Transforming Power
Northland Power 2022 Sustainability ReportTable of Contents

Northland Power 2022 Sustainability Report

About the Report

2

A Message from Mike Crawley, President and CEO

4

About Northland

6

Sustainability at Northland

9

Our Business

15

Our People

31

Our Planet

41

Our Community

47

Building a sustainable
and carbon-neutral
world together

Forward-looking information:

This report contains forward-looking information that is based on certain factors and assumptions and subject tocertain risks. All forward-looking information in this report is given pursuant to the “safe harbour” provisionsof applicable securities laws. Please refer to “Forward-Looking Information” in the Appendix starting on page 56of this report.
Unless otherwise indicated herein, the information in this report is provided as at May 9, 2023.

Northland Power 2022 Sustainability Report1About the Report
Reporting Boundaries

Frameworks Used

This report contains information and data covering
January 1 - December 31, 2022, with comparative
information for the calendar years 2019-2021. We
measure Environment, Social and Governance (ESG) key
performance indicators (KPIs) using an operational control
approach. We also measure specific KPIs related to healthand safety, talent management and community for our
project offices and sites. We define operational control
as operations where we have full authority to introduce
and implement operating policies. This aligns with theGreenhouse Gas Protocol's (GHG Protocol) definition. Sitedata represents total facility performance, not only our
financial share of the operation. The report’s informationand data account for the direct impacts of all material
components of Northland’s global activities, except whereotherwise noted. All amounts are in Canadian dollars(CAD) unless otherwise specified.

This report covers the period from January 1 to
December 31, 2022, in accordance with the Global
Reporting Initiative (GRI) Standards. We align with global
best practice standards and frameworks, including the
GHG Protocol, the Sustainability Accounting Standards
Board (SASB) and the recommendations of the Taskforce
for Climate-Related Financial Disclosures (TCFD). Our ESG
Framework and disclosures align with the United Nations
Sustainable Development Goals (UN SDGs) where relevant
and appropriate.
As signatories of the United Nations Global Compact(UNGC), we commit to applying its 10 principles in theareas of human rights, labour, environment and anticorruption in our strategy, culture, and everyday business.
We endorse, and have signed on to, Equal by 30.
The full list of applicable KPIs is available here: Northland
2022 ESG Performance Index“Sustainability is a journey. Northland is proud of the steps we’ve taken so far – increasing the
proportion of renewable energy in our portfolio and setting our own rigorous reporting standards
years ahead of anticipated regulatory requirements. We commit to continuous improvement as
the renewable energy sector evolves, and as our business and the market mature.
In 2022, we laid the groundwork to establish emissions reduction targets that we announced in
2023. We are focused on implementing initiatives to deliver on those targets. I’m pleased to share
Northland’s 2022 Sustainability Report and look forward to continuing this journey towards a moresustainable future.”
Yonni Fushman,
Chief Legal Officer (CLO) and Executive Vice-Presidentof Sustainability

2

Northland Power 2022 Sustainability ReportGRI 2-3; 2-4; 2-5; 2-6

AccessibilityAwards and Recognitions

This report complies with the Accessibility for Ontarians
with Disabilities Act (AODA).

Corporate Knights ranked Northland twelfth on its 2022
Best 50 Corporate Citizens in Canada annual ranking,recognizing corporate sustainability performance. We
achieved top-quartile scores in Clean Revenue (earned
from the generation and transmission of clean energy),
Board and Executive Diversity, Employee Health and
Safety, incorporating our ESG frameworks and metrics
into our executive scorecard, as well as for some of ouremployee benefits programs.

Assurance
Northland received independent third-party limited
assurance, conducted by Ernst & Young LLP (EY), over thefollowing material KPIs for 2022:• Scope 1+2 Greenhouse Gas (GHG) emissions• Total electricity generated• GHG emissions intensity
EY provided limited assurance on the allocation of
Northland’s Green Financing proceeds in line with the Useof Proceeds described in our Green Financing Framework.
The assurance statement can be found here. Our Directorof Global ESG Strategy and Reporting managed theassurance engagement, with oversight and executive
management from our Chief Financial Officer.

Significant Changes and Restatements
In 2022, we revised the methodology for calculating
electricity generation in megawatt hours (MWh) toinclude paid curtailments in alignment with our financial
reporting. We restated our electricity generation figuresand our year-over-year carbon intensity metrics for 2021
and 2020 for consistency.

Northland is an AA leader under MSCI and achieveda B for its climate-related disclosures and performance
under CDP.

Related Disclosures• 2022 Annual Information Form (“AIF”)• 2022 Annual Report• 2022 ESG Performance Index• 2023 Investor Day Presentation• Northland Power’s Green Financing Framework• Northland Policies

Northland solar farm located in La Lucha, Mexico.

Northland Power 2022 Sustainability Report3

A Message from Mike Crawley, President and CEO

Northland’s year in 2022 was marked with some incredible tailwinds and headwinds
for our business that brought with it opportunities, challenges, and continued growth.
This was prevalent across our business as we progressed projects in our global pipeline
towards significant milestones, advanced our commitment and involvement in thedevelopment of emerging sectors such as storage and green hydrogen, ensured we had
the right talent to support our growth, and initiated a realignment of our business to
support Northland’s continued evolution. These efforts helped to set us up for successand continue global energy transition efforts, balancing the short-term need for energy
security and reliability with the longer-term vision for a robust renewable energy sector.
Environmental, social, and governance (ESG) commitments
are at the core of our business, reflected in Northland’svalues, and in everything that we do. As developers,
owners, and operators of renewable energy facilities acrossthe globe, we have a responsibility to do what’s right, andplay a role in taking a balanced, responsible approachto the global energy transition and working towards acarbon-neutral future. Our ESG principles are embedded
in our strategy, culture, and everyday business and lay thegroundwork for forming and fostering strong partnerships
at all levels. They help solidify our commitments toimplementing and integrating best practices aroundhuman rights, sustainable supply chain, environmental
stewardship, and climate mitigation across our business.
As discussed in this year’s report, we’ve established firm
targets outlining Northland’s pathway to net zero andan impact reduction strategy that will help us responsibly
support global transition efforts in the short, medium,and long terms. We are on track to reduce our Scope 1& 2 GHG emissions intensity by 65 per cent (from 2019baseline) by 2030, and to reach a net zero measure over
all emissions scopes (Scopes 1, 2 & 3) by 2040.
With energy security and reliability concerns coming into
focus amid accelerated global growth and demand, we
will harness our 20 GW development pipeline to help meetthese concerns. Our near-term efforts focus on optimizing
our efficiency and increasing our renewable capacity,
allowing us to continue providing energy to global
markets. Developing and executing offshore wind facilities
is an important part of our medium and long-term growthstrategy. Over the next five years, several projects are

4

Northland Power 2022 Sustainability Report

expected to become operational and capable of serving
regional energy needs while other renewable technologies
mature. Our long-term strategy to grow renewable energy
capacity and reduce emissions and reliance on fossil fuelsremains consistent, with green hydrogen as a key area forpotential growth. As we progress with these developments,
we remain strategic in the projects we pursue within our
20 GW pipeline to maximize value, and bring a balanced,
thoughtful approach to successfully progressing global
energy transition efforts.
We’ve broadened our commitment to sustainability withthe arrival of Yonni Fushman, our new Chief Legal Officer
and Executive Vice President of Sustainability, who brings
the experience of a Chief Sustainability Officer who launched
and managed a successful sustainability program at anotherlarge global organization. This appointment strengthens ourshared vision of sustainability for the business.
Last year, despite global volatility, our teams continued todrive performance at the highest levels through strong
asset management, strategic investments in exisiting
and new technologies, and forging new partnerships to
support our growth.
Our commitment to operational excellance wasdemonstrated by our ability to deliver high availability
levels across our portfolio. This was achieved while ourteams in Germany who worked on the Nordsee One
offshore wind campaign to successfully replace the main
bearing assembly components on 54 turbines. The teams
completed the work ahead of schedule, within budget, andwithout major incidences or significant energy loss.

GRI 2-22

Our teams worked hard to advance our development
pipeline, execute on projects, and add projects in
key markets that will allow us to support the global
energy transition:•	In Taiwan, Northland entered into a strategic
partnership with Gentari for a 49% share in our 60%
Hai Long stake, representing a key transaction aspart of our partnership model for driving growth.
This partnership demonstrates an opportunity forboth companies to share the value creation in thedevelopment of offshore wind, and will enhance ouroffshore wind portfolio in Taiwan.
•	In Canada, we entered into a shared partnershipagreement in battery energy storage with the Oneida
Energy Storage Project – the largest of its kind in
Canada and amongst the largest in the world – andentered the Alberta power market through theacquisition of a 1.6 GW solar PV and storage portfolio.
•	In Scotland, we secured two offshore wind leases, one
fixed foundation and one floating foundation with agross capacity of 2.3 GW that will play a role in the
country’s move to renewable energy.
•	In Colombia, we reached commercial operations on our
first solar project in the country, Helios.
Our strong operational performance and ability tosuccessfully progress projects in our pipeline is a direct
result of our commitment to work in partnership withgovernments, local and Indigenous communities, industry
peers, project partners, suppliers, and key stakeholders.
Global energy transition efforts require strong collaboration,and in 2022, we continued to develop and strengthen
relationships with new and existing partners, and in local
and Indigenous communities. We upheld commitments tomeaningfully consult with stakeholders to align our mission
and their motivations, looked for opportunities to engage
and employ local talent and suppliers, and invested in thecommunities where we operate, supporting programs thatenhance the lives of the individuals and reflect their priorities.

We remain steadfast in our commitment to the healthand wellbeing of our people and our communities,
anchored in our core value to take care of ourselves
and each other. I’m proud of the steps we’ve taken tostrengthen our health and safety culture, including therecent addition of a world-class HSE leader. Our successdepends on our ability to safely and effectively deliver
renewable energy and the work that we’ve done toempower our people globally and regionally with policies,
procedures, and tools that they need to proactively ensurea safe work environment for every Northlander.
In 2022, we realigned our business to create clearer
accountability, empower decision-making, and allow
Northland to scale up. As part of this, we recognizeda need for new and skilled talent, and added key rolesand capabilities across our global company, including
in offtake origination, hydrogen, energy storage andrisk management. As of January 2023, Northland now
operates under a Business Unit (BU) structure organized byour key generating technologies: Offshore Wind, Onshore
Renewables, Efficient Natural Gas and Utilities, andHydrogen/Renewable Fuels.
Looking forward into 2023, I‘m excited about the future.
Being at the forefront of emerging technologies has
always been a part of Northland’s DNA, and we are
well-positioned to be a significant contributor to industry
growth trends. As we shift focus from project origination to
execution, we will continue to drive the energy transition
forward, thinking thoughtfully about what this looks likefor our people, our planet, and our communities.
This report and these highlights are just a small subsetof all that we’ve accomplished together in 2022. They
represent the cumulative efforts of over 1,000 Northlanders
globally who continue to power our communities andbusinesses forward each day. To each and every one ofyou – a heartful thank you.

Mike Crawley
President and Chief Executive
Officer

Northland Power 2022 Sustainability Report5About Northland
Our Company

Northland Power is a global power producer. We arededicated to helping the global energy transition by
producing electricity from clean, renewable resources.
Founded in 1987, Northland has a long history ofdeveloping, building, owning and operating clean andgreen power infrastructure assets. We own and manage
a diversified generation mix, including offshore wind (ofwhich we are a global leader), onshore renewables, andefficient natural gas. We also supply energy through aregulated utility. Northland owns or has an economic
interest in 3 GW of gross (net 2.6 GW) operating capacity.
We have a strong pipeline of projects in construction andin various stages of development that encompasses over
20 GW of potential capacity. Our head office is in Toronto,
Canada, with offices in 12 countries.

Our Business Strategy

The global energy transition is expected to accelerateover the next decade. Further electrification of the
global economy continues to gather momentum, andboth the public and private sectors expect to increase
decarbonization efforts. This should create significant
opportunities for continued growth in renewable power
generation and green infrastructure. As a global developer
with extensive expertise in renewable projects, we are
strategically positioned to compete in this transition, andfurther grow our portfolio and market share.
We strive to provide our shareholders with a total
return, comprising dividends and share value growthfrom the management of our energy-related assets,businesses, and investments. Our business strategy
focuses on establishing a significant global presence asa sustainable power provider. We deliver on this strategy
by developing and operating sustainable projects in key
markets supported by long-term offtake agreementswith predictable cash flows. Northland optimizes the

6

Northland Power 2022 Sustainability Report

performance of our operating facilities to ensure deliveryof essential power to our offtake counterparties. We
continually reinvest in our assets to ensure maximum
efficiency and viability. Through innovation anddevelopment, we reduce the cost of renewable power
generation. These initiatives drive the comparativenessand economic feasibility of our power generation.

Significant Events•	On April 7, 2022, Northland completed the sale of ourIroquois Falls and Kingston efficient natural gas facilities
in Ontario, resulting in a 24% reduction in gas-fired
generation capacity.
•	In December 2022, Northland acquired a development
portfolio in Alberta. The acquisition adds a solar andbattery energy storage pipeline encompassing over 1.6
GW and 1.2 GWh, respectively.
•	In December 2022, Northland entered an agreement
to acquire a majority interest in the Oneida Energy
Storage Project. Oneida is a late-stage, gridconnected, 250 MW/1.0 GWh battery energy storage
project in southern Ontario, Canada expected to reachcommercial operations in 2025.
•	Also in December 2022, Northland signed anagreement with Gentari International Renewables Pte.
Ltd. (“Gentari”) to sell 49% of our ownership interest
in Hai Long, a 1 GW offshore wind project off the coastof Taiwan.
•	In January 2023, Northland formally commenced
operating under a business unit (BU) structure focusedby key generating technology. The BUs are: Offshore
Wind, Onshore Renewables, Efficient Natural Gas andUtilities, and Hydrogen/Renewable Fuels.

GRI 2-1; 2-6

Our Global Presence

Wind: Onshore and Offshore

Electricity Distribution Utility

Wind: Under Construction andAdvanced Development

Efficient Natural Gas & Biomass

Solar
Solar: Under Construction

Corporate Offices
Development Offices

Offshore Wind
1,184 MW
Efficient Natural Gas
743 MW
Onshore Wind

837 MW

Gross
CapacitySolar

262 MW

Offshore Wind4,486 GWh

Offshore Wind
1,184 MW

Efficient Natural Gas

743 MW

Onshore Wind

837 MW

Solar

262 MW

Offshore Wind4,486 GWh

Efficient Natural Gas

Gross
Capacity

Efficient Natural Gas

3,308 GWh
Onshore Wind
1,955 GWh

Gross
Generation

Solar

390 GWh

Northland Power 2022 Sustainability Report7

Sustainability at Northland
Northland’s ESG Framework

This report addresses Northland’s material ESG issues,
which influence our decision making and have thegreatest impact on our business and stakeholders.
These issues determine where we focus our ESG efforts
and reporting. With oversight from the Board, our ESG
Steering Committee and the EVP, Sustainability are
responsible for our approach to evaluating, managing,
and adjusting our strategy for each material topic.

The way we work with other people drives our development
approach, aligning their motivation and our mission. We
advance energy transition with integrity and deep respect
for our internal and external stakeholders. We strive to betrusted partners to, and create shared, long-term value
for, the global communities in which we do business.

Our 2022 Materiality Assessment included conversations
with financial and community partners, a review ofindustry-specific best practices and guidance, anda review of applicable standards and frameworks. A
2020 employee survey informed the 2022 Materiality
Assessment. Our ESG Steering Committee discussed andagreed on the importance of the material issues to ourbusiness strategy. Special consideration was given to:

Northland’s ESG framework focuses on the global decarbonization efforts of our renewable energy developments.
This includes developing and empowering our people,
creating meaningful and collaborative relationships withlocal and Indigenous communities, and upholding thehighest standards of good and responsible governance.

Materiality

Northland considers how ESG issues impact the longterm sustainability of our business. This includes our ability
to access capital, engage employees, build long, trusting
relationships with partners, and work with our value chain.
Our ability to influence the economy, environment, andpeople, aligns with our purpose and values.

• Impact on our reputation• Our values• Increasing shareholder value• Stakeholder expectations• Risk management and mitigation

Impact to Stakeholders

High

Medium8

High

Biodiversity& Ecosystem
Management

Climate Change
Mitigation& Emissions
Reductions

Human Rights& Sustainable
Supply Chain

Talent Development& Engagement

Community &Indigenous Relations& Investment

Diversity, Inclusion& Belonging

Green &
Reliable Energy(Energy Security)

Occupational
Health & Safety

Impact to Northland (Business)

Northland Power 2022 Sustainability ReportHigh

GRI 2-23; 2-24; 3-1; 3-2; 3-3

Priorities
Our ESG efforts have four key focus areas, which include elements of our material issues. In 2022, we implemented
policies and processes across each area. We will continue to develop and advance our commitments in 2023.

Climate change
mitigation
Climate change mitigation has always been central toNorthland’s business strategy. In early 2023, we committed to achieving net zero by 2040. In 2023, we will begin
implementing this strategy by focusing on our short-termgoals and planning our long-term strategic initiatives.

Biodiversity andecosystem management
Northland is committed to strong environmental
management. Through project execution, we take aproactive approach to finding solutions that positively
impact ecosystems. As we begin constructing andexecuting several large projects globally, we are focusedon minimizing impacts and creating positive change byintroducing conservation and alternative practices (i.e.
solar grazing1) to support operations.

Human rights andsustainable supply chain
Having a transparent and sustainable supply chain that
respects human rights is imperative to our long-termsustainability strategy. We updated our commitments andpolicies in 2021 to recognize the complexities of this issue.
We strengthened our due diligence practices within our
supply chain and when selecting partners, communities
where we operate, and our employees. In 2023, we will
establish stronger risk identification and due diligenceprocesses.

Long-term businesssustainability
Our long-term business sustainability strategy focuseson the long-term sustainability of our physical assets,
growing in key markets and retaining our talent.
We consider the long-term footprint of our projects andwill continue exploring ways to reduce emissions andwaste throughout the project lifecycle.

1. Solar grazing is a practice where grazing livestock such as sheep help control vegetation under solar panels, minimizing impacts to the environment.

Northland Power 2022 Sustainability Report9Sustainability at Northland
ESG Performance Highlights

We’re making tangible and meaningful progress toward our priorities. We integrate sustainability into everything we do,
and remain wholly committed to making full use of the tools at our disposal to tackle the highly complex challenges ofthe energy transition.

10

1,339

67%

employees
globally

gross renewableenergy generation

12

0

countries withactive development

significant
environmental
incidents

4th

33%

largest offshore
wind producer

female Board
members

6%

50%

reduction in GHG
emissions intensity

female executive
officers

Northland Power 2022 Sustainability Report$3.2M cadin community
investment globally$3.1B cadin new green
financings

2.6 GW
net operating
generating capacity

0.40
Total Recordable
Incident Rate(TRIR)

Northland Power 2022 Sustainability Report11Sustainability at Northland
Our Stakeholders

Northland’s stakeholders are individuals who a) have an influential presence or b) are closely affected by our business.
The table below lists those parties considered for this assessment.
Employees
and Boardof Directors2

Communities
and Interest
Groups3

Customers
andGovernment4

Shareholders
and CapitalMarkets5

Suppliers
andPartners6

ESG-Related Policies,
Codes & Frameworks

●

●

●

●

●

Corporate Reports

●

●

●

●

●

Corporate Meetings & Presentations

●

●

●

Local Engagement,
Meetings & Consultations●

Corporate Updates and Town Halls●

Community Investment

●

●

●

●

●

●

●

One-on-one Conversations & Feedback

●

●

●

●

●

Hotlines and Grievance Mechanisms

●

●

●

●

●

Working Groups and Committees●●

Anonymous Surveys●●●

Forums & Conferences●●

Contractual Agreements

●

●

●

●

Northland Power Website

●

●
●

●

2. Current and prospective employees and Northland’s Board of Directors
3.	Municipalities, non-governmental organizations, associations, indigenous groups, and regulatory authorities in and around communities where we currently operate or are
looking to develop
4. Government and corporate off-takers
5.	Individuals, investment and pension funds, and the broader investment community, including lenders who hold or are interested in purchasing Northland’s equity or debt
instruments, and rating companies and third-party reviews
6. The organizations we partner with directly, as well as those within our supply chain and under contract

12

Northland Power 2022 Sustainability ReportGRI 2-12; 2-13; 2-14; 2-16; 2-29; 3-1; 3-3; TCFD Governance

Governance

Key ESG elements include:

We commit to the highest governance standards andpractices. These commitments form the basis of our
reputation as trusted and experienced clean energy
project developers, owners, and operators. Our strong
corporate governance holds us accountable to ourshareholders and supports investor confidence.
For details on this year’s corporate governance performance, refer to the 2023 Management Information Circular.

•	Oversight from the Board and related committees on
ESG strategy, programs, and disclosure-related matters.
•	Updates to our existing ESG-related policies(including our Code of Conduct and Business Ethics
and Diversity Policy).
•	The introduction of a public Community Investment
Policy, a Commitment to Local and Indigenous
Communities, and a Supplier and Partner Codeof Conduct.
•	A commitment to adding diversity at the Board andExecutive levels to reflect the communities where
we operate.

Governance Structure
Board of Directors

Northland’s Board of Directors has oversight on ESG-related matters. The Board receives
quarterly updates which includes reports on progress against climate-related metrics, risks,and opportunities. The Board also reviews Northland’s annual climate-related disclosures
which demonstrate progress towards our stated corporate targets.

ESG Steering
Committee

At the management level the ESG Steering Committee is responsible for all material ESG
issues. In 2022 the Committee was co-chaired by the CEO and CFO, and as of 2023 by
the CFO and Chief Legal Officer (CLO) and EVP of Sustainability. The Committee sets theCompany’s general strategy and overall priorities with respect to ESG matters (including
climate-related), and considers, recommends and ensures consistency of appropriate
policies, practices, disclosures and managing risks through adequate due diligence.

ESG Strategy andReporting GroupThe responsibility for the execution and implementation of ESG-related strategies andapplicable reporting falls under the ESG Strategy and Reporting group. This group is focusedon integrating Northland’s ESG-related strategies throughout the organization and is led by the
Director of Global ESG Strategy and Reporting.

Committees andWorking Groups

Northland has multiple working groups and committees which are comprised of individualsof multi-disciplinary departments globally. These committees and groups provide support on
developing initiatives, information sharing and overall support of strategy implementation
to meet the ESG-related goals.

Climate Working
Group

Joint Health &Safety Committee• Energy Market Analysis• Investment
Management• Strategy• Project Management

Diversity, Inclusion& Belonging
Council• Health & Safety• Operations• Government Relations• Engineering

Community
Investment
Committee• Talent & Fit for Future• Legal• Environment

Human Rights
Working Group(2023)• Procurement• Communications• Finance

Northland Power 2022 Sustainability Report13

We are expanding our capacity to develop, construct, and operate
renewable energy assets to support the global energy transition andmeet increased clean energy demands. We plan our infrastructuredevelopment responsibly, accounting for potential impacts on ourpeople, our communities, and our planet.

14

Northland Power 2022 Sustainability ReportOur
Business
Material Issues
Opportunities and Risks
Pathway to Emissions Reduction
Risk Management
Human Rights and Sustainable Supply Chain

Northland Power 2022 Sustainability Report15

Opportunities and Risks
Scenario Analysis

In 2021, we performed qualitative screening andquantitative scenario analyses to identify physical andtransitional risks, opportunities, and to assess our businessresiliency. The qualitative screening identified specific risks
and opportunities. The quantitative analysis assessed thetotal financial impact of the risks and opportunities undermultiple scenarios.
Our goal was to understand how Northland would be
affected under a High-Warming7 scenario. This includes
the performance of real assets and financial returns. We
also wanted to understand the financial impact on ourbusiness in a Below 2°C8 scenario. This analysis uses
third party climate data to complement existing scenario
analysis work being done for our long-term outlook.
See our ESG Performance Index for details on external
scenario analysis used.

High-Warming Scenario
Under a High-Warming scenario, there is little to nofurther action from governments, business, and society
to reduce carbon emissions, leading to severe climatechange impacts. This scenario helps us understand how to
be more resilient long-term by assessing risks of potential
damage to our assets. It also helps us see how changes inweather patterns and increased severity and frequency ofstorms could impact our assets’ operating performanceand integrity. Physical impacts were determined using
high- and low-warming Intergovernmental Panel on
Climate Change (IPCC) pathways, aligned with HighWarming and Below 2°C transition scenarios, respectively.

Physical risks from chronic weather changes
affecting revenue
Changes in weather patterns may cause variability inproduction results. This risk impacts onshore renewables
less, especially within the short term. There remains arisk to offshore operations within the medium and longterm. This affects the revenue generated from theseassets. While significant changes in mean wind speeds
are not expected in the areas where we currently operate,

16

Northland Power 2022 Sustainability Reportincreased variability is possible. Our current offshore windfacilities have already seen some significant variance inavailability year-over-year. In 2021, lower-than-expected
winds in the North Sea led to a decrease in generation andrevenues. In 2022, these were back to expected ranges.
Over the long term, longer periods of high-heat days could
affect the functionality and efficiency at our solar projects
and natural gas facilities. This would affect availability andgeneration. The effects of climate and severe weather
events may also change energy demand patterns andmarket prices in the regions where we operate to thebenefit or detriment of our financial results. We hope
to mitigate these challenges in the long term throughdiversification of asset types (onshore and offshore) and ofgeographic location (e.g., a greater presence in Asia andthe east coast of Scotland for offshore wind).

Physical risks due to acute weather changes
affecting tangible assets – operational effectiveness and project timelines
Over the long term, extreme winds and flooding fromsevere storms could result in downtime, construction
delays, production losses and/or damage to equipment.
Natural events may also make it impossible for operations
and maintenance crews to access the disabled equipment
to deliver parts and provide services.
Northland’s operations may rely on assets such astransmission grids, towers and substations owned andoperated by third parties. These assets may also be
adversely affected by extreme weather events and risingmean temperature, which we have little ability to control.
Similarly, Northland’s operating and construction activities
could be affected by the impact of extreme weather
events on its supply chain. Based on current models used
for this scenario, the possible effect on the business is
minimal due to the diversification and locations of ourcurrent assets and pipeline as well as insurance (although
this consideration was not included within the analysis).
7	Aligns with a high-warming pathway (RCP8.5) where GHG emissions andconcentrations in the atmosphere increase unmitigated, leading to an estimated
4.3°C temperature increase by 2100 compared to pre-industrial temperatures.
8	Aligns with a pathway where actions help limit temperature increases to as close
as possible to 1.5°C, and help the planet reach net zero CO2 emissions, by 2050
compared to pre-industrial temperatures.

GRI 201-2; TCFD Strategy; TCFD Risk Management

Below 2°C Scenario
Under a Below 2°C scenario, sufficient action is taken
by all players to achieve a low-carbon transition andreach Net Zero globally by 2050. This scenario helps
us understand how Northland can capitalize on energy
generation opportunities, while also considering risks. It
helps us assess how a low-carbon transition could impact
the demand for, and price of, our generated electricity,and the electricity distributed through our regulated utility.
The scenario also explores how regional carbon pricing,based on both High-Warming and Below 2°C transition
scenarios, could impact our operating costs.

Market opportunities with an impact
on revenue
Northland’s recent and expected short-term growthcorrelates to the increased demand for accessible andaffordable green energy in new and existing markets. As
governments and companies look to meet their Parisaligned emissions targets, powering grids with green energy
unlocks greater revenue from new and existing markets.

Reputational opportunities with an impact
on financing – debt and equity capital
Institutional investors and global capital market
participants are increasing capital allocation to climateresilient and sustainable energy companies. We expect tobenefit from this trend. Financial products, such as green
bonds and other green financings, present additional
financing opportunities for us in the future. This will be
particularly true over the short and medium term but willcontinue into the long term as well. Northland is includedin 478 ESG funds to date and received over CAD 3 billion
in green financings in 2022.

Reputational opportunity with an impact
on human capital – talent attraction
and retention
Northland expects to continue attracting and retaining
top talent. Our demonstrated climate resilience, focused
growth and innovation in renewable energy, global
presence, and track record help in this regard. Northland
expects these advantages to support greater social capital
opportunities, including new business and community
partnerships. Our reputation will also help support our
primary business of renewable energy development. In
2022 Northland hired 293 new employees.

Market risk related to attracting
specialized skills
Given the industry’s growth and the relative newness ofsome green energy-generating technologies, finding andhiring properly trained workers can be a risk in the shortand medium term. Due to its global scope, Northland hasaccess to a wider talent pool when looking to fill criticalroles. We have expanded our mobility policy to ensure
we can bring the right people to where they are needed
most. See Our People for more details.

Policy and regulatory risks’ impact
on operational costs
We expect to see more changes in policies andregulatory requirements around carbon over the next
few years. Carbon price increases could have an impact
on operational costs. These include increased costs formaterials and fuel, and increased carbon taxes. To theextent these changes impact Northland, the impacts
would mostly be in relation to our natural gas assets,
however currently most of these costs are absorbedby the offtakers. Our sites that rely on fuel generators,
non-electrical vehicles, and non-renewable electricity areaffected to a lesser extent. Under a stricter policy scenario,
project development may also experience some risk
through increased indirect cost of goods and services.

Northland Power 2022 Sustainability Report17Pathway to Emissions Reduction
Building a sustainable, carbon-neutral future involves
balancing the short-term need to meet increasing clean
energy demand with the long-term need to deliver
accessible and affordable renewable energy for future
generations. We commit to the global energy transition
by continuing to increase our facilities’ efficiency while
reducing our reliance on fossil fuels.
Northland was one of 50+ global companies and industry
leaders to endorse the Corporate Knights Action Declaration on Climate Policy Engagement (Action Declaration)ahead of COP27 in Egypt. The Action Declaration outlines
how industry leaders will engage with policymakers, andwork with industry and trade associations to help reduce
emissions and decarbonize the economy.
Northland sees tremendous opportunity as we continue
developing green energy infrastructure. We are also
aware of the risks that exist in the short, medium, andlong term due to regulatory changes, shifts in weather,and impacts within our value chain.

The scenarios used in this analysis are hypothetical.
The potential risks, opportunities, impacts andconsiderations, and outcomes discussed in thisreport are inherently uncertain and should be readin conjunction with the information in Appendix B:
Forward-Looking Information.

18

Northland Power 2022 Sustainability Report

Our three key climate targets:1.

 et Zero over ScopeN
1, 2 and 3 by 2040

2.

 GW increase in
6gross renewableenergy capacity by
2030 (from 2019baseline)

3.

65% reduction incarbon intensity(Scope 1+2/MWh
generated) by 2030
(from 2019 baseline)

SASB IF-EU-110a.3;GRI 3-3 GRI 201-2; 305-5; TCFD Strategy; TCFD Risk Management; TCFD Metrics & Targets

Our approach to making real, sustainable impacts
is phased over the short, medium, and long term.
Short Term –Present-2025

Optimize efficiency and increase
onshore renewable capacity,• E nhance onshore renewable (windand solar) capacity.
• U se purchased renewable energy
and credits to optimize electricity
use at offices and facilities.
• Expand into energy storage.

Medium Term –2025-2030

Execute offshore wind projects,
reduce direct fossil fuel exposure
through operations• Leverage growth in offshore
wind portfolio.
• Continue to ensure asset
efficiencies to meet demand.
• A ssess viability of electricor alternative fuel vehicles
and vessels.
Scope 1, 2 & 3 /MWhLong Term – Beyond 2030
Reduce natural gas and Scope 3
fossil fuel exposure• Limit exposure to fossil fuels in all
Business Units, up and downstream.
• Reduce absolute emissions acrossthe organization, most notably fromnatural gas facilities.

Scope 1, 2 /MWh

• 65% reduction in GHG emissions
intensity (Scope 1 and 2/MWh).

Net
Zero

+95% reduction in
Scope 1, 2 and 3

2020

2023

2025

2030

2040
Northland Power 2022 Sustainability Report19Pathway to Emissions Reduction
Short Term – Present-2025

In the short term, Northland does not expect to see asignificant difference between the two climate scenarios
considered. We see a continued opportunity in increased
demand for green and affordable energy.
During this time, increases to our renewable capacity
will come from our onshore renewables projects. These
projects include solar, onshore wind and battery storage.
To reduce exposure and operational costs, we are also
focused on reducing emissions at our offices and looking at
efficiencies with both onshore vehicles and business travel.
We are working to ensure strong availability and minimal
down time for our current assets, especially during highperiods of productivity. This allows us to mitigate risks due
to potential changes in weather patterns on an annual basis.

Onshore Renewables
Solar and Wind

Our goal is to strengthen and diversify our onshore
renewables portfolio. Our primary targets include solar PV,
energy storage, and onshore wind projects across Europe,
North America, and Latin America. This technology
allows for quicker turnaround times from development
to operations, leading to an increase in our renewablegenerating capacity and cash-flows over the next three-tofive years.
Northland’s onshore portfolio continues to grow intargeted markets within North America, South America
and Europe. At the close of 2022, we had 0.35 GW grosscapacity under construction and 1.8 GW gross capacity
under late-stage development.

20

Northland Power 2022 Sustainability Report

Energy Storage
Energy storage is an emerging growth area for Northland.
This new technology shifts energy from off-peak hours
and supplies it back to the grid during on-peak hours to
support energy reliability. This ability to ramp-up capacity
far exceeds that of nuclear, hydroelectricity or natural gas.
We plan to use storage to build grid resilience, and toincrease energy stability and security. This strategy allows
for the development of more renewable projects that
can integrate into the grid and support governments’environmentally sustainable ambitions.

Optimizing our Assets
We prioritize maintaining and optimizing our assets tomaximize performance and outputs. In the short term, how
our assets run affects their availability to generate energy.
While short-term gains are important, our assets must also
be viable past their planned lifecycle. We conduct regular
maintenance and shutdowns to reach the full potential of
our assets while ensuring they are built to last.
Our Gemini Offshore Wind Park was the first single-purpose
offshore wind project to achieve ISO55001 certification. The
facility has maintained its certification annually, integrating
an ISO55001-certified Quality Management System andISO45001 Health and Safety certification into an Integrated
Management System (IM). Our regulated utility Empresa
de Energía Boyacá S.A. E.S.P’s (EBSA) asset management
system is certified in compliance with ISO55001. For moredetails on our asset management process, see our2021 Sustainability Report.

Featured Story Highlights

SASB SASB IF-EU-110a.3; GRI 3-3; GRI 201-2; TCFD Strategy; TCFD Risk Management

First Wind Turbines Installed at New York Onshore Wind Farms
In July 2022, Northland celebrated the installation of the first wind turbinesat our Bluestone Wind Farm. The Bluestone Wind Farm is a 112 MW
onshore wind project located in Broome County, New York. Bluestone
will connect to the existing New York State Electric and Gas Corporationtransmission lines, delivering enough renewable energy to the New YorkState grid to power more than 54,000 homes. Bluestone will be our first
onshore wind project to be energized in the United States. Read more
about our Bluestone Wind Farm here.

Canada’s Largest Battery Storage Project Moves Forward
In early 2023, Northland closed our first strategic investment in storage
with our participation in the Oneida Energy Storage Project in southern
Ontario. The project is a milestone for the province’s burgeoning energy
storage sector. Once completed in 2025, Oneida will deliver critical capacity
and improved efficiency to Ontario’s energy grid and will boost the province’s clean energy storage from 225 MW today to 475 MW. It is expectedthat Oneida will help Ontario reduce GHG emissions by 4.1 million tonnes,
or the equivalent of taking 40,000 cars off the road every year.
The project is being developed in partnership with NRStor Inc. (NRStor), theSix Nations of the Grand River Development Corporation (SNGRDC), andAecon. Read more about Oneida here.

Proactive Asset Management at Nordsee One
Our Nordsee One offshore wind farm in Germany is located approximately
40 km north of the island of Juist. It consists of one offshore substation
platform and 54 wind turbines installed in water depths between 26-29 m.
The wind farm began commercial operation in December 2017.
In January 2021, our teams identified a serial defect on the main bearing
in several wind turbines. This meant repairing a major component in theentire fleet of turbines, without risking interruptions to the electricity grid.
Our experts exchanged the rotor shaft assembly of 10 turbine generators
in 2021, and another 44 by the fall of 2022. We managed to replace these
critical components on all turbines while maintaining the facility’s ability tooperate at 95 per cent capacity. The campaign was completed on budget
and ahead of schedule. Most importantly, there were no major incidents or
instances of energy loss. Read more about Nordsee One here.
First wind turbines being
installed for Bluestone
Wind Farm

Northland Power 2022 Sustainability Report21Pathway to Emissions Reduction
Medium Term - 2025-2030

We see an opportunity in the industry due to an increased
demand for renewable energy capacity coupled withlarger-scale projects gradually coming online. Pending
government and industry progress, we may begin to see
varying risks and opportunities. These risks include thosethat apply to the short term, as well as additional risks andopportunities as outlined below.
In the medium term, Northland expects that significant
increases to our renewable capacity will come from ouroffshore wind projects. We will also continue meeting thecapacity needs of the communities where we operate bybeing a dispatchable provider of energy from efficientnatural gas and continuing to build out our onshore
renewable generation and storage capacity.
We can reduce our operating facilities’ fuel consumption by
re-imagining how we power offshore wind operation andmaintenance vessels. We are exploring ways to reduce our
Scope 3 exposures to capital goods to meet our targets
and mitigate potential operational expenditure risks.
We expect to see, and will continue to monitor, global
regulatory developments as part of our resilience strategy.
We will also manage any financial and business risks
associated with our activities.
We take preventative measures to anticipate the risks
associated with greater physical changes caused by climatechange. We optimize the physical resilience and site designof our offshore wind projects based on local climate data,
including outlying trends. Operations teams monitor
weather and expected generation on a regular basis.
Northland mitigates these risks through its development
and maintenance processes, and with the purchaseof insurance9 and/or the inclusion of provisions underapplicable construction agreements with contractors. For
more information about insurance, please refer to the Risk
Factors in the AIF.

Offshore Wind
Developing and executing offshore wind facilities is an
important part of our growth strategy. These facilities holdvast potential and are free of the constraints found on land.
We are investing today in our offshore pipeline, which will
come online over the medium term. These projects arecapital intensive, come with significant development risks
and take years to bring online, but can deliver significant
increases to our renewable energy generation capacity.
During the medium term, several projects are expected
to become operational and capable of serving regional
electricity needs.
Our offshore wind strategy focuses on developing strategic
financial partnerships globally to enable the development oflarger-scale projects. This means finding the right partners
to bring into existing projects and new opportunities.
In this rapidly growing industry, we will stay committed to
our ESG principles while we originate, secure, fund, andbuild sustainable offshore wind projects. We are committed
to working with suppliers that share our principles, are fit
for purpose, and are focused on ESG performance.
At the close of 2022, we had 1.2 GW of operating assets
and 2.2 GW gross capacity in late-stage development,
including our Baltic Power project in Poland and the Hai
Long project in Taiwan.

9	Insurance policies may not provide coverage for certain events, or coverage may be insufficient to compensate for all losses suffered by a project. Such insurance may notcontinue to be available at all or at economically feasible cost. As such these potential risks are included in planning and construction design as well to help mitigate the impact.

22

Northland Power 2022 Sustainability ReportFeatured Story Highlights

SASB SASB IF-EU-110a.3; GRI 3-3; GRI 201-2; TCFD Strategy; TCFD Risk Management

New Partnership Blossoms in Taiwan
Northland is developing one of the world’s largest offshore wind farms off
the coast of Taiwan. The Hai Long project will carry a total installed capacity ofover 1 GW. In December 2022, we formed a strategic partnership with Gentari
Renewables Pte Ltd to bring them on as a 29.4 per cent partner in the Hai
Long project. Northland will lead Hai Long’s construction and operation.
This partnership is a prime example of how we intend to grow and mitigate
risk by partnering with organizations that share our mission of building acarbon-neutral future. Together, we will help expand the Taiwanese offshore
wind market and advance the country’s broader decarbonization efforts.

The Role of Efficient Natural Gas in the Global Energy Transition
As renewable capacity gets established in the coming years, efficient natural
gas will play an important role in meeting growing energy demands. This
lower-emitting and affordable type of energy production remains a crucialpart of the short- and medium-term energy transition. Northland sees
efficient natural gas as a crucial part of a diversified and reliable energy
mix over the next 10 years. This allows us to continue providing affordable,
cleaner and accessible energy to the markets we serve.
We understand that carbon reduction is not linear. We commit to reducing
our intensity by offsetting higher-emitting natural gas generation with anincrease in renewable generation. We continue to seek ways to reduce runtimes and retrofit facilities where possible to produce energy more efficiently.
In the long term, we will continue to strive for solutions to reduce ouremissions from fossil fuels and natural gas to meet our net zero commitments.

Northland Power 2022 Sustainability Report23Pathway to Emissions
ReductionLong Term - 2030-2040

Over the long term, the High-Warming and Below
2°C scenarios begin to see real differences in risks andopportunities. Under a Below 2°C scenario in line withour business strategy, we continue to see opportunities
that outweigh any increased risk of higher costs. We
also continue to see some risk related to our natural
gas exposure. We commit to reducing these emissions,especially over the long term.
Under a High-Warming scenario, our physical assets may
experience greater impacts related to operational efficiency
due to more warming days, as well as extreme weather
events. These are not expected to have a significant impact
on revenues.
Our long-term strategy to grow renewable energy capacity
and reduce emissions and reliance on fossil fuels remains
consistent. One key area of potential growth is aroundrenewable fuels, including green hydrogen.

Green Hydrogen
The European Union (EU) has strengthened its promotionof low-carbon and renewable hydrogen as resources tosupport decarbonization and reduce dependence on
imported fossil fuels. In 2022, 20 key policy actions were
implemented in five areas, including creating a hydrogenmarket and infrastructure, international cooperation, andinvestment support.

24

Northland Power 2022 Sustainability Report

SASB SASB IF-EU-110a.3; GRI 3-3; GRI 201-2; TCFD Strategy; TCFD Risk Management

At the Forefront of Canada’s Emerging
Green Hydrogen Industry
Northland sees green hydrogen as an important opportunity for Canada.

The country has world-class renewable resources in remote and low-populated areas. Being able to harness this renewable energy to create transportable “green” molecules will help support energy demand without supply.
This is especially true on the east coast of Canada. There is great potential
for onshore and offshore wind facilities to supply regional energy needs,
and to drive a new green hydrogen industry. By converting green hydrogen
into green ammonia, Canada’s east coast could provide energy security
across the Atlantic.
Northland is currently exploring the feasibility of Canadian green hydrogen
export opportunities. Green hydrogen export could boost economies andcreate jobs in Atlantic Canada, support European countries facing energy
crises, and advance our decarbonization goals.

Northland Power 2022 Sustainability Report25

Risk Management
Northland’s Enterprise Risk Management (ERM)
framework is designed to implement structured
processes and tools to identify, mitigate, and monitor
key enterprise risks and support our strategic objectives
and long-term sustainability goals. The ERM program isunder the responsibility of the CEO, CFO, and CLO, withaccountability to the Board.
The program includes the following key elements:1)	Integration of ERM with strategic planning2)	Risk identification and assessment of new risk events3)	Development of risk mitigation responses
and action plans4)	Monitoring risk and controls changes, and reportingon the process’ results
Northland assesses key enterprise risks based on threecriteria: (i) impact, (ii) likelihood and (iii) the effectivenessof existing management controls.
As part of our ERM program, we evaluate our key
enterprise risks and mitigating controls on a quarterly
basis. Risk owners and senior leaders across the company
are accountable in this process.
As we advance our strategic priorities and expand into newmarkets, we account for risks and opportunities associatedwith project delivery and organizational governance andgrowth. We consider how we manage key issues, such as
occupational health and safety, our supply chain, humanrights, community engagement, and environmental
impacts, and respond accordingly through local andcorporate-wide governance, programs and initiatives.

26

Northland Power 2022 Sustainability Report

Climate-related Risk Management
Managing climate-related risks is an important part ofour decision-making process throughout the project life
cycle. Risk management is integrated within our businessprocesses and across the project life cycle.
We identify and assess climate-related risks throughout
the project life cycle. These risks are brought to the ESG
Steering Committee and, where relevant, to the CEO Risk
Committee. We integrate the identification, assessment,
response planning, reporting, and monitoring of theserisks into our business activities. Ownership of key risks isdelegated to the functional leads across the organization.
Identified risks are escalated to the Executive Teamand Board of Directors. They are monitored to ensure
appropriate responses.
We mitigate risks by assessing their magnitude against
the feasibility of projects under consideration and theactions required to minimize the likelihood of theserisks. We also mitigate them by transferring risk throughappropriate insurance (subject to the limitations describedin the Risk Factors section of the AIF). Our assets underdevelopment are built to meet industry design standards
that consider physical risks, such as the increased
frequency and severity of storms. We minimize risks byprocuring solar PV modules or wind turbines that are
specifically designed for the environment they will operate
in over the short, medium, or long term. We reduce risks
to the performance of our assets through our operational
expertise, continuous monitoring, and maintenance.
When assessing the significance of any risk, it’s important toconsider our ability to manage and mitigate the effects on
project costs, cash flows and returns, as well as reputation.
We use enterprise-level criteria to determine the materiality
and priority status of each risk. These criteria assess thepotential effects on our company-wide objectives, including
financial performance, strategy, and operations.

GRI 3-3; GRI 205-2; 403-2; TCFD Risk Management

Data and Cybersecurity

Accountability, Ethics and Transparency

As operators of critical electricity infrastructure, Northland
views data and cybersecurity as an essential part ofour risk management and good business practices.
We continuously monitor and assess threats, risks, andvulnerabilities. We mitigate risks through prevention,
detection, and response controls in line with global bestpractices. We also ensure our employees are regularly
trained in cybersecurity to encourage the security mindset.
For more details on Northland’s Data and Cybersecurity
policies and processes please see our 2021 Sustainability
Report (page 40) as well as our AIF (page 37).

Northland is committed to the highest standards ofbusiness ethics and corporate governance. We commit
to excellence in transparency, integrity, and accountability
to shareholders. Our global Code of Business Conduct
and Ethics (the Code) is founded on our values, outlining
the ethical, legal and compliance expectations for all ofNorthland’s employees, officers, directors, consultants,
and representatives. The Code includes guidelines for
upholding human rights, health and safety, respectin the workplace, confidentiality of information, social
responsibility, regulatory compliance, and ethical andhonest conduct. The Code was updated and affirmed by
our Board in 2022.

Emergency Preparedness
Each of our facilities maintains an emergency response
plan. They regularly complete drills and exercises to test
the plan and strengthen our emergency preparedness.
We have site-specific processes in place to identify andrespond quickly and effectively to risks in times of crisis.
Our emergency response plans include:

All employees sign Northland’s Code during the onboarding
process and are informed of changes and updates onan annual basis. The Code also refers to related policies,
including our Anti-Bribery Anti Corruption policy. These
are reviewed annually, and all employees must undergo
mandatory training around them.

•	Emergency and crisis communicationand escalation processes•	Specific strategies for spills, fires, working near open
bodies of water, working at heights, pandemic
preparedness, cybersecurity incident response andoperational emergency procedures, among others thatare relevant to the asset type and location

A member of EBSA’s customer service teamNorthland Power 2022 Sustainability Report27

Human Rights and Sustainable Supply Chain
Committing to Upholding Human Rights
We commit to upholding human rights in accordance with
the United Nations (UN) Guiding Principles on Businessand Human Rights, the International Bill of Human Rights
and the International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work.
In 2022, there were no incidents of violence involving
the rights of Indigenous people, no incidents of child orforced labour, or any other human rights violations.

Our policies
Our human rights policies can be found within our Codeof Conduct and Business Ethics, and in our Supplierand Partner Code of Conduct. These policies apply tointernal activities and conduct, our work with partners incommunities where we conduct business, and to activities
within our value chain, including, but not limited to,prohibiting the use of child and/or forced labour.
Our policies maintain that all employees and contractors
have the right to equal employment opportunities,
freedom of association, dignity, privacy, and the right tosafe and fair work without fear of discrimination or violence
based on ethnic background, culture, religion, sexual
identity or orientation, race, gender, ability or other factors.

Due diligence
As we grow and expand into new regions, the risk ofhuman rights issues increases. We are committed tomitigating these risks for our people, our communities
and within our business. Our Commitment to Local
Communities and Indigenous People is centered onbuilding strong relationships, including engaging inmeaningful consultation with these communities early,
often and throughout the life of our projects. This helps
us develop a comprehensive understanding of local andIndigenous community perspectives.

28

Northland Power 2022 Sustainability Report

We acknowledge the risks within our value chain. We
conduct thorough and proper due diligence in parallelwith our agreements, and through our contractual
language. We conduct reviews at each stage of the
project life cycle, from initial market analysis to supplierdue diligence and monitoring. We work with our partners
and suppliers to promote greater transparency andminimize the risk of violation of our codes of conduct.

Remediation
Northland commits to remediation for any incidents that
occur within our operations, the communities where
we operate, or through our value chain. We have local
grievance mechanisms at every project, from construction
through operations. We also have a Whistleblower Policy,
which applies to all employees, officers, directors, contractors
and suppliers of Northland and its affiliates, as well as
members of the community. Northland will investigate
all allegations and protect those reporting in good faithfrom retaliation. Supporting and protecting those whoreport wrongdoing encourages all employees to observe
the highest standards of business and personal ethics inaccordance with our principal business and practices.

Training
To support further awareness and accountability for ourcommitment, in 2022, we launched our first mandatory
training on Modern Slavery and Human Rights. This
training focuses on providing Northland employees withan overview of modern slavery, its global prevalence, andhow to combat it through proper business practices. The
training includes an overview on supplier due diligence,highlighting the importance of early detection of humanrights risks within the supply chain. In 2023, Northland
will look to translate this training into multiple languages
and find new opportunities to engage employees to raiseawareness of human rights issues.

GRI 2-6; 2-23; 2-25; 2-26; 3-3; 406-1; 408-1; 409-1; 411-1; 412-1; 412-2

Building a Sustainable Supply Chain“We seek to create partnerships with
our suppliers, not only contractual
arrangements. We share in ourcommitments with them, and collectively
push for change, working seamlessly tohave greater impact. We’re not willingto compromise on our core values, andwe won’t pursue work with a supplier that
requires us to do so.”Each year, we work with over 2,000 suppliers and vendors
around the world. It is imperative that we clearly articulate
our ESG values and what we stand for as a company tothis entire supplier ecosystem.
While our construction efforts are mostly supported byour largest suppliers, we also have long-term contracts
for operations, maintenance and corporate services
across our value chain. In line with our Supplier andPartner Code of Conduct, we commit to working with
our suppliers to ensure long-term sustainability and theupholding of our values and commitments to our planet
and people. This includes, where possible, the growth of
local industry and supporting local supply chains.
Our Supplier and Partner Code of Conduct is both abusiness agreement and social contract to help guide ourpartner and supplier relationships. It helps mitigate risks andlays the foundation for honest and transparent relationships
built on accountability and shared responsibility.

Supplier on-boarding best practice:
360° view on suppliers and partners

ESG
Risk
Assessment

1

2

Financial
Risk
Assessment

Supplier
Selection & Evaluation

Supplier
Identification

Martijn de Heer,
Global Head of Supply
Chain and Procurement

A tool to ensure suppliers meet our ESG
expectations
Northland has partnered with EcoVadis, a well-respected
provider of business sustainability ratings, intelligence, andcollaborative performance improvement tools for global
supply chains. This partnership has become an intrinsic
part of how we onboard our suppliers.
EcoVadis supports better due diligence and transparency
within our supply chain. It provides an actionable
sustainability scorecard that arms us with detailed insight
into environmental, social and ethical risks within our
global suppliers.

Compliance & Legal
Assessment

Corrective
Plan &
Actions4

Supplier
Monitoring

Portfolio
Manager
Ongoing
Monitoring &Performance
Adjustment3

Supplier
Prequalification

Supplier
Management

Contract
Execution

Northland Power 2022 Sustainability Report29

While our work powers communities around the globe, Northland
is powered by our people. We prioritize building a strong, diverse,and differentiated global workforce to support project development,
innovation and execution of our 20 GW renewable energy pipeline.
We value great talent and invest in our people accordingly.

30

Northland Power 2022 Sustainability ReportOur
PeopleMaterial Issues
Attracting Top Talent
Engaging and Developing our People
Prioritizing Occupational
Health & Safety
Committing to Diversity, Inclusion& Belonging (DIB)

Northland Power 2022 Sustainability Report31

Attracting Top Talent
Building our Talent Pipeline
In 2022, we revamped our talent acquisition strategy on
the back of a strong employee value proposition (EVP).
Our EVP articulates the opportunity at Northland to dosomething special in the renewables industry. We bringour EVP to life in two ways. Our hiring managers andTalent Acquisition Partners tell a consistent, compellingstory about working at Northland, customized basedon our target talent segments. And we showcase ourcurrent employees through our updated Careers Pageand social sites. In 2022, we launched our Employee
Referral Program to incentivize our people to refertalented, high-performing, and diverse candidates to join
Northland. Through our attraction efforts, we added 293
team members to our business in 2022.

Driving a Collaborative Culture
Our values are the foundation of our culture. They
represent what we stand for, inform who we hire, andguide how we evaluate, develop, engage and empower
our people globally. Northland’s leaders have a crucialrole in employee engagement. They are ambassadorsfor our culture, and we work to ensure they have theskillsets and competencies to fill that role. Our executives
have undergone leadership assessments, including
psychometric testing, to identify strengths and gaps intheir ability to build a dynamic global culture that is felt
and fostered through all teams.

32

Northland Power 2022 Sustainability Report“We have undergone a positive culture
shift focused on accomplishing ourgoals together through a common
vision that promotes a high level of trust,transparency, and team building. We
foster culture-building opportunities
throughout the organization. And wecommit to continued learning throughinsights, quarterly in-person workshops,
and open communication between
leaders and their respective teams.”
Rachel Stephensen,
Chief People Officer

GRI 3-3; GRI 404-2

Placing Employee Engagement at theHeart of Everything We Do
Engagement is about two-way communication. In 2021,
we introduced our first global engagement survey tohelp us understand how our people feel about topics
ranging from culture, to collaboration, to decision making.
In 2022, we launched our second annual survey andachieved a global engagement score of 72. After hearing
from 82 per cent of all Northlanders, we determined thebiggest opportunities to increase engagement were:

Listening to and embracing our peoples’ feedback andacting on the above focus areas were key to our successin 2022. Our continuous listening strategy includes ourannual engagement survey and other pulse surveys. It
has allowed us to know whether the actions we take eachyear have made an impact on our peoples’ experienceat Northland.

1.	
Career development: Focus on supporting employee
development efforts so people can grow their careerat Northland.
2.	Global connectivity & collaboration: Focus on
enhancing information flows, understanding ofbusiness goals (outside of own functional area) andconnecting with other teams.

Global Clean Up Day
As part of Global Clean Up Day during the week leading up
to and/or directly following September 17 (many sites celebrated on September 14th in conjunction with Northland’s
35th anniversary), Northland coordinated regional clean ups
at parks and green spaces near our offices, facilities,
and project sites globally. More than 300 employees across
10 sites and three continents, volunteered their time tosupport our local communities. This number represents aquarter of our total global employee base.
Together, we were able to collect and divert over two tonnesof waste from the natural environment.
Clockwise from top left: Employees at Northland’s Toronto office participating in a cleanup at a local park. Employees at Northland’s Hamburg
office participating in a local cleanup. Employees at Northland’s regulated
utility, EBSA, cleaning up their local communities.

Northland Power 2022 Sustainability Report33Engaging and Developing our People
Powering up Careers at Northland
Our Global Engagement Survey results identified careerdevelopment as a focus area and engagement driver.
Powered by this feedback, we celebrated Career Monthin September by sharing information and tips on how
our people can develop their career at Northland. Career
Month included the launch of LinkedIn Learning, newinternal mobility guidelines, ideas on how our people canshape their career, and highlighted some of the amazing
careers from across Northland.

Enhancing our People’s Skills,
Knowledge, and Competency
Supporting the development of our people throughrequired and voluntary training is an important part of ourtalent development program. Most training is supported
at a site or function level. Our people are encouraged
to take courses and join conferences to develop theirskills and knowledge. Corporate-led training in 2022
included health and safety training for new employees
and specific employee groups, mandatory anti-bribery,anti-corruption, and human rights training, as well as
mandatory DIB training for people managers. We also offer
tuition reimbursements for education costs that enhanceorganizational effectiveness and productivity.

Creating a High-performance Culture
Our performance management process allows for
employees and their managers to establish goals, sharecontinuous feedback on performance throughout theyear, and recognize and reward our people for theircontributions to Northland.
In 2022, we revamped our five-point performancescale to include an assessment of what was achieved(accomplishment of goals and the impact of thesecontributions on business results) and how the work
was accomplished (observable behaviours that are tied
to our core competencies). All permanent employees
and those on long-term fixed contracts who started
prior to October 1, 2022, took part in the 2022
performance process.
For more details, see our competency framework andvalues in our 2021 Sustainability Report or visit the Careers
page on our website.

LinkedIn Learning Initiative
In 2022, we launched LinkedIn Learning to all Northland
employees. This provided Northlanders globally withaccess to over 15,000 courses on business, leadership, andtechnology topics, with recommended courses mapped to
Northland’s core and leadership competencies, values andDiversity, Inclusion and Belonging (DIB) principles.

34

Northland Power 2022 Sustainability ReportGRI 404-2; 404-3

My Career Journey at Northland
We asked Northlanders to share their career journey with us. Here are some of the highlights“Northland has helped my education, significantly
supported me in my personal and professional
development, and helped me gain new skills. I’ve
overcome many challenges and have been able
to grow thanks to good feedback and colleagues
who were able to answer my questions and giveme guidance.”J oschka Klauke,
O&M Package Manager – Hamburg, Germany“I joined Northland in 2021 as the director ofgovernment relations for the Hai Long Project. I joined
at a critical time for the project, allowing me to get
involved right after onboarding. Under my supervisor’s
leadership, I have had the opportunity to work closelywith the Canadian Trade Office in Taipei to organize thereception for government officials from Canada andto communicate with central and local stakeholders.
Seeing my work contribute to Northland’s growing
presence in Taiwan is very rewarding and inspires myprofessional development. I consider myself lucky towork with a team with diverse backgrounds and ashared passion for improving the planet.” ina Wu,GGR/PR Director, Hai Long Project – Taipei, Taiwan“I’m lucky to have worked across three functional areasof the business: Operations, Development and now
Finance. I’ve grown a lot in my years at Northlandand have found my time here to be rewarding
professionally and personally. I value how Northland
is a non-hierarchical organization. I know a lot oforganizations say that, but here I’ve always felt thatcollaboration and open dialogue across all levels ofseniority are welcomed and encouraged. It’s uniquefor an organization of Northland’s size to be able tofoster that kind of environment.”
 ara Ballantyne,L
Senior Manager, Financial Partnerships – Toronto, Canada“I joined Northland two years ago as a Lead
Technician at the site in Norddeich, where I was
responsible for the operation and maintenance ofthe turbines. Additional tasks and projects camein gradually, scaling back my offshore days andleading me to spend more time in the office. In mytime at Northland, I’ve been offered various learning
opportunities. Especially in the last year, I’ve takenover more diverse tasks, which require versatility andflexibility. There are always opportunities to work on
suitable challenges and projects while receiving the
support needed to develop our careers.”
 ranco Rissmann,F
O&M Implementation Engineer – Weißwasser, Germany
Northland Power 2022 Sustainability Report35Prioritizing Occupational Health and Safety
Health and safety are our top priorities at Northland. We
maintain the highest standards – in line with our Global
Health and Safety Policy (H&S Policy) and Core Principles– and continuously improve our processes, ensuring they
are integrated and applied globally.
Our corporate goals and global H&S Policy drive our
occupational health and safety practices at the projectand site level, allowing us to identify and manage issues
through our policies, procedures, and tools. Health and
Safety department heads visit our sites regularly to ensure
direct communication with employees and contractors.
Each site, regardless of stage of project lifecycle, has astructured safety management system that identifies
hazards and manages risks in line with best practices.

“At Northland, we are committed toadvancing a safety culture globallythat embeds the mental and physicalwell-being of our employees in daily
work activities.”
Ana Reyes,
Director of Global Health& Safety

Leadership Safety Walks
Leadership safety walks are a key method by which weenhance our emergency preparedness. They reflect our effort
to not only impart a culture of safety, but also to live one.
Executives visit Northland facilities equipped with specificinformation so that they can ask the right questions.
These are not checkbox exercises – instead, they are tools to
help measure Northland’s safety culture and capture diverse
employee perceptions. Key learnings are then brought backto the leadership table to be scrutinized, keeping safety topof mind at Northland.

36

Northland Power 2022 Sustainability Report

Global Health & Safety
Risk Management Process•	Assessment•	Planning•	Implementation•	Monitoring and Reporting•	Incident Review		 •	Engage third parties for independent review toensure limited bias throughout established processes

Incident Management
Northland monitors and reports on all incidents, whether
minor or significant. We do this in compliance withlocal laws and regulations and in alignment with ourpolicies and procedures. Northland also conducts regularsafety observations, monitoring and evaluation - of bothlagging and leading indicators - for continuous learningand improvement.

Contractor Health and Safety
Northland requires all contractors and partners tocomply with company-led, jurisdictional, and site-specificoccupational health and safety acts, regulations, codes,
protocols, and policies to uphold industry and Northlandsafe-work practices and standards. Northland adheres
to internationally recognized occupational health andsafety standards, including the International Standards
Organization (ISO).
Additionally, each of our locations maintains its own
emergency response plan, including risk assessment
processes in place to help employees identify hazards
in the workplace and on project sites. Employees
regularly complete drills and exercises to reinforce our
emergency preparedness.

GRI 3-3; GRI 403-1; 403-2; 403-3; 403-4; 403-5; 403-6

Core Health and Safety Principles
1. Systems

2. People

Our Safety Management System (SMS), in place at every
site, helps us monitor, measure, evaluate and report on
health and safety performance targets in all countries. It
is regularly reviewed and improved based on emerging
information, cementing clear safety requirements andcompliance standards for all project and facility types.

Northland’s full-time safety leader is dedicated to building
culture and awareness around this vital issue. This role iscomplemented by internationally certified safety leadersin all business units. All operational sites and corporate
offices have Health and Safety representation, or formal
Joint Health and Safety Committees where requiredconsisting of management and worker representatives
who meet regularly to identify issues, recommend
solutions, follow up on actions items, and ensure regularinspections of working environments. We are also
committed to cross-operational discussions to help share
best practices and engage employees on health andsafety topics.

3. Preparedness

4. Leadership

A global Risk Management Program ensures we
identify, assess and report on all risks consistently acrossNorthland. Each facility maintains its own emergency
response plan and teams complete regular safety
exercises. Meanwhile, health and safety training programs
are tailored to all employees, offices and sites on such
workplace topics as heat stress, chemical safety, materials
handling, and behavior-based safety. Northland commits
to further enhancements to training programs andmanagement systems to ensure employees and systems
are up to date.

Health and Safety is embedded in Northland’s
governance and is a priority agenda item at every
quarterly Board meeting. Our Executive teamconsistently analyzes safety performance, risks andplanned activities, and receives quarterly updates fromall regional offices and facilities. Beyond the responsibility
and accountability taken by Senior Management, ourBoard also provides oversight, confirms health andsafety policy and reviews performance for all regions.

Learning and Continuous Improvement
In 2022, despite a reduction in our total recordable incident
rate and an increase in number of observations and safety
walks, we had a life-changing event, the first of its kind inover 25 years at Northland. While the incident was non-fatal,
it did prompt a thorough review of the incident, with bothinternal resources as well as an external, independent review
to help understand the root causes for such an event.
Northland’s leadership has reinforced our commitment
to effective health and safety management and to the
responsibility held by leadership and each employee.

Northland Power 2022 Sustainability Report37Committing to Diversity, Inclusion and Belonging (DIB)
It takes ongoing commitment and effort to create an
inclusive environment where everyone is empowered to
do their best work, differences are welcome, practices areequitable, and a sense of belonging is widespread.
Our commitment to fostering an inclusive and equitableenvironment is entrenched in our values and part ofeverything we do at Northland.

What Does DIB Mean to Us?
Diversity: The seen and unseen characteristics thatmake people unique. This includes age, gender, identity,
ethnicity, disability, sexual orientation, education, andnational origin.
Inclusion: The behaviours and cultural norms that makepeople feel welcome at Northland.
Belonging: The individual sense of acceptance.

Moving Forward Together
Our commitment to DIB spans functions and geographies
at Northland. Everyone shares a role in maintaining ourfair, inclusive culture. Our executives own our DIB strategy.
It is led by a DIB Executive Champion, which is a rotating
position that allows for different members of our executive
leadership team to spearhead DIB initiatives. The DIB
Executive Champion works closely with our Global DIB Leadand local DIB Champions to align our initiatives globally.

38

Northland Power 2022 Sustainability Report“For me, diversity, inclusion and belonging
are all about empathy. Having empathy
for other people’s experiences and howthat shapes their views and opinions.
An empathetic leader tries to create anenvironment that is safe for individuals
to be their authentic selves and share
their views and opinions. This diversity ofthought can lead to better decisions.”
Michelle Chislett,Executive Vice President,
Onshore Renewables and
DIB Executive Champion

Promoting Balance and Well-Being
Northland is committed to the well-being of our employees, while recognizing the struggles of well-being, mental
health, and work-life balance over the last several years. In
2022, we rolled out a new Global Wellness Program thatreimburses employees up to $300 (or the equivalent inlocal currency) annually for expenses that support physicaland mental well-being, such as fitness activities andmeditation programs.
Since 2021, Northland has encouraged all teams tocollaborate on flexible work arrangements in support ofhybrid workstyles. We also provided new resources forpeople to improve their personal well-being – and tosupport others. These included a training exercise to learn
how to help someone who is struggling, and webinars on
mental health, empathy, and inclusion in the workplace.

GRI 3-3; GRI 403-6; 405-1

Advancing our DIB Commitments

Northland’s executive team is committed to advancing the following six objectives:
Commitment

Initiatives

Creating a trusting
environment where
our people feelsecure and confident
enough to engage inconstructive dialogue

In 2022, we piloted DIB Learning Socials. DIB Learning Socials are peer-to-peer forums where
Northlanders can connect informally to share lived experiences and discuss topics that matter tothem, judgement-free space. Our piloted Learning Social on Inclusive Language involved watchinga TED Talk by Fahad Saeed which explored intersectionality. Participants then met to discuss andreflect on how communicating about our intersecting identities brings us closer together.

Acknowledging that
advantages andbarriers exist

In 2022, we signed a gender equality pledge through Equal by 30, committing to achieving equalpay, equal leadership, and equal opportunities in the energy sector by 2030. We have achieved
equal gender representation on our executive team, with almost half (44%) of our executives
identifying as women.
Northland has partnered with Catalyst, a non-profit devoted to building inclusive workplaces.
Northlanders can access Catalyst’s online hub of resources on topics such as unconscious bias,
microaggressions, inclusive leadership and bystander intervention. In 2022, senior leaders
attended a special inclusivity workshop to set the DIB tone from the top.

Promoting inclusivity
through culturalcompetence

As part of our DIB learning journey, over 80 per cent of our managers completed a DIB course
in 2022. This course allowed our people managers (those with direct reports) to gain a better
understanding of why DIB is important and learn strategies to hire and retain diverse talent.
We also hosted self-led and group learning opportunities that included workshops and sharedresources. The goal was to build awareness around DIB, and ensure our people have the training
and guidance to put that awareness into action. In 2022, we celebrated or marked a wide range ofdiversity-focused events, highlighted by a 2SLGBTQ+ advocacy workshop during Pride Month anda presentation by a First Nations elder on National Day for Truth and Reconciliation.
To recognize and celebrate our diverse cultures, we launched a multicultural calendar, which
includes important cultural and religious events across the globe.

Establishing processes
to measure theongoing efficacy of
our DIB initiatives

Our annual global engagement survey includes questions that measure employee sentiment
on important issues including authenticity (“I feel comfortable being myself at work”), a sense of
belonging, and inclusion (“Leaders at Northland value different perspectives”).

Recognizing ourpeople for the work
they do and values
they holdIn 2022, Northland began performing a global compensation calibration against markets where
we operate. The goal was to ensure fair and equitable compensation based on skills and roles,
and to adjust salaries to ensure they meet or exceed market standard. This is an example of how
we ensure equitable practices in our talent processes.

Sharing our DIB plans
with our Board

In 2022, we amended our Diversity Policy to further refine our targets, and committed to adding
at least one board member who identifies as a member of one or more of the following groups
by the end of 2024: Indigenous peoples, persons with disabilities, persons belonging to visible
minorities, and/or 2SLGBTQ+ members.

Northland Power 2022 Sustainability Report39

At Northland, we are committed to a sustainable future for our planet.
We take a systematic approach to achieving our decarbonization andstewardship goals. We engage in proactive environmental and climate
management through broad awareness, coordinated design and effective
controls. Our approach is grounded in our Global Environmental Policy.

40

Northland Power 2022 Sustainability ReportOur
PlanetMaterial Issues
Reducing Emissions
Preserving Biodiversity and Ecosystems

Northland Power 2022 Sustainability Report41

Reducing Emissions
In 2022, Northland continued its focus on developing renewable energy projects and operating our facilities as efficiently as
possible. Our teams monitor each facility and office to quantify all sources of GHG emissions.

GHG Emissions Breakdown by Scope and Source
Upstream Supply Chain
Emissions (Scope 3)

Direct Emissions(Scope 1)

Indirect Emissions(Scope 2)

Upstream Third-Party
Services Emissions (Scope 3)

Generation

Goods and services
47,809 tCO₂e

Renewable energy
2,041 tCO₂e

Operations
10,073 tCO₂e

Waste
189 tCO₂e

Capital goods
10,465 tCO₂e

Efficient natural gas
1,266,802 tCO₂e

Offices²
294 tCO₂eBusiness travel
1,488 tCO₂e

Line losses
17,121 tCO₂e

Employee commuting
312 tCO₂e

Operations

Fuel and energy
259,109 tCO₂e
Vehicles at all locations
16,901 tCO₂e

Heating for offices
121 tCO₂e
Utility operations
10 tCO₂e42

Northland Power 2022 Sustainability Report

SASB IF-EU-110a.1; IF-EU-110a.3; GRI 305-1; 305-2; 305-3; 305-4; 305-5; TCFD Metrics & Targets

Total Scope 1 Emissions (tCO2e)

Total Scope 2 Emissions (tCO2e)

1,267,183

22,233

Onshore Renewables

2,053

2,096

Offshore Wind

15,752

2,866

47

415

Thermal & Utilities

Offices
Total Scope 3 Emissions (tCO2e) 319,373

Upstream Fuel and Energy Activities

259,109

Waste in Operations

Purchased Goods and Services

47,809Business Travel

Capital Goods

10,465

Employee Commuting

0.180

1,600,000
1,400,000

0.160

1,200,000
1,000,000

0.140

800,000

0.120

600,000
400,000

0.100

200,000
0

2019

2020

2021

2022

312

0.080

0.200

120.0

0.180

100.0

0.160
0.140

80.0

0.120
0.100

60.0

0.080

40.0

0.060
0.040

20.0

0.020
0.000

2019

2020

2021

2022

0.0

Total Scope 3 GHG emissions

GHG emissions (Scope 1 & 2 emissions) intensity by generation

Total Scope 2 GHG emissions

GHG emissions (Scope 1 & 2) intensity by revenue

GHG intensity (tCO2e/$MCAD)

0.200

1,800,000

Absolute GHG emissions (tCO₂e)

2,000,000

1,488

GHG Emissions Intensity byGeneration and Revenue
GHG intensity (tCO₂e/MWh generated)

Absolute GHG emissions (tCO₂e)

GHG Emissions Inventory andIntensity by Generation

189

Total Scope 1 GHG emissions
GHG emissions (Scope 1 & 2 emissions) intensity by generation
GHG emissions (Scope 1, 2 & 3) intensity by generation

Northland Power 2022 Sustainability Report43Reducing Emissions
Scope 1 Efforts
Our direct Scope 1 GHG emissions are primarily from stationary combustion from natural gas-fired power generation.
However, we also have emissions from mobile equipment, vehicles and vessels at all of our sites, as well as fugitive
emissions. In keeping with our emissions reduction strategy, in 2022, our emissions reduction efforts were focused on
operational optimization and efficiency and decreasing baseload production from natural gas, while continuing to grow ourrenewable energy capacity. As a result, we are seeing a downward trend in our carbon intensity from the 2019 baseline.
Kirkland Lake

Onshore Renewables Portfolio, Spain

We achieved significant CO₂ reduction by transitioning to just
10 per cent operational capacity from baseload status. This change
was the result of three years of discussions with the community andour operating team. The new agreement allows the site to continue
supporting the energy grid with accessible energy where and whenneeded, while significantly reducing run times and emissions.

Northland advanced our carbon intensity reduction by acquiring
a fleet of high-quality renewable assets in Spain. These assets
contributed 980 GWh energy generation in 2022. The assets supply
near-term cash flow to support offshore wind development. They
will serve as a platform for future growth in onshore renewables
in Europe.

One of Northland’s solar PV assets from its Spanish onshore portfolio.

44

Northland Power 2022 Sustainability Report

SASB IF-EU-110a.3; GRI 305-5

Scope 2 Efforts
Our indirect Scope 2 GHG emissions are from the electricity and heating we purchase at our offices and facilities and fromline losses through the distribution of energy. We purchase certified green power directly from suppliers and Renewable
Energy Credits (RECs), where available, to reduce the effects of these emissions. We look for efficiencies, choose upgradesthat reduce our office footprint, and choose more eco-friendly office spaces.
Renewable energy purchased during 2022

Eco-friendly office space

We purchased 207 MWh of renewable energy across our offices inGermany and Spain, and at our offshore wind facilities in Germany.
In Ontario, Canada we purchased 1,273 MWh of RECs from onshore
wind to reduce the impact from our Kingston location and our
global head office in Toronto.

We commit to making sustainable choices to support our future
growth. An example of this is the lease of green office space for our
new Spain corporate office in Madrid. This space includes rooftop solar
installations that provide renewable energy directly to the building.

Scope 3 Efforts
Our indirect Scope 3 GHG emissions relate to upstream activities associated with the development and operation of
our projects and facilities. We measure and report on these emissions to better understand how to begin reducing ourlarger indirect footprint. Our Scope 3 emissions remained relatively consistent, though we did see an increase in fuelconsumption due to higher natural gas production and global travel returning from pandemic lows. Conversely, we saw
lower emission numbers from construction, as we only had a few onshore construction projects underway during theyear (some of which was accounted for in 2021).
Gold standard offsets for travel

Green commuting in Saskatchewan

In 2022, we purchased 1,488 tC02e worth of Gold Standard-certified
offsets from Less Emissions to compensate for our global travelrelated emissions. These offsets support projects around the worldthat verifiably reduce GHG emissions at the source and positively
impact social networks and local economies. Details on the Gold
Standard-certified international projects can be found here.

In 2022, our North Battleford and Spy Hill efficient natural gas
generating sites in Saskatchewan, Canada installed several electricvehicle charging stations to encourage employees to switch toelectric vehicles. Both sites have installed level 2-type EV chargers,
with the North Battleford site able to charge up to four vehicles at
any given time. This service is offered at no cost to employees tohelp minimize the impact of commuting.

Northland Power 2022 Sustainability Report

45

Preserving Biodiversity and Ecosystems
Northland is committed to protecting and supporting
biodiversity and effectively managing shared resourcesin our areas of operation. We minimize the effects of
our activities through proactive project planning andcontinuous monitoring. We use a precautionary approachto develop action plans in response to identified risks.
There are environmental risks, opportunities,
dependencies, and impacts due to the nature of ourbusiness. This is particularly true during construction
activities and throughout operations.
Risk and impact management: We design our facilities
to avoid disturbing environmentally sensitive and/or emblematic species and their habitats. We carefullyplan our construction activities to minimize adverse
environmental impacts and disruptions to life on landor underwater. We actively revive and restore naturalenvironments by replanting forested areas and grasslands,
among other activities. Our environmental management
plans monitor and mitigate potential and actual effects
throughout the project life cycle.
Opportunities: Effective management of natural
resources and the environment we operate in presents
many opportunities. Northland uses natural processes
in the environments we work in to support effective
rehabilitation, maintenance, and water usage. This section
covers examples of these processes.

CanadaColombia

Preventing Impacts to Microclimatesand Habitats in Colombia
EBSA develops transmission anddistribution projects with a focus on
preventing impacts to plants, animals,
and habitats through engineering design.
Unavoidable impacts are addressed
through enhanced mitigation, remediation,
and/or compensation programs.
These programs build on minimum
regulatory requirements through species
identification and planting schedules thatare customized to meet the needs ofmicroclimates and unique ecosystems forthe long-term success of local biodiversity.

46

Northland Power 2022 Sustainability Report

Revitalizing Greenspace in ThoroldAt our Thorold Generating Station, we
revitalized unused land next to the power
plant into a green space for the surrounding
community to use. The space features a mixof trees, shrubs, grasses, and wildflowers
native to the area. These plants provide
habitats to local wildlife, particularly birds,
butterflies, and insects. A rain garden is in theworks to collect rainwater runoff, which will
be filtered by vegetation and percolate into
the soil to recharge groundwater aquifers.
Beekeeping in Ontario
At our Belleville South and North Burgess
solar sites, we use vacant space to maintainapiaries. Introduced in 2020, the apiaries
produced an inaugural harvest of over 40 kg
of honey. We also have a program in placeat these sites to plant, maintain and monitor
local wildflowers that ensure a three-season
food supply for bees and other pollinators.

SASB RR-WT-410a.3; RR-ST-160a.2; GRI 3-3; GRI 304-2

Spain

The Netherlands

Restoring Oyster Beds
in the Netherlands
Gemini Wind Park, in partnership with
The Rich North Sea, is restoring what
was once one of the largest oyster reefs
in the region. The project will rebuild
an oyster reef the size of eight football
fields, located 85 km from the northcoast of the Netherlands. Oyster beds
play an important role in underwater
ecosystems. Researchers from bothorganizations are working together
to understand the complexity ofoyster bed development and recovery,
including the ways wind parks provide
suitable conditions for oysters andother shellfish to thrive.

Recycling Rainwater in Spain
In Spain, we reduce the water footprintof six of our wind park substations
through rainwater collection systems.
At our Lebrija concentrated solar
plant, some of the water withdrawn
for operations is stored for reuse.
A rainwater collecting system also
supplies water for cooling purposes.
Solar Grazing11 with SheepAt our Castejada, Rambla, Valdecaballeros and Zarza solar parks in
Spain, Northland works with local
sheep farmers to let their flocks graze
the grassy areas within fields of solar
panels, clearing vegetation that could
interfere with operations. This arrangement avoids the use of machinery or
harmful pesticides, while regenerating
the soil. It benefits local farmers byoffering shade, shelter, food, and water
for the sheep.

Germany

Reforestation in Germany
In December, a team of Northland
employees travelled to Hamburg Hills
and planted nearly 1,000 beech trees.
Northland donated the trees to theGerman Forest Protection Association.
This initiative is part of a campaign tocounteract the wide-spread decline offorests in Germany and restore theirecological, cultural, and economic
services. The variety of species planted
will support a mixed forest of local
and adaptable trees that provide thegreatest possible diversity to local
plants and animals.

11	Solar grazing is a practice where grazing livestock
such as sheep help control vegetation under solar panels,
minimizing impacts to the environment.

Protecting Bats in Ontario

We know that despite the climate mitigation potential, wind turbines can sometimes
be fatal to birds and bats. This is particularly true if they are erected in feeding grounds
or migratory pathways, as is the case with our Grand Bend facility in Ontario, Canada.
It was our responsibility to act on this key local biodiversity issue.
We sought out an innovative new technology. We investigated the use of an earlystage acoustic bat deterrent system, which emits high-frequency sound to keep batsaway from the turbine’s blades. We held a three-year trial and analyzed the results.
During the trial period, the technology reduced bat mortalities by approximately 50
per cent. It significantly reduced raptor mortalities too, likely due to fewer prey near
the turbines. After three years, the program was more successful than expected. We
plan to install this technology at all turbine sites.

Northland Power 2022 Sustainability Report47

Northland is committed to building and maintaining strong
relationships with our local and Indigenous communities. We

recognize the importance of establishing and maintaining
relationships in the communities where we do business. We prioritize
creating positive impact throughout our projects’ lifecycles.

48

Northland Power 2022 Sustainability ReportOur
Community
Material Issues
Partnering with Local and Indigenous Communities
Investing in our communities

Northland Power 2022 Sustainability Report49Partnering with Local and Indigenous Communities
We commit to working with integrity and deep respect
for local communities and Indigenous people on every
project globally. We will form and foster strong, mutually
beneficial relationships that reflect local knowledge
and establish respect, trust, and support between allparties. See our Commitment to Local and Indigenous
Communities policy for more information.
A key to our success on each project is earning whatis described as social license to develop and operate.
Partnering with communities enables us to develop,
construct and operate our projects while sharing acommon purpose with those who live and work in theregions where we operate. Our teams are committed tounderstanding the evolving needs of the communities,
and to delivering positive outcomes for both projects
and host communities. To achieve this, we work to alignwith various local rightsholders and stakeholders as wellas key decision makers on the economic, social andenvironmental benefits of our projects for communities.

Community Consultation
Northland actively seeks to anticipate, understand andmanage any potential effects our projects may have. Our
process is to identify key rightsholders and stakeholders,create channels for engagement, and continuously
consult with them. This means engaging early and often– from project conception, through to construction andoperation. We engage municipalities, local communities,
Indigenous communities, conservationists, community
groups, NGOs and more.

Understanding Impacts
As part of our strategic planning process, Northland
is committed to identifying and addressing ecologicaland community impacts from the beginning to the endof the project life cycle. We implement social impact
assessments, management plans, and community
engagement as well as consultation programs during
early project development at all sites. This results
in ongoing engagement and consultation with key
stakeholders and rightsholders to regularly address theiropinions, sensitivities and any potential or actual impacts
on their communities.

Developing Communities
Northland is dedicated to creating economic prosperityin the communities where we work. Some highlights ofthis include:• 43 local hires at our La Lucha project• 78 local jobs created at our Helios projectAs a trusted partner, we look to create economic
opportunities in the communities where we do business andmake investments to enhance the lives of local residents.
Our priority focus is hiring from within the community,
including the hiring of a local social liaison. We use
local suppliers wherever feasible. We consider it bestpractice to provide job training for local employees andlocal businesses to work on our projects, and support
learning opportunities for those looking for jobs inrenewable energy. Finally, we allocate funds to community
initiatives and activities during construction project
phases to support revitalizing and restoring community
infrastructure that drives local economies.
To help guide these efforts, and to identify challenges,
Northland produces social impact assessments that target
any direct and indirect areas of influence in our project
scope. These studies are conducted on all new projects
globally.

50

Northland Power 2022 Sustainability Report

SASB RR-ST-160a.2; GRI 2-29; 3-3; 413-1; 413-2

Staying Connected

Collaborative Indigenous Partnerships

At the outset of each project, Northland’s Communityand Indigenous Relations team work with Northland’s
development staff to build robust avenues to connect withlocal rightsholders and stakeholders. This multi-layered
communication framework includes government andIndigenous and community relations. It encourages
dialogue at the local and regional levels, with dedicatedproject teams at the corporate level.

Our teams respect Indigenous communities, and theirtraditional lands, heritage, culture, language, and values.
To honour this, we believe in finding ways to create
meaningful Indigenous community involvement inour projects.

Public consultation is a central component of our project
development, construction and operations. We executea fully integrated consultation strategy as projects
progress. We host local open houses and town halls
to inform community rightsholders and stakeholders
about our projects, to help us understand prevailing
sentiments and questions, and to make sure we mitigate
and address any concerns as they are raised. Many ofour projects also have dedicated websites, emails, andtelephone hotlines to ensure lines of communication arealways open. All new projects undergo a complete Social
Impact Assessment during the development phase. This
assessment is used to develop the relevant social andcommunity relations plan and initiatives as well as predictand help to mitigate community and social aspects of the
project.

In step with our “early and often” consultation approach,
we engage local Indigenous community leadership,including Chiefs and councils, as well as local elders, inany proposed project as it is conceived. We recognizethat meaningful involvement and economic reconciliation
provides uncommitted funds that Indigenous communities
can invest in programs and other developments that areimportant for them. (For more information, see our 2021
Sustainability Report)
In 2022, one of our focus areas was heightened training
and relationship building between operating members of
our teams and their local Indigenous partners.

Earning a New Trusted Relationship in Scotland
In 2022, Northland was awarded offshore wind projects near the Isle ofLewis in northwestern Scotland. This followed a multi-year engagementwith stakeholders from local communities and governments –conversations that continue to this day. Our Scotwind bid was successfulin part due to our commitment to working closely with communities andlistening to their needs.
We took our local community partners’ leads on developing a supply
chain and collected diverse perspectives before announcing any
decisions. We hired an experienced resident to serve in our social
liaison role, and quickly established connections to various impacted
communities. Our teams also consulted elementary school students to
help name our two offshore wind projects – Spiorad na Mara (Gaelic) andHavbredey (Norse). See link for more details.

Northland Power 2022 Sustainability Report51

Investing in Communities
We aim to contribute to the long-term economic
prosperity of our local partner communities. We provide
support through donations, sponsorships, and community
investments at any stage in a project, from development
through to operations. To ensure our initiatives are
implemented across the business, we engage andencourage our employees to act as responsible business
partners and seek volunteer opportunities to remain
active participants in community efforts.
While this engagement had long been a grassrootslevel approach, it is now coordinated through a newpolicy to reflect our broader social and environmental
commitments. In December 2021, we released thecompany’s first Community Investment Policy, designed
to support the communities and regions where we are
active and to create positive impacts for the planet andits people. This policy is supported by our Community
Investment Committee, and supports integration of thepolicy globally. The members of the committee bring awide range of experience, backgrounds, departments
diverse perspectives and guide decisions around global
initiatives. In 2022, Northland invested over $3 million to
support our communities.

52

Northland Power 2022 Sustainability Report

Northland Introduces Community
Investment Committee“Northland’s community investmentcommittee unites representatives from ourglobal offices to ensure our investmentsalign with our values and the priorities ofour partner communities.”
Tim Richardson,
Committee Co-ChairGRI 3-3; 201-1

The policy’s three pillars support communities and our ESG goals:

Decarbonization and proactive
environmental protection

Northland Sponsors SevenGen Conference
Northland was a gold sponsor for SevenGen
2022. The conference brought together
young Indigenous people to empower the
next generation of energy and environmental
leaders.

Through our focus on clean technology andeducation, we committed to slowing theeffects of climate change and conserving andsupporting life on land and in the water.

Offshore Wind for Kids
In 2021,we supported Offshore Wind forKids by leading a group of youth throughan exercise of building mini turbine models,
showcasing how this is done, how they workand sharing knowledge about the industry
and technology.

more than$440,000
Health and well-being

Mental Health Month Donations
As part of our commitment to raiseawareness on the importance of mental
health, we were proud to partner with
CAMH Engage. CAMH Engage is an
advocacy group that promotes mental
health education and engages infundraising for the Canadian Association
for Mental Health (CAMH).

We supported mental health initiatives
around the globe to promote healthand well-being of our people andour communities.

more than$100,000
Sustainable communities

We provided appropriate support to our
local communities, Indigenous communities,
and the regions where we work. This
includes supporting employment, culturaland heritage preservations.
more than$2.4million

FPO

Upgrading and Donating Buildings
to Community Non-Profit in Colombia
In 2022, EBSA donated renovated facilities in its
jurisdiction to Fundación Hogar Pequitas, which
supports vulnerable older adults. The buildings
house 10 residents and six visiting older adults.
and include living spaces and a clinic area aswell as an expansive garden where community
members grow food.
Long-term Care Facility
In 2022, Northland contributed to the
Wiikwemkoong Long-Term Care Home on
Manitoulin Island. This facility provides important
services to the local communities, as well as
services to our partner Indigenous communities.

Northland Power 2022 Sustainability Report53Appendix A: ESG Performance

Creating impact and delivering on our commitments.
Material Topic

Targets/Commitments

Climate Change
Mitigation &Emissions Reduction

65% reduction of GHG
emissions intensity (Scope1+2
tCO₂e/MWh) by 2030 from2019 baseline.

SDG Alignment
13

Taking urgent action tocombat climate change
and its impact throughthe reduction of carbon
emissions.

Net Zero across scope 1, 2
and 3 by 2040.

Green & Reliable
Energy (Energy
Security)

6 GW of additional renewablecapacity by 2030.

Talent Development& Engagement

54

Signatory of the UN Global
Compact.
Commitment to aligning with
the UN Guiding Principles on
Business and Human Rights
for our business and within ourvalue chain.

Attract and retain top talent.
Engage, empower anddevelop our people.

Northland Power 2022 Sustainability Report• 6% reduction in GHG
Emissions Intensity (tCO₂e/
MWh) from 2021 ↓• 32% Reduction in GHG
Emissions Intensity(tCO₂e/MWh) since 2019 ↓• +2.7M tonnesof avoided emissions ↑7

9

Human Rights& Sustainable
Supply Chain

Progress

8

12

16

8

Ensuring access toaffordable, reliable,
sustainable and modern
energy for all by growing
a portfolio of renewableenergy assets.
Develop quality, reliable,
sustainable and resilient
infrastructure to support
economic development
and human wellbeing, with a focus onaffordable and equitable
access for all.
Promoting inclusiveand decent work in ourbusiness and across thevalue chain.
Encourage our suppliers
and partners to adopt
sustainable practices.

• +1.75M Households provided
with clean energy2• 67% of gross renewableenergy generation ↑• 2.3 GW Renewable
Generating Capacity ↑• 531,234 Customers served
through EBSA ↑• Policy commitments toupholding human rights within
operations and value chain.
• Due diligence over humanrights and other material ESG
issues within partnerships andvalue chain.

Upholding human rights
and ensuring there is no
child abuse or forced labour within our businessor value chain and upholding the right to workwithout discrimination,harassment or violence.
Promoting sustained,
inclusive and sustainableeconomic growth, full andproductive employment
and decent work.

• 72/100 Overall employee
engagement score ↓• Maintained 82%
participation score

Material Topic

Targets/Commitments

SDG Alignment

Biodiversity &Ecosystem
Management

Commitment to conservationof the ecosystems where
we construct and operate
our facilities.

12

Proactive management of natural
resources and a commitment to
reduce waste.

14
15

Diversity, Inclusion& Belonging

30% female representation
on Executive and Boardof Directors.

5

1 beyond gender diversity
Board member by 2024.

Supporting thesustainable management
and use of natural
resources including waterand land. As well as
waste management.
Proactively protecting
and conserving and,
where necessary,
restoring terrestrial,
marine and coastal
ecosystems throughout
the construction andoperations of our projects.
Achieving gender equality
and empowering all
women within
our business.

Commitment to supporting
meaningful partnerships
with local and Indigenous
communities.

Reduction of TRIR by 10%
year-over-year (internal target).
0 life-changing incidents.

• Ongoing biodiversity
efforts and programs
at almost all sites• 99% of water withdrawn
returned to its source• 33% female Board members ↓50% female executives ↑• 36% female new hires ↑26% of females in workforce ↑• Belonging glint score1 64 ↓• Inclusion score1 66• 0% beyond gender
Board members

811

Supporting programs thatreflect the priorities of our local
and Indigenous communities.

Occupational
Health & Safety• 0 significant
environmental incidents• Authenticity glint score1 76 ↓Pledged support Equal by
30 (in progress)

Community &Indigenous Relations& Investment

Progress

8

Promoting sustained,
inclusive and sustainableeconomic growth.
Making cities and humansettlements inclusive,
safe, resilient andsustainable through ourcommunity investment
and commitment tolocal and indigenous
communities.
Promoting decent work
free from hazards andsupporting the healthand well-being of ouremployees, contractors
and the communities
where we operate.

• CAD 3.2M in community
investment globally• Commitment to Local andIndigenous Communities
policy focused on consultation,assessment and collaboration
with communities.

• 0.40 total recordable injury
rate (TRIR) ↓• 1 life-changing incident(non-fatal) ↑Northland Power 2022 Sustainability Report55

Appendix B: Forward-Looking Information

This Sustainability Report contains statements that constitute“forward-looking information” within the meaning of applicablesecurities laws (“forward-looking statements”) that are provided
for the purpose of presenting information about management’s
current expectations and plans. Readers are cautioned that suchstatements may not be appropriate for other purposes. Northland’s
actual results could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly,
the events anticipated by the forward-looking statements may or
may not transpire or occur. Forward-looking statements include
statements that are not historical facts and are predictive in nature,or depend upon or refer to future events or conditions. Words suchas “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,”“intends,” “targets,” “projects,” “forecasts,” or negative versions
thereof and other similar expressions or future or conditionalverbs such as “may,” “will,” “should,” “would,” and “could” are often
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Specificforward-looking statements in this Sustainability Report include,
but are not limited to, statements relating to: Northland’s businessstrategies, plans, prospects, opportunities and its sustainability,
climate change and ESG plans, initiatives and strategies; theexpectation that certain projects will become operational;
Northland’s sustainability and ESG opportunities and expectations
and risks related thereto; the future availability of capital dedicatedto climate-resilient and sustainable energy companies; the ability
to attract and retain top talent; changes in policies and regulators’
requirement related to carbon; plans with respect to energy
storage; initiatives relating to the reduction of GHG and carbon
emissions; commitments to invest in new technologies; emerging
growth areas; expectations of efficiency; offshore wind projects; risk
mitigation strategies; and Northland’s objectives with respect todiversity, inclusion and belonging.
The forward-looking statements in this Sustainability Reportare based on certain material factors or assumptions thatwere applied in developing the forward-looking statements,
including, but not limited to, management’s current plans and its
perception of historical trends; current conditions and expected
future developments; the presence of a favourable regulatoryenvironment; the commercial viability of emerging technologies
relating to decarbonization; the availability of financing oncommercially reasonable terms; the absence of significant
operational, financial or supply chain disruptions or liability due
to natural disasters, diseases or other force majeure events; theabsence of a severe and prolonged downturn in general economic,
credit, social and market conditions; the ability to obtain necessary
approvals, satisfy any closing conditions, or obtain adequate
financing regarding contemplated construction, acquisitions,dispositions, investments or financings; the continuation of observed

56

Northland Power 2022 Sustainability Report

weather patterns and trends; the absence of a change in applicablelaws, political conditions or public policies and directions bygovernments; as well as other factors, estimates and assumptions
that are believed to be appropriate in the circumstances. Althoughthese forward-looking statements are based upon management’s
current reasonable expectations and assumptions, they are subject
to numerous risks and uncertainties that could cause actual results
to differ materially from historical results or results anticipated in theforward-looking statements. Factors that could cause actual results
to differ materially from current expectations include, but are notlimited to: availability of willing project partners; increases to thecost of carbon and operations; risk associated with sales contracts;
Northland’s reliance on the performance of its offshore windfacilities at Gemini, Nordsee One and Deutsche Bucht; counterparty
risk; contractual operating performance; variability of sales fromgenerating facilities powered by intermittent renewable resources;
offshore wind concentration; natural gas and power market risks;
operational risks; recovery of utility operating costs; Northland’s
ability to resolve issues/delays with the relevant regulatory and/or government authorities; permitting; construction risks; project
development risks; acquisition risks; financing risks; disposition andjoint-venture risks; competition risks; interest rate and refinancing
risks; liquidity risks; inflation risks; impacts of regional or global
conflicts; credit rating risk; currency fluctuation risk; natural
events; environmental risks; health and worker safety risks; market
compliance risk; government regulations and policy risks; utility
rate regulation risks; international activities; reliance on information
technology; labour relations; reputational risk; insurance risk; risks
related to co-ownership; bribery and corruption risk; and legal
contingencies. Some of these and other factors are discussed under
the heading “Risk Factors” in Northland’s most recent AIF dated
February 23, 2023, and under the heading “Financial Risks andUncertainties” in Northland’s most recent annual management’s
discussion and analysis dated February 23, 2023, each of which
has been filed on SEDAR (www.sedar.com) and Northland’s website(www.northlandpower.com).
Northland’s actual results could differ materially from thoseexpressed in, or implied by, these forward-looking statements,
and accordingly, no assurances can be given that any of theevents anticipated by the forward-looking statements willtranspire or occur. The forward-looking statements contained inthis Sustainability Report are based on assumptions that wereconsidered reasonable as at [DATE}·. Other than as specificallyrequired by law, Northland undertakes no obligation to update
any forward-looking statements to reflect events or circumstances
after such date or to reflect the occurrence of unanticipated
events, whether because of new information, future events or
results, or otherwise.

Northland Power 2022 Sustainability Report57

Contact
Yonni Fushman,
Chief Legal Officer & EVP Sustainability
Northland Power Inc.
30 St. Clair Avenue West 12th Floor
Toronto, Ontario,
CanadaM4V 3A1
sustainability@northlandpower.com

northlandpower.com