The Sustainability statement has been prepared on a consolidated basis and include all entities under Demant’s control as defined by the scope of consolidation used in our financial reporting including acquired entities in the reporting period.

The scope of consolidation used in the sustainability statement aligns with that of the financial statements.

The Sustainability statement covers Demant’s own operation as well as upstream and downstream value chains, where applicable, depending on the impacts, risks and opportunities identified in the double materiality assessment.

We have not chosen the options to omit or exclude information due to confidentiality or sensitivity.

Climate change mitigation has a negative impact on the environment, with most emissions being scope 3 from suppliers' operations. Climate change adaptation poses a risk of exposure to natural disasters. Product circularity presents an opportunity to increase recycled components, with a risk of raw material availability. Working conditions may negatively impact employees' mental health, posing a risk to efficiency and reputation. Diversity, equity, and inclusion could have negative impacts if not managed well. Talent attraction and retention pose a risk of high turnover and recruitment costs. Responsible supply chain management involves engaging with suppliers in countries with potential negative impacts on workers' rights. These elements are concentrated across upstream, own operations, and downstream value chain.