Vestas

Demand for electricity continues to increase, driven by further electrification of energy networks, principally growth in areas such as electrification of transport and home heating plus data centres and AI. Vestas, one of the world’s largest wind turbine makers, offers an investment case driven by long-term demand for energy from renewable sources.

A global leader in green technology and sustainability, Vestas continues to invest heavily in what is a capital-intensive industry but one with tremendous growth potential.

Vestas’ business model supports the wind energy transition with a range of high capacity onshore and offshore turbines, designed to suit varying wind and geographic conditions. The company has an impressive order book of new business and its service division offers recurring cash flows at excellent margins, thereby ensuring good returns for shareholders. 

Wind turbine installation and maintenance is potentially hazardous, presenting significant health and safety risks (e.g., injuries and fatalities, and related legal and financial consequences). Separately, sourcing from regions with weak labour regulations creates risks related to working conditions.

These risks, as well as others (such as supply chain disruption), are heightened by the company’s reliance on critical minerals like tantalum and tungsten. These finite resources are found in areas experiencing geopolitical instability and have minimal alternatives. 

Project development and construction may negatively disrupt local biodiversity, especially in areas where animal populations are already under stress.

The construction of new projects may also negatively impact local communities, particularly indigenous populations in Central and South America.

Minimising the impact of the company’s operations on local populations, both human and non-human, is critical to ensure that the company has a positive impact.