Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Products
• Climate Change and Decarbonization
• Environmental Protection
• Fair and Attractive Employer
• Occupational Health and Safety
• Responsible Sourcing
• Business Ethics, Compliance and Integrity

Environmental Achievements

• 46% reduction in carbon emissions in own operations (scopes 1+2) per installed MW
• 13% reduction in energy consumption by installed capacity
• 37% less waste production by installed capacity

Social Achievements

• Reduced Group-wide accident frequency rate to 3.2 (2020: 3.9)
• Established a Diversity and Inclusion (D&I) Council
• 4.4 customer satisfaction in the Sales and Service area

Governance Achievements

• Conducted 240 audits of Nordex-specific component suppliers as well as construction and service-related suppliers
• EcoVadis Gold Medal awarded
• 4,774 employees completed a course on preventing corruption

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to increased raw material prices and logistics costs
• Rotor blade circularity and finding a replacement for SF6 in switchgears
• Growing customer requirements regarding ESG factors

Mitigation Strategies

• COE program to soften the impact of rising costs
• Cooperation with suppliers to find solutions for blade circularity and SF6 replacement
• Close collaboration between Sales and Global Sustainability teams to maximize ESG evaluation scores

Supply Chain Management

Supplier Audits: 240/year

Responsible Procurement

• Supplier Code of Conduct, harmonized supplier qualification process, due diligence measures to prevent purchasing minerals from conflict areas.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting production sites and wind farm construction

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Increased demand for wind energy technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Nordex's business activities contribute to these goals through wind turbine manufacturing, installation, and service; commitment to sustainable practices and resource efficiency.

Sustainable Products & Innovation

• Delta4000 series turbines, N16 3/6.X turbine

Awards & Recognition

• EcoVadis Gold Medal
• Listed among the ‘100 Top Employers That Make the World a Better Place’

Environmental Metrics

ESG Focus Areas

• Sustainable products
• Environment (climate change and decarbonization; environmental protection)
• Social matters (fair and attractive employer; occupational health and safety)
• Governance (responsible sourcing)
• Business ethics (compliance and integrity)

Environmental Achievements

• Not disclosed

Social Achievements

• Increased headcount from 8,658 to 9,111 employees, primarily due to ramping up the production site in India and growing number of turbines in the service segment.
• Not disclosed

Governance Achievements

• Implemented a Compliance Management System based on prevention, detection, and response to foster ethical culture and promote compliance with the Nordex Code of Conduct, UN Global Compact, and OECD guidelines.
• Successfully completed two capital increases in mid-2022, generating EUR 351 million in gross proceeds to strengthen the balance sheet and protect against short-term sector risks.

Climate Goals & Targets

Environmental Challenges

• Russia's invasion of Ukraine causing raw material and logistics price surges, supply chain disruptions, and project delays.
• China's zero-COVID policy causing supply chain interruptions and project delays.
• Cybersecurity incident causing production and installation delays.
• Supply shortages and cost explosion hampering structural margin improvement.

Mitigation Strategies

• Renegotiated contracts with customers for more balanced risk sharing.
• Raised prices to address higher cost base.
• Implemented two capital increases to strengthen capital structure and liquidity.
• Agreed a shareholder loan with Acciona to refinance maturing corporate bond.
• Adjusted production footprint by closing two production sites in Spain and discontinuing rotor blade production in Rostock (while maintaining Rostock as a significant manufacturing site).
• Continued cost reduction program.
• Optimized production and supply chain.
• Improved internal processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Qualifying further suppliers to reduce single-sourcing risk.
• Negotiating contracts systematically with regard to risk.
• Selecting the right suppliers.
• Ensuring timely delivery and quality of components.
• Addressing local manufacturing content requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in government policies affecting financial incentive schemes for renewable energy.
• Uncertainties about building permits and disruptive regulatory changes.
• Rising energy and commodity prices affecting the supply chain.

Opportunities

• Increased demand for renewable energy due to the war in Ukraine and focus on energy security.
• US Inflation Reduction Act and EU Net-Zero Industry Act providing incentives for renewable energy expansion.
• Repowering of existing wind turbines.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001 (for German locations)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Delta4000 series wind turbines
• N175/6.X turbine

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable products
• Environment (climate change and decarbonization; environmental protection)
• Social matters (fair and attractive employer; occupational health and safety)
• Governance (responsible sourcing); business ethics, compliance and integrity

Environmental Achievements

• Increased turbine production output to 7,985 MW (2022: 7,463 MW), largely due to higher average turbine performance.
• Installed 7,253 MW of wind turbine capacity (2022: 5,221 MW), a 38.9% increase.

Social Achievements

• Increased average number of permanent employees to 9,697 (2022: 8,866).
• Increased total headcount from 9,111 to 10,133 employees as of 31 December 2023.
• Improved the proportion of women in the total workforce to 17% (2022: 16%).

Governance Achievements

• Successfully repaid a high-yield bond from 2018.
• Converted two shareholder loans into equity, increasing the anchor shareholder's equity interest to 47.1%.
• Successfully issued a EUR 333 million green convertible bond to strengthen liquidity and financial flexibility.
• Implemented a comprehensive risk management system to detect and manage potential risks.

Climate Goals & Targets

Environmental Challenges

• Weak economy and high interest rates.
• Fluctuations in the supply chain due to the earthquake in Turkey.
• Considerable cost pressures at the beginning of the year.
• Cybersecurity incident in 2022 causing installation backlog.
• Long waits for permits to use heavy haulage to transport components on the roads.

Mitigation Strategies

• Increased production, installation, and service activities.
• Improved customer contracts to distribute risk in a balanced way.
• Strengthened the company's financial structure by boosting liquidity.
• Repaid high-yield bond and converted shareholder loans into equity.
• Issued a convertible bond to protect against uncertainties.
• Implemented a cost reduction program.
• Continuous development of the product portfolio.

Supply Chain Management

Responsible Procurement

• Strengthening supply chains in terms of pricing and risk reduction.
• Selecting the right suppliers in the right countries.
• Systematically negotiating contracts with regard to risk.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Delta4000 series wind turbines
• N175/6.X turbine