is split in two categories: impacts arising from factories (e.g., land occupation and pollution from paint), and impacts arising from their own operations activities, e.g., service and construction of on- and offshore wind farms and the related emissions from transportation. For our own operations, we consider land use, climate change, air pollution, and water use impacts. The impact on our downstream value chain is an assessment of how wind turbine parks might affect biodiversity and ecosystems during operation.

The analysis of transition and physical biodiversity risks (including systemic risks) is conducted using third-party software solutions, also allowing assessment of biodiversity risks across multiple future looking scenarios and time horizons, and by leveraging internal and external subject matter expertise. See section E1 IRO-1 on page 65 for more information on the scenarios used in the analysis. No specific assessment criteria were applied in the analysis as a consequence of our material biodiversity impact.

Though geospatial coordinates are the proximity of our factories to biodiversity-sensitive areas such as Natura 2000[1] areas. None of our facilities located near biodiversity-sensitive areas have been assessed to lead to material deterioration or disturbance of natural habitats or the habitats of species.

Our circular economy and resource use related impacts, risks, and opportunities were assessed through consulting internal subject matter experts, particularly drawing on life cycle assessments (LCAs) conducted for our products, and by analysing data inputs from internal software platforms. We also consulted external experts and stakeholders such as our customers. The analysis of impacts, risks, and opportunities covers our entire value chain.

Vestas conducts ISO-compliant LCAs of our wind turbines. These LCAs form the foundation for our understanding of the environmental footprint of our products, and the basis to identify impacts, risks, and opportunities related to resource inflows and outflows. The LCAs cover the full life cycle and over 99.5 percent of material inflows for all models of our wind turbines. Although our LCA is a methodological strong analysis, it is based on several assumptions including the lifetime of asset and has limitations of life. Additionally, data from Vestas’ own manufacturing operations, reported via our waste management process, identifies all waste fractions and treatment methods relevant for our operations.

Affected communities were not consulted or involved in the materiality assessment. We have not identified any material negative impacts on priority ecosystem services of relevance to affected communities in our overall analysis. For more information about our approach to biodiversity, see pages 83-85.