LM_Sustainability_Report_2022

Introduction People and society Carbon neutrality Circularity LM Wind Power Sustainability Performance 2022 ABOUT LM WIND POWER Business model LM Wind Power is a world leading designer and manufacturer of wind turbine blades. Our footprint spans nine countries on four continents. Having blade factories in all major wind energy markets, we supply rotor solutions to around 20 glob- al and national turbine manufacturers, whose focuses vary from regional to global and from both onshore to offshore. For our financial performance, please refer to our Annual report 2022. With more than 4 decades of experience, we have worked to be the preferred suppliers of many turbine manufacturers. Almost one-fifth of the turbines worldwide are installed with blades from LM Wind Power. Since 1978, LM Wind Power has produced more than 260,000 blades corresponding to a capacity of approximately 142 gigawatt (GW) – each year con- tributing to save more than 305 million tons of CO2. ¹ LM Wind Power is a GE Renewable Energy business since 2017. Having been a long-time supplier to GE, we have achieved many innovations and commercial successes in our partnership. The acquisition enabled us to offer higher per- formance, power more productive wind turbines while increasing the efficiency of our operation and improving returns on our customers’ investments. At the same time, we are equally committed to maintaining and growing our busi- ness with all customers. LM Wind Power’s competitive advantage LM Wind Power is one of the pioneers of the modern wind industry, starting rotor blade production in 1978. The compa- ny’s value proposition is based on advanced in-house design, testing and manufacturing technology. Leading technology and know-how As blade technology pioneers for over four decades, we con- tinue to build some of the most advanced, reliable and high-quality wind turbine blades. By leveraging our wealth of knowledge and expertise which from materials, aerodynamics, simulation, production and testing of advanced rotor blades, we support our customers globally to deliver cost-effective, and sustainable energy to communities worldwide. Technolo- gy plays a central role in the design of each blade type, and our engineers constantly push the boundaries of blade size and air foil shape. The 107-meter offshore blade is our latest innovation, which is the world’s first blade over 100 meters in length and is one of the biggest single-components ever built. It is the longest, fully tested, and certified offshore blade man- ufactured in serial production across six lines in our footprint to meet the rapidly growing and competitive global offshore market. LM Wind Power also has a leadership role in sustainability, and we integrate sustainability into everything we do, includ- ing introducing new materials with higher performance, longer lifespan and recyclable properties. Under the ZEBRA (Zero wastE Blade ReseArch) project, we are building fully sustainable blades , and in 2022, the first blade successfully completed static tests (extreme load validation). The static tests will be followed by fatigue testing (lifetime validation) in 2023. The ZEBRA blade was also recognized by Wind Power Monthly magazine as one of the significant innovations in 2022 that could shape the future of the industry. Global capacity and supply chain With production, sales, and service facilities in countries including Brazil, Canada, China, Denmark, India, the Nether- lands, Poland, Spain, Turkey, the United Kingdom, and the United States, LM Wind Power is the only blade supplier that continues to operate on a global scale for the longest period of time. This global reach ensures close contact to interna- tional customers and markets and enables the company to optimize transport and logistics costs, shorten delivery time and reduce working capital requirements. Economies of scale As the world’s largest blades supplier, we reap the benefits of economies of scale within R&D, procurement and global pro- duction. LM Wind Power’s business model is based on a green and reliable product and our unique ability to create value in efficient partnerships, with suppliers and customers as well as internally. Together, we secure clean energy for the world many years into the future. Values Act with humility We embrace a culture of respect which values inclusive teams and perspectives, we actively listen to internal and external sources, and we learn from our shortcomings as much as we celebrate our wins. Lead with transparency We embrace candor, saying what we think, not what people want to hear; we share information so we can solve problems; and we contribute to each other’s development in a construc- tive way. Deliver with focus We put safety first; we prioritize our work, maximizing our impact; we measure performance through the lens of our customers; and we are committed to continuous improve- ment, always in search of a better way. Organizational structure The LM Group is led by the CEO. They are supported by the wider Management Team, which consisted of 16 members in 2022 (including the CEO and CFO) who represent the various functions within the organization. GE Renewable Energy HQ in Paris has financial oversight of the LM Group, in accord- ance with our strict rules on confidentiality, especially with regard to external customers. Each legal entity in the LM Group is set up in accordance with local legislation. In Denmark, our organizational structure in our Danish Topco, LM Group Holding A/S, consists of a two- tier management system with a Board of Directors and an Executive Board. The Board of Directors in LM Group Holding A/S consists of five members. ¹ To calculate this number, we use United States Environmental Protection Agency, Greenhouse Gas Equivalencies Calculator. 12