Our Business Principles
On this page you can find information about our business - and governance model as well as our principles (policies) that guides os on our journey to become the global leader in sustainable energy solutions.
Our business model
Our vision is to become the Global Leader in Sustainable Energy Solutions. We believe in the power of renewables to ensure long-term energy security, and in building a more sustainable planet for future generations. By leading across our four business areas, Onshore, Offshore, Service, and Develop-ment, we aim to lead the energy transition forward.
Onshore
Vestas is the market leader with more than 40 years of experience in Onshore wind. Based on our own onshore wind turbine product design and devel op ment, we offer customers wind power solutions and we take care of everything from siting, manufacturing, con- struction, and installation to final commissioning in cooperation with our partners.
Offshore
Vestas is becoming a leading player in Offshore wind with almost 30 years of experience. Based on our own offshore wind turbine product design and development, we offer customers wind power solutions and we take care of all stages from siting through final commissioning.
Development
Development, our newest business area, helps our customers grow their business, which in turn generates order intake for Vestas. More than 100 employees across 15 countries secure land rights and permits, design sites, ensure grid connection, and secure project offtake agreements to create quality projects.
Service
Vestas is the global market leader in Service within wind power with around 15,000 employees across 77 countries. Our people service 152 GW for our customers on long-term subscription- based contracts leveraging our digital and AI capabilities.
We are driving the decarbonisation of the global energy system, and enabling prosperous and resilient societies through our three core business areas; Development, Power Solutions, and Service
We are proud to offer a solutions that address the climate crises, and build energy security
We are dedicated to strengthening energy systems as a global leader in sustainable energy solutions
Our Governance Principles
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.
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 management has the necessary framework to be able to conduct business in the spirit of Vestas’ values.
Our Policies & Guidelines
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.
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
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. Deloitte was first appointed auditors of Vestas Wind Systems A/S on 9 April 2024 for the financial year 2024.
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.
| Audit fees (mEUR) | 2022 | 2023 |
|---|---|---|
| Audit - PricewaterhouseCoopers | 3 | 3 |
| Assurance engagements Pricewaterhouse Coopers | 1 | 1 |
| Tax assistance | 1 | 1 |
| Other services | 1 | 0 |
| Total | 6 | 6 |
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.
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.
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.
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 2023 | 261 |
| Financial year 2022 | 144 |
| Financial year 2021 | 174 |
| Financial year 2020 | 219 |
| Financial year 2019 | 251 |
| Financial year 2018 | 195 |
Tax Report
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.
Tax Sustainability Report 2023
In March 2024, the 2023 report will be published.
Tax Sustainability Report
Other documents
Other reports or documents that we are obligated to make available online.
