Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Compliance
• Governance and Ethics
• Energy Management
• Emissions
• Waste
• Occupational Health and Safety
• Training and Education
• Local Communities
• Economic Performance
• Materials

Environmental Achievements

• Reduced recordable incident rate by 82% to 0.39 and lost time incident rate by 78% to 0.21 over four years.
• Zero instances of significant non-compliance with environmental laws and regulations in 2019.
• 8,992 metric tons of non-hazardous waste sent to recycling in 2019.
• Wind blades sold in 2019 have the potential to eliminate 303 million metric tons of CO2 throughout their average 20-year lifespan.

Social Achievements

• Associates contributed over 23,000 hours of volunteered time to serve their communities.
• Provided more than 490,000 hours of training to associates in 2019 (average 43 hours per associate).
• Overall associate engagement level of 81% in 2019.

Governance Achievements

• Implemented policies and procedures to promote a culture of compliance.
• Developed ESG metrics included in executive compensation plans.
• Ten facilities ISO 9001 certified, six facilities ISO 14001 certified, and four facilities ISO 45001 certified.

Climate Goals & Targets

Environmental Challenges

• Managing hazardous and non-biodegradable waste generated from production.
• Reducing energy consumption and emissions from operations.
• Increasing the amount of renewable energy consumed or offsetting non-renewable energy usage.

Mitigation Strategies

• Actively pursuing practices to achieve better material efficiency and waste reduction.
• Researching ways to increase renewable energy consumption or offset non-renewable energy usage.
• Implementing global EHS practice standards.

Supply Chain Management

Supplier Audits: Audits of suppliers and annual questionnaires on compliance and policies.

Responsible Procurement

• Documented standards for suppliers
• Monitoring performance throughout the supplier lifecycle
• Independent vendor assessment tool

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB standards for Wind Technology & Project Developers

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Form 10-K audited by KPMG LLP; no full external assurance for this report

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Wind blades and transportation products contributing to decarbonization of electric and transportation sectors.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Economic Performance
• Emissions
• Occupational Health and Safety
• Diversity, Equity and Inclusion
• Labor Management
• Environmental Compliance
• End of Product Life Recycling
• Energy Management
• Materials and Waste
• Training and Education
• Local Communities
• Procurement Practices/Material Sourcing
• Indirect Economic Impacts
• Human Rights and Supplier Due Diligence

Environmental Achievements

• Reduced CO2e intensity by approximately 7% year over year.
• 6,791 metric tons of hazardous waste with 36% recycled.
• 52,317 metric tons of non-hazardous waste.
• Achieved 24% renewable electricity usage.

Social Achievements

• Reduced recordable incident rate (RIR) to 0.37 from 0.39 in 2019.
• Reduced lost time incident rate (LTIR) to 0.19 from 0.21 in 2019.
• Over 14,000 community engagement hours globally.
• Provided more than 450,000 hours of training to associates.
• 70% favorable score on DE&I survey with 80% positive sense of belonging.

Governance Achievements

• Implemented a Code of Business Conduct & Ethics.
• Implemented an Anti-Corruption Policy.
• Published a human rights policy.
• Eleven board members, 27% female and 27% ethnically diverse.

Climate Goals & Targets

Environmental Challenges

• Competition within the renewable energy sector and from competing technologies.
• Potential for more severe or frequent weather events at manufacturing facilities.
• Product recyclability challenges in the composite industry.

Mitigation Strategies

• Developing new materials and process technologies for greater recyclability.
• Offering decommissioning services to wind blade owners.
• Developing equipment to reduce transport costs of decommissioned wind blades.
• Implementing a global behavior-based safety program.

Supply Chain Management

Responsible Procurement

• Dedicated supplier model
• Advanced Product Quality Planning standard (APQP)
• APQP for Wind (APQP4Wind)
• Supplier Code of Conduct
• Human rights policy

Climate-Related Risks & Opportunities

Physical Risks

• More severe or frequent weather events at manufacturing facilities

Transition Risks

• Competition within the renewable energy sector and from competing technologies

Opportunities

• Shift from higher to lower carbon products (increased demand for wind blades)
• Access to new markets and diversification through growing the transportation segment due to increased demand in electric vehicles

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB standards of Wind Technology & Project Developers and Electrical & Electronic Equipment, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

Our alignment to the SDGs is highlighted throughout this report.

Sustainable Products & Innovation

• Developing new materials and process technologies that enable greater recyclability
• Developing equipment to provide cost effective methods to reduce the transport cost of decommissioned wind blades

Environmental Metrics

ESG Focus Areas

• Emissions
• Materials and Waste
• Environmental Compliance
• End of Product Recycling
• Energy Management
• Occupational Health and Safety
• Diversity, Equity, and Inclusion
• Labor Management
• Training and Education
• Local Communities
• Human Rights and Supplier Due Diligence
• Governance and Ethics and Anti-Corruption
• Economic Performance
• Enterprise Risk Management
• Procurement Practices/ Materials Sourcing
• Indirect Economic Impacts

Environmental Achievements

• Reduced waste rate by 5%
• Potential metric tons of CO2 reduced from the blades we produced in 2022: 410,000,000

Social Achievements

• Enhanced global Behavior-Based Safety (BBS) program
• Transitioned to a new Diversity, Equity, and Inclusion program called IDEA (Inclusion, Diversity, Equity, and Awareness)
• Reached 30% female and 30% ethnically diverse persons on our Board of Directors
• Reduced Recordable Injury Rate by 17%
• Reduced Lost Time Injury Rate by 23%

Governance Achievements

• Increased female representation on the Board of Directors to 30% and ethnically diverse members to 30%
• Established ESG targets included in executive compensation plans

Climate Goals & Targets

Environmental Challenges

• Competition within the renewable energy sector and from competing technologies
• Climate change causing more severe or frequent weather events at manufacturing facilities

Mitigation Strategies

• Robust strategy well-positioned under various climate scenarios
• Actively addressing risks within planning

Supply Chain Management

Supplier Audits: More than 25 suppliers audited in 2022 (approximately 60% of annual supply spend)

Responsible Procurement

• Supplier sustainability program with goals for safety, carbon neutrality, waste management, and IDEA
• ESG criteria integrated into sourcing and supplier management processes
• Supplier Code of Conduct and Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• More severe or frequent weather events at manufacturing facilities

Transition Risks

• Competition from renewable energy sector and competing technologies

Opportunities

• Increased demand for wind blades due to shift from higher to lower carbon products
• Access to new markets and business diversification through automotive segment growth

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards (Wind Technology & Project Developers and Electrical & Electronic Equipment), TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (Türkiye facilities), ISO 27001 (Türkiye facilities), IATF 16949 (Rhode Island and Juarez Automotive facilities), ISO/IEC 17025 (Rhode Island)

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Wind blades support decarbonization of energy production and reduce GHG emissions.

Sustainable Products & Innovation

• Thermal barriers, structural components, and systems for automotive industry

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• ~346 million metric tons of CO2 reduction for wind blades produced in 2023
• 18% decrease in market-based Scope 1 & 2 emissions from the prior year
• Reduced total waste generated by 12% from the prior year
• Invested in two wind turbines and expanded solar power in Türkiye
• Advancing economically viable PPA’s in Mexico & India

Social Achievements

• Behavior-Based Safety program continued to yield safety results outperforming industry standards and internal goals
• Fully embraced IDEA (Inclusion, Diversity, Equity, and Awareness) and recognized with numerous awards for commitment to inclusion and diversity around the globe
• Promote associate engagement through Global Values in Motion awards and engagement surveys

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Warranty campaigns impacting Global Services quarterly revenue
• Supply chain disruptions (though stable in Q1 2024)
• Proterra bankruptcy impacting revenue
• Sales reduction due to decreased blade production, lower market activity, and lower ASPs

Mitigation Strategies

• Expect technicians to transition to normal revenue work by mid-year (Global Services)
• Cost reduction initiatives
• Favorable foreign currency fluctuations
• Lower raw material costs
• Strategic alternatives to be finalized by the end of Q2 2024 (Proterra)
• Renewed focus on LEAN to drive waste reduction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed