LM_Sustainability_Report_2022

People and society Carbon neutrality Circularity Introduction LM Wind Power Sustainability Performance 2022 Monitoring of the effectiveness of integration measures to address human rights risk. Such monitoring may be conduct- ed by third parties, by LM Wind Power personnel or by any combination of the two. Human rights capacity building for our employees, contrac- tors and business partners to understand our expectations and their rights and responsibilities. This training will be fit to purpose and regularly updated. Community engagement We believe in building strong relationships with the communi- ties in which we operate by participating in activities that result in long-term changes and a positive impact. In India, for example we helped set up a digital library-cum digital community research center (CRC) for the residents of Thyamagondlu Taluk, a rural area near Bangalore with a pop- ulation of around 15,000. Through the digital libraries, stu- dents can now access thousands of books available online to further their education, while those in need of essential ser- vices like crop insurance, healthcare, etc. can make use of the CRC facilities for a nominal fee. As part of our livelihood support to women entrepreneurs in India, we provided specific training such as tailoring, mentor- ing and support to 30 rural women, to help them earn and support their families financially. In another initiative, our teams in Vadodara, India, along with United Way – our CSR partner, organized a volunteering event, where they distributed dustbins and bags made from cloth at the Gayatri Nagar Village, to increase awareness against plastics, their overconsumption and educate villagers on proper waste disposal practices. Separately, in Grand Forks, North Dakota, a clean-up walk is organized every year by employees. Volunteers collect any gar- bage or other waste found lying on a 3.2-kilometre stretch of road—a street that we have now adopted and maintain clean. Biodiversity By integrating biodiversity protection into our operations, we strive to contribute to sustainable development and promote the well-being of ecosystems. In 2022, we completed two lake rejuvenation projects – near our blade manufacturing plants in India, by undertaking regular cleaning drives, increasing green coverage by planting saplings of native trees, and building community awareness to prevent the pollution of the lakes that are essential in maintaining the surrounding ecosystem. We also make thousands of seedballs with native Indian seeds and plant hundreds of saplings as part of our afforestation drives in India. Water Day awareness activity in Suape plant In Suape, we organized an awareness session on World Water Day, where employees created posters, shared information and data on the amount of drinking water that was available in the world, waste water and its management, and a quiz on the conscientious use of water and various means of preservation. Supplier management LM Wind Power bases its supplier relationships on lawful, effi- cient and fair practices, and suppliers must adhere to appli- cable legal and regulatory requirements in their business relationships stated in all applicable laws in their respective countries as well as GE Integrity Guide for Suppliers. In order to be socially and environmentally responsible, all suppliers must ensure that they and their employees, workers, repre- sentatives, suppliers and subcontractors comply with the standards of conduct set out in the Guide and in other con- tractual obligations to LM Wind Power. LM Wind Power requires all suppliers and subcontractors to sign on to minimum standards set out in GE’s Integrity Guide for Suppliers including respectful workplace; environment, health, and safety; forced labor; and child labor and young workers. All suppliers are required to accept and adhere to guidelines ensuring business will be conducted as per the requirements including: • Compliance with laws and regulations protecting the envi- ronment; improving resource efficiency • Provide workers with a safe and healthy workplace • Employ workers above the applicable minimum age requirement or the age of 16, whichever is higher • No forced, prison or indentured labor, 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 • Avoid sourcing 3-TG (tin, tantalum, tungsten and gold) from conflict mines • Maintain an international standard of security measures • Expect their suppliers to conform to similar standards In 2022, we continued to engage suppliers to improve their quality performance and adhere to our supplier requirements. A key supplier quality indicator is the non-conformity rate ¹ on which we kept at 0.26% and well below our target threshold of 0.35%. Suppliers are prioritized for detailed, on- site assess- ments depending upon the country in which they are located, their past performance and whether they are producing parts or components that will be incorporated into our products. We also strongly advise that suppliers use a sustainable manage- ment system’s actions and certifications to manage their sus- tainability impacts. All potential suppliers shall have a Quality Management System complying with ISO 9001:2008. GE’s Supplier Responsibility Governance (SRG) program is ful- ly embedded and is a part of the LM Wind Power supplier qualification process, ensuring that new suppliers are assessed before any business or product qualification com- mence. LM Wind Power believes that by working with suppli- ers to assess and manage their risks, the supplier can realize economic, social, and environmental benefits. All of LM Wind Power’s direct material suppliers on our mandatory countries list require an onsite 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 2022, we completed 12 audits in total during which 20 red flag and 6 yellow flag observed, and all have been closed. Going forward, we will continue with the supplier audits to make sure the suppliers meet requirements. Data ethics policy LM Wind Power adheres to GE Cybersecurity framework that ensures the security of our information, systems, products, and network is, and always will be, a top priority. LM Wind Power has adopted the National Institute of Standards and Technolo- gy Cybersecurity Framework and International Organization for Standardization 27001 Framework as the basis for our cyberse- curity controls framework. At LM Wind Power, each cyber func- tion (Identify, Protect, Detect, Respond and Recover) is man- aged by defined governance, risk assessment, control implementation, control effectiveness monitoring and metrics. In 2022, the Threat Management Team resolved 6 confirmed information security incidents for LM Wind Power. ¹ LM Wind Power’s tracks supplier non-conformances as non-conformance recorded versus the total number of deliveries. 24