Download Leading the global transformation towards a new clean energy

 Leading the global transformation towards a new clean energy economy Dear stakeholders,
The year 2016 has painted a bright picture for the world’s prospects to cut carbon pollution and prevent the
most dangerous levels of climate change. Never before have so many different players shown their
willingness to be part of the green transition. And never before have we shared as strong a common platform
from which to drive the green transition as we do now with the adoption of the Paris Agreement - the firstever universal climate convention - and the UN Global Goals for Sustainable Development.
Whilst there is no doubt that political commitment and supportive policies are important drivers for the green
transition, the good news is that the market is becoming increasingly greener. Driven by innovation and
technology developments, the cost of energy for renewable sources continues to fall and makes them an
attractive investment.
With increasing speed, global energy markets are turning away from fossil fuels and towards wind and other
renewable sources. The accelerating pace with which the transformation towards clean energy takes place is
reshaping how the world generates electricity.
Dealing with climate change starts with wind
Between 1970 and 2010 the CO2 emissions from fossil fuel combustion and industrial processes contributed
about 78% to the total GHG emission increase. Above 40% of these emissions come from the electricity and
heating sector.
Changing the electricity mix by transitioning to renewables is the ultimate low hanging fruit in the solution to
address climate change; and wind is a key part of the solution. Not just because wind is clean but because it
is a cheaper, more competitive energy choice and offers a level of long-term certainty that more price-volatile
fossil fuels can’t match. It makes economic sense to turn towards renewables.
To achieve this, we are leading the industry with investments in research and development and our smart
data capabilities to help customers lower their cost of energy, increase their annual energy production, and
strengthen their business case. With constant innovation and technological advancement driving down the
cost of energy, wind is well-positioned to maintain its leading position as the preferred renewable energy
choice.
Among businesses, investors, civil society and many other non-governmental parties we see an increasing
awareness about the fact that action on climate change and sustainable development in general is needed
and that it is not detrimental to economic growth.
The demand for wind is growing throughout the energy industry, as well as a wide range of industries where
major companies like Amazon, Apple, Google, IKEA, Microsoft, and Walmart, are all making big investments
in renewables and purchasing and developing their own installations.
In Vestas we will continue to raise awareness and advocate that it makes good business sense to lead the
transformation towards a global clean energy economy. That is also why Vestas has joined the Paris Pledge,
thereby promising to ensure that the ambition set out by the Paris Agreement to limit global temperature rise
to less than 2 degrees Celsius is met or exceeded.
A sustainable and resilient future for all
Vestas actively supports partnerships and collaborative efforts intended to advance the sustainability
agenda. One of our most notable partnerships is with the UN as members of the Global Compact.
Looking into the coming years ahead, there is no doubt that the UN Sustainable Development Goals
(SDGs) will be a key driver for the transition towards a sustainable and clean energy economy - but only if
the private sector are willing to take on leadership and work together with Governments and civil society in
a global partnership to help the ambitious goals be achieved.
Vestas has decided to join this global partnership and is working actively with the SDGs as part of our
broader commitment to contribute to a sustainable and resilient future for both people and the planet. The
SDGs offer a universal plan to address economic, social and environmental dimensions of sustainable
development. Coordinated via our cross-functional Sustainability Committee, we are currently in the
process of determining the goals which will define our global sustainability activities, with the aim of
launching our strategy in 2017. This strategy will include specific commitments on how we as a private
company will contribute to the achievements of the SDGs.
Leading the way
Vestas strives to improve the environmental performance of its production and operations in order to match
the performance of our products. Vestas’ environmental strategy for 2016 - 2020 aims to support our
business offering and operational excellence.
In turbine performance, the target for reduction in product carbon footprint will be 5 percent by 2020 from a
baseline of 6.9 grams CO2 per kWh in 2015.
Focusing on Vestas’ operations, the target for energy consumption is to reach a 60 percent share of
renewable energy in 2020 from 55 percent in 2015. The road to the target will be both improvements in
energy efficiency and further transition to renewable energy.
Making sure that employees, business partners and stakeholders stay safe continue to be a top priority for
Vestas. Through the dedicated efforts of its employees and supervised contractors, Vestas reduced the rate
of total recordable injuries in 2016.
Unfortunately, we still have fatalities directly or indirectly related to our business. That and any injury is
unacceptable as it not only affects our daily business but more importantly our families.
Vestas is determined to continue leading the industry, and to working with partners in government, the
private sector and civil society to realize wind power’s full potential as an affordable clean energy source and
key climate change solution. We look forward to continuing leading the global transformation towards a new
clean energy economy in 2017.
Please read more about our sustainability efforts in our Annual Report and on the vestas.com site.
President and CEO
Anders Runevad