Vestas Wind Systems EU Taxonomy disclosure

ESRS disclosure: ESRS ESRS 2 \ DR GOV-3

Selected: 0

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.
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: 4Q2024

#ESRS ESRS 2 #DR GOV-3 #Paragraph 29

Relevance: 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.
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: 4Q2024

#ESRS ESRS 2 #DR GOV-3 #Paragraph 29 a

Relevance: 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.
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: 4Q2024

#ESRS ESRS 2 #DR GOV-3 #Paragraph 29 b

Relevance: 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.
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: 4Q2024

#ESRS ESRS 2 #DR GOV-3 #Paragraph 29 c

Relevance: 85%

Provide a comprehensive disclosure of the anticipated financial effects of your company's material risks and opportunities on its financial position, financial performance, and cash flows over the short-, medium-, and long-term. Include the reasonably expected time horizons for these effects and detail how your company expects its financial position, financial performance, and cash flows to evolve over these periods, considering your strategic approach to managing these risks and opportunities.
Question Id: SBM-3_09
The analysis is conducted with time horizons including Physical: 2030, 2050, 2070, Transition: one-five years, five-10 years, 10-30 years for manufacturing facilities, warehouses, and critical suppliers. The assumptions of the analysis are in line with the scenarios used, including future GHG emissions in the atmosphere. The resilience analysis did not identify any material biodiversity risks, opportunities, or dependencies, and strategic focus caters for material impact, with the business currently resilient to changing ecosystem conditions.

Report Date: 4Q2024

#ESRS ESRS 2 #DR SBM-3 #Paragraph 48 e

Relevance: 65%