GN Store Nord

Board and Leadership described on page 36. The Board of Directors' role includes oversight of risks managed across the value chain. Risk governance at GN is overseen by the Board of Directors, who ensure risks are managed across the value chain. A comprehensive risk report, reviewed and prioritized by the Executive Leadership Team, is presented to the Board of Directors annually for approval. The information security management system is being reviewed and approved on an annual basis by the Board of Directors and Executive Management.

Sustainability governance is described on page 44. GN's approach to sustainability is driven by a desire to create real and lasting value for all stakeholders. Sustainability is integrated into how we run our company, as a consideration in key decisions on how we design our products and run our operations. We have not set up a separate sustainability governance structure but use our existing business processes to drive this agenda.

Risk management described on pages 29-32. Effective risk management is a cornerstone in GN's strategy, ensuring that GN remains resilient, agile, and competitive in an ever-changing global environment. Risk governance at GN is overseen by the Board of Directors, who ensure risks are managed across the value chain. Risks are identified and governed by a risk department and the Executive Leadership Team for each division and selected functions. Risks are evaluated based on their impact and likelihood. A comprehensive risk report, reviewed and prioritized by the Executive Leadership Team, is presented to the Board of Directors annually for approval.

Business model and strategy described throughout pages 8-17. GN's purpose is Bringing People Closer. GN develops, manufactures, and markets innovative hearing aids for people with hearing loss; headsets, speakerphones, and video equipment for collaboration at work; and a broad range of gear for gaming aficionados. Our products support how we communicate with other people and increasingly also how we communicate by use of voice and hearing with technology solutions that assist us in our everyday life and work. We combine innovative software and hardware solutions to help people seamlessly interact and experience the world around them – enhancing hearing, speech, and sight. Value chain described on page 48. GN operates across hearing, enterprise communications, and gaming equipment markets. GN has R&D centers in Denmark, the United States, the Netherlands, Poland, France, Italy, and China. GN has its own central and regional manufacturing sites for hearing aids and accessories in Australia, China, Denmark, Japan, Malaysia, South Korea, Spain, and the United States. GN's enterprise audio and video collaboration equipment and its gaming products are produced by carefully selected manufacturers mainly in Asia.

Stakeholder engagement described on page 46. GN engages with various stakeholders including customers, employees, shareholders, suppliers, partners, hearing care professionals, distributors, resellers, regulators, and communities. Key stakeholders include: Customers - through direct engagement and partnerships; Employees - through engagement surveys and development programs; Shareholders - through investor relations activities and regular communication; Suppliers and partners - through strategic partnerships and collaborative relationships; Hearing care professionals - through support and partnership programs; Regulators - through compliance and engagement on regulatory matters.

Material impacts, risks and opportunities described on pages 49-57. GN conducted a double materiality assessment to identify material impacts, risks and opportunities. Material topics identified include: Environment - Climate change, Pollution, Resource use and circular economy; Social - Own workforce, Workers in the value chain, Consumers and end-users; Governance - Business conduct. These material topics interact with GN's strategy through: Climate targets supporting product development that will help achieve 2030 climate goals and net-zero emissions by 2050; Sustainable design principles impacting product development; Supply chain responsibility integrated into operations; Workforce development supporting innovation capabilities.

Process to identify and assess material impacts, risks and opportunities described on pages 49-51. GN conducted a double materiality assessment process involving: 1) Identification of potential sustainability topics based on ESRS standards and sector-specific considerations; 2) Impact assessment considering severity, scope, and likelihood of impacts; 3) Financial materiality assessment considering risks and opportunities that could influence cash flows, development, performance, position, cost of capital or access to finance; 4) Stakeholder input and validation; 5) Executive and Board review and approval of material topics. The process considered both positive and negative impacts across the value chain.

Disclosure requirements covered described in contents tables on pages 58-59. GN's sustainability statement covers the following ESRS disclosure requirements: ESRS 2 General Disclosures; E1 Climate change; E2 Pollution; E5 Resource use and circular economy; S1 Own workforce; S2 Workers in the value chain; S4 Consumers and end-users; G1 Business conduct. The company determined that E3 Water and marine resources, E4 Biodiversity and ecosystems, and S3 Affected communities are not material to the business.

Climate transition plan described on pages 67-76. GN is committed to protecting our planet by reaching our 2030 climate goals and having net-zero emissions by 2050, in line with the scientific consensus on the need to limit global warming to 1.5 degrees Celsius. We are focused on product and service development that will help us achieve this target and support the transition to a circular economy. GN has set science-based targets including: 58% reduction in scope 1 and 2 carbon emissions vs 2021; 26% reduction in scope 3 carbon emissions vs 2021. The transition plan includes measures across operations, supply chain, and product development.

Policies related to climate change described on pages 67-76. GN's climate policy is integrated into business strategy with focus on three areas: 1) Sustainable design – developing product designs that impact the experience of products, not the environment; 2) Decarbonization – reducing carbon footprint as fast as science tells us; 3) Supply chain responsibility – safeguarding human rights across full value chain. Climate considerations are embedded in product development and operations decisions.

Actions and resources for climate policies described on pages 67-76. GN is implementing various actions including: Diversification and modernization of global manufacturing footprint; Investment in sustainable product design; Supply chain optimization for reduced emissions; Energy efficiency improvements in operations; Collaboration with suppliers on emission reductions; Development of products that enable remote work and reduce travel emissions.

Climate targets described on pages 67-76. GN has set ambitious climate targets: 58% reduction in scope 1 and 2 carbon emissions vs 2021 baseline; 26% reduction in scope 3 carbon emissions vs 2021 baseline; Net-zero emissions by 2050 target in line with 1.5°C warming limit. These are science-based targets aligned with climate science requirements.

GHG emissions performance reported showing 58% reduction in scope 1 and 2 carbon emissions vs 2021 and 26% reduction in scope 3 carbon emissions vs 2021, as highlighted on page 3.

Policies related to pollution described on pages 77-79. GN's approach to pollution prevention is integrated into product design and manufacturing processes. The company focuses on reducing negative environmental impacts from its activities through sustainable design principles and responsible manufacturing practices.

Actions related to pollution described on pages 77-79. GN implements actions to prevent pollution through: Product design considerations to minimize environmental impact; Manufacturing process optimization; Responsible sourcing practices; Compliance with environmental regulations across all operations.

Policies related to resource use and circular economy described on pages 80-86. GN focuses on sustainable design developing product designs that impact the experience of products, not the environment. This includes moving towards recycled materials in products and supporting the transition to a circular economy. Product design considerations include minimizing environmental impact and supporting circular economy principles.

Actions related to resource use and circular economy described on pages 80-86. GN implements actions including: Development of products with longer lifecycles; Use of recycled materials where possible; Design for repairability and recyclability; Optimization of packaging; Supply chain efficiency improvements to reduce waste.

Policies related to own workforce described on pages 87-94. We believe that engaged employees who thrive, grow, and perform is a core differentiator that will make GN win. We are dedicated to foster a great workplace for our people across the globe, where aspirations meet opportunities, a place where talent come to fuel their professional passion, where they realize their potential, and where they feel that they truly belong regardless of who they are. Through a genuine commitment to leadership and culture we will nurture an environment where strong leadership, inclusivity, and collaboration are the seeds from which our company's diversity, innovation, and performance bloom.

Processes for engaging with own workforce described on pages 87-94. GN engages with employees through various channels including engagement surveys, development programs, regular communication, and feedback mechanisms. The company has processes in place to understand employee needs and concerns.

Actions related to own workforce described on pages 87-94. GN takes action on material impacts through: Creating inclusive workplace culture; Leadership development programs; Employee engagement initiatives; Diversity and inclusion programs; Skills development and training; Performance management systems; Health and safety measures.

Diversity metrics reported showing 26% women in GN's Senior Leadership and 33% AGM-elected women on GN's Board, as highlighted on page 3.

Policies related to value chain workers described on pages 95-98. GN's approach to supply chain responsibility includes safeguarding human rights across our full value chain. The company works with suppliers to ensure responsible practices and compliance with human rights standards.

Processes for engaging with value chain workers described on pages 95-98. GN engages with suppliers and value chain partners through: Supplier assessments; Due diligence processes; Collaborative improvement programs; Regular communication and feedback; Compliance monitoring.

Actions related to value chain workers described on pages 95-98. GN takes action through: Supplier code of conduct implementation; Human rights due diligence in supply chain; Supplier capacity building and training; Monitoring and audit programs; Collaborative improvement initiatives with suppliers.

Policies related to consumers and end-users described on pages 99-102. GN's customer-centric approach focuses on delivering innovative solutions that meet customer needs. The company has policies to ensure product quality, safety, and customer satisfaction across all business areas. Our overarching purpose of Bringing People Closer drives how we serve customers and end-users.

Processes for engaging with consumers and end-users described on pages 99-102. GN engages with customers through: Direct customer feedback mechanisms; User experience research; Customer support services; Channel partner engagement; Regular market research and customer insights gathering.

Actions related to consumers and end-users described on pages 99-102. GN takes action through: Customer-centric innovation processes; Product quality and safety management; Customer support and service delivery; Accessibility features in products; Responsible marketing and communication practices.

Business conduct policies described on pages 103-105. We are committed to doing things the right way, demonstrating the highest level of ethics and integrity in our business dealings. Our Nordic roots permeates the company fabric – how we innovate and collaborate, how we look at customers and technology, how we care for each other and the world in which we live. GN has policies and procedures to ensure ethical business conduct across all operations.

Management of relationships with suppliers described on pages 103-105. GN manages supplier relationships through: Strategic partnership approaches; Supplier assessments and due diligence; Collaborative improvement programs; Long-term partnership development; Supply chain responsibility initiatives including human rights safeguarding.