Risks related to climate change. With the Paris Agreement as the binding international treaty on climate change (adopted at the Conference of Parties (COP 21) in Paris in 2015 and entered into force on 4 November 2016) setting the goal to limit global warming, countries aim to achieve a climate-neutral world by 2050. The Paris Agreement creates the foundation for a dramatic change in society that will have to pick up speed in this decade. Transitional risks are linked to extensive policy, legal, technology, and market changes needed for transitioning to a low-carbon economy and include:
Risks related to climate change. As part of global efforts to combat climate change, annual wind energy installations are forecasted to increase dramatically. Ramping up the Group's supply chain to meet these demands, in an environment where more severe weather incidents such as fires, hurricanes, high winds, high seas, blizzards and extreme temperatures are occurring, may be challenging and require evacuation of personnel, curtailment of services or suspension of operations, as well as result in an inability to meet delivery schedules, loss of or damage to equipment and facilities, supply chain disruption and reduced productivity. With the Paris Agreement as the binding international treaty on climate change (adopted at the Conference of Parties (COP 21) in Paris in 2015 and entered into force on 4 November 2016) setting the goal to limit global warming, countries aim to achieve a climate-neutral world by 2050. The Paris Agreement creates the foundation for a dramatic change in society that will have to pick up speed in this decade. To find the most economically viable way to achieve the goals of the Paris Agreement, more regions and countries introduced ambitious renewable energy targets and carbon taxation (for example, the European Union Emissions Trading System) and are considering trade restrictions for carbon intensive goods (for example, through import duties or carbon border adjustment mechanisms). It is likely that this will affect other industries and countries and that prices for carbon emissions will increase. With a supply chain partly linked to sectors such as steel production, the Group may be affected by such taxation, duties, mechanisms and systems. The Group must increasingly meet environmental, social and governance ("ESG") standards and expectations regarding environmental (for example climate change and circular economy), social (such as diversity and human rights) and corporate governance concerns (including ethics and tax compliance). The Group may not always be able to identify and adequately assess the relevant issues, which may result in a failure to meet ESG standards and the expectations of stakeholders or the public. This could adversely impact the Group's reputation and at the same time, compliance with certain ESG standards or regulations (such as Regulation (EU) 2020/852 (the EU Taxonomy)) may pose challenges and lead to additional costs for the Group. Risks relating to the Group's industry
