Supplier Sustainability
At Vestas, we recognize that components and raw materials currently account for over 80 percent of the carbon footprint in wind turbine manufacturing. We have set ambitious goals in our comprehensive sustainability strategy, named “Sustainability in Everything We Do”, such as decarbonising our own operations and supply chain by 2030, without using carbon offsets. Recognizing the critical role of our supply chain in achieving these targets, we have implemented specific actions and allocated resources to meet our emission reduction objectives.
With over 98% of our carbon footprint originating from suppliers' operations, we are committed to supporting emissions reduction in our supply chain. Since 2020, we have collaborated with our strategic suppliers in the towers & steel, blades, and transport sectors to reduce emissions.
In November 2024, we hosted our first in-person Supplier Forum in five years, welcoming around 200 participants from across the globe. The forum focused on enhancing flexibility and resilience within Vestas' supply chain to better manage changing demand and market volatility. Additionally, we have stressed the importance of staying ahead of sustainability regulations and ensuring that suppliers provide the necessary data to comply with these standards.
Beyond environmental considerations, Vestas places a strong emphasis on safety, inclusivity, and social responsibility. We work with our suppliers to minimize any potential adverse impacts on workers throughout the value chain. In 2024, we initiated a review of our current due diligence framework for our Tier-1 suppliers and will complete this in 2025.
Furthermore, we launched a human rights risk heatmap initiative. This initiative is in line with the expectations of the UN Guiding Principles on Business and Human Rights and allows us to use our leverage to mitigate potential adverse impacts on workers. This initiative is in line with the expectations of the UN Guiding Principles on Business and Human Rights and allows us to use our influence to mitigate potential negative impacts on workers.
By partnering with a third-party risk intelligence provider and gathering data from certain suppliers, we have increased transparency within the value chain, enabling us to generate a heatmap highlighting potential human rights risks. The results will be shared with suppliers, who will be asked to ensure proper due diligence and mitigation where those risks are identified.
As part of our ongoing commitment, we are embarking on the journey to setting social sustainability goals for workers along the value chain. In addition, we have implemented robust policies, streamlined processes, and innovative initiatives to effectively manage and address potential adverse impacts. By continuously enhancing our due diligence framework and using initiatives like the human rights risk heatmap, we aim to foster a safer, more inclusive, and socially responsible value chain. Our collaboration with suppliers and third-party risk intelligence providers increases transparency and proactively mitigates potential risks and underlines our commitment to social sustainability.
Memberships and supply chain initiatives
In 2024, Vestas joined the Wind Energy Initiative, a multi-stakeholder cooperation initiative between EcoVadis, WindEurope, ENGIE, Hitachi Energy, Siemens Gamesa and Statkraft. Recognizing the importance of supply chain sustainability, the Initiative aims to enhance transparency and elevate performance standards across Environmental, Social, and Governance (ESG) topics. To enhance transparency and elevate performance standards across ESG topics, Vestas is assessing the implementation of EcoVadis. Through this third-party assessment process, suppliers will receive scorecards and improvement plans validated by professionals, empowering them to enhance their ESG performance and contribute to a more responsible and resilient supply chain. Based on these scorecards, Vestas will work with suppliers to implement proposed corrective actions, and improvement plans to address any sustainability gaps identified.
Vestas is also part of networks that push forward responsible and inclusive agendas, such as: Nordic Business Network for Human Rights, the local UN Global Compact network on Human Rights, and the Dutch International Responsible Business Conduct Agreement for the Renewable Energy Sector.
Responsible supply chain management
At Vestas, responsible supply chain management is a crucial aspect of our sustainability commitment. We firmly believe in upholding the Vestas Supplier Code of Conduct, which is an integral part of our Purchase Agreements. We expect all our suppliers to adhere to these principles and standards. Our dedication to sustainability extends to respecting human rights throughout our entire value chain.
To ensure we meet our commitment to respecting human rights, we recognize the importance of identifying the most salient human rights issues. In 2018, we conducted our first Corporate-Wide Human Rights Assessment (CW-HRA) with the help of external sustainability experts. Building on this, we completed our second CW-HRA in 2022, which identified several adverse impacts, some of which affect our supply chain. More information about the CW-HRA can be found on our Human Rights webpage under the "Identifying & Assessing our Salient Human Rights Issues" section.
Based upon the result of the CW-HRA, we actively maintain and enhance our Conflict Minerals Programme. This initiative, is guided by our Conflict Minerals Policy.
To further address the recommendations from the assessment, we have established a steering committee with cross-functional members from Corporate Social Responsibility (CSR), People and Culture (P&C), Sustainable Procurement, and Health, Safety, and Environment (HSE). This committee is dedicated to implementing actions in identified areas of improvement.
Since 2020, the Vestas Sustainable Procurement team has been integrated into the Global Procurement function to strengthen supplier collaboration and oversee the due diligence process on human rights. The team currently has three social sustainability experts that run projects to ensure improved oversight of human rights issues within our supply chain, further reinforcing our commitment to responsible practices.
Our supplier due diligence process
To address potential adverse impacts and risks within our value chain, Vestas focuses on both direct and indirect suppliers with whom we have a contractual relationship through a supplier due diligence framework. Central to this framework is our Supplier Code of Conduct (The Code), which outlines clear requirements for suppliers and their subcontractors regarding labour practices and human rights. Additionally, the Supplier Quality Manual (SQM) provides separate quality guidelines.
When onboarding new suppliers, the due diligence process starts with screening for sanctions and ethical risks, followed by a Supplier Registration Questionnaire where suppliers acknowledge SQM and The Code. This is a prerequisite for the Supplier Business Assessment (SBA), tailored to the specific scope of supply. SBA results are verified through onsite or desktop assessments. Suppliers must commit to The Code and SQM before starting business relationships.
For indirect suppliers, a matrix is used to determine who will undergo an on-site assessment based on the results of the onboarding questionnaire and high-risk criteria. All direct suppliers undergo onsite assessments as standard. Vestas’ team conducts these assessments, verifying policies and management systems related to human and labour rights, technical, and quality aspects. Identified improvement areas lead to corrective action plans.
Ongoing monitoring ensures that existing suppliers comply with the standards, including ad hoc assessments based on evidence and media coverage. We collaborate with suppliers to enhance performance but are prepared to terminate relationships if material concerns persist. Our commitment to The Code and SQM safeguards our supply chain workers from risks.
Recently, Vestas introduced a Sustainability Survey for selected suppliers to assess the supplier's ability to document sustainability performance aligned with Vestas’ ambitions. The results will be used to support decision-making, provide deeper insight into supplier performance, and drive the transition to a more sustainable value chain.
Examples of Vestas Suppliers
Vestas works with thousands of global suppliers. We continually strive to create a resilient and sustainable supply chain to ensure Vestas sustains its leadership position in the transition towards a world powered by renewable energy. The listed 8 companies are some of the largest suppliers that we work with.
- Baettr Sales & Services A/S
- BBC Chartering GmbH & Co. KG
- CS Wind Corporation
- DSV A/S
- A.P. Møller - Mærsk A/S
- Schneider Electric SE
- Shanghai Taisheng Wind Power Equipment Co., Ltd.
- TPI Composites, Inc.