Vestas

Vestas Wind Systems is one of the world’s largest manufacturer of wind turbines. The company manufactures both onshore and offshore wind turbines. The company also provides operation and maintenance services for wind power parks.

Engagement objective

To mitigate negative impacts and maximise positive impacts of their activities on biodiversity.

Background

Despite the strong interdependence between climate change and biodiversity, global energy systems are being decarbonised, often to the detriment of habitats that support wildlife. A renewable energy transition that both avoids harm and contributes to the regeneration of biodiversity is therefore essential and requires help from those involved in all stages of planning and implementation.

In early 2022, having previously identified Vestas as having an elevated level of exposure to potential biodiversity impacts (both positive and negative), WHEB tried to initiate a discussion with the company around its approach to managing biodiversity. However, the company procrastinated in revealing any information and later indicated that managing biodiversity impacts was not currently a priority. We grew concerned that Vestas had no real plan to address biodiversity and identified the company as a candidate for escalation.

Actions

We initiated a collaborative engagement initiative with a like-minded client in early 2023, which then expanded to include other investors that agreed with us that Vestas needed to demonstrate a greater sense of urgency on managing biodiversity impacts.

Together we wrote a letter, addressed to the CEO, calling on the company to support nature conservation and biodiversity in the transition to renewable energy. The letter also outlined our belief that it is critical that Vestas develops and articulates a clear position on biodiversity and that it publishes its approach to mitigating negative impacts and maximising positive biodiversity impacts.

Outcome: Milestone 3 – Company develops or commits to developing an appropriate policy or strategy to manage the issue

Vestas’ IR responded in quite some detail, for example, disclosing their use of bird and bat protection systems, environmental impact assessments and instruction of specialist consultants to aid with the development of the biodiversity strategy. Overall, we are pleased to see so full a response on the issue and, having seen the letter, are now deciding next steps with our collaborators. This will likely constitute agreeing on further questions that have arisen and points for further encouragement. We will report any further progress in due course.