GN’s Environmental Policy includes commitments to substitute or reduce the use of hazardous substances in our own operations and value chain wherever possible. Current and planned actions are undertaken within the parameters of our existing product development programs, financial planning, and business model. For products for which we depend on outsourced manufacturing, the focus is on phasing out halogens, specifically bromine, choline, and fluorine. For Jabra products, requirements for suppliers and verification compliance through in-house testing are set. The phase-out of bromine and chlorine is expected in 2025, and fluorine by 2026 for the same parts.

To assess the materiality of IROs in terms of financial risks or opportunities, we used the same prioritization in terms of value chain industries and economic activities in our own operations as impact scoring. We used our existing enterprise risk management mechanism to score risks on a 0-5 scale, meaning we gave equal weight to likelihood and two factors constituting magnitude combined: revenue impact and reputational risk. For revenue impact, we used the same thresholds as for other risks to score risks between minor and critical, thereby giving equal weight to sustainability-related risks as to other risks. Our double materiality process is aligned with our enterprise risk management and overall business strategy processes, as we use the insights gathered in the double materiality assessment to improve our assessment of the relative financial risk materiality of ESG topics to inform business decisions related to risk mitigation in accordance with the overall enterprise risk management process. For opportunities, we apply the same process where instead of financial risk we assess the relative financial upside.