Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human rights in the workplace (no discrimination or harassment)
• No forced or child labor
• Environmental considerations in planning and operations
• Compliance with internal procedures, laws, and regulations

Social Achievements

• Supported St. John’s School for the Deaf in Gambia, Danish Red Cross (Haiti and Pakistan), and Engineers Without Borders through the GN Store Nord Foundation.

Governance Achievements

• Joined the UN Global Compact in January 2010
• Developed a CSR policy based on the UN Global Compact's ten principles
• Established a CSR organization with key employees from various departments

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)

Social Achievements

• Donated DKK 25 million to the GN Store Nord Foundation

Governance Achievements

• Upgraded the Human Resources function
• Improved whistleblower procedures through cooperation with Global Compliance

Climate Goals & Targets

Environmental Challenges

• Turbulent macroeconomic environment
• Pricing pressure in the hearing aid market
• Severe flooding in Thailand impacting manufacturing supplier
• Increased costs from production in China
• Shortening headset and hearing instrument life cycles

Mitigation Strategies

• Restructuring initiatives (SMART program in GN ReSound)
• Supply chain restructuring (FAST program in GN Netcom)
• Moving production to GN ReSound’s own facilities in China and Denmark
• Constantly monitoring the possibility of pursuing a more optimal production setup
• Systematic product development process utilizing product platforms (GN Netcom)
• Platform approach when creating new products (GN ReSound)

Supply Chain Management

Responsible Procurement

• GN ensures that all suppliers comply with local and global environmental and occupational health and safety requirements

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Human & labor rights
• Business ethics & compliance
• People excellence
• Product safety and development
• Environment and climate
• Citizenship

Environmental Achievements

• Slight reduction in total energy consumption at GN Hearing's main manufacturing facilities despite increased production of hearing instruments.
• Initiatives to reduce water consumption included employee awareness training, water consumption control, and installation of water-reducing toilets and sinks.

Social Achievements

• Continued support for hearing aid projects in South Africa, Uganda, Gambia, and Zimbabwe, providing hearing aids and training to local staff.
• Partnership with HAMAP to help 90,000 people gain access to clean drinking water, basic sanitation, and education.
• 93% response rate in employee engagement survey, showing high motivation and engagement.

Governance Achievements

• Regular compliance training for employees on business ethics, anti-corruption, information security, and personal data.
• Enhanced process for assessing and managing corruption risk associated with third-party business partners.
• Global awareness campaign on the GN whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Risk of supplier focus shifting from human and labor rights and safety issues towards cost optimization.
• Repetitive work identified as a main risk at manufacturing facilities.
• Potential for non-adherence to internal regulations and policies in all business dealings due to global presence.

Mitigation Strategies

• Close dialogue with suppliers to set clear expectations and foster cooperation.
• Strict supplier qualification process including initial screening, capability screening, evaluation, qualification, and performance monitoring.
• Mitigation of repetitive work through task rotation and prolonged break times.
• Regular supplier audits and risk-based approach for supplier audits.
• Compliance training and anti-corruption compliance reviews.

Supply Chain Management

Supplier Audits: 64 audits performed in 2018

Responsible Procurement

• Supplier Code of Conduct covering bribery, human and labor rights, and safety.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (GN Audio repair center in China), ISO 9001:2015 (GN Audio), ISO 13485 (GN Hearing), FDA 21CFR 820 CGMP (GN Hearing), TCO Certified (some GN Audio headsets)

Environmental Metrics

ESG Focus Areas

• Making Life Sound Better
• Safe, sustainable and responsible products
• Cleaner operations
• Human rights across our supply chain
• Chemical and hazardous materials
• Diversity and inclusion
• Conflict minerals
• Data privacy
• Anti-corruption
• Talent and leadership development
• Philanthropy/giving back

Environmental Achievements

• Reduced energy consumption at manufacturing facilities through energy-efficient solutions (LED lights, heat reuse, motion sensors, solar panels)
• New sustainable packaging for audio products containing no plastic bags or foam, using water-based and eco-friendly inks, and moving user manuals online.
• 98% of relevant suppliers provided information regarding smelters and refiners used in their supply chains to ensure conflict-free minerals.

Social Achievements

• Beltone Hearing Care Foundation donated a record 828 hearing aids globally.
• Hear More Academy in Zimbabwe trained four students to become hearing care dispensers.
• GN Foundation provided hearing aids to children in Zimbabwe, enabling them to return to school.
• 20% of senior management positions filled by women by the end of 2019 (up from 14% in 2014).

Governance Achievements

• Implemented policies covering all key ESG areas, including anti-corruption, codes of conduct, conflict minerals, modern slavery, and responsible sourcing.
• Conducted five anti-corruption compliance reviews, resulting in corrective and preventive actions.
• Independently managed whistleblower hotline (GN Alertline) received 15 concerns.

Climate Goals & Targets

Environmental Challenges

• Potential social and environmental risks throughout the product lifecycle (raw materials, manufacturing, distribution, use, end-of-life).
• Labor conditions in the supply chain.
• Ensuring adherence to internal regulations and policies across the global business.
• Addressing potential reputational and legal risks associated with third-party business partners.

Mitigation Strategies

• Life cycle assessments (LCAs) on audio products to prioritize sustainability improvements.
• CSR supplier questionnaires and audits to address labor rights and conditions.
• Regular compliance training and reviews to ensure adherence to policies.
• Enhanced process for assessing and managing corruption risk associated with third-party business partners.

Supply Chain Management

Supplier Audits: 17 CSR audits in GN Audio and 32 CSR audits in GN Hearing in 2019

Responsible Procurement

• Supplier Codes of Conduct
• Conflict Minerals Policy
• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Opportunities

• Carbon reduction through video conferencing

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 13485 (Hearing products), FDA 21CFR 820 CGMP (Hearing products)

UN Sustainable Development Goals

• 3
• 5
• 8
• 9
• 12
• 13

GN's operations and products contribute to these SDGs through improved hearing health, sustainable products, responsible supply chain, diversity and inclusion, and climate-friendly solutions.

Sustainable Products & Innovation

• Jabra PanaCast video conferencing solution

Awards & Recognition

• EcoVadis Silver medal
• MSCI AA rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable products and packaging
• Health

Environmental Achievements

• Launched two very sustainable packs in GN Audio
• GN Audio financed the recycling of 4,864 tons of e-waste
• GN Hearing manufacturing site in Malaysia was ISO 14001 certified

Social Achievements

• Donated 550 hearing instruments and more than 7,500 batteries through the Beltone Hearing Care Foundation
• ReSound donated up to USD 1 million worth of hearing aids to those in the US affected by the events of 2020
• Jabra Women’s Network donated USD 3,000 to Friends-for-Hope

Governance Achievements

• Conducted 23 CSR audits in GN Audio and 16 CSR audits in GN Hearing
• Received requested information from 97% of relevant suppliers regarding smelters and refiners used in their supply chains
• 14 concerns were reported through the GN whistleblower system, all investigated and appropriate actions taken

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic limited on-site audits and impacted business operations
• Supply chain disruptions due to the pandemic
• Difficulty in reducing Scope 3 emissions

Mitigation Strategies

• Proactive response to government requirements in all regions
• Cautious approach to on-site work, encouraging working from home
• Strict protocols and track-and-trace procedures for infections
• Continued work with partners throughout the supply chain to reduce emissions

Supply Chain Management

Supplier Audits: 39 in 2020

Responsible Procurement

• Codes of Conduct
• Conflict Minerals Policy
• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Remote collaboration solutions

Reporting Standards

Frameworks Used: UN Global Compact, GRI, SASB, TCFD

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Mapped value chain against SDGs to establish societal risks and opportunities

Sustainable Products & Innovation

• Rechargeable batteries in hearing aids
• Sustainable packaging for Jabra Elite 85t and Jabra Evolve2

Awards & Recognition

• Two bronze awards at the 50th Creativity International Design Awards for sustainable packaging solutions

Environmental Metrics

ESG Focus Areas

• Health
• Climate Change
• Products and Packaging

Environmental Achievements

• Signed a 100% renewable energy contract for all sites in Denmark (reducing emissions by around 2,000 tons from 2023)
• Reduced company air travel per employee by 84% compared to 2019
• Switched from air to ocean freight for some products, cutting emissions by 2,811 tons CO2e
• Improved new product packaging, resulting in estimated emission reductions of up to 62% per product
• ISO14001 certification acquired for Xiamen manufacturing site
• Financed the recycling of 4,777 tons of e-waste

Social Achievements

• Helped 9.4 million people with hearing loss
• Launched Jabra Enhance Plus for hearing enhancement
• Partnered with Hear to Aid Foundation in Zimbabwe to help 115 children get their hearing back
• Donated 1,000+ hearing aids
• Improved online access to hearing care through acquisition of Lively
• Strengthened efforts to become a more diverse and inclusive organization (including new employee-led Employee Resource Groups and online inclusion learning modules)
• 91% highly engaged workforce (GN Voice survey)

Governance Achievements

• Committed to setting science-based targets and joined the Business Coalition for 1.5C initiative
• Disclosed climate-related information in accordance with TCFD recommendations
• Completed the rollout of a process for assessing and managing corruption risks associated with third-party business partners in high-risk countries
• All 29 whistleblower cases resolved or under investigation
• 40 supplier audits conducted

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and employee well-being
• Supply chain disruptions
• Reducing Scope 3 emissions

Mitigation Strategies

• Prioritized employee support focusing on safety, health, flexible working, and mental well-being
• Increased regional manufacturing and packing, optimizing systems to produce to order
• Implemented a clean car policy in Denmark
• Developed principles for responsible travel to limit business travel
• Supplier audits based on UN Global Compact principles and SA8000 standard

Supply Chain Management

Supplier Audits: 40 audits

Responsible Procurement

• Supplier Codes of Conduct
• Conflict Minerals Policy
• Responsible Minerals Assurance
• RMAP, TI-CMC Category A, RJC, LBMA, or DMCC certifications

Climate-Related Risks & Opportunities

Transition Risks

• Increasing investments in low-carbon technology
• Increasing availability of circular infrastructure and services

Opportunities

• Meeting demand for low-impact products
• Complying with new regulations
• Reducing raw material costs

Reporting Standards

Frameworks Used: GRI, CDP, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, FSC, TCO Certified

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

GN's initiatives contribute to these goals through hearing solutions, renewable energy, sustainable products, waste reduction, and climate action

Sustainable Products & Innovation

• ReSound LiNX Quattro and ReSound ONE hearing aids with rechargeable batteries
• Jabra products with sustainable packaging

Environmental Metrics

ESG Focus Areas

• Climate change
• Products and packaging
• Health

Environmental Achievements

• Reduced scope 1+2 emissions by 15% from 2021
• Reduced emissions from product transportation by ~12,000 metric tons CO2e compared to 2021
• Increased renewable energy share (location based) from 3% to 16%
• Signed PPA for Danish sites resulting in ~2,108 metric tons CO2e reduction annually
• Reduced business air travel by 35% compared to 2019 baseline

Social Achievements

• Helped 9.8 million people with hearing loss
• Launched Jabra Enhance Plus earbuds for OTC hearing enhancement
• Completed acquisition of Lively (now JabraEnhance.com) - a leader in online hearing care
• Beltone Foundation donated 694 hearing aids
• GN employees raised funds to support Hear to Aid Foundation in Zimbabwe
• USD 1 million donation to UNICEF for children in Ukraine

Governance Achievements

• Science-based emission reduction targets for 2030 approved by the Science Based Targets initiative
• Improved CDP score to B
• GN Audio became an affiliate member of the Responsible Business Alliance (RBA)
• 100% of relevant suppliers provided requested information for conflict minerals due diligence
• 9 compliance reviews conducted
• 66% of AGM elected women on GN’s Board

Climate Goals & Targets

Environmental Challenges

• War in Ukraine
• Soaring inflation
• Declining consumer confidence
• Looming recession
• Supply chain challenges
• Foreign exchange headwinds
• Continued COVID-19 market disturbances
• High freight costs
• Global climate crisis

Mitigation Strategies

• Targeted cost reduction programs
• Reduction of inventory
• Budget cuts
• Reduction of headcount
• Science-based targets to reduce emissions
• Improving energy efficiency and sourcing renewable energy
• Accelerating the shift from air to ocean freight
• Optimizing shipments
• Outsourcing GN Hearing’s UK distribution
• Investing in the supply chain to restore profitability
• Intends to raise DKK 7 billion through the issuance of new shares

Supply Chain Management

Supplier Audits: 31 audits conducted

Responsible Procurement

• Supplier codes of conduct based on UN principles of responsible business
• Sustainability strategies for relevant sourcing categories (mechanics, acoustics, batteries, packaging)
• Requirement for ISO 14001 certification for tier 1 manufacturing suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting global production of electronic components

Transition Risks

• Regulatory changes and changing consumer preferences related to supply chain emissions
• Increased demand for critical minerals

Opportunities

• Development of energy-efficient products
• Increased demand for low-impact products
• Compliance with new regulations
• Reduced raw material costs through circularity

Reporting Standards

Frameworks Used: GRI Standards, GHG Protocol, UN Global Compact, TCFD-aligned

Certifications: ISO 14001, TCO Certified

Third-party Assurance: PwC (limited assurance on selected ESG data)

Sustainable Products & Innovation

• ReSound OMNIA with rechargeable batteries
• Jabra Enhance Plus earbuds
• Products with FSC certified packaging

Environmental Metrics

ESG Focus Areas

• Health
• Climate
• Products and packaging

Environmental Achievements

• Reduced scope 3 carbon emissions by 20% vs 2021 baseline
• Reduced scope 1 and 2 carbon emissions by 34% compared to 2022 and 47% from 2021 baseline
• Increased renewable energy share from 9% to 30%
• Reduced inbound freight emissions by ~40,250 tCO2e by increasing ocean freight share

Social Achievements

• Helped 10.5 million people with hearing loss (ahead of 2025 target of 10 million)
• Continued investment in cognitive health research and awareness of hearing health
• Engaged in philanthropic activities (donated hearing aids)

Governance Achievements

• Simplified governance structure to a one-company setup with one Group CEO and one Group CFO
• Established three business divisions (Hearing, Enterprise, Gaming & Consumer) supported by functions of scale
• Identified ~DKK 600 million in cost synergies from the one-company integration

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability and trade relations impacting suppliers and operations
• Climate change increasing frequency and severity of extreme weather, impacting production capacity and supply chains
• Highly competitive market dynamics requiring compelling user experiences and brand awareness
• Compliance with legislative and regulatory regimes and standards
• Cyberattacks threatening business-critical systems and data privacy
• Realizing planned synergies from the one-company transformation

Mitigation Strategies

• Supply chain resilience measures (diversification, component sourcing, production)
• Science-based targets to reduce emissions (scopes 1, 2, and 3)
• Climate-related risk assessment and monitoring
• Production capacity diversification and innovation
• Strengthening B2B channels and direct-to-consumer sales
• Robust compliance processes and monitoring
• Cloud migration strategy for IT applications
• Evolving cyber defenses and assessment of supply chain attack vulnerabilities
• Integration Management Office to oversee the one-company transformation

Supply Chain Management

Supplier Audits: 61 audits/year

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis supply chain data platform implementation
• Data collection from tier 1 and selected tier 2 suppliers on environmental data

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting production in concentrated areas

Transition Risks

• Regulatory changes and changing consumer preferences related to supply chain decarbonization
• Increased demand for critical minerals

Opportunities

• Investments in low-carbon technology
• Increased availability of circular infrastructure and services

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001, TCO Certified

Third-party Assurance: PwC (limited assurance on selected ESG data)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through hearing aid access, sustainable product design, reduced emissions, and renewable energy use.

Sustainable Products & Innovation

• Nine Jabra products containing recycled plastic
• SteelSeries Arctis Nova Pro Wireless headset with TCO certification

Awards & Recognition

• Fast Company’s Most Innovative Companies 2023
• CES Innovation Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Pollution
• Resource use and circular economy

Environmental Achievements

• Committed to reducing GHG emissions in scopes 1 and 2 by 80% and in scope 3 by 25% by 2030 from a 2021 baseline.
• Committed to becoming a net-zero business by 2050.

Governance Achievements

• GN’s Board of Directors approves the strategic direction and key decisions in all environmental sustainability areas.

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions in scope 3 (over 90% of total emissions)
• Managing pollution from substances of very high concern in products and manufacturing
• Minimizing resource inflows and maximizing resource value extraction

Mitigation Strategies

• Prioritizing decarbonization initiatives based on impact and GN's degree of influence
• Complying with pollution-related legislation (RoHS, REACH)
• Evaluating and substituting harmful substances with less harmful alternatives
• Optimizing resource use in product design and avoiding unnecessary waste
• Introducing recycled or renewable alternatives for materials

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD, UN Global Compact