SUSTAINABILITY AT VESTAS
SUSTAINABILITY IN EVERYTHING WE DO Carbon neutral company by 2030 CARBON FOOTPRINT – without using carbon offsets Producing zero-waste CIRCULARITY Reducing CO 2 emissions in own operations wind turbines by 2040 by 55% by 2025 and 100% by 2030, compared to 2019, without the use of carbon Hub and blade to be 50% offsets recyclable by 2025 Reducing CO 2 emissions in the supply chain Hub and blade to be 55% by 45% per MWh generated by 2030 recyclable by 2030 compared to 2019 RESPONSIBLE WORKPLACE Safest, most inclusive & socially Leading the transition ENERGY TRANSITION responsible workplace in the towards a world powered energy industry by sustainable energy 25% women in leadership positions by 2025 Take a leading role in driving electrification and 30% by 2030 beyond the power sector Inclusive leadership training and Team up with other sustainability leaders unconscious bias training mandatory part to drive change of all talent and leadership training by 2021 Supporting our partners in their journey Reduce the rate of Total Recordable Injuries to become more sustainable to 1.5 by 2025, and to 0.6 by 2030 2 Sustainability at Vestas Classification: Restricted
SUSTAINABILITY GOVERNANCE Board of Directors The Vestas Sustainability Committee prioritises, oversees, and coordinates cross-functional sustainability initiatives across the entire organisation. Executive The Sustainability Committee also ensures our company Management conforms and lives up to its international responsibilities as a member of the UN Global Compact. In 2019, Vestas established a Sustainability Strategy Sustainability Committee department that consolidates efforts across the company on ESG (Chaired by GSVP) matters. It is responsible for preparing, coordinating – and in close Implementation collaboration with the functional areas, driving, and practically Support, in all functional reporting and supporting on the execution of the sustainability strategy. areas by feedback on performance appointed Sustainability Ultimately, responsibility for the sustainability performance of sustainability strategy office Vestas as a whole lies with our company line organisation – leads supported by the Sustainability Strategy department. Environment & Health & Safety Employee Wellbeing Climate Change Corporate Social Responsible Responsibility Business Practises 3 Sustainability at Vestas Classification: Restricted
SUSTAINABILITY AT VESTAS Areas of focus Environmental Social Sustainability in sustainability sustainability governance Management Safety Carbon footprint remuneration Emerging markets & Energy payback Business ethics Social due diligence Whistle-blower Product waste & Social license to operate programme recyclability 4 Sustainability at Vestas Classification: Restricted
CARBON FOOTPRINTS COMPARED Vestas’ carbon footprint is significantly reduced compared to other electricity -generating sources Grams of CO 2 1.050.0 per KWh 850,0 Did you know? Comparing carbon dioxide emission per kWh electricity 525,0 generated, a Vestas 4 MW 485,0 wind turbine only emits around 1% compared to a coal power plant. 65,0 4.4 5.6 7.3 V117-4.2 V136-4.2 V150-4.2 Solar Gas Oil Coal World average MW MW MW 5 Sustainability at Vestas Classification: Restricted
VESTAS TURBINES ARE ENERGY NEUTRAL IN A FEW MONTHS A Vestas wind turbine requires very little energy to be produced in comparison to its output Energy payback by energy source Industry Average A single Vestas Wind Turbine Number of times (assuming a 20-year life cycle) Average of Vestas’ Will generate around 30 to 50 times more WTGs (maximum of all wind classes) energy than it uses in its entire life cycle 60 Compared to Coal 50 If you invest 1 unit of energy in coal your return will always be less than 1 unit of electricity 40 (typically around 0.34 kWh) 30 Vestas 4 MW Platform Wind turbines are energy neutral in 4.8 to 7.6 20 months of operation. In that period of time, the turbines generate the same amount of energy that was needed to produce them. 10 0 V117-4.2 V136-4.2 V150-4.2 Nuclear Gas Coal MW MW MW 6 Sustainability at Vestas Classification: Restricted
RECYCLABILITY OF VESTAS TURBINES Continuous reduction in end-of-life product waste 83-87% of a Vestas wind turbine is recyclable. Blades represent Product waste relative to energy production the most substantial barrier to realising a 100% recyclable wind (grams/kWh) – Medium Wind (140m tip) turbine; multiple innovation projects in place to increase recyclability. -33% 100% of the MW delivered by Vestas in 2018 were covered by a 0,255 0,250 publicly available, full ISO 14040/44 Life Cycle Assessment (LCA). The ISO LCAs have been conducted since 1999 and are critically reviewed. 0,178 0,170 Life Cycle Assessment (LCA) Vestas provides a “cradle -to- grave” evaluation of the environmental impact of our activities on key indicators: ✓ Carbon footprint (CO 2 -e grams per kWh) ✓ Return on energy (months or number of times paid back) 2013 2015 2017 2019 ✓ Recyclability (percentage of turbine weight) End-of-life product waste (including post recycling) ✓ Water use (litres per MWh) 7 Sustainability at Vestas Classification: Restricted
SUSTAINABILITY AT VESTAS Areas of focus Environmental Social Sustainability in sustainability sustainability governance Management Safety Carbon footprint remuneration Emerging markets & Energy payback Business ethics Social due diligence Product waste & Whistle-blower Social license to operate recyclability programme 8 Sustainability at Vestas Classification: Restricted
SAFETY ACHIEVEMENTS Continuous improvements through targeted effort 96% reduction in LTIs • Vestas has seen significant improvements in relation to reducing the number of injuries. • From 2005 to 2018, Vestas has reduced the incidence of lost time injuries by 96%. A decrease of 2.5% • In 2019, Vestas reduced the rate of Total Recordable Injuries (TRIR) to 3.9 compared to 4.0 in 2018, not meeting target for 2019 of Incidence of injuries 10 3.6. The target for 2020 is 3.1. Per one million working hours 8 Three behavioural safety programmes A decrease of 55% • Safety Awareness Training 6 Vestas has managed to reduce the • Vestas Behavioural Change programme rate of Total Recordable Injuries 4 • My Team My Responsibility since 2015 from 8.7 to 3.9. The target for 2020 is a max. rate of 3.1 2 Lost Time Total Recordable 0 Injury rate Injury rate 2015 2016 2017 2018 2019 Source: Vestas Sustainability Report 2019 9 Classification: Restricted
WIND IN EMERGING MARKETS As a first-mover, Vestas sets standards Vestas has pioneered more Vestas in Non-OECD Countries than 38 wind energy markets Engaging with embassies, policymakers, regulatory and other authorities to help create a positive investment climate. Sets standards regarding safety, sustainability and quality. Builds up local capacities to integrate wind energy into the electricity mix; increasing local knowledge and lowering electricity costs. Builds up infrastructure when missing, in order to develop the project. 10 Sustainability at Vestas Classification: Restricted
VESTAS’ SOCIAL DUE DILIGENCE A powerful methodology to create alignment and value for customers and stakeholders Our methodology is aligned with the UN Guiding Principles on Business and Human Rights. It is also benchmarked to the IFC Environmental and Social Performance Standards Our methodology includes: • Assessment of the project and the affected local communities: • Review of stakeholder engagement • Review if there is resettlement • Potential impacts on health and safety, and cultural Our methodology is aligned with heritage of the local community the UN Guiding Principles on • Realisation of project-specific activities to increase the local Business and Human Rights. community development • Identifying and maximising local employment opportunities It is also benchmarked to the IFC Environmental and Social Performance Standards. 11 Sustainability at Vestas Classification: Restricted
SOCIAL LICENSE TO OPERATE Case study: Lake Turkana Wind Power Project Lake Turkana Wind Farm: as an example +USD 900m investments in rural wind farm development and upgraded road +USD 800k investments from Vestas in local capacity building +1,800 +320 and once in operation local jobs during construction Impact: 310 MW of reliable and clean power supply to Kenya’s national grid 50% 13% reduction in outages reduction in for local companies electricity costs Source: Vestas (2018) Socio-economic study of key impacts from Lake Turkana Wind Power (LTWP). Available from: https://bit.ly/39xmSi6 12 Sustainability at Vestas Classification: Restricted
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