Our Business Principles
Our Business Model
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.
We are powering the fight against the climate crisis by driving innovation, supporting our partners, and laying a strong foundation for resilience in the communities we work in. These areas are the core of our business model, ensuring that our success as a business is directly tied to building a more sustainable planet.
In the Annual Report 2021 section 'Corporate Strategy' you will find a detailed description of who we are, corporate strategy, and our business model.
Our Governance Principles
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:
Accountability, Collaboration, Simplicity, and Passion.
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.
Solid foundations for management
To the Board, corporate governance is an ongoing process that supports value creation and accountable management, thereby contributing to the company’s long-term success.
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.
Download Policies, Articles, Guidelines, etc.
General Meeting Documents
Board Governance Documents
Policies, Guidelines, etc.
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
As a multinational company and global leader in wind power, Vestas is exposed to a variety of risks in its daily business. In order for us to protect and create shareholder value and achieve our strategic objectives, we must manage the broad spectrum of risks that we face. These include operational risks relating to the design and manufacturing of wind turbines, execution risks relating to the transportation, installation and servicing of wind turbines, and risks of a macroeconomic and regulatory nature. We strive to ensure that such risks are understood, monitored, and managed with a view to minimising any negative impact on our strategic and financial ambitions.
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 2021
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 re-appointment. 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 2022.
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. In line with good corporate governance, the Audit Committee is currently working towards establishing an internal audit function effective for the financial year 2023.
| Audit fees (mEUR) | 2020 | 2021 |
|---|---|---|
| Audit - PricewaterhouseCoopers | 3 | 3 |
| Total audit | 3 | 3 |
| Non-audit services (PricewaterhouseCoopers): |
||
| Assurance engagements | 0 | 0 |
| Tax assistance | 1 | 1 |
| Other services | 0 | 1 |
| Total non-audit services | 1 | 2 |
| Total | 4 | 5 |
At the Annual General Meeting 2022, PwC was reelected as the company's auditor for the financial year 2022.
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 2021 | 174 |
| Financial year 2020 | 219 |
| Financial year 2019 | 251 |
| Financial year 2018 | 195 |
| Financial year 2017 | 262 |
Other documents
Other reports or documents that we are obligated to make available online.
