Vestas Wind Systems
ESRS disclosure: S2.SBM-3_05
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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%