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.

Direct emissions (Scope 1) come from the combustion of purchased fuels onsite for heat and in vehicles owned or leased by the company, as well as fugitive emissions. Indirect emissions (Scope 2) are from purchased electricity and district heating. Emissions from vehicles are calculated using the fuel-based method. The quantity of energy consumed is multiplied by the relevant emission factor as part of the consolidation process in our environmental management system. Emission factors are determined from internationally recognized sources: DEFRA factors for emissions from electricity consumed in the UK, heat, fuel, and transport; US EPA factors for electricity consumed in the US; and IEA factors for all other electricity consumption. GHG emission attributes (from RECs), supplier-specific and residual mix factors are used to calculate market-based Scope 2 emissions. Otherwise, location-based factors are used.