Vestas Wind Systems
ESRS disclosure: ESRS ESRS 2 \ DR GOV-3
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- How do the governance bodies of your undertaking ensure that an appropriate mechanism for performance monitoring is in place, particularly when overarching targets are the focus of administrative, management, and supervisory bodies, and detailed targets are the focus of management? Provide information on the sustainability matters addressed and the information provided to these bodies, especially if no measurable outcome-oriented targets have been set.
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Question Id: GOV-2_04
During 2024, Vestas has also started developing new internal controls that will help ensure completeness checks for the Sustainability statement, referring to qualitative and quantitative data points in line with the ESRS. This internal controls process facilitates the identification of the information to be disclosed in relation to material IROs.
In terms of operational management of risks in a third-party perspective, we are certified in line with international standards, including ISO 9001 for Quality, ISO 14001 for Environment, and ISO 45001 for Health and Safety.
During 2024, we have also started developing new internal controls that will help us do completeness checks for the Sustainability statement, referring to qualitative and quantitative data points in line with the ESRS. This internal controls process facilitates the identification of the information to be disclosed in relation to material IROs.
Report Date: 4Q2024Relevance: 60%
- Does the undertaking have incentive schemes and remuneration policies linked to sustainability matters for members of its administrative, management, and supervisory bodies? If so, provide detailed information regarding these schemes and policies, as required by Disclosure Requirement GOV-3.
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Question Id: GOV-3_01
The remuneration of the Executive Management team is linked to the results of Vestas’ financial and sustainability performance, through incentives. The annual process for selecting KPIs and setting targets for the incentives is based on Vestas’ strategic direction, and the KPIs are approved by the Board in the second quarter of the annual meeting cycle. The process includes input from each business area and leads to consolidated strategic prioritisation from the Executive Management and the Board when deciding KPIs and targets. For the Executive Management team, 10 percent of the short-term incentive scheme is linked to climate-related KPIs in the form of the KPI 'GHG emissions avoided.' During the year, no short-term incentives were paid to the Executive Management team linked to climate-related targets as the said targets were not met. The long-term incentives are not linked to sustainable targets, nor is the base remuneration. For the Board, 0 percent of the remuneration is linked to climate-related considerations.
Report Date: 4Q2024Relevance: 85%
- Provide a detailed description of the key characteristics of the incentive schemes and remuneration policies linked to sustainability matters for members of the undertaking's administrative, management, and supervisory bodies, as required under Disclosure Requirement GOV-3.
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Question Id: GOV-3_02
The remuneration of the Executive Management team is linked to the results of Vestas’ financial and sustainability performance, through incentives. The annual process for selecting KPIs and setting targets for the incentives is based on Vestas’ strategic direction, and the KPIs are approved by the Board in the second quarter of the annual meeting cycle. The process includes input from each business area and leads to consolidated strategic prioritisation from the Executive Management and the Board when deciding KPIs and targets. For the Executive Management team, 10 percent of the short-term incentive scheme is linked to climate-related KPIs in the form of the KPI 'GHG emissions avoided.' During the year, no short-term incentives were paid to the Executive Management team linked to climate-related targets as the said targets were not met. The long-term incentives are not linked to sustainable targets, nor is the base remuneration. For the Board, 0 percent of the remuneration is linked to climate-related considerations.
Report Date: 4Q2024Relevance: 85%
- Provide detailed information regarding the integration of sustainability-related performance in incentive schemes and remuneration policies for members of your administrative, management, and supervisory bodies. Specifically, indicate whether performance assessments are conducted against specific sustainability-related targets and/or impacts, and identify those targets and impacts, if applicable.
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Question Id: GOV-3_03
For the Executive Management team, 10 percent of the short-term incentive scheme is linked to climate-related KPIs in the form of the KPI 'GHG emissions avoided.' During the year, no short-term incentives were paid to the Executive Management team linked to climate-related targets as the said targets were not met. The long-term incentives are not linked to sustainable targets, nor is the base remuneration. For the Board, 0 percent of the remuneration is linked to climate-related considerations.
Report Date: 4Q2024Relevance: 85%
- Provide detailed information regarding the integration of sustainability-related performance metrics within the incentive schemes and remuneration policies applicable to members of your administrative, management, and supervisory bodies. Specifically, disclose whether and how these metrics are utilized as performance benchmarks or incorporated into remuneration policies.
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Question Id: GOV-3_04
For the Executive Management team, 10 percent of the short-term incentive scheme is linked to climate-related KPIs in the form of the KPI 'GHG emissions avoided.' During the year, no short-term incentives were paid to the Executive Management team linked to climate-related targets as the said targets were not met. The long-term incentives are not linked to sustainable targets, nor is the base remuneration. For the Board, 0 percent of the remuneration is linked to climate-related considerations.
Report Date: 4Q2024Relevance: 85%
- At what level within the undertaking are the terms of incentive schemes, related to sustainability matters for members of the administrative, management, and supervisory bodies, approved and updated?
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Question Id: GOV-3_06
The KPIs for the incentive schemes are approved by the Board in the second quarter of the annual meeting cycle.
Report Date: 4Q2024Relevance: 85%