Our Governance Principles
On this page you can find information about our business principles (policies) that guides us on our journey to become the global leader in sustainable energy solutions.
How we conduct business
With the right strategy, business model and management, and with the right governance principles in place, we believe we can become the global leader in sustainable energy solutions.
To achieve our strategy and vision, it is essential we build strong foundations through our organisational principles and values.
We therefore emphasise leadership and good corporate governance to anchor and embed these values, which are: Accountability, Collaboration, Simplicity, and Passion. Underpinning everything we do, these values guide the actions we all need to take, individually and as one.
Our policies and guidelines are a solid foundation for the management
To ensure our management’s responsibilities are clearly defined, we have drawn up a number of policies and guidelines. The Board and/or management annually review these documents to confirm we have the right governance processes in place.
The Board is continuously vigilant of the guidelines and processes that are in place for the running of Vestas. This ensures that management has the necessary framework to be able to conduct business in the spirit of Vestas’ values.
Overview of some of our policies and guidelines
Additional information
Each year, Vestas’ Annual Report is audited by an independent external audit firm appointed annually by the shareholders at the Annual General Meeting. Retiring auditors are eligible for re-appointment.
At the Annual General Meeting 2025, Deloitte was re-appointed auditor of Vestas Wind Systems A/S with respect to both statutory financial reporting and sustainability reporting for the year 2025.
The Board maintains a regular dialogue with the auditor. However, it is the responsibility of the Audit Committee to make arrangements for the necessary exchange of information.
Reporting
The external auditor reports any significant findings regarding accounting matters and any significant internal control deficiencies via the Audit Committee to the Board and in the auditor's long-form report. A more detailed management report on internal controls and accounting issues is provided to Executive Management. The Audit Committee supervises the annual audit process, which includes meetings with the external auditor.
The Independent Auditor's Reports and Independent Auditor's Limited Assurance Report on Sustainability Statement are available in the Annual Reports.
| Audit fees (mEUR) | 2023 | 2024 |
|---|---|---|
| Audit | 3 | 4 |
| Assurance engagements | 1 | 2 |
| Tax assistance | 1 | 0 |
| Other services | 0 | 2 |
| Total | 5 | 8 |
At Vestas, risk management is an integral part of business operations and strategy. Our focus is on identifying and mitigating risks that may impact short- to medium-term plans, while also addressing long-term risks that could hinder the achievement of our strategic goals, safeguarding Vestas’ future longevity.
As a global company, we face a wide range of risks inherent to our industry and the countries in which we operate, including operational, commercial, macroeconomic, and regulatory challenges. Our Enterprise Risk Management (ERM) framework ensures a consistent approach to identifying, assessing, mitigating, and monitoring these risks. It promotes comprehensive understanding and transparency in risk management, minimising negative impact on our strategic and financial ambitions. Our ERM also aims to create and protect shareholder value, ensure risk awareness, and balance risk against reward.
Vestas’ most significant risks, including material sustainability topics (such as climate change mitigation and business conduct), are reviewed every six months by our Executive Management Team, the Board of Directors, and the Audit Committee. These risks are based on insights gathered from management teams across the organisation and include all types of risks that could cause significant disruptions to the achievement of our strategic objectives.
An overview of our key risks, along with detailed descriptions, is provided in our Annual Reports.
The Board and Executive Management regularly evaluate our capital structure. This process involves assessing how we fund our operations and growth to ensure these efforts align with shareholder interests and support our corporate strategy.
Our financial management goal is to ensure flexibility, financial headroom, and an optimal cost of capital throughout the business cycle. We aim to meet our long-term financial ambitions while delivering value to customers and maximising returns for shareholders.
Capital allocation priorities
In our capital allocation, we apply the following principles:
- Allocate the investments and R&D required to realise our corporate strategy.
- Make value-creating acquisitions to accelerate or increase profitable growth prospects.
- Ensure all investments in organic growth and acquisitions support our long-term financial ambition of achieving a 20 percent return on capital employed.
- Explore divestments of non-core assets to strategic owners who support industry scaling.
- Pay shareholder dividends based on the Board’s intention to recommend 25–30 percent of the company’s annual net result after tax, which will be paid out following shareholder approval at the Annual General Meeting.
- From time to time, initiate share buy-back programmes to adjust the capital structure.
Any decision to distribute cash to shareholders will be based on the capital structure target and availability of excess cash. The level of excess cash will be determined in line with our growth plans and liquidity requirement.
Transparent and fair taxes are vital to our efforts to make a positive contribution to local communities and create a sustainable planet for future generations.
Tax Policy
The purpose of the Vestas Group Tax Policy (supplementary appendix to the Vestas Group's Tax Policy) is to define global management of taxes including governance, structuring, and risk management.
The policy applies to all decisions that directly or indirectly affect reporting and/or payment of taxes notwithstanding the nature of the tax as long as it fall or could fall under the liability of any Vestas Group Company.
| Our Group's tax payments (mEUR) | |
| Financial year 2024 | 245 |
| Financial year 2023 | 261 |
| Financial year 2022 | 144 |
| Financial year 2021 | 174 |
| Financial year 2020 | 219 |
Tax Sustainability Reports
The objective of our tax report is to give the reader an understanding of the tax footprint of Vestas and explain the distribution of the global tax contribution.
