GN has a climate transition plan with science-based targets and climate-related incentives for the CEO and CFO. The policy includes expectations for suppliers to provide accurate carbon data. Decarbonization levers include energy efficiency improvements, such as machinery replacement and HVAC system optimization. The policy prohibits carbon offsetting as an alternative to reduction and emphasizes certified renewable energy. Actions include increasing renewable energy consumption, implementing energy efficiency initiatives, and electrifying the fleet. The company plans to meet Scope 1 and 2 targets by focusing on renewable energy and efficiency, and Scope 3 targets by reducing air freight and using recycled materials.

GN uses climate scenario analysis to assess risks and opportunities, applying different scenarios over short, medium, and long-term horizons. The analysis includes physical risks like extreme weather and transition risks such as carbon pricing. The company uses geolocations and supplier data for risk assessment. Financial impacts are assessed using life cycle assessments and climate projections. The anticipated financial effects are not explicitly quantified in the provided text.

GN has set science-based GHG emission reduction targets to reduce Scope 1 and 2 emissions by 80% and Scope 3 by 25% by 2030. In 2024, GN achieved a 58% reduction in Scope 1 and 2 emissions from the 2021 baseline. Scope 3 emissions have decreased by 26% from the 2021 baseline. The company aims for net-zero GHG emissions by 2050, with a 90% reduction and neutralization of unabated emissions.

GN has implemented several decarbonization levers to meet climate targets, including renewable energy, energy efficiency, and fleet electrification. In 2024, GN achieved a 58% reduction in Scope 1 and 2 emissions from the 2021 baseline. Scope 3 emissions decreased by 26% from the 2021 baseline. The company plans to continue renewable energy initiatives and energy audits to further reduce emissions. GN aims for an 80% reduction in Scope 1 and 2 emissions by 2030 and a 25% reduction in Scope 3 emissions by 2030.

GN's climate reduction initiatives are anchored within the existing business model and financial planning. The company does not expect significant changes in economic activities due to climate objectives. However, small increases in CAPEX and OPEX alignment may occur in eligible activities like new building construction and energy efficiency initiatives. GN's ability to implement actions is supported by the fact that it is not excluded from Paris-aligned benchmarks.