Our Environmental Policy also covers resource outflows, stating that we strive to minimize generation of waste from our business by including circularity principles, such as durability, repairability, recyclability and ease-of-disassembly, into the design of our products. The policy also states that in terms of management of products in-market or at end-of-life, we strive to recover or maintain value through services and partnerships that support reuse, refurbishment or recycling of products or components through enabling remanufacturing, refurbishment, repair, out-of-warranty takeback schemes and as-a-service leasing models.

All targets have been set based on insights into development trends in the market, as well as considering availability of resources, materials, supplier performance, and cost considerations. All current targets and our ambition level in setting further targets in this area is to comply proactively with legislation and stakeholder expectations. As such, we determine which metrics to use for our targets based on three considerations:

• (Emerging) legislation, such as right-to-repair and extended producer responsibility laws, which could require reporting on progress in specific areas of resource outflows
• Stakeholder demands, such as customers requiring further insights in progress in areas of for example repairability or durability
• Effectiveness of achieving greater circularity in our business model, where targets should be in areas where the metric best represents true circularity impact, as measured by progress towards current or future targets

All targets have been set based on insights into development trends in the market, as well as considering availability of resources, materials, supplier performance, and cost considerations. All current targets and our ambition level in setting further targets in this area is to comply proactively with legislation and stakeholder expectations. As such, we determine which metrics to use for our targets based on three considerations:

• (Emerging) legislation, such as right-to-repair and extended producer responsibility laws, which could require reporting on progress in specific areas of resource outflows
• Stakeholder demands, such as customers requiring further insights in progress in areas of for example repairability or durability
• Effectiveness of achieving greater circularity in our business model, where targets should be in areas where the metric best represents true circularity impact, as measured by progress towards current or future targets

All targets have been set based on insights into development trends in the market, as well as considering availability of resources, materials, supplier performance, and cost considerations. All current targets and our ambition level in setting further targets in this area is to comply proactively with legislation and stakeholder expectations. As such, we determine which metrics to use for our targets based on three considerations:

• (Emerging) legislation, such as right-to-repair and extended producer responsibility laws, which could require reporting on progress in specific areas of resource outflows
• Stakeholder demands, such as customers requiring further insights in progress in areas of for example repairability or durability
• Effectiveness of achieving greater circularity in our business model, where targets should be in areas where the metric best represents true circularity impact, as measured by progress towards current or future targets

Towards achieving our policy intention to reduce the impact associated with our resource use, we are introducing recycled and non-fossil materials, which is driven by our voluntary target set in 2021 to use at least 50% recycled or renewable material in all newly developed products in 2025, measured as the percentage of the total weight of mechanical parts (i.e. plastics, metals, fabrics and other non-electronic parts).

We have two IROs related to resource use and circular economy reflecting the financial risks and environmental impacts of our dependence on a wide range of materials for the manufacturing of our products. For resource inflows, we have one actual negative impact, reflecting our dependence on virgin materials for our products related to our own operations and value chain, respectively. For resource outflows, we have one negative actual impact, reflecting the extent to which our current business model and product design is not fully aligned with circular economy. Attached to this IRO, we also have one financial risk, reflecting the potential financial implications of not transitioning to a more circular business model, as required by legislation or customers. Aside from mitigating the risk and impacts of relying on finite and scarce resources, moving towards a more circular business model provides opportunities to reduce electronic waste and meet increasing demand for circular products and services.

Resource use associated with the manufacture of our products and packaging is a highly material topic for GN. Multiple material types, including plastics, metals, textiles, cardboard and adhesives, are required to make our products and packaging. GN purchases intermediary and finished products from our suppliers. The total weight of these products that are used across our own product and packaging portfolio are therefore reported, including breakdown of broad material types to provide greater insight into GN’s resource consumption and management of transition risks related to critical raw materials. An estimated 20% of the materials used in our products and packaging was either recycled or sustainably sourced biological materials.

Resource inflows - products and packaging 2024:

• Total weight of material (metric tons): 11,178
• Total weight of recycled materials (metric tons): 309
• Percentage of recycled materials: 3%

All resource inflows metrics are estimated using our product lifecycle assessments (LCAs), as these contain verified component-level data, including material composition and measured weight. The LCAs we have available are allocated at the item level across the product portfolio. All LCAs are third-party verified according to ISO 14067. For products currently lacking an LCA, a reference LCA is allocated. Professional judgement is applied in the selection of a reference that will best represent the product or part. An uplift is conducted for items that cannot be represented by an LCA, based on the calculated average per unit volume purchased or produced. For Enterprise, Gaming & Consumer products, one unit packaging per unit product has been assumed.

Our Environmental Policy also covers resource outflows, stating that we strive to minimize generation of waste from our business by including circularity principles, such as durability, repairability, recyclability and ease-of-disassembly, into the design of our products. The policy also states that in terms of management of products in-market or at end-of-life, we strive to recover or maintain value through services and partnerships that support reuse, refurbishment or recycling of products or components through enabling remanufacturing, refurbishment, repair, out-of-warranty takeback schemes and as-a-service leasing models.