Moreover, our climate reduction initiatives as described on these pages, are anchored within our existing business model and financial planning. This is further supported by the fact that we do not currently have material climate-related financial risks (see page 29), and the fact that GN is not excluded from the Paris-aligned benchmarks.

As a globally operating manufacturing company, climate change is a material topic for GN. The company has a climate transition plan in place, consisting of an overarching policy, science-based targets, climate-related incentives for the CEO and CFO, and several decarbonization initiatives. The Board of Directors has approved the policy, targets, and incentives. GN's Environmental Policy covers the approach to climate change, including the commitment to reduce greenhouse gas (GHG) emissions in line with scientific consensus. The policy includes expectations for suppliers to provide accurate carbon data and sets out decarbonization levers and criteria for prioritizing initiatives. GN does not consider carbon offsetting as an alternative to carbon reduction and will only engage in certified carbon removal. The policy is approved by the Board of Directors, and Executive Management is accountable for implementation.