As described in its charter, the Board of Directors’ Audit Committee holds overall responsibility for overseeing the management of ESG-related impacts, risks, and opportunities (IROs), reporting into the Board for related decision-making. Impacts cover areas where GN has a material impact on people or the environment, risks cover areas where ESG issues pose a material financial risk to GN, and opportunities cover areas where ESG issues present a material financial opportunity to GN. ESG is a quarterly recurring agenda topic in the Audit Committee. To ensure oversight of governance issues, business conduct cases reported through GN’s whistleblower hotline, as well as any other governance-related topic that requires Board oversight, are also presented to the Audit Committee on a quarterly basis.As part of the review and approval of GN’s double materiality assessment (see pages 49-51), in the reporting year, the Audit Committee was informed about all identified material IROs as part of approving their materiality, as well as the approach to implementation of due diligence, and results and effectiveness of policies, actions, metrics, and targets that form the basis of the reporting scope of this report. Aside from overseeing the identification of material IROs as part of compliance with reporting requirements, the Board also oversees the implementation of managing material IROs where these have an impact on the company strategy or relate to matters of risk and compliance.For an overview of the composition and diversity of the members of GN’s administrative, management, and supervisory bodies, see pages 36-38. To ensure appropriate skills and expertise in sustainability, ESG is part of the Board’s annual self-evaluation process. Sustainability-related skills and expertise related to our material IROs are currently assessed to be sufficient across the Board, but if this changes, it will be included in Board training or as a requirement in the recruitment of new members.Unless a specific element of IRO management requires a separate project or program governance to drive progress, all decisions related to ESG are taken within the existing governance and decision-making bodies. This reflects that ESG is integrated into existing business processes where possible, rather than treating it as a separate topic. Accordingly, GN does not have a separate ESG or sustainability committee.The leaders of GN’s business divisions and functions of scale together with the CEO and the CFO constitute the Executive Leadership Team (ELT). The ELT is responsible for monitoring, managing, and overseeing the implementation of policies, actions, and targets related to effective management of IROs. Group Sustainability, reporting directly to the CFO, holds overall responsibility for supporting the business in IRO management, sustainability strategy development, and ESG reporting.To ensure required progress on an operational level, ESG is discussed on at least a quarterly basis in the management teams of all divisions and functions of scale.In terms of ESG-related target setting, long-term strategic targets such as climate targets, are developed by management with support from key functions and approved by the Board through existing decision-making mechanisms.Sustainability-related performance in incentive schemesAs stipulated in our Remuneration Policy and reported in our remuneration reports, annual ESG-related bonus objectives are discussed and approved by the Remuneration Committee, where the Remuneration Committee is tasked to ensure ESG bonus objectives are aligned with the management of the most material ESG issues as part of the Board of Directors’ wider oversight of ESG topics. Progress on these targets is continuously monitored by subject matter experts in the business and discussed quarterly in ELT meetings.For the year 2024, these objectives consisted of one overall objective related to reducing carbon emissions across all scopes versus 2023 in support of making progress towards our 2030 climate targets, and 10 key actions related to decarbonization in specific areas, increasing circularity, ESG-related supplier engagement, sustainability-related marketing and CSRD compliance.All members of the ELT have separate targets related to Diversity, Equity, and Inclusion (DEI), focusing on initiatives aimed to increase representation of women in Senior Leadership roles across GN (see page 92).Where this is required, these objectives are cascaded down into the monetary short-term incentive objectives on an operational level across relevant divisions and functions.ESG-related objectives for the CEO and CFO are approved annually by the Remuneration Committee. In the reporting year, 7.2% of the annual bonus was dependent on these objectives for the CEO and CFO with 12% of their annual bonus was linked to ESG, of which 50% was related to reduction of carbon emissions.Sustainability reporting risk management and internal controlsOur sustainability reporting is integrated into the annual reporting process, which has a well-established process for internal approval, controls, and external assurance. ESG data is subject to internal controlling through a dedicated ESG control function in our finance organization. As 2024 is the first year of CSRD reporting, the control environment is less mature than in financial reporting.