The primary use of water in Vestas' operations is for domestic purposes, with a low environmental impact compared to other industrial companies. Despite this, operational presence in water-scarce regions may stress local water resources. Using third-party software and geospatial mapping, Vestas identified water consumption in eight manufacturing facilities in regions facing high or extreme water stress, with 18 sites exposed to such stress. In total, 86.3 percent of water consumption is from areas with high or extreme water stress, impacting own operations in the short term. Climate change can lead to water scarcity, but renewable energy helps reduce fossil fuel dependence and mitigate climate change effects.

Vestas' primary water consumption is for domestic purposes, with a low environmental impact. However, presence in water-scarce regions may stress local resources. Using geospatial mapping, Vestas identified water consumption in eight manufacturing facilities in regions with high or extreme water stress, and 18 sites exposed to such stress. 86.3 percent of total water consumption is from these areas, impacting own operations in the short term. Climate change can lead to water scarcity, but renewable energy helps reduce fossil fuel dependence and mitigate climate change effects.

During 2024, Vestas initiated the implementation of new water management systems and continued to raise awareness of water conservation across manufacturing sites. A water management system will be implemented at all Vestas locations where Vestas is responsible for water management. The systems are to be evaluated and revised with significant changes in water consumption or wastewater generation. Vestas also focuses on water leakage management to reduce wastage and overall consumption, especially in water-stressed areas, to minimize impact on people and nature. The impact is hard to quantify, and overall water consumption does not directly remediate local populations or nature in these areas.

Vestas' water consumption primarily stems from domestic use, with a low environmental impact. However, presence in water-scarce regions may stress local water resources, negatively impacting local populations and nature. Climate change, through higher temperatures and altered precipitation patterns, can lead to water scarcity. Renewable energy, like wind power, helps reduce fossil fuel dependence and mitigate climate change effects, playing a crucial role in mitigating global water scarcity.

Wind farms can have a negative impact on biodiversity, but ultimately play a positive role in protecting global biodiversity and ecosystems by replacing traditional energy sources with renewables. By utilizing nature-based solutions and mitigating harm with technology, Vestas collaborates with customers to deliver projects with the lowest impact on biodiversity and ecosystems. 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.

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.

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.

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.

The 2024 resilience analysis of our strategy demonstrates capability to address material IROs with our current strategic and operational initiatives and to take advantage of material opportunities. The changes to IROs compared to the previous reporting period had not been extensive, thus Vestas has been working with managing and pursuing many of the IROs in a strategic perspective for several years. Nevertheless, it is the first time we assess some of these areas both in terms of financial impact and dependency, and more insight remains to be gained.

The analysis was conducted based on input from our climate and biodiversity resilience analysis, evaluation of mitigation actions, financial impact assessments, and dependency analysis on natural and social resources. All areas were assessed in line with a short-term time horizon that is current year to less than three years, which correlates with our corporate strategy and enterprise risk management approach.

In 2025, the plan is to strengthen this analysis further vis-à-vis material IROs by improving the methodology, including mid- and long-term time horizons in line with the CSRD requirements. Therefore, Vestas has chosen not to disclose a more in-depth analysis overview for 2024 as defined by ESRS 1, SBM-3.