Demant
ESRS disclosure: ESRS S2 \ DR S2-1 \ Paragraph AR 15
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- Does the undertaking disclose the process for setting targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities, specifically detailing whether and how direct engagement with workers in the value chain, their legitimate representatives, or credible proxies with insight into their situation, was conducted? Additionally, when disclosing the embedding of external-facing policies related to value chain workers, does the undertaking consider internal policies of responsible sourcing and alignment with other relevant policies, such as those addressing forced labour? Furthermore, does the summary of supplier codes of conduct indicate whether they include provisions addressing worker safety, precarious work, human trafficking, forced labour, or child labour, and confirm that these provisions are fully in line with applicable ILO standards?
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Question Id: S2-1_07
Our strong collaboration with suppliers enables us to consistently deliver quality products in scale and thus ensure timely delivery throughout our value chain. In our Hearing Aids business area, we have deepened this collaboration by integrating sustainability into our partnerships through our supplier engagement programme. The programme’s objective is to collaborate more closely with suppliers on decarbonisation and addressing human rights impacts in our supply chain.
We continuously take steps to gain insight into the perspectives of the impacts of our operations on workers in our value chain. Currently, supplier engagement does not involve direct engagement with workers in the value chain.
Our Third Party Compliance Code outlines our expectations toward suppliers and business partners regarding working conditions for workers in the value chain. This includes the core International Labour Organization (ILO) standards on working conditions, workplace health and safety, freedom of association, forced/child labour and non-discrimination. We expect all our direct suppliers to comply with this Code, which is included as an appendix in all new contracts with suppliers.
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%