General business principles
Strategy and business model
Who we are
- Wind energy is our heritage and core competence
With a vision to become the global leader in sustainable energy solutions, everything we do revolves around the development and deployment of sustainable energy solutions.
Every day, our employees help to create a better world by designing, manufacturing, installing, developing, and servicing wind energy and hybrid projects all over the world.
With more than 100 GW of wind turbines installed in more than 80 countries, our sustainable energy solutions have already prevented 1.5 billion tonnes of CO₂ being emitted into the atmosphere and contributed to a more sustainable energy system.
Wind will form the backbone of the sustainable energy systems of the future, and we remain focused on developing solutions that accelerate the energy transition and strengthen Vestas’ continued leadership in wind.
We have already played a crucial role in laying the foundations for the sustainable era, and that we are uniquely positioned to show the path to a sustainable planet.
Our business model
In the Annual Report 2021 section 'Corporate Strategy' you will find a detailed description of who we are, corporate strategy, and our business model.
Governance guidelines
With the right strategy, the right business model, the right management, and with the right governance principles it is our belief that we can become the global leader in sustainable energy solutions. It will not be easy, but we will fight for it as we all have an obligation to leave a better world for the next generations to come.
Solid foundations for management
To the Board, corporate governance is an ongoing process which supports value creation and accountable management, thereby contributing to the company’s long-term success.
To make sure that the managements responsibilities are clearly defined Vestas has drawn up a number of policies, guidelines, etc. which annually undertake a review to make sure that we have the right governance guidelines and processes.
The Board is continuously vigilant of the guidelines and processes that are in place for the running of Vestas. This ensures that – at any given time – management has the necessary framework to be able to conduct business in the spirit of Vestas’ values: Accountability, Collaboration, Simplicity, and Passion.
Download policies, articles, guidelines, etc.
- Description:
- Articles of Association
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- Articles of Association
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- Rules of procedure for the Board of Directors
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- Rules of procedure for the Board
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- Charter - Audit Committee
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- Charter - Audit Committee
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- Charter - Technology and Manufacturing Committee
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- Charter - Technology and Manufacturing Committee
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Charter - Nomination and Compensation Committee
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- Charter - Nomination and Compensation Committee
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- Remuneration Policy
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- Remuneration Policy
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- Rules of Procedure for the Executive Management
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- Rules of Procedure for the Executive Management
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- IR Communication Policy
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- IR Communication Policy
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- Group Tax Policy
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- Group Tax Policy
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- Supplementary appendix to the Vestas Group's Tax Policy
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- Supplementary appendix to the Vestas Group's Tax Policy
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- Diversity & Inclusion Policy
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- Diversity & Inclusion Policy
Our Code of Conduct
At Vestas, we act with integrity in everything we do. This means making the right decisions when faced with difficult situations and ensuring that our actions match our values of accountability, collaboration, simplicity and passion.
Additional information about Vestas' business principles
Being a multinational company with a vision to be global leader in sustainable energy solutions, Vestas is exposed to a variety of risks. That is why we are working actively to ensure that such risks are understood, monitored and, to the extent possible, mitigated to ensure that they do not adversely impact the realisation of our strategic and financial targets.
In order for the management to take risk-adjusted decisions, we have integrated a group-wide enterprise risk management framework. This framework focuses on identification, evaluation, treatment, monitoring, and communication of risks, where risk owners are responsible for managing risks within their area of responsibility.
Five key risks identified in 2020,:
- Operating in complex markets,
- trade barriers
- execution of high volumes,
- cyber risk, and
- increased complexity leading to faster product cycles and challenged quality.
In connection with financial management it is the Group’s objective to create the necessary stability to implement strategic development work while in the long term achieving a competitive return for the company’s shareholders. At the same time, the Group has the objective of reducing cost of capital.
The Group’s main possible methods of maintaining or changing its capital structure are:
- adjustment of the dividends level;
- share buy-backs;
- issuing of new shares;
- new borrowing;
- change of the level of funding from prepayments received; and
- credit granted by suppliers.
External Audit
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 reappointment. PricewaterhouseCoopers was first appointed auditors of Vestas Wind Systems A/S on 5 May 1999 for the financial year 1999. They have been reappointed for subsequent terms, most recently in 2021.
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 report and Independent assurance report on the Sustainability key figures are available in the Annual Reports.
Internal Audit
Once a year, the Audit Committee assesses the need for an internal audit function. The Committee has found that it is not necessary to establish an internal audit function in Vestas.
| Audit fees (mEUR) | 2019 | 2020 |
|---|---|---|
| Audit - PricewaterhouseCoopers | 3 | 3 |
| Total audit | 3 | 3 |
| Non-audit services (PricewaterhouseCoopers): |
||
| Assurance engagements | 0 | 0 |
| Tax assistance | 1 | 1 |
| Other services | 2 | 0 |
| Total non-audit services | 3 | 1 |
| Total | 6 | 4 |
At the Annual General Meeting 8 April 2021, PwC was reelected as the company's auditor for the financial year 2021.
Other documents
Other reports or documents that we are obligated to make available online.
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 2020 | 219 |
| Financial year 2019 | 251 |
| Financial year 2018 | 195 |
| Financial year 2017 | 262 |
| Financial year 2016 | 212 |