LM_Sustainability_Report_2022

Introduction People and society Carbon neutrality Circularity LM Wind Power Sustainability Performance 2022 OUR MATERIAL TOPICS Materiality analysis To identify sustainability-related material topics that are most significant to LM Wind Power and our stakeholders, we con- ducted an in-depth materiality analysis in 2022. This analysis was a part of systematic process which involved three main phases. First, to assess our sustainability strategy, we carried Material topics and explanation Relevant GRI topic-specific standard Relevant United Nations Global Compact Principles Relevant Sustainable Development Goals Relevant LMWind Power performance indicator People & Society Material topic Health and safety Explanation Our business spans globally and engages over 11,000 people. Ensuring our employees and other people we interact with return safely to their families is of the utmost importance. This means looking at people, products, process and even supply chain management. This material topic covers how we manage health and safety in the workplace and our performance on the accident rate, lost days and accident severity. 3-3: Management of material topics 403: Occupational Health and Safety 2: Business should make sure that they are not complicit in human rights abuses SDG 3 – Good Health and Well-being Illness and injury rate Days Away from Work rate Plants certification Material topic Ensure business integrity and compliance Explanation Being a global company with a diverse and multicultural workforce, we should act in line with the highest integrity and compliance standards. The people we employ, and communities we work in, expect this from us. This material topic covers how we manage compliance and integrity and our performance on diversity, antibribery and corruption, child labor and supplier social assessment. 3-3: Management of material topics 205: Anti-corruption 405: Diversity and equal opportunity 408: Child labor 414: Supplier social assessment 1: Businesses should support and respect the protection of internationally proclaimed human rights 10: Businesses should work against all forms of corruption, including extortion and bribery. SDG 5 – Gender equality Employees trained in anti- bribery and corruption policies and procedures (%) Diversity of employees, excluding governance bodies Supplier Responsibility Guidelines (SRG) audits out an extensive desk review of current and forthcoming key requirements, as well as internal and external stakeholders’ expectations both within the wind energy industry and world- wide. Second, we engaged with our internal core stakeholder group to actively seek their constant inputs related to our material topics. Finally, the LM Wind Power Sustainability Steering Committee – which includes our CEO and cross-func- tional representation from our management team, including Sales, HR, Engineering, Manufacturing, Transport, Sourcing, EHS and Sustainability – thoroughly assessed and approved our material topics identified in phase 1 and 2. As a result of this analysis, our material topics are structured into three dimensions of sustainability: people & society, car- bon neutrality, and circularity. Our sustainability strategy is designed to ensure short-term focus on these dimensions which are most material to our business and stakeholders, as well as guide our long-term sustainability targets and actions. 17