Vestas Wind Systems
ESRS disclosure: ESRS S2 \ DR S2.SBM-3 \ Paragraph 11
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- Does the undertaking include all value chain workers who are likely to be materially impacted by its operations, products, services, and business relationships within the scope of its disclosure under ESRS 2, as required by ESRS 2 SBM-3 paragraph 48? Additionally, provide the necessary information as stipulated in the regulation.
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Question Id: S2.SBM-3_01
Vestas operates within a global supplier network including direct, upstream suppliers who manufacture components and materials for wind turbines, and indirect, downstream suppliers, providing products and services at wind farms. These collaborations are critical to our business strategy, but can also contribute to potential negative impacts within our value chain. In order to identify, manage and mitigate the potential negative impacts, which Vestas can contribute or be linked to, we request our suppliers take diligent and reasonable steps to prevent human and labour rights violations within their own supply chains as outlined in Vestas’ Supplier Code of Conduct. Our value chain encompasses a diverse workforce, including, but not limited to, employees in the upstream supply chain working at suppliers’ manufacturing facilities, individuals involved in extraction of raw materials, and downstream covering contractors for constructing the wind turbines at project site or for servicing already installed wind turbines. We are dedicated to ensuring fair treatment and opportunities for all workers, including vulnerable groups such as migrants, young workers, and women in certain high-risk regions. All materially affected workers in the supply chain are covered in this disclosure.
Report Date: 4Q2024Relevance: 85%
- Does the undertaking include all value chain workers who are likely to be materially impacted by its operations, products, services, or business relationships within the scope of its disclosure under ESRS 2 SBM-3? Additionally, identify any geographies or commodities at the country or other levels where there is a significant risk of child labour, forced labour, or compulsory labour among workers in the undertaking's value chain.
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Question Id: S2.SBM-3_04
For commodities, the extraction of raw materials such as conflict minerals, which is crucial to the green transition, may possess potential human and geopolitical risk which must be mitigated. Generally, Vestas will either be contributing to or linked to potential adverse human rights impacts associated with forced and child labour due to the complexity of our supply chain. Thereby, these potential negative impacts are concentrated in our upstream value chain across the short and medium term. These impacts could affect all types of workers, particularly vulnerable groups, such as children, involved in the extraction processes. The reason why children might be involved in extraction of minerals is due to their low weight and small build. Such involvement might potentially negatively affect their health and safety while also depriving them from education. Mining might happen in economically weak regions, distant and difficult locations with weaker presence of governmental institutions which add to the risk of adverse human rights impacts such as forced labour. Hence, Vestas has a specific focus on the extraction of minerals.
Report Date: 4Q2024Relevance: 60%