Sustainability Performance 2021

Research and development (R&D) and industry-leading techno- logical advances enables us to meet our customers’ needs, address sustainability challenges and is pivotal to advance competitiveness of wind energy. Our R&D efforts are very much focused on developing and maturing the next generation of wind technology innovations. We also engage with industry peers to manage the sustainability of turbine blades by inte- grating life cycle thinking into blade designing, building and end of life processes. Research and development R&D forms the core of our business and is a crucial part of our strategy. In 2021, we have continued to invest 4.0% of our rev- enue in R&D – maintaining the same level of investment, com- pared to 2020 and launched 10 new blade designs. We remain committed to maximizing the quality and perfor- mance of our blades in pursuit of sustainability. Blade design is optimized through innovations in carbon technology, facilitat- ing longer lighter blades. Manufacturing waste is reduced through further optimization of our manufacturing systems. Advances in Lightning Protection Systems, Ice Mitigation Sys- tems and Leading-Edge Protection extends the operating life of our blades in field. Finally, the Zero wastE Blade ReseArch (ZEBRA) project sees us advance towards the end goal of fully recyclable blades. Quality and supplier management Quality management systems are implemented at all our sites. All production sites in operation are certified with ISO 9001. GE’s Supplier Responsibility Guidelines (SRG) are fully embed- ded and are a part of the LM Wind Power supplier qualification process, ensuring that new suppliers are assessed before any business or product qualification commence. Suppliers are required to follow all applicable laws in their respective coun- tries as well as GE standards. We also strongly advise that sup- pliers use an environmental management system to manage their impacts. Other expectations of suppliers include: • Compliance with laws and regulations protecting the envi- ronment; improving resource efficiency • Providing workers a safe and healthy workplace • Employing workers above the applicable minimum age requirement or the age of 16, whichever is higher • No forced, prison or indentured labour, or workers subject to any form of compulsion, coercion or human trafficking • Compliance with minimum wage, hours of service and over- time wage laws • Freedom of association • No discrimination • No harassment • Adherence to ethical business practices • Respect intellectual property • Avoiding sourcing 3-TG (tin, tantalum, tungsten and gold) from conflict mines • Maintaining an international standard of security measures • Expect their suppliers to conform to similar standards In 2021, we have continued to engage the suppliers to improve their quality performance and adhere to our supplier require- ments. A key supplier quality indicator is the non-conformity rate, on which we kept at 0.39% and well below our target threshold of 0.69%. Suppliers are prioritized for detailed, on- site assessments depending upon the country in which they are located, their past performance and whether they are produc- ing parts or components that will be incorporated into our products. All of LM Wind Power’s direct materials suppliers on our mandatory countries list require an onsite Supplier Responsibility Guidelines (SRG) audit. All suppliers are required to receive at least one SRG audit every two years and suppliers with previously recorded concerns will be audited every year. In 2021, we completed 14 audits in total during which no major areas of non-compliance were found. Going forward, we will continue with the supplier audits to make sure the suppliers meet requirements. Data ethics policy At LM Wind Power, all data are business critical, and we will not consider sharing, selling or otherwise use the data for anything but the purpose of their existence. As such, we do not currently see a need to author and maintain a policy, but we will reevalu- ate on an annual basis. Revenue invested in R&D in 2021, compared to 4.0 % in the previous year ** Total waste for recycling in 2021, compared to 27% in the previous year Employees acknowledged GE's The Spirit & the Letter 2021, which addresses anti-corruption and bribery *** * In our Safety metrics, we consider LM employees & LM Coordinated Contractors ** R&D investment figures are based on numbers from the annual report. *** At GE, trainings on anti-corruption and bribery are issued every two years. As 2021 was a intervening year , employees were asked to confirm that they have read and understood GE’s the Spirit & the Letter and agree to comply with its obligations, which cover anti-corruption and bribery. We will continue with the employee trainings to maintain awareness and empower them to play a role in maintaining compliance. 100% New blade designs launched in 2021, compared to 12 in the previous year 10 Revenue invested in R&D in 2021, compared to 4.0 % in the p vious year ** Total waste for recycling in 2021, compared to 27% in the previous year 41% 2 Scope 2 emissions in 2021, compar d to 0 in the previous year consumptio (inclu i g instruments like EACs) in 2021, compared to 100% in the previous year Employees acknowledged GE's Th Spirit & th Letter 2021, which addresses anti-corruption and bribery *** * In our Safety metrics, we consider LM employees & LM Coordinated Contractors ** R&D investment figures are based on numbers from the annual report. *** At GE, trainings on anti-corruption and bribery are issued every two years. As 2021 was a intervening year , employees were asked to confirm that they have read and understood GE’s the Spirit & the Letter and agree to comply with its obligations, which cover anti-corruption and bribery. We will continue with the employee trainings to maintain awareness and empower them to play a role in maintaining com liance. 100% New blade designs launched in 2021, compared to 12 n the prev ous year 10 4. ** R&D investment figures are based on numbers from the annual report. 24 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2021