Demant
ESRS disclosure: ESRS S2 \ DR S2-1 \ Paragraph AR 12
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- Provide a detailed explanation of any significant changes to the policies adopted during the reporting year, specifically in relation to Disclosure Requirement S2-5. This should include the process for setting targets concerning the management of material negative impacts, the advancement of positive impacts, and the management of material risks and opportunities. Additionally, clarify whether and how the undertaking engaged directly with workers in the value chain, their legitimate representatives, or credible proxies with insight into their situation, as outlined in Disclosure Requirement S2-1. Include any new expectations for suppliers or new approaches to due diligence and remedy.
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Question Id: S2-1_10
In 2024, selected suppliers, based on spend, were screened as part of the risk assessment process. In the supply chain in our Diagnostics business area, all direct upstream suppliers and approximately 80% of all indirect upstream suppliers to our Danish and Polish production sites were screened, based on the 2023 supplier base. In the supply chain in our Hearing Aids business area, 31% of direct upstream suppliers were screened, based on the 2023 supplier base, covering 99% of total direct spend. During 2025, we will implement the risk assessment process globally and align our due diligence efforts according to risk categories.
In Demant, we continuously evaluate our actions through our current practices, including direct supplier engagement, which is a part of the routine responsibilities of the procurement functions in Demant. We are currently implementing updated supplier risk assessment and due diligence processes. Therefore, we have not yet set targets to manage impact on workers in the value chain. In 2025, we will explore options to do so.
Report Date: 4Q2024Relevance: 60%
- Provide a detailed description of the processes employed to identify necessary and appropriate actions in response to actual or potential material negative impacts on value chain workers. Include approaches to managing material risks, pursuing material opportunities, and evaluating the effectiveness of these actions.
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Question Id: S2-4_05
We have many suppliers in our Hearing Aids and Diagnostics business areas. We therefore take a risk-based approach to identifying and managing the interests, views and rights of value chain workers. The large number of suppliers calls for prioritisation of resources to identify and mitigate the most significant negative impacts first. If a negative impact is reported to or identified by Demant, we engage directly with the supplier in question to urge them to prevent and mitigate the impact, while clearly communicating our expectation that the supplier provides remedies towards the affected value chain workers.
In 2024, we established an updated and more extensive sustainability supplier risk assessment process to identify and document the potential impacts that workers in our supply chain are exposed to, based on the countries and sectors in which the workers or our suppliers operate. The risk assessment process is based on a quantitative and qualitative analysis, using recognised databases, indices and reports. Continuous risk assessment of existing and new suppliers helps us gain an overview of how the interests, views and rights of value chain workers could be materially impacted by Demant, including respect for their human rights. These efforts are embedded in the supplier management process, and dedicated sustainability specialists lead this work in our procurement functions.
Report Date: 4Q2024Relevance: 85%