Sustainability Performance 2020

At the very core of our business is people, who engaged our sup- pliers on buying the right materials, designed our blades and of course turned raw materials into end products for our custom- ers. Therefore, we strongly believe that a highly engaged and motivated workforce is essential to business success. With our global footprint, we have seen firsthand the value of diversity and inclusion and therefore strive to promote these values. We also commit to respecting the highest social and human right standard with whoever we interact with. Employee engagement and development Our Human Resource management follows GE’s HR Business Partner structure. HR Business Partners work together with functional leaders globally to deliver and develop a broad range of HR services to the company that mirror the company’s overall strategy. Through GE’s Career Navigation framework, we help employees to explore their career possibilities. In 2020, White Collar (WC) employees have continued to use GE’s Performance Development (PD) process for performance management. At the beginning of the year, WC employees are asked to set priorities 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. Touchpoints, held between employee and manager in various forms, ensure close alignment throughout the year. At the end of the year, a Summary Touchpoint will be organized between employee and manager to discuss on how they delivered against their priorities, the impact that it made on business outcomes and their demonstration of the GE Leadership Behav- iors. Going forward, PD system will be replaced by PPG (People, Performance & Growth) a simpler and clearer process to man- age performance while facilitating the growth of our people and Company. In 2020, over 1,300 new employees joined LM Wind Power. Among them, over 1,200 were Blue Collar (BC) employees who went through a five-block onboarding program before they began working on the shop floor. The onboarding program consists of company knowledge, overall manufacturing knowl- edge, and theoretical and practical trainings for approximately five weeks in the Center of Excellence. After new employees have come to understand basic knowledge in key areas such as 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 produc- tion. 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 workers ability to complete a group of related tasks according to a performance standard. Once the employee demonstrates adequate compe- tency in their assigned skills, they will be qualified and may perform work without a mentor. We further facilitate BC employees’ development of skills and knowledge through local Performance Systems and our Global Skills Management soft- ware. Communities LM Wind Power has a strong track record of recruiting people for high-quality and skilled jobs from local communities across the world. Company-wide, this year we hired more than 1,200 BC employees in China, India, North America and Europe. We maintain good relations with local unions and operate in com- pliance with the relevant local employment laws and regula- tions. Due to the different requirement and regulations in the countries in which we operate, the employees covered by col- lective bargaining agreements vary from none in our plants in the United States, China, Poland, Vadodara in India to over 26% at Dabaspet, India, 85% in Gaspe, Canada and 100% in Suape, Brazil. Integrity and compliance At the core of our Integrity and Compliance programs is GE's The Spirit & The Letter, which is reinforced by policies, process- es and training regarding integrity and compliance. Currently, approximately 100% of our WC employees and the majority of our BC workers acknowledged The Spirit and The Letter in writ- ten form. Our new WC workers will receive 16 training courses, covering a series of crucial topics covered in The Spirit & The Letter, such as Supplier Relationships, Conflict of Interests and Improper Payments. 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 defense 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 2020, more than 123 open reporting policy concerns were raised by employees in LM Wind Power. Approximately 37% of the con- cerns logged in this year identified either policy or process non-compliance, which led to process improvements or disci- plinary actions. compared to 3.9% in 2019 Employees trained in anti- corruption and bribery, compared to 90% in 2019 95% compared to 7 in 2019 compared to 3.9% in 2019 Employees trained in a ti- corruption a d bri ery, compared to 90% in 2019 compared to 7 in 2019 29 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2020