Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks.

A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks.

A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks.

A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Impact GN has a material impact on climate change through the emission of GHGs from activities in our own operations and in our value chain. For a quantification of this impact, refer to our GHG accounting under ESRS E1-6 on pages 74-75. While we have identified several climate-related physical and transition risks to our business, we do not assess any of these to be material from a financial perspective. None of our assets or business activities are considered incompatible with or need significant efforts to be compatible with a transition to a climate-neutral economy, for example due to significant locked-in GHG emissions or the requirements for alignment to the EU Taxonomy requirements.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks.

A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks.

A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Our double materiality assessment identified 29 material IROs across seven topical standards. Our IROs consist of 21 impacts and 6 risks, as well as 2 additional IROs with both an impact and a risk attached. The IROs are spread across 19 ESG topics depicted in the infographic on the next page (see topical chapters for information on IROs per ESG topic). All IROs are covered by ESRS disclosure requirements, except for the positive impact related to helping people with hearing loss, which is entity specific. As this is our first year reporting based on IROs, there are no changes compared to previous reporting periods. Overall, like any other risk, our risks are integrated in our strategy and business model through enterprise risk management processes, whereas managing our impacts is anchored in compliance with relevant legislation, as well as integration of additional policies, actions, and targets of our strategy and our business model where managing the impact requires additional efforts.

Risks and opportunities have been assessed by looking at our impacts in terms of financial loss or gain and reputational damage or gain. The assessment used our product life cycle assessments (LCA), corporate GHG accounting and publicly available tools, such as the WWF Water Risk Filter and climate impact projections from IPCC AR6. We also looked at historical incidence of extreme weather events and consequent disruption in own operations and supply chain as well as cost variability, and expected changes to, for example, carbon taxes placed on GN goods. Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks. A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks. A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.

Physical and transition risks We applied different climate scenario analysis over the short, medium and long term to identify and assess climate-related acute and chronic physical risks, such as extreme weather events, heat and water stress and sea level rise, as well as transition risks, such as carbon pricing, regulatory change, changing customer behavior, and availability of materials. For climate-related physical risks, geolocations data for our facilities and those of our suppliers was used to assess relevant risks. A high-level qualitative assessment was carried out using the RCP8.5, IEA Net-Zero Emissions by 2050 Scenario (NZE) and IEA STEPS scenarios. The RCP8.5 scenario gives us the likely upper end of risk exposure of the business to climate-related hazards in the future. Here, the Shared Socioeconomic Pathway 3 was chosen to reflect recent trends in international affairs. The IEA’s new Net Zero Roadmap report and IEA’s NZE and STEPS scenario were applied to identify and assess climate-related transition risks and opportunities that GN may face in the future if the world pursues a path to net-zero emissions by 2050 or if climate action is less aggressive and policymaking is assumed to remain as today.