Sustainability Performance 2021

At LM Wind Power, people are at the very core of the business. They are involved with securing the right materials from suppli- ers, designing, and building blades for our customers. We regard employee engagement, motivation, and development as key to the success of our business, enabling us to deliver high quality blades globally. A diverse and engaged workforce is one of our strengths and we continue to invest in and promote the values of diversity and inclusion. We are also deeply committed to respect- ing the highest social and human right standard with whoever we interact with. Employee engagement and development Our Human Resource management follows GE’s HR Business Partner structure. HR Business Partners work together with functional leaders globally to deliver and develop a broad range of HR services to the company that mirror the company’s overall strategy. Through GE’s Career Navigation framework, we help employees to explore their career possibilities. In 2021, White Collar (WC) employees have used GE’s the People Performance & Growth (PPG) process for performance manage- ment. At the beginning of the year, WC employees are asked to set priorities for the year. Throughout the year, the priorities will be revisited and adjusted as needed to reflect changes in what is important to the business and customers. Checkpoints, held between employee and manager in various forms, ensure close alignment throughout the year. At the end of the year, an Annual Summary will be organized between employee and manager to discuss on how they delivered against their priori- ties, the impact that it made on business outcomes and their demonstration of the GE Leadership Behaviors. In 2021, over 1,000 new employees joined LM Wind Power. Among them, over 950 were Blue Collar (BC) employees who went through a five-block onboarding program before they were allowed onto the work floor. The onboarding program consists of company knowledge, overall manufacturing knowl- edge and theoretical and practical trainings of approximately five weeks in the Center of Excellence. After new employees have come to understand basic knowl- edge in key areas like safety, quality and their assigned skills, the employee begins working on the shop floor alongside an experienced mentor to apply previous learning in real life blade production. Towards the end of the onboarding (around 3 months), the employee is given their first Practical Evaluation, which is a standard method of assessing the workers ability to complete a group of related tasks according to a performance standard. Once the employee demonstrates adequate competency in their assigned skills, they will be qualified and may perform work without a mentor. We further facilitate BC employees’ development of skills and knowledge through local Performance Systems and our Global Skills Management software. Integrity and compliance At the core of our Integrity & Compliance programs lies The Spirit & The Letter, which is reinforced by policies, processes and training regarding integrity and compliance. We adopted The Spirit & The Letter from GE as a crucial piece of the inte- gration. Currently, approximately 100% of our WC employees and a big portion of our BC workers acknowledged The Spirit and The Letter in written form. Our new WC workers will receive 16 training courses, covering a series of crucial topics covered in The Spirit & The Letter, such as Supplier Relation- ships, Conflict of Interests and Improper Payments. In our “open reporting environment”, employees are encour- aged to raise integrity concerns and be confident that they can do so without having to worry about retaliation. Our employees remain the company’s first and best line of defense in the early detection of potential compliance issues. Our Open Reporting allows employees and third parties to report concerns about violations of policy or law. Concerns can be reported anony- mously or reported directly through several channels, including the employee’s HR manager, our legal department, or our com- pliance officer, any business ombudsperson, or by calling the GE integrity hotline. In 2021, more than 99 open reporting poli- cy concerns were raised by employees in LM Wind Power. Approximately 39% of the concerns logged in this year identi- fied either policy or process non-compliance, which led to pro- cess improvements or disciplinary actions. We remain committed to respecting not only the human rights of our own employees but also those of our partners’ employ- ees and the members of the communities where we operate. Such respect is a foundational requirement of both GE, and our Supplier Integrity programs, and we seek to drive compliance through continued improvement in audit techniques, workers’ voice programs and employee training. We also believe collabo- ration and best-practice sharing, through organizations such as the Global Business Initiative for Human Rights – of which GE is a founding member – help companies work together toward the common goal of upholding the principles first laid out by the United Nations in 1948, with its historic issuance of the UN Declaration on Human Rights. While we recognize, our most material risk is safety at production sites, we continue to focus in the previous year ** ar 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 i vestme t figures are base on numbers from the annual report. *** At GE, trainin s on anti-corruption a d 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 emp wer them to play a role in maintaining compliance. 100% d in 2021, ious year *** 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. 28 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2021