10 Steps to Becoming a Carbon Neutral Business

Page 17 STEP 04: SET YOUR STRATEGY LM WIND POWER’S APPROACH TO SETTING THE STRATEGY Sustainability at LM Wind Power has always been about business development and improvement. This was clearly reflected in the strategic approach to CleanLM which was defined after a comprehensive process to understand what carbon neutrality was and what would be required to get there as a leader. We took inspiration from other companies also far more advanced ones and built our approach on a few simple principles: 1. Efficiency and business improvement first – internal reductions with accompanying cost savings had to cover any need for RECs and carbon credits already year one. 2. Clear link between renewable electricity supply and our business identity – green power should ideally come from a wind turbine installed and plugged into our manufacturing facilities where feasible. 3. Brand differentiation and employee engagement – any RECs or carbon offsets should come from wind projects to the widest possible extent and support communities in the countries where we operate or feature customer wind turbines, ideally even with LM Wind Power blades. Given the priorities above, we prioritized the energy efficiency drive as the first step. With invaluable support from our Vice President Operations, we managed to assign dedicated resources to identify and drive energy reductions with double digit savings and less than two years payback. This move was instrumental for the rest of the program to materialize successfully. SWITCHING to renewables Byaiming for 100% renewable electricity consumption REDUCING our carbon emissions By leaningandoptimizing thewayweoperate INVESTING in credits and certificates By fundinggreenhousegas reduction projectsaround theworld 1 2 3 4 The four workstreams of CleanLM