Demant

The overall responsibility for risk management lies with the Executive Leadership Team, but risk management activities are carried out throughout the organisation on a day-to-day basis. Risk management is an integral part of the management of the Demant Group. Risks to which business areas, markets and operations are exposed are identified, monitored and mitigated at all management levels. Through frequent and transparent reporting, these measures ensure that key risks are escalated to the business area leadership, to functional boards, to the Executive Leadership Team, and if relevant, to the audit committee and ultimately the Board of Directors. We have established a number of functional boards to ensure focus on governance, development and risk management in key areas globally, i.e. IT, Finance, HR, Sustainability and Legal & Compliance. The functional boards are responsible for risk management in their respective areas and for ensuring that policies, guidelines and processes are established to monitor risks and new legislation. The audit committee oversees the risk management processes related to financial risks, including sufficient and efficient internal controls.

The audit committee oversees the risk management processes related to financial risks, including sufficient and efficient internal controls. Risk management is an integral part of the management of the Demant Group. Risks to which business areas, markets and operations are exposed are identified, monitored and mitigated at all management levels. We have established a number of functional boards to ensure focus on governance, development and risk management in key areas globally, i.e. IT, Finance, HR, Sustainability and Legal & Compliance. The functional boards are responsible for risk management in their respective areas and for ensuring that policies, guidelines and processes are established to monitor risks and new legislation.

Our PURPOSE is to create life-changing differences through hearing health. Our AMBITION is as the leading hearing healthcare company to improve as many lives as possible. Our PRIORITISATION is to support the entire journey to better hearing by focusing on personalised care and innovative solutions. The Demant Group develops, manufactures and sells products and equipment that help people with hearing loss connect and communicate with the world around them. We operate a focused hearing healthcare company, consisting of three business areas: Hearing Aids, Hearing Care and Diagnostics. The Hearing Aids business area engages in the development, manufacturing and wholesale of hearing aids, developing innovative and leading technological solutions that create life-changing hearing health. The Hearing Care business area comprises the Audika Group, which is a global retail company that provides personalised hearing care to customers worldwide through several strong local brands. The Diagnostics business area consists of a group of international companies and is the global market leader in hearing and balance assessment solutions used by audiologists, ENT doctors and balance clinics worldwide. Our operating model is designed to steer us in operating our three business areas – Hearing Aids, Hearing Care and Diagnostics – in a setup that is ensuring that we remain focused on excelling in each business area, while leveraging synergies across the Group through strong collaboration. With our business areas' common understanding of technology, innovation is at the core of our operating model. We will continue to focus on value-adding collaboration between the R&D functions of our individual business areas. Furthermore, our resilient manufacturing set-up across the value chain within R&D, production and distribution ensures supply chain agility and resilience. Our operating model is founded on a robust internal infrastructure, encompassing IT, HR, finance, sustainability as well as legal systems and processes. With sales companies and hearing care clinics all over the world, the Group benefits from a strong global distribution set-up, which enables us to continuously increase our reach to a variety of countries, markets and customer segments, thereby expanding our business. This global network ensures that we can raise awareness and make our diagnostic equipment, hearing aids and personalised hearing care and treatments accessible to those in need, thereby enhancing patient care and improving lives.

All information related to the ESRS disclosure requirements is provided with the corresponding ESRS reference throughout the report. You can find an overview of all the disclosure requirements included and their location in the report on pages 110-115. Our sustainability reporting choices are guided by our double materiality assessment, detailed on page 57, where we outline the topics that have been identified as material.

Share of renewable electricity: 35% in 2024, 21% in 2023. In 2024, we have worked with decoupling our own emissions from company growth, and due to our focus on renewable electricity, 35% of our total electricity consumption is now from renewable sources.

Scope 1 and 2 market-based GHG emissions (tonnes of CO2e): 29,426 in 2024, 33,103 in 2023, 37,136 in 2022, 34,288 in 2021, 28,454 in 2020. Scope 1 and 2 location-based GHG emissions (tonnes of CO2e): 33,686 in 2024, 33,323 in 2023, 31,224 in 2022, 29,258 in 2021, 26,376 in 2020. Scope 3 GHG emissions (tonnes of CO2e): 464,103 in 2024, 492,026 in 2023, 436,831 in 2022, 404,872 in 2021, 316,055 in 2020. 2030 target: 46% reduction in scope 1 and 2 greenhouse gas (GHG) emissions vs. 2019. The target for reduction in scope 1 and 2 GHG emissions is calculated vs. the 2019 baseline of 31,980 tonnes of CO2e.

Average number of full-time employees: 21,381 in 2024, 20,690 in 2023, 19,239 in 2022, 16,866 in 2021, 16,155 in 2020. All employees (headcounts): 22,639 in 2024, 22,240 in 2023. As at 31 December 2024, the Group had 21,349 full-time employees compared to 21,501 as at 30 June 2024, a decrease of 1%. Growth was slightly negative due to natural attrition, primarily in our production, and focused rehiring despite seeing an increase in employees from acquisitions. The total number of full-time employees at the end of 2024 was up by 1% compared to the 21,081 employees at the end of 2023.

Gender diversity, top level management (women/men): 31/69% in 2024, 29/71% in 2023, 23/77% in 2022, 22/78% in 2021. Gender diversity, all managers (women/men): 50/50% in 2024, 48/52% in 2023, 44/56% in 2022, 43/57% in 2021, 42/58% in 2020. 2030 target: Increase gender balance in top-level management to 35/65% (women/men). In 2024, we reached our 2025 target for increased gender balance in our global top management ahead of time, and our new target for this group is now 35% women and 65% men. Furthermore, our inclusion score reached 4.27 on a scale of 1-5, and in the coming years, we will keep focusing on diversity, equity and inclusion, the target being to take the employee experience of inclusion to be among the top-third of 'best in class' by 2030.

Business ethics are an integral part of conducting business in a global world with many stakeholders. We continuously expand and improve the Group's business ethics programme to reflect our all-important commitment to a high level of business ethics, including our Code of Conduct, a global whistleblower scheme as well as global policies and guidelines on business ethics. We are committed to a high level of business ethics.

Whistleblower reports: 87 in 2024, 90 in 2023, 47 in 2022, 48 in 2021.