An estimated 41,792 tCO2e are locked-in emissions from the use of GN products sold in 2024, which currently makes up 16% of our total Scope 3 emissions (see page 75). These use phase emissions could still be reduced through firmware updates in the market, but it remains difficult to quantify potential emissions reductions from such initiatives. As these emissions are a result of electricity consumption, we expect significant reduction to take place as a result of the global shift towards renewable energy as part of the transition to a net-zero economy outside GN’s direct control. Given the general duration of use of our products, we don’t expect these locked-in emissions to prevent us from reaching net-zero in 2050, regardless of the pace of the transition to renewable energy.

GN has set Board-approved science-based GHG emission reduction targets to manage climate-related impact and risks by decarbonizing in line with the scientific consensus on the urgency of addressing climate change and the degradation of nature. They are committed to reducing absolute GHG emissions (metric tons CO2eq) in Scope 1 and 2 by 80% and in Scope 3 by 25% by 2030 from a 2021 baseline. GN is also committed to reaching net-zero GHG emissions by 2050 at the latest, meaning 90% reduction with neutralization of unabated emissions to reach net zero. The targets cover all GHGs stipulated in the GHG Protocol and all activities in GN’s own operations and value chain globally. Their near-term targets have been set using the Science Based Targets initiative’s (SBTi) Criteria v5.0 with the absolute contraction approach and the cross-sector pathway, which is based on the P1 scenario in the IPCC Special Report on Global Warming of 1.5°C. GN has aligned their net-zero target to the SBTi’s cross-sector absolute reduction method for long-term targets. Through their climate targets, GN demonstrates their commitment to ensure their business is compatible with the transition to a net-zero economy and within the limiting of global warming to 1.5°C in line with the Paris Agreement. Their 2030 reduction targets are the first milestone towards achieving net-zero emissions by 2050, and they assess that they can reach this milestone without adjusting their business model, as the required reductions can be achieved through a number of decarbonization levers without having to adjust the fundamentals of how their business operates. They are planning and implementing several initiatives using such levers to the extent required to meet these targets.