LM_Sustainability_Report_2022

People and society Carbon neutrality Circularity Introduction LM Wind Power Sustainability Performance 2022 After 2021, where our safety performance was impacted by Covid-19 in terms of work-related infection cases, our injuries & illness rate went down again in 2022 to 0.51 per 200,000 work- ing hours from 0.73 in 2021. Likewise, we also had a decrease in the days away from work rate from 0.53 in 2021 to 0.38 in 2022. Employee engagement and development Our Human Resource (HR) management follows an HR Busi- ness Partnering structure. HR Business Partners work togeth- er with functional leaders globally and manufacturing site leaders locally to deliver and develop a broad range of HR services to the company that mirror the company’s overall strategy. Through career coaching conversations, develop- ment feedback and growth opportunities, we help employees to explore their career possibilities. At LM Wind Power, employees are responsible for establishing their career goals, working towards those goals and partnering with their managers for guidance and support along the way. To start their own career journey, employees begin by preparing a series of ongoing career coaching conversations with their man- agers where they discuss the progress of their development rel- ative to their interests and goals, as well as refine the actions that align with their short- and long-term career aspirations. In 2022, salaried employees used GE’s People Performance & Growth (PPG) process for performance management. At the beginning of the year, salaried employees are asked to set pri- orities 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 how the employee delivered against their priorities, the impact that it made on business outcomes and their demonstration of the GE Leadership Behaviors: Onboarding and training In 2022, over 2,300 new employees joined LM Wind Power. Among them, over 1,750 were hourly employees who went through a five-block onboarding program before they were allowed onto the shop floor. The onboarding program con- sists 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 knowledge 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 worker’s ability to com- plete 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 hourly employ- ees’ development of skills and knowledge through local per- formance systems and our global skills management soft- ware. We trained more than 2400 hourly employees and we invested more than 800,000 training hours for them. Our new salaried workers received 16 training courses, cover- ing a series of crucial topics covered in The Spirit & The Let- ter, such as supplier relationships, conflict of interests and improper payments. In total more than 4000 trainings were provided to our salaried workers in 2022. Diversity and inclusivity Diversity is a given at LM Wind Power, since we operate in 4 continents and over 50 nationalities make up our workforce. In line with our The Spirit & The Letter, we base our employ- ment decisions on job qualifications and merits which include education, experience, skills, ability, performance and growth values. Employment decisions shall be made without consid- ering a person’s race, color, religion, national or ethnic origin, sex (including pregnancy), sexual orientation, gender identity or expression, age, disability, veteran status or other charac- teristics protected by law. Both LM Group Holding A/S and LM Wind Power A/S strive to achieve gender balance in their highest management level, the Board of Directors. In 2022, the two entities have the same Board members and are comprised of three company repre- sentatives and two employee representatives. With a female Chief Financial Officer present as one of the three company representatives, both Boards have reached equal representa- tion. As of December 2022, we had a total of 16 top executive positions that represent various functions within the organiza- tion, and out of these positions, three are held by women. We organized Pride Marches across the globe at many of our plants and locations in June 2022, in a unified business approach to support not only raising awareness but also fur- ther breaking biases around LGBTQIA+. The rainbow colors spread across our plants globally were a visual testament to our commitment. Various activities took place, including Pride Walks, employee interactions, games, paint- ing/drawing/crafts, and sharing meals. Leadership teams engaged in meaningful conversations with the employees about the significance of LM Wind Power’s support for diverse talent and creating a safe work environment for all LGBTQIA+ colleagues and allies. We will continue our efforts in promoting diversity and addressing the issue at all levels of the organization. We continued to feature our diverse colleagues in the LM Gamechangers campaign that helped us create an inspiring working environment and bring to light their contributions that is helping us shape an inclusive industry, free from all bias. As one of the founding members of the Windclusion Alliance, we continue to actively participate in strengthening the part- nership, by growing the global network, including more con- tributors to the different work streams and further shaping up the alliance. We also participated at Wind Europe and Wind Energy Hamburg annual events, where our representatives in the alliance spoke on wind’s role as a key driver in the clean energy transition, and on how the sector’s massive growth will lead to an incredible demand for skilled people. We need to join forces to make the wind-industry more attractive and retain talent through improved focus on diversity and inclusion. Our reporting environment 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 defence 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 anonymously or reported directly through several channels, including the employee’s HR manager, our legal department or our compliance officer, any business ombudsperson or by calling the GE integrity hotline. In 2022, more than 106 open reporting policy concerns were raised by employees in LM Wind Power. Approximately 36% of the concerns logged in this year identified either policy or process non-compliance, which led to process improvements or disciplinary actions. There were 0 child or forced labour case, and 4 harassment & discrimination cases. Ethics and compliance At the core of LM Wind Power’s ethics & compliance programs lies The Spirit & The Letter, which is a GE-wide code of con- duct. The Spirit & The Letter is reinforced by policies, pro- cesses and training regarding ethics and compliance. LM 22