GN has set Board-approved science-based GHG emission reduction targets to manage our 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. We are committed to reduce 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. These targets cover all GHGs stipulated in the GHG Protocol and all activities in GN’s own operations and value chain globally. Our 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. It has been assumed that GN’s core business activities will not change by 2030. We have aligned our net-zero target to the SBTi’s cross-sector absolute reduction method for long-term targets.

GN broadly aligns time horizons for ESG-related risk assessment with that of the Corporate Risk Management (CRM) process, which apply a 1-to-3-year horizon (0 to 1 years for short-term and 2 to 3 years for medium-term). While our short-term time horizon is aligned with that of the ESRS-defined time horizons, the medium- and long-term time horizons deviate slightly. The main reason for this is to align with the existing CRM process. In the context of both climate-related physical and transition risks, the 1-to-3-year horizon is part of the CRM process, whereas longer term climate-related risks are considered only as part of the double materiality process, as well as in conjunction with the scenario analysis, where we have defined a 10-30 year long-term time horizon. From the scenario analysis, we assessed GN’s exposure to climate-related hazards and transition events in our own operations and across the value chain.