Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• People and Society
• Environmental Protection
• Business Ethics

Environmental Achievements

• Reduced CO2 emissions per employee from 2.36 tonnes in 2015 to 2.32 tonnes in 2016.
• Improved energy efficiency by 13% through the replacement of uninterruptible power supply.
• Implemented a circular economy initiative at headquarters, recycling organic by-products for green energy and fertilizer.

Social Achievements

• Oticon Foundation donated approximately 80 million kroner to projects in research, education, culture, and care, with a focus on alleviating hearing loss.
• Launched the Audio Explorers challenge for engineering students.
• Improved male/female manager ratio in Danish companies from 89/11 in 2009 to 81/19 in 2016.

Governance Achievements

• Adherence to the Danish Recommendations on Corporate Governance.
• Implementation of policies to avoid bribery and corruption.
• Established a data privacy project to ensure global compliance.

Climate Goals & Targets

Environmental Challenges

• Slight increase in stress cases among Danish employees in 2016 due to a major product launch and a comprehensive audit.
• Slowdown in the percentage development of female representation in management in the last two years.
• Non-compliance among some suppliers regarding working hours, days off, and safety standards.

Mitigation Strategies

• Implementation of a stress policy and prevention initiatives.
• Ongoing efforts to encourage more women to seek executive and managerial positions.
• Supplier audits and a code of conduct to address non-compliance issues.

Supply Chain Management

Supplier Audits: 5 external CSR audits in 2016, plus 3 for Sennheiser Communications

Responsible Procurement

• Code of Conduct requiring compliance with human rights, labor rights, environmental, and anti-corruption standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being

Focus on alleviating hearing loss and improving hearing healthcare.

Sustainable Products & Innovation

• Hearing aids with minimal material and waste, and no harmful substances.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• People and Society
• Environmental Protection
• Business Ethics

Environmental Achievements

• Decreased CO2 emissions by 5% in total and 17% per employee compared to 2016. This is attributed to office mergers, increased use of green power (LED lighting), and changes in energy suppliers.
• Installed a new energy-saving cooling system at headquarters and applied sun protection films to windows to reduce energy consumption.

Social Achievements

• Rolled out an engagement survey in parts of the global organization to understand and enhance employee engagement.
• Extended reporting of female managers and diversity to include more countries and management levels.
• Developed and formulated a policy to avoid harassment and bullying.
• Supported various philanthropic activities through the Oticon Foundation, including projects focused on alleviating hearing loss, education, and research.

Governance Achievements

• Established a data privacy project to raise awareness of data privacy protection and ensure compliance with new EU regulations.
• Adopted a formal business ethics policy in 2010, outlining guidelines for ethical business conduct and interaction with customers.

Climate Goals & Targets

Environmental Challenges

• Increasing CO2 emissions due to company growth (though per-employee emissions decreased).
• Need to improve supplier compliance with the code of conduct.
• Need to update the code of conduct to include new standards (e.g., conflicting minerals).

Mitigation Strategies

• Implementing energy-saving measures in facilities and IT infrastructure.
• Conducting CSR audits of suppliers and taking action on non-compliances.
• Updating supplier risk assessment system for better transparency.
• Updating the Code of Conduct.

Supply Chain Management

Supplier Audits: Three CSR audits performed in 2017, plus seven external audits by Sennheiser Communications.

Responsible Procurement

• Code of conduct requiring suppliers to sign a comprehensive code of conduct covering human rights, labor rights, environment, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stricter energy efficiency requirements, higher taxation on energy consumption, mandatory energy standards for manufacturing equipment.

Opportunities

• Attracting talented staff, long-term investors, and customers through focus on climate change and CSR.

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)

William Demant's CSR activities contribute to these goals through product development, employee well-being initiatives, and investments in research and innovation.

Sustainable Products & Innovation

• Hearing aids with minimal environmental impact.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Business Ethics
• Employee Engagement
• Product Quality and Safety
• Supply Chain Sustainability

Environmental Achievements

• Decreased scope 1 and 2 CO2e emissions by 15% compared to 2022.
• Increased renewable electricity share to 21% of total electricity consumption.
• New hearing aid filters handles made from 52% less material with no residue plastic.
• Connectivity packaging emitting 78% less CO2e.

Social Achievements

• Reached 2025 target for gender diversity in top-level management teams (75% of teams on target).
• Improved global inclusivity index score to 4.26.
• Improved employee engagement rate to 4.11.
• Reduced employee turnover rate to 23% from 26% in 2022.
• Donated 466 hearing aids as part of the Campaign for Better Hearing.
• Donated 520 hearing aids in China through Sheng Wang Hearing.

Governance Achievements

• Implemented a risk-based due diligence process for high-risk distributors, performing 57 due diligences in 2023.
• Launched a group-wide competition law policy.
• Received 90 reports through the whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions remain challenging to reduce.
• High employee turnover rate in certain business areas (Hearing Care).
• Risks related to corruption in certain regions.
• Supply chain disruptions due to macroeconomic factors (semiconductors).

Mitigation Strategies

• Increased engagement with key suppliers on decarbonization.
• Initiatives to attract and retain talent.
• Risk-based due diligence of business partners.
• Long-term contracting with sub-suppliers to secure material components.

Supply Chain Management

Supplier Audits: 2 sustainability audits in 2023 (packaging materials in China)

Responsible Procurement

• Third-party compliance code for suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (EPOS headquarters), ISO 13485 (Hearing Aids, Diagnostics), MDSAP (Hearing Aids, Diagnostics)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice, and Strong Institutions)

Demant's products and services improve hearing health, promote inclusivity, and contribute to sustainable development.

Sustainable Products & Innovation

• New hearing aid filter handles made from recycled materials.
• New connectivity packaging.