Nordex : REPORT 2023

2023

Together for change - Wind for a sustainable future

 Sustainability Report 2023

GLOBAL PRESENCE

The Nordex Group's key markets - read more on p. 13

WE ARE NORDEX

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  Nordex Group markets

The Nordex Group is a global leader in the development, manufac- turing, project management and servicing of wind turbines in the onshore sector. Founded in 1985, we have 38 years of experience in harnessing the wind. Our comprehensive product portfolio focuses on onshore turbines in the 4 to 6 MW+ class, offering solutions for markets with limited space and regions with limited grid capacities. Our Delta4000 series, the first in the world to introduce a flexible rating as part of its core design philosophy and operational strategy, features high-yield wind turbines that enable many years of efficient electricity generation from wind energy in almost all geographical and climatic conditions. The Nordex Group has installed more than

51.4 GW of wind energy capacity in over 40 markets, generating revenues of EUR 6,489.1 million in 2023.

We have our own production facilities in Germany, Spain, Brazil and India, where we manufacture nacelles, rotor blades and concrete towers. Our mission is to develop clean power plants that generate 100% renewable energy for the world. As a manufacturer of innovative onshore wind turbines, we focus on delivering

high-performance,cost-competitive wind farms, creating value for our customers and empowering them to provide sustainable and affordable energy for a cleaner and more peaceful world.

Sustainability is the core of our business model, and we firmly believe that sustainability is not only crucial for our commercial future, but also for preserving our environment for future genera- tions. To this end, we pursue a holistic approach that goes beyond our business model, as reflected in our Sustainability Strategy titled "Together for change - Wind for a sustainable future."

This strategy provides a foundation for our actions and encompasses the key sustainability topics for the period 2022- 2025 and beyond: Sustainable Products, Climate Change and Decarbonization, Environmental Protection, Fair and Attractive Employer, Occupational Health and Safety, Responsible Sourcing and Business Ethics, Compliance and Integrity.

In this Sustainability Report, we provide a detailed account of our environmental, social, governance and economic activities.

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SUSTAINABILITY­ IN NUMBERS

Selected key figures from our sustainability performance in 2023.

PRODUCT

DIMENSION

69.1 Mt CO2e avoided 1 2022: 60.7 Mt CO2e avoided

6,489 sales in EUR million 2022: EUR 5,694 million

7.30 GW installed capacity 2022: 5.22 GW

2.7 - 6.5 g CO2e / kWh Product Carbon Footprint

4.5 customer satisfaction in the Project

and Service area (scale 1-6, 6 = best)

2022: 4.4 (Sales Area)

1 CO2e: CO2 equivalent.

	ENVIRONMENTAL
	DIMENSION
7,508	kg carbon emissions
	in our own operations
	(scopes 1+2) per
	installed capacity
	2022: 5,299 kg CO2e / MW
34,449	per installed capacity1
	kWh energy consumption
	2022: 31,069 kWh / MW
31%	waste from production
	sites to landfills
	2022: 16%
28%	waste recovery
	2022: 48%
19%	less waste production
	per installed capacity
	2023: 4,042 kg / MW
	2022: 4,989 kg / MW
20.9	m³ water withdrawal
	per installed capacity

2022: 25.6m³ / MW

1 Market-based method for scope-2-emissions

	SOCIAL
	DIMENSION
85%	of employees
	participated in
	Compass Dialogs1
	2022: 75%
16.9%	proportion
	of women
	2022: 16.4%
18.9%	proportion of
	female leaders /
	managers 2
	2022: 17.5%
1.2	Lost Time Injury
	Frequency (LTIF) -

Group level 2022: 1.5

1. Core process of employee development
2. Includes women in positions on M1 to M4 level; all management positions are evaluated with MERCER according to the IPE (International Position Evaluation) methodology

GOVERNANCE

DIMENSION

46% of employees completed a course on

preventing corruption

2022: 57%

70% Code of Conduct acknowledgement by employees

2022: n / a

166 conducted audits of Nordex-specific component suppliers as well as construction and service-related suppliers

2022: 172

100% of certified balsa wood 2022: 100%

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Contents

TOGETHER FOR CHANGE - WIND FOR A SUSTAINABLE FUTURE

The Nordex Group's highly efficient wind power systems are making a major contribution to climate- friendly energy generation today. Our Sustainability Strategy 2025 clearly signals that the Nordex Group is prepared to do its part to fight climate change.

Reference to section		Link to external	»Information on components of the Non-financial
in the report or to other		internet sources	Group Report (NFR) is indicated with french
Nordex Group publications			quotation marks as exemplified by this paragraph.  «

INTRODUCTION

Contents	04
Foreword by the Management Board	05
Highlights 2023	07
About this Report	10
About the Nordex Group	13
SUSTAINABILITY MANAGEMENT	16
Strategy and Management	17
Sustainable Development Goals (SDGs)	27
ESG Ratings	28
EU Taxonomy	29
Memberships and Partnerships	36
OUR SUSTAINABILITY CONTRIBUTION	38
Our Products	39
Sustainable Products	40
Environment	54
Climate Change and Decarbonization	55
Environmental Protection	67
Social	78
Fair and Attractive Employer	79
Occupational Health and Safety	94
Corporate Social Engagement	101
Appendix: Employee Numbers and Development	105
Governance	110
Responsible Sourcing	111
Business Ethics, Compliance, and Integrity	118
Data and IT/ OT Security & Digitalization	135
Public Policy	137
FURTHER INFORMATION	138
GRI Index	139
EU Taxonomy Appendix	144
Audit Opinion	148
Glossary	150
Contact and Imprint	152

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FOREWORD BY THE MANAGEMENT BOARD

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José Luis Blanco

Chief Executive Officer (CEO)

Dear Readers,

Looking back at a year of climate-related extremes, the importance of renewable energy sources in tackling climate change has never been more apparent.

At the Nordex Group, we are proud to work at the heart of the energy sector's green transformation. Our products and services directly contribute to the fight against global warming as we strive to create a cleaner and thus more peaceful planet. In 2023, our installed total output of 51.4 GW worldwide avoided approximately 69.1 million tons of CO2e, a testament to the unwavering commitment of our more than 10,000 employees.

Yet 2023 was another challenging year for our industry, with high inflation and rising interest rates causing delays in our order intake, and global crises adversely impacting the global economy. Despite these setbacks, the need for clean and independent energy production remains strong, and the path towards energy transition is irrevocable. Further dig- italization, electrification, and the need to drastically reduce greenhouse gas emissions are important drivers for this.

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Foreword by the Management Board

Dr. Ilya Hartmann

Chief Financial Officer (CFO)

Patxi Landa

Chief Sales Officer (CSO)

Despite a challenging economic environment, we were able to further strengthen our leading market position as no. 2 in Europe by continuously increasing our market share.

We are also proud to report further progress towards the ambitious targets we set in our Sustainability Strategy 2025:

• We have submitted near-term and net-zeroscience-based targets to the SBTi and continued working on identifying and implementing impact- ful measures to fulfil our climate ambitions.
• Two new lifecycle­ analyses for our N149/5.X and N163/6.X turbines once again demonstrate the extremely small ecological footprint of onshore wind power.

• We have maintained our target of keeping
  our lost time injury frequency rate (LTIF) below 1.5 per million hours worked, thanks to the dedication and commitment of our employees.
• We have revised our supply chain risk assess- ment processes to ensure full compliance with the requirements of the German Supply Chain Act.

Our efforts for increased sustainability and transparent communication have also received external recognition: In October 2023 we were awarded the Building Public Trust Award for our EU Taxonomy reporting. We also achieved 5th place in the 20th ranking of the world's most sustainable corporations, published by Corporate Knights.

We remain committed to achieving our ambitious goals and making a positive impact on the environment and society, pursuing our vision and mission of establishing an energy sector that is fit for the future and fed exclusively by renewable energy sources while playing a vital role in creating resilience, peace and stability around the globe.

We would like to express our gratitude to our colleagues for their exceptional and unwavering work as well as their passion and motivation. We would also like to thank all our stakeholders for their trust and commitment. It is only by working together that we can make our industry even more sustainable.

Sincerely yours,

The Management Board

Hamburg, February 2024

José Luis Blanco

Chief Executive Officer (CEO)

Dr. Ilya Hartmann

Chief Financial Officer (CFO)

Patxi Landa

Chief Sales Officer (CSO)

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Highlights 2023

HIGHLIGHTS 2023

Welcoming and introducing the Sustainability and Health Day in Hamburg.

With our commitment to sustainability, we pursue a holistic approach that goes beyond our "green" business model. Below, we present selected projects from 2023 that foster and represent our sustainability performance.

"Building Public Trust Award" for best EU Taxonomy reporting

In October 2023, the Nordex Group's Sustainability department received an award for the best sustainability reporting in the "Taxonomy Reporting" category for the 2022 Sustainability Report. The award was presented at the Sustainability Congress in Berlin by the Sustainable Finance Research Group, led by Prof. Dr. Alexander Bassen, Chair of Capital Markets and Management at the University of Hamburg and Chairman of the Jury. The award recognizes the credibility, consistency, completeness, relevance, and reliability of the information presented, as well as the quality of information integration and the use of innovative reporting approaches. (You can find Nordex' current EU Taxonomy reporting on p. 29)

Sustainability and Health Day in Hamburg

In September 2023, we held the 5th Sustainability and Health Day at our head office. The program featured a rich variety of talks, panel discussions, work- shops, hands-on activities and information stands covering a range of sustainability and health topics, and attracted employees from many different depart- ments. This year, we focused on climate mitigation and sustainable and healthy mobility in keeping with the motto: "Climate Action. Healthy Mobility." Local health management service partners were among those offering occupational health support with presentations and practical activities relating to mobile

working and time management as well as health-­ related services. In addition, several Nordex Group colleagues developed a great exercise and sports program that includes Pilates, circuit training, walking and workouts. (For more information see p. 127)

Environmental Week Brazil

This year's Environmental Week in Brazil was a great success, surpassing all previous years in terms of participation and impact. The event took place around all sites in Brazil and focused not only on raising awareness of the circularity concept (4Rs: Refuse, Reduce, Reuse and Recycle) but also taking direct action. Through presentations and discussions, the

The Nordex Group is awarded with the "Building Public Trust Award."

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All life cycle assessments can be found on our website

teams encouraged participants to avoid single-use items and think about ways to repair and refurbish items instead of throwing them away. This was further demonstrated by the presentation about the "Adopt a Local Artist" project which showcased how waste can be reused in creative ways. The "Adopt a Tree" workshop was particularly popular, with workers taking great pride in planting and nurturing their own trees on site while simultaneously finding innovative solutions. (For more information see p. 103)

Reduction of the Product Carbon Footprint

To evaluate the environmental impact of our products and identify areas for improvement, we have set a goal to conduct a Life Cycle Analysis (LCA) for all relevant turbines. In 2023, we completed LCA studies for two additional turbine types: the N149/5.X with a 125m steel tower and the N163/6.X with a 159m steel tower, with emissions of 4.9 g and 4.7 g CO2e per kWh of electricity generated respectively. Despite the larger steel towers, which contribute significantly to the overall results, our analysis once again demonstrates the very low specific carbon footprint of wind energy. Furthermore, the results indicate that this carbon footprint continues to decrease as new turbine models are introduced, thanks to performance enhancements and lifetime extension measures. (For more information see p. 42)

Development of a Green Electricity Policy

At the Nordex Group, we are committed to reducing our carbon footprint and promoting sustainable practices. Among other initiatives, this includes a commitment to procuring 100% green electricity - a principle we have been following since 2021. As part of our efforts to achieve climate neutrality (scopes 1 and 2) and continuously improve the Nordex Group's climate impact, we published a globally applicable Green Electricity Policy in 2023. With this policy, the Nordex Group provides universal preconditions for commissioning new sites and prioritizing various green electricity products and technologies and underlines our continued commitment to exclusively using green electricity within our operations.

EcoVadis Gold Standard

In September 2023, the Nordex Group was once again awarded an EcoVadis Gold Medal in recognition of its success-

ful sustainability efforts. To receive this medal in 2023, companies must achieve a total score of between 70 and 77 points. This time we scored 70 (2022: 71 points) out of a maximum of

100 points. The latest result puts the Nordex Group in the top 2% of all general industrial machinery manufacturers assessed by EcoVadis. (For more information see p. 28)

Kick-off of the EoLO-HUBs1 R&D program project

The Nordex Group has set itself the goal of supplying fully recyclable rotor blades for wind turbines by 2032 and is actively involved in a number of research and development projects to achieve this goal. One of these is the EU funded EoLO-HUBs project, which aims to demonstrate and validate innovative composite recycling technologies for end-of-life wind turbine recycling. The project involves 18 European partners from 7 countries. The Nordex Group will contribute its expertise in blade design and material combinations and provide test blades for the proj- ect. By participating in the EoLO-HUBs project, the Nordex Group is demonstrating its commitment to sustainability and reducing its environmental impact.

1 Full name: Wind turbine blades End of Life through Open HUBs for circular materials in sustainable business models - "EoLO-HUBs"

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Highlights 2023

RoSPA Renewable Energy Sector Award for

Health and Safety Achievements for Nordex

Group UK and Ireland

Nordex UK and Ireland have won the RoSPA ­Industry Sector Awards in Renewable Energy for two consecutive years. Organizations that receive the RoSPA Industry Sector Award are recognized as world leaders in health and safety practices in their industry. With nearly 2,000 entrants vying to receive the highest possible accolade in the UK's longest-­ running health and safety industry awards each year, the win is testament to the ongoing commitment to the health, safety and welfare of Nordex Group personnel and contractors in the UK and Ireland. This year, and to celebrate his 10th year as a Nordex Group employee, Malcolm Montgomery was asked to receive the award on behalf of the region at the prestigious awards ceremony in Glasgow, Scotland.

Team Nordex in UK and Ireland receives RoSPA Award.

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About this Report

ABOUT THIS REPORT

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Sustainability reporting is not just a legal requirement for us, but a demonstration of our transparency and commitment to sustainability. It helps us analyze gaps, challenges and opportunities and improve the sustainability of our business. Each Annual Report helps the Nordex Group to grow further and continue improving the sustainability of our business.

CONTENT AND STRUCTURE

»This Sustainability Report provides detailed information on our environmental, social and governance (ESG) performance. In the first "Introduction" sec- tion, we give an overview of our sustainability-­related highlights and key facts, the report framework and scope and our business model. The second "Sustainability­ Management" section looks at how we embed sustainability in our organization, and offers an overview of our ESG ratings and EU Tax­ onomy disclosures. We summarize our Sustainability Strategy 2025, discuss the progress made towards the Sustainable Development Goals (SDGs), and describe our stakeholder management structure.

The third part, "Sustainability Contribution", reflects the implementation status of our Sustainability Strategy 2025. Our materiality analysis identified seven main topics of Sustainability that are reflected in the chapter structure, summarizing our sustainability-­ related activities, management approaches, risks and opportunities, and key figures. Finally, we address the overall progress we have made in the second year of our Sustainability Strategy 2025 with respect to our action plan for each topic. The last section of the report, "Further Information", contains the GRI Index, EU Taxonomy tables, audit information and explanations. Together with the Nordex Group's 2023 Annual Report, which is published simulta­ neously, our 2023 Sustainability Report provides a comprehensive picture of the company's current status.

REPORTING PERIOD AND SCOPE

The Nordex Group has reported in accordance with the GRI Standards for the period from 01 January 2023 to 31 December 2023. This is the eighth time we have reported on the Nordex Group's sustainability activities in this form, and we will continue updating and publishing sustainability-related information annually. The disclosures made in this report apply to all Group companies and entities as included in the Nordex Group's basis of consolidation.

With regard to the environmental indicators, we concentrated on the sites that are particularly important for Nordex' progress in terms of climate and environmental KPI reporting.

Therefore, the consumption key figures, explained in the chapters "Climate Change and Decarbonization" and "Environmental Protection", relate to the Nordex Group's active serial production sites in Brazil, Ger- many, India, and Spain, as well as to all office sites with 80 or more employees. In accordance with the materiality principle, we report on all sites that, due to their size and business activities, have a significant influence on the reporting data.

Due to the earlier publication of the sustainability report, most of the environmental data and the KPI LTIF for December was not yet available at the time of the external audit. Accordingly, extrapolations were made on the basis of previous months.

Compared to the 2022 report, one change occurred within the scope of the 2023 report:

The Nordex Group made changes in its production of concrete towers in Brazil, with the concrete tower factory in Uibaí ceasing production by the end of 2022.

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