Vestas Wind Systems
ESRS disclosure: ESRS ESRS 2 \ DR GOV-3
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- 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%
- Provide a detailed description of the nature of activities or business relationships through which your undertaking is involved with material impacts, as required by Disclosure Requirement SBM-3. Specify whether these impacts arise from your activities or are due to your business relationships, and elaborate on the nature of these activities or relationships.
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Question Id: SBM-3_07
Vestas' primary water consumption is for domestic purposes, with a low environmental impact. However, operational presence in water-scarce regions may stress local water resources. Using geospatial mapping, Vestas identified water consumption in manufacturing facilities in regions with high or extreme water stress. Climate change can lead to water scarcity, but renewable energy helps reduce fossil fuel dependence and mitigate climate change effects.
Report Date: 4Q2024Relevance: 50%