Regarding the link between the climate targets and the decarbonisation levers, for the near-term target in scope 1 and 2, the energy consumption reduction and efficiency in own operations (lever 1), along with the phase-in of renewable electricity for own operations (lever 2), will enable the required reduction by 2030. It is important to highlight that fleet electrification (lever 3) is a complementary effort to ensure that the GHG emissions reduction takes place as soon as possible and that the fossil fuel emissions from the fleet are controlled and do not jeopardise the near-term target. For the near-term target in scope 3, the relevance of each lever still needs to be assessed.

Demant's carbon accounting adheres to the Greenhouse Gas Protocol (GHG Protocol) defined by the World Resources Institute and World Business Council for Sustainable Development in line with the recommendation of the ESRS. The consolidated GHG emissions data encompasses all entities under Demant's operational control, including leased facilities, with emissions quantified in carbon dioxide equivalent (CO2e).

Demant's Inventory Management Plan (IMP) sets the framework for defining, compiling, and reporting Group GHG emissions across all scopes using emissions factors from renowned sources such as DEFRA, the Danish Environmental Protection Agency, and the Ecoinvent database. The IMP specifies that baseline recalculations may occur under the conditions defined in the publicly available Baseline Recalculation Policy.

For Scope 2, both location- and market-based GHG emissions are calculated to benchmark Demant’s performance against climate targets in accordance with the SBTi accounting approach.

Scope 3 GHG emissions are calculated using two different methodologies tailored for the Diagnostics business area and the Hearing Aids and Hearing Care business areas, aligning with the GHG Protocol standard and following a combined approach using hybrid- and spend-based methods.