The financial materiality criteria were aligned to Vestas’ existing enterprise risk management (ERM) programme, including short, medium and long-term time frames and ranges that were adopted into a model from 1-5 (similar to Impacts). Rating for likelihood and financial impact was assessed for each time frame and topic, resulting in an expected ranking of risk and opportunity. See the information on page 69 in Basis for Preparation for more information.

The financial threshold for material was aligned with ERM to ensure that relevant sustainability-related risks and opportunities are included and prioritised along with general Vestas-specific topics. Consequently, sustainability-related topics were integrated in overarching annual decision making in alignment with the risk annual reporting wheel.

Connections between impacts, risks, opportunities and dependencies Most of the topics assessed for financial materiality were derived from the material impacts identified. Additionally, some were added and assessed based on dialogues with subject matter experts across the organisation. Financial effects such as fines, lost working hours or delays were identified and assessed by Group Finance.

In doing so, it was possible to list material financial sub-sub-topics on par with the material impacts, and assessing the interlinked financial risk and opportunity in a double materiality perspective. Vestas’ dependency on social and natural resources was also assessed by looking into key inputs such as social resources and key raw materials versus the current and future market situation.