NN : Sustainability Report

ESG ANNUAL REPORT

TABLE OF CONTENTS	NN, Inc.

TABLE OF CONTENTS

LETTER FROM OUR CEO.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 NN OVERVIEW.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

ABOUT NN

CORE VALUES

SUSTAINABILITY STRATEGY.. . . . . . . . . . . . . . . . . . . . . . . . . . . 5

SUSTAINABILITY-INSPIRED BY INNOVATION

ESG MATERIALITY ASSESSMENT

PRIORITIZING PEOPLE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

EMPLOYEE HEALTH & SAFETY

Health & Safety Performance

HUMAN CAPITAL

NN Connect

Leadership & Management Training

Learn and Earn Programs

DIVERSITY, EQUITY, AND INCLUSION

HUMAN RIGHTS

COMMUNITY RELATIONS

OPERATING SUSTAINABLY.. . . . . . . . . . . . . . . . . . . . . . . . . . . 14

CLIMATE IMPACT

Energy Efficiency

Environmental Stewardship of Chemicals

WASTE & HAZARDOUS WASTE RECYCLING

Waste Management

WATER & WASTEWATER MANAGEMENT

Water Management Focus

AIR QUALITY

Air Quality Focus

2

DELIVERING SUSTAINABLE COMPONENTS. . . . . . . . . . . . . . 20

SUSTAINABLE PRODUCTS

Product Awards

MATERIALS SOURCING & EFFICIENCY

SUPPLY CHAIN MANAGEMENT

PRODUCT QUALITY & SAFETY

MANAGING OUR BUSINESS.. . . . . . . . . . . . . . . . . . . . . . . . . . 24

BOARD OF DIRECTORS OVERSIGHT

Board Diversity Metrics

GOVERNANCE & BUSINESS ETHICS

MANAGEMENT OF THE LEGAL & REGULATORY ENVIRONMENT

BUSINESS CONTINUITY & RESILIENCE DATA PRIVACY & SECURITY

CONCLUSION.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

NN'S COMMITMENT TO THE FUTURE

Prioritizing People

Operating Sustainably

SUMMARY OF 2022 ACTIVITIES

A NOTE ON MATERIALITY

ESG ANNUAL REPORT

INSPIRED BY INNOVATION	LETTER FROM OUR CEO

LETTER FROM OUR CEO

All of us at NN, Inc. are proud of the progress we have made towards a sustainable future.

Our environmental, social, and governance (ESG) objectives are the foundation for serving our customers well, contributing to our industry, and providing a supportive environment for our employees and the communities we serve.

Having joined the company in May 2023, I am new to NN's sustainability journey, and the actions outlined in this report were undertaken prior to my arrival. That said, I am excited to lead NN's ESG efforts going forward. Challenging NN to become a better version of itself-for our employees, investors, and planet-is my fundamental duty and privilege as CEO.

In NN's inaugural ESG Annual Report last year, three factors were named as critical to the company's success:

STRATEGY

Key market segments such as passenger vehicles, commercial vehicles, and electric/electronic products are increasingly important as greenhouse gas emission reductions accelerate. We are proactively-andadvantageously-positioning the company to address this shift.

DIVERSITY

An inclusive workplace in which everyone feels their perspective and background are valued is a must. As such, we are laying the groundwork by developing a formal Diversity, Equity, and Inclusion (DEI) policy.

ENVIRONMENT

Analyzing our global emissions will help us understand which areas of our business need the most attention. To that end, NN conducted its first carbon footprint analysis in 2022.

There is much to celebrate, yet also much more to do. One of my highest priorities is to ensure that NN's impact is positive in every way. As the company achieves milestones and strives for even higher goals, it will be my pleasure to share updates with you via our yearly ESG Annual Report.

Regards,

HAROLD BEVIS

2022

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NN OVERVIEW	NN, Inc.

NN OVERVIEW

ABOUT NN

1. is a full-service manufacturing solutions partner, providing a broad range of high-precision metal and plastic components and assemblies to the electrical, automotive, general industrial, medical, and aerospace and defense markets. Headquartered in Charlotte, North Carolina, NN employs more than 3,500 employees across North America,

South America, Europe, and Asia, who proudly serve our	4	3,500	NNBR	~$500mm
customers around the globe.
	Continents	Employees	NASDAQ Ticker	2022 Revenue

Every product NN makes is a custom component for a specific customer. As such, every facet of our global operations revolves around each customer's unique needs. Our team finds the intersection of application, cost, requirements, and manufacturability to produce components at scale. Our expertise in engineering the ideal manufacturing processes around these four parameters-with the quality and speed that customers demand-positions NN as a single source for custom industrial manufacturing.

CORE VALUES

NN's commitment to excellence powers its manufacturing processes, and NN's core values guide the way we do business and interact with our employees. It is both our responsibility and our mandate to:

DEMONSTRATE	ENSURE	EMPOWER
ethical behavior in every aspect	a safe and inclusive work environment	employees to do their best by recognizing
of our business	for our employees	innovation and superior performance
PROMOTE	SERVE	INVEST
as a good corporate citizen in the
personal responsibility at every level	in our customers' success
communities in which we operate
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INSPIRED BY INNOVATION	SUSTAINABILITY STRATEGY

SUSTAINABILITY STRATEGY

SUSTAINABILITY-INSPIRED BY INNOVATION

In 2021, we established four pillars that serve as the foundation for our sustainability strategy. To do so, we engaged with our stakeholders, utilizing several frameworks designed to assess sustainability-related actions and priorities (e.g., the Task Force for Climate-relatedFinancial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB)). These pillars form the foundation of our global sustainability strategy.

PRIORITIZING		OPERATING		DELIVERING		MANAGING
PEOPLE		SUSTAINABLY		SUSTAINABLE		OUR BUSINESS
Continuously seeking		Serving as good stewards		COMPONENTS		Demonstrating ethical
to improve the health		of the environment		Manufacturing		behavior in every aspect
and well-being of our				sustainable products		of our business
employees and the	Climate Impact		inspired by innovation
communities we serve					Governance & Business Ethics
Waste & Hazardous Waste		Sustainable Products
Employee Health & Safety	Recycling				Management of the Legal &
				Materials Sourcing &		Regulatory Environment
Human Capital	Water & Wastewater
	Efficiency
		Management				Data Privacy & Security
Human Rights		Supply Chain Management
Air Quality
Community Relations		Product Quality & Safety

To guide and monitor the company's sustainability actions, we formed an NN Sustainability Executive Council as well as an Environmental, Social, and Governance (ESG) Leadership Committee. Collectively, these ESG committees work together to identify and execute sustainability initiatives. The Executive Council oversees sustainability initiatives and assesses their impact, whereas the Leadership Committee, comprised of individuals from various

roles throughout the company, executes sustainability initiatives and identifies ideas to enhance the sustainability program.

In 2022, our ESG committees met to discuss and prioritize initiatives. As a result, development of our first Diversity, Equity, and Inclusion policy is underway, and we have outlined supplier expectations that now include sustainability-related criteria.

2022

5

SUSTAINABILITY STRATEGY	NN, Inc.

ESG MATERIALITY ASSESSMENT

1. conducted a materiality assessment in 2021 to help the company identify the key issues that matter to stakeholders inside and outside the company. The assessment provided a framework for understanding stakeholder perceptions, and for managing risks and leveraging opportunities related to the company's ESG goals.

1. engaged employees, NN Board members, customers, shareholders, and community groups in this process, using the SASB and TCFD frameworks, as well as the United Nations Sustainable Development Goals (UN SDGs), as the basis for this work. The materiality assessment consisted of the following steps:

• Identified all relevant ESG topics to NN's business
• Identified internal and external stakeholders for engagement
• Engaged with stakeholders to rate the importance of ESG topics to both NN's business and stakeholder relationships
• Prioritized topics based on stakeholder feedback and business context
• Developed the following materiality matrix that indicates our ESG assessment findings

This matrix reflects our most significant economic, environmental, and social impacts, determined through an intentional and focused review of our business and engagement with our stakeholders.

For more information on how NN defines materiality for purposes of our sustainability program, please refer to the description at the end of this report.

Decisionsand								3	1
									2
Assessments
				8
								5	4
Stakeholder				9	7	6
on		13	11	10
Influence			12
	14
			Significant Environmental, Social and Governance Impacts
	1.	Employee Health & Safety	8.		Product Quality & Safety
	2.	Climate Impact		9.		Community Relations
	3.	Governance &		10.		Sustainable Products
			Business Ethics		11.		Air Quality
	4.	Human Rights
		12.		Management of the Legal &
	5.	Human Capital				Regulatory Environment
	6.	Water & Wastewater		13.		Data Privacy & Security
	7.	Management		14.		Materials Sourcing &
	Supply Chain Management			Efficiency

Our sustainability journey is the product of teamwork, careful planning, and mindful intention. We are pleased to share on the following pages the progress NN has made on its goals and initiatives through 2022.

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INSPIRED BY INNOVATION	PRIORITIZING PEOPLE

PRIORITIZING PEOPLE

NN's employees, families, and the communities in which we operate are the heart of our company.

We owe employees a safe, respectful, and inclusive work environment where everyone is empowered to do their best, and owe it to our communities to be good neighbors and engage with them through various local initiatives. In conformance with the United Nations Universal Declaration of Human Rights, we respect the value and dignity of each individual, recognize our responsibility to respect human rights, and further strive to protect the rights of women and minorities.

EMPLOYEE HEALTH & SAFETY

The health and safety of our employees is an integral part of NN's mission.

Safety is a priority at NN and is regularly discussed from the site to the enterprise level. We strive to implement health and safety practices that enable NN employees to work illness- and injury-free at every location, rooted in a common environmental health and safety policy. Safety is overseen by senior leadership, and performance is reviewed during weekly operations meetings, monthly operating reviews, and regular town hall meetings.

Each NN site has a dedicated health and safety representative who works with the facility's plant manager. Together, they ensure relevant health, safety and environment (EHS) training, systems, and procedures are administered appropriately and consistently. Each facility's EHS team conducts regular safety audits of its facility, and five sites have earned ISO 14001 certification to date. We are exploring ways to help more NN locations achieve this certification in future years.

2022

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PRIORITIZING PEOPLE	NN, Inc.

Health & Safety Performance

Robust health and safety risk management processes have been a priority at NN for many years. In 2020, we developed and piloted an 8D Root Cause Analysis (RCA) program at select facilities to enable more efficient incident monitoring, including all workplace safety incidents and near misses. In 2022, we expanded this program to all company facilities. This proprietary system collects information on the incident, its root cause(s), corrective actions taken, and any additional actions required to prevent recurrences. Throughout this period, NN has had zero workplace fatalities, and continually seeks out opportunities to improve safety for our teams.

Further, our safety goal is to reduce injury rates by 10% each year for both Total Recordable Incidence Rate (TRIR) and Days Away, Restricted, or Transferred rates (DART). In 2022, we achieved this goal for both measures, reducing TRIR by 17% and DART by 20% versus 2021. We believe that our facilities' strong safety focus-including RCA, kaizen, and continuous improvement activities-are key to discovering and preventing the underlying causes of workplace injuries and illnesses.

2.00
1.50	1.57
		1.30
1.00
	0.85
0.50		0.68
0.00	2021	2022
	 TRIR	 DART

1. facilities maintain certifications on a site-by-site basis, including the following certifications related to quality control and health and safety practices:

IATF 16949	ISO 9001	ISO 14001
16 of 24 facilities	11 of 24 facilities	5 of 24 facilities
ISO 13485	NADCAP AC7108	NADCAP AC7004
4 of 24 facilities	1 of 24 facilities	1 of 24 facilities

Additionally, seven of our facilities were ITAR registered and compliant in 2022.

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Ten-yearservice award recipients are recognized in Wuxi, China

INSPIRED BY INNOVATION	PRIORITIZING PEOPLE

HUMAN CAPITAL

NN's success is due in great part to the dedication and engagement of more than 3,500 global team members.

We ensure fair labor practices are followed, which prohibit forced labor, child labor, and human trafficking in all of our operations around the world. Further, employees receive competitive salaries and benefits packages, and our global human resources team regularly reviews wage rates to ensure employees are paid at or above the level required in each geography. Additionally, NN maintains

programs through which employees may earn quarterly or annual bonuses if the company meets goals at the site, group, and corporate levels, giving employees a financial incentive for working together to achieve success.

Many of our sites also have individual employee recognition programs, which vary by geography, such as service awards and employee of the month programs.

2022

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PRIORITIZING PEOPLE	NN, Inc.

NN Connect

Clear and open communication is vital to engaged employees and quality work. Like many companies, NN experienced communication challenges during the COVID-19 pandemic. To facilitate better collaboration and engagement on an ongoing basis, we developed a global internal communication platform called NN Connect.

1. Connect highlights important company information and policies. It also provides a forum for leaders to connect with employees, and for employees to share information with one another. The NN Community channel has been particularly popular, as many people choose to post highlights from their professional and personal lives. In the Employee Spotlight channel, individual employees are recognized and celebrated. All employees can post on NN Connect and can use the platform to instant message each other, facilitating collaboration across geographies and cultures.

Leadership & Management Training

Sites conduct leadership and management training, tailoring common content to the needs of their particular location. We consistently find that this training positively impacts our teams and enriches the employee experience In Fall 2022, the Algonquin, Illinois facility began a leadership and management training program for employees who manage others. Central to the training is the identification of different work styles. The training provides practical ways for soliciting and receiving feedback from employees, facilitating important discussions, and improving general management practices.

Participating in any leadership training enables managers and supervisors to focus on developing specific skills and traits that will help them become more successful leaders. This particular training has helped us identify better strategies for managing our people, and also reinforces what we are doing right.

PAT HOLTON

Human Resources Manager,

Algonquin, Illinois

Professional development at NN may take a variety of forms. In Lubbock, Texas, the site facilitates a monthly session where employees select a book on leadership and strategy to discuss over lunch. These sessions, which are open to all plant employees, act as a forum for hearing perspectives from various levels and departments. The Lubbock HR team also offers a more structured leadership training program for managers.

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