In relation to our positive impact of improving hearing health, we set a target in 2021 to help 10 million people with hearing loss by 2025. We have already reached that milestone, as by the end of 2024, we estimate that we are helping 11.2 million people with hearing loss live healthier and happier lives.

GN has implemented several policies, actions, and targets for managing product safety and data privacy related risks. As data privacy and product safety are strictly regulated by international and local laws, targets are mainly determined based on these regulations. Given the compliance-based nature of IROs, GN has not directly engaged with consumers and end-users when setting targets, tracking performance, or when identifying lessons learnt.

GN develops, manufactures, and markets innovative hearing aids for people with hearing loss; headsets, speakerphones, and video equipment for collaboration at work; and a broad range of gaming gear. Our business model relies on customer-centric innovation, strong ecosystem and channel partnerships, agile and scalable operations, global reach, and engaged and competent employees as our key resources. We strive to maintain and further develop these key resources, providing benefits to our customers, investors, and other stakeholders.

There is no difference between specific markets, product categories, customers or end user when it comes to their relevance to our overall sustainability agenda, except for product safety, which only meets our materiality threshold for reporting for our hearing aids. In terms of geographies, some issues related to workers in our value chain are more relevant to specific regions.

We have identified one material negative, potential impact related to other work-related rights, covering child labor and forced labor, where we assess the potentially impacted workers to be either children working in non-certified mineral mines in the Democratic Republic of the Congo (DRC) and surrounding countries or bonded workers in regions with systemic forced labor. This potential impact also leads to a material potential financial risk, as non-compliance with forced labor legislation could potentially prohibit us from selling goods in certain markets, leading to a significant revenue loss.

The value chain includes raw material extraction such as mining, forestry, and fossil fuel extraction. However, there is no explicit mention of revenues or detailed involvement in coal, oil, and gas sectors.

The value chain includes processing of raw materials such as smelting, refining, petrochemicals, and paper milling. However, there is no explicit mention of chemicals production as defined under Division 20.2 of Annex I to Regulation (EC) No 1893/2006.

We are in continuous dialogue with our stakeholders to ensure we understand their requirements and find ways to work in partnership to strengthen our business and the societies in which we operate. This chapter covers who we consider our key stakeholders. Views of stakeholders related to sustainability are shared with Executive Management and the Board of Directors as part of overall sustainability governance.Customers: Customer-centricity is a key pillar of our strategy, which is why we continuously proactively engage with customers to understand their needs. Customer engagement takes place through direct dialogues, customer councils, and surveys. Views of customers are integrated into the development of our strategy and in the design of our products and services. ESG topics are integrated into customer dialogues, so that we can support customers in achieving their ESG objectives such as sustainable procurement or decarbonization targets. ESG is also integrated in customer dialogues as part of assessing potential upstream impacts and risks.Employees: To ensure the well-being of our employees and maintain a diverse, engaged, and passionate workforce, employee engagement takes place on an ongoing basis through several channels: biannual professional and personal development dialogues, employee surveys, and employee groups representing specific demographics and their allies. Employees are also represented in the Board of Directors through the employee-elected board members. Employees can raise concerns confidentially through GN’s whistleblower hotline or regular HR channels. Views of employees collected through these channels are integrated in strategy development, policy creations, adjustments, and other decision-making on a continuous basis. Where necessary, specific initiatives are developed to ensure employee well-being. Employees are informed about ESG topics regularly through internal communication channels, which also allow for engagement on topics communicated.Investors: It is GN’s investor relations and communication policy to have an open and active dialogue with our existing shareholders, potential shareholders, other investors, financial analysts, and the media. GN ensures that relevant information is provided to the financial community in a timely manner to ensure that the GN share is fairly priced. This is done in the form of company announcements, press releases, investor meetings, conferences, and presentations of GN’s interim and annual financial results.Following the release of interim and annual financial results, GN hosts roadshows where the Executive Management and the investor relations team inform shareholders, other investors, and financial analysts about the recent developments in GN.Moreover, when relevant, GN maintains a good dialogue with proxy advisors and other external advisors ahead of the Annual General Meeting.As a public company, GN discloses ESG data in relevant areas via our integrated annual report, our Annual General Meeting, and where relevant on request to ESG rating agencies and investors. To ensure our ESG disclosures always meet investor requirements, we welcome dialogue with our investors on ESG topics at any time. In 2024, we continued to make ESG a prominent part of our proactive communication with investors.Regulatory authorities: In support of our policy objective to proactively comply with all ESG legislation, GN assesses relevant regulations on an ongoing basis to ensure we comply with all relevant legislation, and where needed engage directly with policy makers to fully understand the implications of specific legislation for GN. We only engage policy makers on the shaping of future legislation through industry associations such as EHIMA, Danish Industry, and the Responsible Business Alliance, in line with their policy positions. New legislation is emerging in the area of product sustainability, including further chemical restrictions, right to repair, and battery legislation. On a corporate level, aside from CSRD, we closely monitor legislation in the area of ESG due diligence (CSDDDD) and human rights-related laws across many different geographies. Where necessary we adjust our strategy, product, and service offerings to comply with legislation.Suppliers: We engage with suppliers on an ongoing basis as part of regular business processes. We expect our suppliers to uphold the standards set out in our Supplier Code of Conduct and several supporting policies, employing a variety of tools to ensure compliance. Supplier ESG performance, based on their EcoVadis score and decarbonization maturity, is integrated into overall supplier performance and preference assessments. Where this is strategically relevant, we work in partnership with our suppliers to achieve joint business and ESG objectives.Industry and ESG associations: GN is a member of several industry and ESG-related associations, for the purpose of demonstrating commitment to jointly developed standards and policy positions, engaging with industry peers on industry-spanning issues, tracking legislation and engaging with policy makers through representatives of these organizations.