Vestas Wind Systems
ESRS disclosure: ESRS S2 \ DR S2.SBM-3 \ Paragraph 12
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- Does the undertaking disclose whether all value chain workers who are likely to be materially impacted by the undertaking, including those affected through its operations, products, services, and business relationships, are included in the scope of its disclosure under ESRS 2? Furthermore, in cases of material negative impacts, does the undertaking specify whether these impacts are (i) widespread or systemic in the contexts where it operates or maintains business relationships, such as child or forced labor in specific supply chains, or (ii) related to individual incidents or specific business relationships, such as industrial accidents or oil spills? Additionally, does the undertaking consider impacts on value chain workers that may arise from the transition to greener and climate-neutral operations, including those associated with innovation, restructuring, mine closures, increased mineral mining for sustainable economy transitions, and solar panel production?
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Question Id: S2.SBM-3_05
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: 65%
- Has the undertaking developed an understanding of how workers with specific characteristics, those operating in particular contexts, or those engaged in specific activities may be at an increased risk of harm, and if so, how has this understanding been achieved? Please provide details in accordance with the materiality assessment outlined in ESRS 2 IRO-1, as it pertains to the main types of value chain workers who are or could be negatively affected.
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Question Id: S2.SBM-3_08
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: 80%