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.

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.