Sustainability Performance 2020

In 2015, world leaders committed to the Paris Agreement – an unprecedented step to curb greenhouse gas emissions. LM Wind Power is committed to concrete and ambitious actions to fight climate change. With our products powering wind turbines all over the world, we are part of making the Paris Agreement a reality. Yet our environmental commitment goes beyond the green electrons our products generate. We keep account and take responsibility of our own operational emissions such as improving energy efficiency and disposal practices to minimize the environmental impact of our activities as much as possible. Global EHS policy Our environmental practices are guided by the Global EHS Poli- cy, which states that we should use natural resources and ener- gy in a sustainable way and avoid adverse impact on the envi- ronment. To ensure that we operate the company in line with international standards and continuously minimize our potential negative environmental impacts, all our production sites cur- rently in operation are certified according to ISO 14001. When introducing new materials or processes, we always undertake an EHS risk assessment to identify potential risks for any people involved and for the environment. The change in materials can- not be implemented before plans to address or control risks associated with the change are developed. The new material or process must as a minimum be at the same level of risk, and preferably better to ever reach implementation. Addressing our operational emissions Since 2018, LM Wind Power has been a carbon neutral business – the first in the industry. Maintaining carbon neutral status requires us to achieve a net-zero carbon footprint by balancing emissions with an equal amount of reductions and offsets every year. Four workstreams form the backbone of the ongo- ing carbon neutral commitment: 1. Measuring and disclosing our greenhouse gas (GHG) emissions 2. Optimizing the way in which we use energy and reducing emissions from energy use, waste generation and other operational activities 3. Procuring 100% renewable electricity, particularly from wind 4. Offsetting the remaining unavoidable emissions through verified carbon credits Prior to 2020, LM Wind Power had its own dedicated carbon neutrality workstreams. This year to align with GE Renewable Energy’s wider carbon neutrality pledge, the workstreams were carried out with a consistent approach across the Renewable Energy businesses, including LM Wind Power. While the overall footprint is comparable year-on-year, some methodologies for specific emission sources have changed which have impacted on our emissions numbers too. Greenhouse Gas Accounting Every year, we measure our carbon footprint through the greenhouse gas accounting exercise. We cover a wide range of scope 3 emission sources in our operational carbon footprint, going beyond the minimum requirement of including scope 1 and scope 2 emissions in our carbon neutrality program. In our scope, we include: • Stationary combustion • Mobile combustion • Refrigerants • Purchased electricity •Purchased heating/cooling • Waste generated in operations • Business travel • Employee commuting • Fuel- and energy-related emissions • Delivery of materials from suppliers to our factories Revenue invested in R&D, compared to 3.9% in 2019 Waste reduction savings, compared to $12 million in 2019 $ 8.4 million Total waste for recycling, compared to 25% in 2019 28% Net carbon footprint (tCO e) for operations (according to the CarbonNeutral Protocol methodology, including o sets), compared to 0 in 2019 0 Renewable electricity consumption (including instruments like EACs), compared to 100% in 2019 100% Employees trained i anti- corruption and bribery, compared to 90% in 2019 95% Days Away from Work rate per 200,000 working hours, compared to 0.39 in 2019 Illness and injury rate per 200,000 working hours, compared to 0.84 in 2019 New blade designs launched, compared to 7 in 2019 12 4.0% Revenue invested in R&D, compared to 3.9% in 2019 Waste reduction savings, compared to $12 m llio in 2019 $ . million Total waste for re ycling, compared to 25% in 2019 Net carbon footprin (tCO e) for operations (according to the CarbonNeutral Pr t col meth d logy, including o sets), compared to 0 in 2019 Renewable electricity consumption (including instruments like EACs), compared to 1 0% in 2019 Employees trained in anti- corruption and bribery, compared to 90% in 2019 5% Days Away from Work rate per 2 ,0 0 working hours, compared to 0.39 in 2019 Illness and injury rate per 2 ,0 0 working hours, compared to 0.84 in 2019 New blade designs launched, compared to 7 in 2019 4.0% evenue i vested in & , c mp red t 3.9% i 1 aste red cti n s vi gs, comp red t 12 million i 1 $ illi tal aste f r recycli g, c mp red t 5 i 1 et c rbo f otpri t (tCO e) for erati ns ( ccording t t e rbo e tral r t c l etho l gy, incl ding sets), c mp red t i 1 e le l ctricity c ns pti n (incl ding i strume ts li e s), c mp red t 1 i 1 mployees traine i nti- c rrupti n ri ery, c mp red t 0 i 1 ys w y fr m ork r te er , working rs, c mp red t .39 i 1 Illness i jury r te er , working rs, c mp red t .84 i 1 ew blade designs lau c ed, c mpared to 7 in 1 . venue i veste in D, c m are t 3. % i 1 Waste re ucti s vi gs, c m are t $12 m lli i 1 $ illi otal aste for re ycli g, c m are t 5% i 1 et car f otprin (t e) for erati s (accordi g t t e ar eutral r t col met l gy, i cl di g sets), c m are t 0 i 1 e bl lectricity c s mpti (i cl di g i str ments li e Cs), c m are t 1 % i 1 mployees trai e i nti- corr pti bri ery, c m are t % i 1 ys y fr m Wor rate er , 0 orki g urs, c m are t 0.39 i 1 Ill ess injury rate er , 0 orki g urs, c m are t 0. 4 i 1 ew bla e desig s l c ed, compared to 7 i 1 . % 21 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2020