Sustainability Performance 2021

* Market-based, including instruments like EACs. ** In 2021, according to the GHG protocol, we reported upstream indirect emissions related to fuels and energy separately from the consumptions. *** Emission categories and descriptions are simplified COMPANY VEHICLES Emissions from company-owned vehicles such as cars, trucks or forklifts. 4% REFRIGERANTS 1% ELECTRICITY* Emissions from purchased electricity that powers the lights, computers, tools and other equipment at our plants and oƒces. 0% PURCHASED HEATING/COOLING 0% BUSINESS TRAVEL Emissions from business travel, for instance by airplane, public transport or car. 3% Where did our carbon emissions come from in 2021? *** FUEL AND ENERGY – RELATED ACTIVITIES** Indirect upstream emissions related to the production of fuels and energy purchased and consumed and their transmission and distribution. 30% DELIVERY OF MATERIALS Emissions from transporting materials such as fiberglass or liquid resin polyester from suppliers to our factories. 20% WASTE DISPOSAL Emissions from landfilling, incinerating and recycling the waste we produce. 20% STATIONARY EQUIPMENT Emissions from stationary equipment such as boilers or back-up electricity generators in our plants. 13% EMPLOYEE COMMUTING Emissions from commuting to work, for instance by car or public transport. 9% Optimizing resource consumption As a manufacturing business, our main emissions come from resources and energy used in our operations. Reducing con- sumption, reduces emissions and cost. Already in 2018 we installed Energy Management Systems at all plants to drive transparency and identify opportunities for improvement. In 2021, our energy efficiency team continued to assist plants in finding efficiency gains. We implemented ener- gy efficiency projects in various plants to achieve an 8.6% reduction in energy consumption in kWh/ Cubic meter of oper- ations. Some of the key projects included replacement of conventional blower fans with belt drive in Air Handling Units to DC motor EC Fans resulting in 25% reduction and replacement of conven- tional induction lamps by LED which achieved a ~30% reduc- tion in consumption. We also introduced automatic ventilation control system in Ponferrada and an adiabatic cooling system for air cooled chill- ers in Vadodara. We are now planning to expand these features to other locations as well. As a manufacturer of turbine blades, waste from the produc- tion process is a significant source of emissions for us that we work hard to address. In addition to direct material reduction initiatives, waste is prevented through engineering projects that optimize blade designs and the materials required. Visit the Technology section of this report to learn more about our projects to prevent and recycle manufacturing waste as part of the Zero Waste Blades program we launched in November 2021. In 2021, we recycled 41% of our waste, compared to 27% in 2020. While doing everything we can to prevent waste from being generated in the first place, waste segregation is critical- ly important to ensure recyclable materials are sent to the appropriate recycling facilities. Our local EHS teams set up pro- cedures to have the inevitable waste pre-separated into groups such as glass fiber, carton and other industrial waste for it to be disposed of in the most environmentally friendly and eco- nomical way. Sufficient amounts of color-coded waste bins are placed at each working section of the production area. Renewable energy In 2021, 20% of our global electricity consumption was covered by green tariffs – contracted renewable electricity from our local utility providers. The remaining 80% was covered by EACs (Envi- ronmental Attribute Certificates). Our manufacturing sites in India source electricity from wind and solar through long term Power Purchase Agreements (PPAs), which is a strategy we are pursuing wherever feasible, helping to bring new renewable electricity capacity online through the project financing we help secure through our long term offtake commitment. Our electric- ity consumption is significant, but the load is spread across dif- ferent geographies and each country or region where we operate has its own regulations and conditions that influence the avail- ability of viable options. We expect we’ll need to continue to pur- chase EACs for a proportion of our renewable electricity needs in the foreseeable future to maintain our carbon neutral commit- ment, while at the same time pursuing PPAs and onsite installa- tion of renewable generation at our sites wherever it makes sense. Carbon offsets Though we are constantly aiming to reduce emissions internally, we cannot reduce all our emissions in the short term. However, we can act responsibly towards the emissions that we cannot reduce. After reducing our emissions as much as possible, we will balance the remaining scope 1 and scope 2 emissions by investing in carbon reduction projects elsewhere in the world. 22 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2021