Sustainability Performance 2020

We remain committed to respecting not only the human rights of our own employees but also those of our partners’ employ- ees and the members of the communities where we operate. Such respect is a foundational requirement of both GE and our Supplier Integrity programs, and we seek to drive compli- ance through continued improvement in audit techniques, workers’ voice programs and employee training. We also believe collaboration and best-practice sharing, through orga- nizations such as the Global Business Initiative for Human Rights – of which GE is a founding member – help companies work together toward the common goal of upholding the principles first laid out by the United Nations in 1948, with its historic issuance of the UN Declaration on Human Rights. As part of the compliance program at GE, we believe that operating with a strong anti-corruption program is a critical component in how we do business. Our approach to compli- ance in the critical area of improper payments is multifacet- ed. Among its key features are: • Corporate policies and procedures that reflect our approach by prohibiting improper payments in every transaction, whether with a government or with a private party. • Extensive controls, including thorough due diligence, careful screening and training on our policies, over third-party inter mediaries such as distributors, service providers, and com- mercial agents and representatives. • Heightened attention to key risk areas such as gifts and entertainment, travel and living expenses, donations, and facilitating payments. • Prompt investigation and remediation of any concerns. • Extensive training of our employees on improper payments. • Robust internal controls and accounting processes designed to detect and prevent violations of our policy relating to improper payment risks and to ensure accurate books and records relating to transactions. • Increased emphasis and enhanced due diligence concerning improper risk associated with mergers, acquisitions and joint ventures. • Strategic use of Corporate Audit Staff to identify and assess potential improper payments. Diversity and inclusivity In line with GE's The Spirit & The Letter we will base our employ- ment decisions on job qualifications and merits which include education, experience, skills, ability, performance and GE leader- ship values. Employment decisions shall be made without con- sidering 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 characteristics protected by law. In 2020, we continued our strong scrutiny of recruitment, suc- cession planning and retention initiatives to be able to adjust where necessary and ensure a diverse employee mix at all levels of the company. This means, among other things, that diverse representation, e.g. gender, should be considered as an impor- tant component of organizational planning. Diversity consider- ations should be built into structured career reviews of all sala- ried employees to make sure less represented gender talents receive their fair share of attention and opportunities. Another initiative we took to improve diversity is to ensure there is always a female representative in the recruitment committees and that we aim to have at least one female candidate in the selection pool for recruitment for roles at management level. 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 2020, the two entities are comprised of three company representatives and two employee representa- tives respectively. With a female Chief Financial Officer present as one of the three company representatives, both Boards have reached equal representation. By the end of 2020, the Manage- ment Team of LM Wind Power consisted of 12 males and three females. The diversity in the Management team remains similar compared to three females out of 14 in total in 2019. While we continue our effort to address the imbalance at the top of the organization, we also have a robust program to promote diversity at the plant level. Guided by the vision-‘Together, we create a desirable place to work with equal opportunities for all’, the program does not impose a global strategy to improve diver- sity. To respect diversity is to understand that there is no one single best approach for all sites and it fits well with our approach to local empowerment in other business areas. Each plant gets to create their own roadmap, fitting in their own cul- ture and addressing their specific diversity roadblocks. Across LM Wind Power, the proportion of women remained at around 16% in 2020. Every plant has an Inclusion and Diversity (I&D) leader, who works together with the local team to set an annual plant-specific I&D strategy with targets and initiatives. Initiated by the plants, targets - such as having certain number of female front-line leaders in the plant - link diversity aspira- tions closely to business operations. At LM Wind Power, diversity goes beyond gender balance only. Plants are encouraged to identify and resolve other roadblocks to a more diverse and inclusive workforce. In Suape, for example, the plant included strong I&D statement in job posts and adjusted its hiring process by adding sign language interpreters via video to assist candi- dates with hearing loss. We recognize that we still have much opportunity to improve, and we continue our efforts to promote diversity and inclusion at all levels of the organization. 30 | LM WIND POWER SUSTAINABILITY PERFORMANCE 2020