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<mrv:SustainabilityReport contextRef="ctx-1" id="s10__7__6-1" xml:lang="en">Business areas 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 com-pany, consisting of three business areas: Hearing Aids, Hearing Care and Diagnostics. The business areas operate through separate or-ganisations and offer multiple brands to best serve their individual markets and channels. How-ever, the business areas also collaborate exten-sively across the entire value chain â from pur-chasing and manufacturing to technological devel-opment, distribution and global infrastructure. Our approach to hearing healthcare and innova-tion, combined with the synergies obtained be-tween our business areas, thus enables us to cre-ate life-changing differences through hearing health, thereby helping millions of people experi-ence the joy of hearing now and in the future. For more details on our strategy and operating model, please refer to Our strategy on page 17. Hearing Aids The Hearing Aids business area engages in the development, manufacturing and whole-sale of hearing aids, developing innovative and leading technological solutions that cre-ate life-changing hearing health. ⢠Serves customers in 130+ countries ⢠900+ employees in Hearing Aids R&D EXTERNAL REVENUE IN 2024 10,022 DKK MILLION Supplier engagement We launched a new supplier engagement programme in 2024 to collect primary data and set targets for our suppliers to enhance their environmental performance. Hearing Care The Hearing Care business area comprises the Audika Group, which is a global retail company that provides personalised hearing care to cus-tomers worldwide through several strong local brands. ⢠4,000+ clinics worldwide ⢠Hearing care clinics in 25+ countries REVENUE IN 2024 9,932 DKK MILLION Awareness of hearing health We offer people free yearly hearing tests to promote early detection of hearing loss and timely intervention. In 2024, we tested 1.5 mil-lion people. Diagnostics The Diagnostics business area consists of a group of international companies and is the global market leader in hearing and balance as-sessment solutions used by audiologists, ENT doctors and balance clinics worldwide. ⢠Facilitated screening of 200+ million people ⢠Holds a market leading position in relevant categories REVENUE IN 2024 2,465 DKK MILLION Scope 3 emissions reduction Demant aims to use less climate-intense transport modes to mitigate climate change. This target resulted in a 16% emissions reduc-tion from transportation for Diagnostics in 2024.How we create value Operating model Our operating model is designed to steer us in op-erating our three business areas â Hearing Aids, Hearing Care and Diagnostics â 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. This approach enables each business area to adopt a customer-centric approach and execute their specific strategic initiatives to deliver on the strategy, enabling the Group to create life-chang-ing solutions that complement each other. With our business areasâ common understanding of technology, innovation is at the core of our op-erating 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 en-sures supply chain agility and resilience. Our operating model is founded on a robust inter-nal infrastructure, encompassing IT, HR, finance, sustainability as well as legal systems and pro-cesses. This strong backbone, which we call Group Services, supports business growth, en-sures efficiency and enables economies of scale in a sustainable and responsible way. 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 net-work ensures that we can raise awareness and make our diagnostic equipment, hearing aids and personalised hearing care and treatments acces-sible to those in need, thereby enhancing patient care and improving lives. Input ⢠Employing 22,000+ people. ⢠More than DKK 1.4 billion invested annu-ally in R&D. ⢠Growing portfolio of 3,500+ patents and designs as well as a portfolio of 1,400+ registered trademarks. ⢠Global distribution network, comprising over 4,000 hearing care clinics, distribution of hearing aids to more than 130 markets and a comprehensive distribution set-up of diagnostic products, spanning around 100 countries. ⢠Core expertise within audiology with a strong understanding of the difficulties faced by people living with a hearing loss. ⢠Strong brand value across our multi-brand set-up, enabling the Group to strategically position itself across many markets and channels, thereby effectively addressing various customer needs. ⢠Strong relationships with component sup-pliers. ESRS 2 SBM-1 Strategy, business model and value chain. This page is part of limited assurance. Demantâs operating model Output ⢠Diagnostic equipment that increases the quality of patient care. ⢠High-quality hearing aid solutions. ⢠Personal and individualised treatment of-fering the highest level of expertise in audi-ology. Outcome We create life-changing differences through hearing health by helping people overcome hearing loss and improving their lives sup-ported by innovative solutions and hearing care. ⢠Customers: We deliver a user experience that exceeds expectations by providing life-changing hearing health through innova-tive, state-of-the-art products. This benefitsboth individuals and society, improving the lives of 11 million people in 2024. ⢠Employees: We are a great place to work with engaged employees who feel includedand empowered to develop, grow and do what they do best. In 2024, our engage-ment score increased to 4.13 from 4.11 theyear before. ⢠Investors: We deliver attractive financial returns and growth based on a resilient busi-ness model and a strategy that focuses on value-creating growth1Governance structureIn accordance with Danish legislation, Demant has a two-tier management system, comprising the Board of Directors and the Executive Board. No individual is a member of both. The division of responsibilities between the Board of Directors and the Executive Board is clearly outlined and described in the Rules of Procedure for the Board of Directors and in the Instructions for the Execu-tive Board. The Board of Directors is responsible for the over-all strategic management and the financial and managerial supervision of the company, the ulti-mate goal being to ensure long-term value crea-tion. The Board of Directors supervises the work of the Executive Board. The Executive Board is responsible for the daily operations and develop-ment of the business in accordance with the stra-tegic direction. The members of the Executive Board are the CEO, CFO and the President of Hearing Care, who are registered with the Danish Business Authority. The Executive Board has formed a wider Execu-tive Leadership Team. On 1 November, we wel-comed Anne-Karen Hunt as new President of Di-agnostics. With this addition, the Executive Lead-ership Team is complete with Presidents repre-senting the three business areas (Hearing Aids, Hearing Care and Diagnostics) and the President of Group Services. The CEO is also President of Hearing Aids, and the CFO is President of Group Services. Composition of the Board of Directors Since the annual general meeting in March 2024, the Board of Directors has consisted of seven members: four members elected by the share-holders at the annual general meeting and three members elected by staff in Denmark. Sharehold-ers elect Board members for a term of one year, and staff elect Board members for a term of four years. Staff-elected members are elected in ac-cordance with the provisions of the Danish Com-panies Act. On 1 November 2024, Charlotte Hede-gaard resigned and was replaced by staff-elected alternate, Anders Højsgaard Thomsen. Although the Board members elected by the shareholders at the annual general meeting are up for election every year, the individual Board members are traditionally re-elected and sit on the Board for an extended number of years. This en-sures consistency and maximum insight into the conditions prevailing in the company and the in-dustry. Such consistency and insight are consid-ered important in order for the Board members to bring value to the company. Two of the four Board members presently elected by the shareholders at the annual general meeting are considered independent. The four Board members stand for re-election at the annual gen-eral meeting in March 2025. Additionally, the Board proposes that Katrin Pucknat is elected as a new member of the Board. She will be consid-ered independent. She brings significant experi-ence from the MedTech Industry as well as strong competence within marketing, sale, product inno-vation and digital business transformation. The Board is composed to ensure the right combi-nation of competencies and experience, with ex-tensive international managerial experience, board experience from major listed companies and diversity traits carrying particular weight. On our website, www.demant.com/about/manage-ment-and-governance, we describe the compe-tencies and qualifications that the Board of Direc-tors deems necessary to have at its overall dis-posal in order to perform its tasks for the com-pany. ShareholdersBoard of DirectorsExecutive BoardExecutive Leadership TeamHearing Aids Hearing CareDiagnostics Group ServicesFunctional BoardsDiversity The Board of Directors aims to have at least 40% of the underrepresented gender among the Board members elected by the shareholders, as this constitutes an even distribution in terms of gen-der. In 2024, the Parent, Demant A/S, maintained an even distribution of gender both in the Board of Directors and at other management levels, cf. section 139c of the Danish Companies Act. As part of our ambitions to ensure diversity and in-clusion in the Group, we have a Policy on Diver-sity, Equity and Inclusion, which includes targets to increase diversity and inclusion in the Demant Group. Demant is present in all parts of the world and employs people with different ethnic background, personality, nationality, age, sexual orientation, gender and education. We encourage respect for diversity and strive to treat all employees fairly. Board of Directors 2024 2023 Total number of shareholder- elected mem-bers4* 5 Women 25% 40% Men 75% 60% *Equal to an even (40/60%) distribution, cf. the Danish Busi-ness Authorityâs Guidelines on target figures and policies for the gender composition of management.Considered independent: No Considered independent: No Considered independent: Yes Considered independent: Yes Competences: International leadership experience from major, global, industrial, con-sumer goods and high-tech companies, business management and board experience as well as strong insights into industrial policy and sustaina-1bility/ESGCompetences: International leadership experience from major, global companies in the global healthcare and MedTech industry, business management and board experience as well as in-depth insights into financial matters, accounting, 1tax, risk management and M&ACompetences: International leadership experience within the areas of finance and ac-counting, including board and CFO experience from listed companies as well as in-depth insights into value creation, change management, M&A 1and sustainability/ESGCompetences: International leadership experience from the global MedTech industry, management experience from such areas as inno-vation, sales, strategy deployment and commer-1cial excellenceSustainability statement âI often hear that people don't Reporting scope and disclosurerequirementsESRS 2 General basis for preparation of sustainability statement Framework and scope The Sustainability statement has been prepared in accordance with the Corporate Sustainability Re-porting Directive (CSRD), including the European Sustainability Reporting Standards (ESRS). Since 2021, Demant has reported in accordance with the sustainability standards of the Global Re-porting Initiative (GRI). Following the agreement between ERFRAG and GRI on ESRS-GRI in-teroperability, reporting under ESRS is deemed reporting 'with reference' to the GRI standards. The Sustainability statement has been prepared on a consolidated basis and include all entities un-der Demantâs control as defined by the scope of consolidation used in our financial reporting in-cluding acquired entities in the reporting period. Any exclusions are clearly indicated and justified in the specific disclosure requirement sections. The Sustainability statement covers Demantâs own operation as well as upstream and down-stream value chains, where applicable, depending on the impacts, risks and opportunities identified in the double materiality assessment. Independent auditors are engaged to provide lim-ited assurance on our sustainability data. The scope and conclusions of the limited assurance process are disclosed in the assurance statement on 206. The comparative figures are covered by limited assurance. We have not chosen the options to omit or exclude information due to confidentiality or sensitivity. Time horizons Time horizons used in this report are as defined in the ESRS: Short term represents one year. Me-dium term spans from one year and up to five years. Long term is more than five years. Application of estimates and judgements The reporting of certain data points requires as-sessment, which includes estimates and/or judge-ments. The general assumptions are based on Demantâs assumption that the Demant group av-erages can be applied across the different areas as a leverage to estimate other metrics. These assumptions relate to: ⢠Scope 3 emissions under E1-6 ⢠Resource inflow under E5-4 ⢠Resource outflow under E5-5 We regularly review and update these estimates and judgements based on our experience, ad-vancements in ESG reporting and various other factors. Any changes in estimates are recognised in the period they are revised. Additionally, we ap-ply judgements when implementing accounting policies. For more details on the key estimates, judge-ments and assumptions used, please refer to the pages with quantitative ESG data tables. Incorporation by reference Certain disclosure requirements are disclosed in other publicly available documents. When incor-poration by reference is used, it is clearly indi-cated. Disclosures placed outside the sustainabil-ity statement are clearly identified with a refer-ence, referring to the applicable disclosure re-quirement of the ESRS regulation. The tables on pages 110-112 summarise the dis-closures required by ESRS that are referenced outside the sustainability statement. Comparative figures for prior years Comparative figures for prior years are not cov-ered by limited assurance. This is clearly marked with âââ. Sustainability strategy and governanceWith our purpose to create life-changing hearing health and our ambition, as the leading hearing healthcare company, to improve as many lives as possi-ble, sustainability is at the core of our corporate strategy.Based on our corporate strategy and information obtained through a double materiality assessment (see page 57), we refined our Sustainability Strat-egy in 2024, including our sustainability ambition as well as our ESG ambitions and targets (see page 55). We are also basing our ambitions and priorities on the Sustainable Development Goals (SDGs) that are relevant to us. Where our sustainability ambition is intrinsic to Demantâs purpose and ambition, our ESG ambi-tions and priorities enable us to deliver on our overall ESG ambition, which is to drive responsi-ble and sustainable business practices. To achieve results based on these priorities, we have set the following three ESG ambitions. Respect for the planet (E) Caring for people goes hand in hand with caring for the environment, and, although our impact is relatively low compared to other industries, we take a proactive approach to lowering our footprint and any negative impact on the environment. As a Group in constant growth, decoupling our emis-sions and environmental impact from that growth is key to meeting our targets. To that end, we work on the environmental optimisation of our op-erations and our products, and we strive to achieve ambitious goals for emissions reductions. Caring for people (S) Being a leader in hearing health means we have an obligation to inspire the industry to continue in-novating and applying new ways of thinking. We want to stay ahead of the game and to be at the forefront in our core impact ambition â creating life-changing differences through hearing health. Our core commitment to society is to help people become aware of and overcome hearing loss and improve their quality of life through innovative so-lutions and access to personalised hearing care. To be a leader in creating a positive social impact on society requires us to be a leading employer capable of attracting the brightest minds for the benefit of people with hearing loss. Our over 22,000 employees are the most valuable part of our business, and their well-being, safety, en-gagement and development are fundamental to our success. We want to promote an organisa-tional culture characterised by care and respect for others, with diversity, equity and inclusion as important drivers. Performing with integrity (G) We take a proactive approach to business ethics to ensure we behave as a company we can be proud of. We strive for high ethical standards and conduct business with integrity and honesty. Our Code of Conduct and Third Party Compliance Code set the minimum standards and ethical prin-ciples applicable to all employees and third partieswith whom Demant conducts business. Please refer to the chapters dedicated to our ma-terial topics under Environment, Social and Gov-ernance for further details on our targets and ac-tions and the progress of our sustainability work. Our contribution to the Sustainable Development Goals Core impact Our core business positively changes the lives of people with hearing loss. From screening newborns to testing in our clinics, we stay in peopleâs lives to continue to improve their hearing abilities. We share knowledge and awareness of hearing healthcare and seek to increase access to proper hearing rehabilitation (target 3.8). We invest in the education of hearing care professionals (target 4.4), particularly in areas where education is scarce. Furthermore, good hearing capabilities are essential for inclusive and equal access to education (target 4.5). Through decades of development, testing and growing insights in paradigm-setting technology, we make a substantial impact on innovation within hearing health (target 9.5). Our solutions reduce inequalities, thereby furthering the inclusion of people with hearing loss when it comes to employment and other important aspects of life (target 10.2). Environment We work actively to transition to renewable energy across our operations (target 7.2). We challenge the concept of âbusiness as usualâ to reduce, reuse and recycle as much as possible (target 12.5). Our transition plan guides us towards fulfilment of our climate targets (SDG 13). Social We positively impact gender equality through focused initiatives and targets to obtain a gender-balanced top management (target 5.5). We contribute to decent work conditions and economic growth (targets 8.5 and 8.8). Our diversity, equity and inclusion agenda takes a broad approach to ensure a workplace where all employees, irrespective of their differences, can contribute and belong (target 10.2). Governance As a global company with high focus on ethics, we work diligently with anti-bribery and anti-corruption (target 16.5). Please refer to demant.com for more information. Sustainability strategy Sustainability Core impact: Improving lives through life-changing hearing health ambition Our roots are in hearing health, and our purpose is to create life-changing differences through hearing health, whereby we contribute to building a more sustainable world where people have the opportunity to enjoy life. Caring for peopleâs health and well-being goes hand in hand with caring for our employees, society and the planet ESG ambition We will drive responsible and sustainable business practices Environment Social Governance ⢠Help people overcome hearing loss ⢠Strive for high ethical standards ⢠Decouple emissions from growth ⢠Ensure our peopleâs well-being, through awareness ⢠Perform business with integrity ⢠Work with environmental optimisationsafety, engagement and development ⢠Improve their quality of life through and honesty ⢠Strive for ambitious emissions ⢠Promote an organisational culture innovative solutions and personal care ⢠Set the minimum standards and reductions characterised by care and respect ⢠Have a positive impact on health ethical principles through our code with diversity, equity and inclusion as of conduct important drivers ESG priorities Respect for the planet Caring for people Performing with integrity Climate impactDiversity, equity and inclusionBusiness integrity⢠Providing life-changing hearing health ⢠Working conditions ⢠Corruption and bribery Material topics ⢠Climate change adaptation ⢠Hearing health awareness ⢠Diversity, equity and inclusion ⢠Advocacy for hearing health ⢠Climate change mitigation ⢠Product quality and safety ⢠Talent attraction and retention ⢠Product circularity ⢠Right to privacy ⢠Responsible supply chain Targets EImpact targetsSG2025: 50% renewable electricity 2030: More than 16 million lives improved 2030: Increase gender balance in top- 2030: Increase excellence in business level management to 35/65% conduct through code of conduct training 2030: 100% renewable electricity 2030: Increase awareness by hearing-testing (women/men)to reach 100% highly exposed employ-more than 2 million people 2030: 46% reduction in scope 1 and 2 ees2030: Take employeesâ experience of in-GHG emissionsclusion to the top-third level of Gallup index2030: 46% reduction in scope 3 GHG 2030: Take employee engagement to the emissionstop-third level of Gallup index 2050: Net-zero emissions Sustainability governance ESRS 2 GOV-1 The role of the administrative, manage-ment and supervisory bodies ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the undertakingâs administrative, management and supervisory bodies Our governance model for sustainability ensures centralised oversight and accountability as well as deployment of our ESG priorities across our busi-ness areas. The Board of Directors evaluates progress on our sustainability ambition and ESG priorities twice a year and has final oversight. The audit committee oversees sustainability reporting. The Executive Board reports to the Board of Di-rectors. The Executive Board has formed a wider Executive Leadership Team, whose members represent the three business areas (Hearing Aids, Hearing Care and Diagnostics) as well as Group Services. The Executive Leadership Team en-dorses sustainability and ESG ambitions and gives strategic direction on priorities. In 2024, the Sustainability Board comprised the Executive Leadership Team as well as selected senior leaders from our business areas and func-tions. The Sustainability Board met every other month to review progress and risks, give strategic guidance on ESG priorities and ensure alignment and traction in the business areas. Group Sustainability drives the Groupâs overall sustainability ambition, selected ESG priorities and, in collaboration with the ESG reporting team in Finance, the sustainability reporting. Other key functions drive specific sustainability areas, such as privacy, business ethics as well as diversity, equity and inclusion. Business areas implement the Groupâs ESG priorities, drive supply chain- and product-related projects and monitor product-related and country-specific legislation. Information on the composition, diversity and ex-pertise of our Board of Directors and Executive Leadership Team can be found on pages 47-49. Information on the sustainability-related perfor-mance in incentive schemes can be found in the Remuneration Report. Board of DirectorsAudit committeeExecutive BoardExecutive LeadershipTeamHearing Aids Hearing CareDiagnostics Group ServicesSustainability BoardGroup SustainabilityDouble materiality assessmentUnderstanding our impacts on society â both posi-tive and negative â ensures that we focus on the right things when managing ESG in our business. Assessing materiality of sustainability topics on an annual basis helps us take the right strategic deci-sions and guides our external disclosures. We as-sess sustainability topics from a double materiality perspective: How can Demant actually and poten-tially impact people and the environment (impact materiality), and can such impacts and/or depend-encies on resources affect Demantâs financial po-sition (financial materiality)? In 2024, we further qualified the extensive double materiality assessment (DMA) we conducted in 2023 to identify our material topics. Through a comprehensive process, which is de-tailed on page 62, we identified and assessed our current and potential positive and negative im-pacts, risks and opportunities (IROs). Material topics The material impacts, risks and opportunities identified during the materi-ality assessment process are presented and described on the following pages.ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model We organised all material impacts, risks and op-portunities (IROs) in 13 material topics for clar-ity. The material topics inform both our strategy and our reporting. In the models on page 55 we illustrate the interaction between the material topics and our strategy. The identified material topics determine the Eu-ropean Sustainability Reporting Standards (ESRS) on which we report as referenced in the matrix presented here. All material topics are described briefly on the following pages and for further details please refer the respec-tive chapters from page 65. The methodology and process used to identify the material topics are described on pages 62-63. Financially material Double material (financially and impact material) Climate change adaptation (E1) Climate change mitigation (E1) Talent attraction and retention (S1) Product circularity (E5) Product quality and safety (S4) Diversity, equity and inclusion (S1) Providing life-changing hearing health (S4) Corruption and bribery (G1) Hearing health awareness (S4) Advocacy for hearing health (G1) Not material Impact material European Sustainability Reporting Standards Various ESG topics, including pollution (E2), Working conditions (S1) biodiversity (E3), water (E4) and affected E1: Climate change communities (S3). Responsible supply chain (S2) E5: Resource use and circular economy Right to privacy (S4) S1: Own workforce S2: Workers in the value chain S4: Customers and end-users G1: Business conduct Impact material Material topics and our value chain Climate change mitigation Climate change adaptation Product circularity Working conditions Diversity, equity and inclusion Talent attraction and retention Responsible supply chain Providing life-changing hearing health Hearing health awareness Product quality and safety Right to privacy Corruption and bribery Advocacy for hearing health Material topics Value chain location: Time horizon: Where does the impact occur? When does the impact occur? Description of material topics Upstream Own operations Downstream Short term Medium term Long term Climate change (E1) Climate change mitigation Demantâs greenhouse gas emissions have a negative impact on the environment. Most greenhouse gas emissions are scope 3 greenhouse gas emissions stemming from suppliersâ operations and from materials and components that cannot be replaced. Climate change adaptation There is a risk that some of Demantâs facilities and suppliers may be exposed to natural dis-asters or extreme weather events, which could lead to operational disruption. Circular economy (E5) Product circularity Demant has an opportunity to further increase our use of recycled components and packag-ing materials to limit negative impact on the environment and reduce costs. In the long term, there is also a potential risk related to less availability of essential raw materials required for electronic components. Own workforce (S1) Working conditions Demant may have a negative impact on employeesâ mental health and well-being, especially in busy periods. Negative impacts on employees' also present a risk to their efficiency levels, employee turnover rates and the companyâs reputation. Diversity, equity and inclusion If Demant fails to ensure diverse representation of gender, nationalities and other diversity traits in our employee group it carries a risk that we cannot build a work environment charac-terised by care and respect. This could have negative impacts on certain groups of employ-ees and affect our ability to meet our strategic goals. Talent attraction and retention There is a potential risk related to the ability to attract the right talent and to high turnover rates in some employment areas, which could mean high expenses for the recruitment, onboarding and training of new staff. Workers in the value chain (S2) Responsible supply chain Demant operates a long and complex value chain, engaging with suppliers that operate in countries and industries with potentially negative impacts on workersâ rights. Value chain location: Time horizon: Where does the impact occur? When does the impact occur? Description of material topics Upstream Own operations Downstream Short term Medium term Long term Consumers and end-users (S4) Providing life-changing hearing health Through its products, Demant positively impacts users living with hearing loss, enhancing their engagement in life and creating a positive ripple effect on their surroundings, including their families, colleagues and friends. We also work to upskill and reskill audiologists and other healthcare professionals to further address talent gaps and educate the market which present opportunities for Demant in markets where hearing healthcare education is scarce. Hearing health awareness (entity-specific topic) Demant has an opportunity to raise awareness about the importance of treating hearing loss among potential users and to test as many people as possible. Working towards reducing the stigma associated with hearing loss and empowering people to seek help in due time can po-tentially have a significant positive impact on the individuals treated, their social network and public health in general. Product quality and safety If a lack of quality or compliance with all medical device regulations occurs, it represents a risk to the company's licence to operate and its ability to bring products to market. Right to privacy Due to the nature of our business, we have access to patients' and usersâ sensitive personal data and therefore also potentially negative impacts if said data is compromised. Business conduct (G1) Corruption and bribery Demant operates in countries with risks of corruption and bribery, exposing our commercial departments to these risks. Corruption incidents may lead to fines and reputational damage. We also work with distributors who operate in countries where these risks are higher than in the countries where Demant operates directly. Advocacy for hearing health Engaging with governments and local authorities to raise awareness about the importance of hearing health by testing more people and ultimately treating their hearing loss represents an opportunity for Demant, since the level of reimbursement in individual countries affects the penetration rate and thus impacts markets. Double materiality assessment process In 2023, we executed a comprehensive double materiality assessment pro-cess as shown below. The results were further qualified in 2024. ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities Shortlist Identification Identification Assessment of material Point of and of impacts, of impact and impacts, Integration departure and Assessment engagement of risks and financial risks and Consultation of results into benchmarks methodology stakeholders opportunities materiality opportunities of stakeholders reporting plan Consideration of com-Development of DMA Desktop analysis and More than 50 IROs Further analysis of A shortlist of material Process and material Grouping of material pany strategy and cor-tool for description and interviews with approxi-were identified. IROs, including consid-IROs was further quali-IROs were presented to IROs into larger material porate governance scoring of IROs, includ-mately 40 internal eration of geographies fied with relevant inter-the following stakehold-topics for external re-The documentation and model. ing setting thresholds stakeholders selected with elevated potential nal stakeholders. ers: porting based on the descriptions of the IROs for impact and financial based on their ability to impacts or risks, and as-ESRS. Desktop review of ESG include specifications of materiality (please refer represent affected inter-sessment of impact and ⢠Industry peers (ex-rating methodologies their nature (impact, risk Assessment of material to page 63). nal and external stake-financial materiality of perience exchange and sustainability re-or opportunity) and standards and existing holders and their insight all IROs through scoring sessions) porting standards. where in the value chain gaps to meet reporting into the business. workshops with relevant ⢠Executive Leader-an IRO occurs. It also requirements. Review of peersâ report-stakeholders. ship Team (ap-indicates the time hori-ing performance and proval of material Development of plan for zons and the affected To specifically under-sustainability strategies. IROs) ESRS compliance and stakeholders and if the stand impacts related to ⢠Audit committee 2024 reporting. Definition of scope to in-IRO is the result of our pollution, water and bio-and Board of Direc-clude all entities where own operations or our diversity, an environ-tors (approval of Demant has operational business relationships. mental analysis consid-material IROs) control as well as key ering main locations locations in the value was conducted. No ma-chain.terial IROs were identi-fied deeming the stand-Review and detailed ards E2, E3 and E4 im-mapping of value chain. material.Continuous documentation of process and results Reassess Double materiality assessment methodology The scoring methodology and criteria of the mate-riality assessment included the following parame-ters scored on a scale from 0 (lowest) to 5 (high-est): ⢠Impact materiality: Scale, scope, irremediabil-ity of negative impacts and likelihood of im-pacts. For actual positive and negative im-pacts, materiality is based on the impact se-verity, whereas for potential positive and neg-ative impacts, materiality is based on the se-verity and likelihood of the impact. For scoring of potential negative human rights impacts, severity took precedence over likelihood. ⢠Financial materiality: Size of financial effect, likelihood and impact on reputation. The materiality of IROs was ranked using predom-inantly qualitative scales. However, the basis for the ranking included quantitative input, such as quantitative scales on financial effect and infor-mation obtained from internal sources assessed to be sufficiently reliable. All impacts, risks and opportunities ranked over the materiality threshold of 1.8 on either impact, financial impact or both have been grouped into the 13 material topics in-cluded in this report (please refer to pages 58-61). Demantâs project group for implementation of the Corporate Sustainability Reporting Directive (CSRD) consists of members of the sustainability and ESG reporting teams. The project group is re-sponsible for the double materiality process and conducted the assessment, including the develop-ment of all documentation. Review of process and results in 2024 In 2024, the double materiality assessment was reviewed and further qualified through deeper im-pact and risk analyses, such as a human rights impact assessment and a detailed transition risk analysis. Based on new materiality guidance from the European Financial Reporting Advisory Group, EFRAG, that set the ESRS, and feedback from external auditors, the list, descriptions, scor-ing and grouping of IROs were reviewed. This re-view did not result in any change in the list of ma-terial sustainability IROs. In 2025, we will update the DMA process, consid-ering new learnings and experiences. The update will include further maturing of underlying impact analyses and information from Demantâs due dili-gence practices. The Sustainability Board is accountable for the as-sessment and management of material sustaina-bility impacts, risks and opportunities. This en-sures that sustainability-related risks are consid-ered appropriately alongside other types of risks and are integrated into the continuous risk man-agement processes of the Groupâs business areas and functions. Stakeholder views and interests Stakeholder engagement on sustainability topics is crucial to Demantâs ability to increase its positive impact on hearing health and create value for our stakeholders. ESRS 2 SBM-2 Interests and views of stakeholders We engage with our stakeholders on a continuous basis to meet their expectations, report on our product innovation process and ensure mitigation of potential negative impacts. The interests and views of key stakeholders are shared with the Ex-ecutive Leadership Team through our functional boards as well as our functional and business area leadership teams. Please refer to our sus-tainability governance model on page 56. Key stakeholders Engagement Outcome of engagement Employees Please refer to S1-2 disclosures on pages 86-87, 89 and 92. Users Please refer to S4-2 disclosures on pages 96 and 99. Customers We engage with our customers, which include national Providing optimal hearing health technology, service and health organisations, hospitals and hearing care clinics treatment (retail), especially through the daily operations of our com-Building trust with customers mercial teams. Please refer to S4-2 disclosures on pages Aligning on customer requirements 96 and 96 for more details on engagement with customers of our hearing care clinics. Suppliers Please refer to S2-2 disclosures on page 94. Shareholders Please refer to pages 44-46. Regulators and We closely follow updates from regulators and other public Ensuring compliance with all relevant legislation in the authorities authorities, continuously aligning practices, and engage in markets where we operate advocacy through industry organisations and interest Mitigating business and impact risks groups or in collaboration with peers. Advancing positive impacts for people living with hearing loss Industry organisations We are an active player in selected industry organisations Advancing the hearing healthcare industry and positive and interest groups and collaborate with relevant patient associations and in-impacts for people living with hearing loss terest groups on a continuous basis. Including the views of interest groups into our business processes Academia We keep up with the high pace of primary scientific and Assisting our users better through technological innova-technology research and base our solutions on significant tion research enabled through close collaboration with aca-Significantly enhancing user benefits in future hearing demic experts. care through continuous audiological discoveries E1 Climate change Caring for peopleâs health and well-being goes hand in hand with caring for the environment and, though we are not in the heaviest of industries, we take a proactive approach to lowering our environmental footprint. As a Group in constant growth, decoupling our greenhouse gas emissions and environmen-tal impact from that growth is key to meeting our targets.We are committed to delivering on our climate tar-gets approved by the Science Based Targets initi-ative (SBTi) in 2023. These targets set not only the final goal of reaching net-zero emissions across the value chain by 2050 but also include mid-term targets. Our targets We aim to reduce absolute scope 1 and 2 green-house gas (GHG) emissions by 46% by 2030 and scope 3 GHG emissions by 46% by 2030, in both cases from a 2019 baseline. Transition to renewable electricity is also crucial for Demantâs progress towards achieving our climate targets. For this reason, we aim to cover 50% of our electricity consumption with renewable electric-ity by 2025 and 100% by 2030. Scope 1 and 2 greenhouse gas emissions REDUCTION REDUCTION 8%46% Scope 1 and 2 in 2030 target 2024 against base-against baseline Scope 3 greenhouse line year 2019 year 2019 gas emissions INCREASE REDUCTION 31% 46% Scope 3 in 2024 2030 target against baseline against baseline year 2019 year 2019 Material topics Climate change mitigation Climate change adaptation Own Hearing ClinicUpstream Own operationsClimate change mitigation and adaptation We take action to reduce our climate-related impact and risks and work towards climate change mitigation across our value chain. Impacts, risks and opportunities ESRS 2 SBM-3 E1 Material impacts, risks and opportuni-ties and their interaction with strategy and business model Demant is committed to climate change mitigationand actively works to reduce our negative impact on the environment stemming from the Groupâs GHG emissions, which occurs in the short, me-dium and long term. While the impact of scope 1 and 2 GHG emissions is relatively low and man-ageable, most of the Groupâs GHG emissions are scope 3 GHG emissions stemming from suppliersâoperations and from materials and components that cannot be replaced. Therefore, supplier en-gagement and collaboration to reduce GHG emis-sions are crucial for Demantâs ability to reach our targets and lower our footprint. When it comes to Demantâs climate change adap-tation, the occurrence of natural disasters and ex-treme weather events pose a potential risk to our own and our suppliersâ operations in the medium term. Depending on the location and magnitude ofthe event, this physical material risk may generatedifferent levels of business disruption. In 2023, as part of the DMA process, Demant per-formed a climate-scenario analysis to understand the climate-related physical and transition risks and their materiality to the Group. In 2024, Demantâs business strategy and busi-ness model were assessed for resilience against the risk of climate-related natural disasters. De-mant is considered resilient to the current risk level. The Group ensures the resilience of our business model by integrating considerations of climate-related natural disaster risks into our own operations and supply chain management to mini-mise business disruption, should such an event occur. Through the Groupâs already established continuous risk management, both current and fu-ture risks will be considered. Specific actions to reduce potential business disruptions due to fu-ture climate scenarios have been analysed, as ex-plained in the following sections, and will be taken if and when deemed necessary. In the resilience assessment the timeframe for the scenario analysis is 2065 and it does not align with the timeframe of Demantâs climate targets, which have been set to 2030 and 2050. The latter aligns with science-defined key years for climate change mitigation and the former aligns with the secondary information used by Demant in the as-sessment. Nevertheless, as these two elements refer to climate change mitigation and climate change adaptation respectively, the timeframe misalignment neither influences the risk assess-ment nor the climate target alignment with the lim-ited 1.5°C scenario increase at the end of the cen-tury. There are some uncertainties in the resilience analysis, which mostly relate to the input used for our DMA. The climate-related risks considered in the assessment are based on secondary infor-mation and internal expertsâ knowledge and are focused on specific business locations. As De-mant continuously improves the sustainability due diligence and DMA processes, the uncertainties about the resilience analysis should be reduced. Impact, risk and opportunity management ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities Regarding climate change mitigation, Demant re-ports on our full GHG emissions on an annual ba-sis and compared to our baseline year 2019, the Groupâs GHG emissions have increased. In the double materiality assessment process, the Groupâs climate performance was considered and assessed as a material negative impact. To identify the physical risks associated with cli-mate change adaptation, Demant performed an assessment to determine which climate-related threats represent a risk for the Group, considering relevant locations, such as our headquarters, own production sites and those of our main suppliers. Demant evaluated different climate scenarios from the Intergovernmental Panel on Climate Change (IPCC) namely RCP2.6; RCP4.5; RCP8.5 with a timeframe extending to 2065 to understand poten-tial future global warming and its implications for the Group. The scenarios considered multiple temperature increases, starting with the IPCC RCP2.6 scenario with the lowest rise in the global average temperature. It also included the highest emissions climate scenario, IPCC RCP8.5, which represents a scenario where GHG emissions con-tinue to rise and no significant efforts to mitigate stclimate change in the 21 century are made. Us-ing available secondary information, Demant ana-lysed data at the most specific geographical level available (i.e. city, region or country), and relevant threats, such as wildfire, droughts, floods, changes in precipitation patterns and sea level rise, were also analysed for each location. Also associated with climate change adaptation and specific for the transition risks (which are risks associated with the shift towards a low-carbon economy) originating from different types of transi-tion events (i.e. technological, market and legal), Demant considered scenarios where global warm-ing was limited to 1.5°C with no or only limited overshoot scenarios. The Group considered differ-ent types of transition events in our own opera-tions and those of the supply chain. The results from the above-mentioned risk assessments were used as input for Demantâs DMA. Climate-related natural disasters are considered a material physi-cal risk for Demant, while no transition risks are considered material. E1-2 Policies related to climate change mitigation and adaptation Policy Our Sustainability Policy sets the direction within climate change mitigation and adaptation for all Demant entities and is publicly available on De-mantâs website. To steer the organisation towards the achievement of our climate targets, the Policy describes roles, responsibilities and actions to tackle GHG emissions in our own operations and value chain: ⢠Avoiding the use of unnecessary energy and increasing energy efficiency in our operations ⢠Substituting internal combustion vehicles by electric vehicles ⢠Using renewable electricity in own operations ⢠Focusing on the scope 3 categories where the impact is biggest. The Policy also lays down the Groupâs expecta-tions for relevant business-critical locations re-garding the adaptation to climate change-related natural disasters. The Sustainability Board approved the Policy in early H2 and is accountable for its implementa-tion. Progress on the Policy will be presented and discussed in meetings with the Sustainability Board, our Environmental Sustainability Commu-nity and relevant in-house experts. E1-1 Transition plan for climate change mitigation Transition plan Demantâs Transition Plan consolidates the exist-ing climate change mitigation plans and initiatives and details the different mitigation actions set by the Group to reduce the GHG emissions and reach our climate targets aligned with the Paris Agreement (please refer to page 66). The Transi-tion Plan, which is a dynamic document updated yearly, was approved by the Sustainability Board in H2 2024. The Plan currently focuses on De-mantâs near-term climate target for 2030.To reduce scope 1 and 2 GHG emissions, the Plan focusses on the GHG emissions from elec-tricity and fossil fuels from Demantâs fleet (petrol and diesel), as these energy sources represent most of the GHG emissions within these two scopes. For scope 3 GHG emissions, the decar-bonisation levers range from adopting less cli-mate-polluting transport methods to reducing the carbon intensity of the products and materials that the Group purchases. Read more under E1-3. In H2 2024, we further improved our scope 3 ac-counting methodology and restated our baseline and historical GHG emissions. Based on this im-provement, we are working to set additional de-carbonisation levers and to quantify the financing of the Transition Plan. Demant is in a position â and actively works â to reduce the carbon footprint in line with the goals of the Paris Agreement and contribute to global efforts to mitigate climate change. Therefore, the Group is not excluded from the âParis-aligned benchmarksâ established by the European Com-mission. The benchmarks provide a roadmap to ensure that company activities are consistent with the Paris Agreementâs objectives, particularly the goal of limiting the global temperature rise to 1.5°C above pre-industrial levels. E1-3 Actions and resources in relation to climate change policies Demantâs Transition Plan currently focuses on five decarbonisation levers, each including one or more mitigation actions: Lever 1: Energy consumption reduction and efficiency in own operations This lever focuses on avoiding or reducing the consumption of all energy sources in our opera-tions and on increasing energy efficiency. The ac-tions to do so continued in 2024. Energy consumption reduction and efficiency ac-tions are managed locally, allowing us to tailor our approach to the specific characteristics of each lo-cation. This ensures that we can effectively ad-dress specific needs and opportunities for im-provement. This lever is mostly applied at Demantâs produc-tion sites and in other entities with high energy consumption. Each location is free to implement its own actions regarding energy efficiency based on local needs and context. Examples of actions that may be made in this lever are adjustments of the ventilation and heating systems in our facilities and the assessment of appropriate light levels. As a Group with both organic and acquisitive growth, we do not track the energy consumption performance of individual locations and compa-nies at Group level, but we consider their absolute energy consumption. As a result, there are no Group targets associated with this lever. Lever 2: Renewable electricity for own operations In 2024, GHG emissions from electricity repre-sented 88% of scope 2 GHG emissions and 44% of scope 1 and 2 GHG emissions combined. De-mant consumed 1,245 MWh on-site renewable electricity and therefore avoided the generation of 611 tonnes market-based CO2e emissions in Mex-ico, Denmark, Poland, South Africa, Australia and Italy. Demant consumed 17,116 MWh off-site re-newable electricity of which 60% was directly ac-quired through electricity vendors in France, Italy and Poland and the remaining 40% was covered by Energy Attribute Certificates in Poland, Ger-many and Denmark. The use of offsite renewable electricity enabled Demant to avoid 10,145 tonnes market-based carbon dioxide equivalent (CO2e) emissions. Decarbonisation Scope of Geographical lever influence Mitigation actions Time horizon scope Energy consumption re-⢠Decrease in energy consumption Global 1 duction and efficiency in Scope 1 and 2 From short to long term ⢠Increase in energy efficiency own operations Renewable electricity for ⢠Use of on-site renewable electricity From short to medium 2 Scope 2 Global own operations ⢠Use of off-site renewable electricity term ⢠Transition to electric vehicles for already existing fleet in six prioritised European Vehicle fleet 3 Scope 1 and 2 countries From short to long term Global electrification ⢠Transition to electric vehicles for fleet in remaining countries Global (determined by ⢠Setting a supplier target for improvement Supplier engagement From short to medium the location of the sup-4 Scope 3 of the environmental performance of pur-programme term pliers onboarded to the chased goods and services programme) Use of less climate-inten-Shift from air freight transport to less cli-5 Scope 3 From short to long term To be determined sive transport modes mate intensive transport modes The transition to renewable electricity is expected to remove all scope 2 GHG emissions associated with electricity consumption by 2030. Demant aims to have 100% renewable electricity in our own operations by 2030 and will continue using current renewable electricity sources while explor-ing the incorporation of new sources. Lever 3: Vehicle fleet electrification In H2 2024, the Sustainability Board approved a new plan to speed up electrification of Demantâs vehicle fleet, replacing internal combustion engine vehicles with electrical vehicles. Through this plan, Demant promotes the use of electric vehi-cles across the Groupâs fleet. Phase one of the plan focuses on six specific countries where the legal entities must reach a defined electric vehicle share in their fleet by 2030. Considering fleet size and behaviour, phase one is expected to avoid the emission of 2,675 tonnes of CO2e in 2030. Lever 4: Supplier engagement programme In 2024, the Hearing Aids business area launched a new supplier engagement programme, called Sustain, to collect primary data from the category of purchased goods and services (phase one) and to set a supplier target for improvement of the en-vironmental performance of this category (phase two). While phase one started in 2024, phase two is expected to start in 2025, and once decarboni-sation targets have been agreed with our suppli-ers, the expected avoided GHG emissions will be quantified. Lever 5: Use of less climate-intensive transport modes The use of less climate-intensive transport modes requires continuous work to identify the business needs, type of freight, routes and locations com-patible with the transition from air travel to alterna-tive transport modes. Last year, our Diagnostics business area started this lever and set a target for 5% GHG emissions reduction in 2024 com-pared to 2023. We exceeded the target by 11% and reduced our transportation emissions inten-sity from 0.14 kg CO2e/DKK spent in 2023 to 0.11 kg CO2e/DKK spent in 2024.The medium- and long-term targets associated with this lever are yet to be determined. Looking ahead Demantâs Transition Plan is under constant devel-opment, and new levers will be added over time, especially with a view to reducing our scope 3 GHG emissions, as new information becomes available. The financial resources required for the imple-mentation of the decarbonisation levers and their relation to the financial statements are yet to be determined, as this depends on further defining the decarbonisation levers and their mitigation ac-tions. Metrics and targets E1-4 Targets related to climate change mitigation and adaptation As part of Demantâs climate commitment, we have set targets for reducing our GHG emissions, which align with the Paris Agreementâs goal of lim-iting the global temperature increase to 1.5°C by the end of the century. The targets were validated by the SBTi in July 2023 and are described below: Near-term targets Demant commits to reducing absolute scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 baseline year. Demant also commits to re-ducing absolute scope 3 GHG emissions by 46% within the same timeframe. Long-term targets Demant commits to reducing absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2019 baseline year. Demant also commits to re-ducing absolute scope 3 GHG emissions by 90% within the same timeframe. Overall net-zero targets As an additional step in the efforts towards climate change mitigation, Demant commits to reaching net-zero GHG emissions across the value chain by 2050 from a 2019 baseline year. Target setting methodology The targets follow the operational control ap-proach for setting Demantâs organisational bound-ary. As it is allowed in the target-setting methodol-ogy under the SBTi net-zero criteria V5.0, our tar-get-setting uses a cross-sector pathway and mar-ket-based accounting approach. Demant submitted its climate targets for validation to the SBTi in 2021, using 2019 as the baseline year, since it provided the latest available data be-fore coronavirus disrupted business operations. Demant does not consider GHG emissions re-movals, carbon credits and avoided GHG emis-sions as means of achieving the required GHG emissions levels in the near or long term. Aligned with the Greenhouse Gas Protocol, the GHGs considered in the targets are: Carbon dioxide â CO2Methane â CH4Nitrous oxide â N2O Hydrofluorocarbons â HFCs Perfluorocarbons â PFCs Sulphur hexafluoride â SF6Nitrogen trifluoride â NF3Regarding the link between the climate targets and the decarbonisation levers, for the near-term target in scope 1 and 2, the energy consumption reduction and efficiency in own operations (lever 1), along with the phase-in of renewable electricity for own operations (lever 2), will enable the re-quired reduction by 2030. It is important to highlight that fleet electrification (lever 3) is a complementary effort to ensure that the GHG emissions reduction takes place as soon as possible and that the fossil fuel emissions from the fleet are controlled and do not jeopardise the near-term target. For the near-term target in scope 3, the relevance of each lever still needs to be assessed. E1-5 Energy consumption and mix Energy Compared to 2023, Demantâs total energy con-sumption increased by 7%, from 113,404 MWh in 2023 to 121,209 MWh in 2024. The main part of the increase is attributable to higher usage of fuel by our vehicle fleet, corresponding to 2,141 MWh, and to acquisitions, resulting in increased usage of heating sources by 4,226 MWh and electricity by 2,099 MWh. Demantâs total use of energy from fossil fuels was 102,721MWh in 2024 compared to 102,425 MWh in 2023. Despite the overall increase in energy consump-tion, many of our energy-intensive entities suc-cessfully reduced their non-renewable electricity consumption and increased their use of renewa-ble sources, resulting in an increase in the Groupâs renewable energy share from 10% in 2023 to 15% in 2024. Renewable electricity Transitioning to renewable electricity is crucial for Demantâs progress towards achieving its climate targets. In 2024, we increased our investments in on-site solar generation at several sites. 35% of the Groupâs electricity consumption is now cov-ered by renewable sources, mainly from electricity vendors (directly sourced) and Energy Attribute Certificates. Energy consumption mix â (MWh) 60,00052,688 50,589 50,000 40,00027,637 30,00022,352 17,240 20,00016,983 16,579 14,096 9,693 10,0005,467 631 390 142 126 -Electricity Fleet - petrolNatural gas Fleet dieselDistrict heating Coal Liquefied(fuel)(fuel)petroleum gas(LPG)2023 2024Renewable energy of total energy consumption â 15%16%14%12%10%10%8%6%4%2%0%2023 2024Renewable electricity of total electricity consumption â 40%35%35%30%25%21%20%15%10%5%0%2023 2024Energy intensity â (MWh per DKK million revenue)765.41 5.25 5432102023 2024E1-6 Gross scopes 1, 2, 3 and total GHG emissions Scope 1 and 2 Driven by our transition to renewable electricity, the Group managed to reduce its market-based scope 1 and 2 GHG emissions by 11% in 2024 compared to 2023. We have reduced our scope 1 and 2 GHG emissions by 8% compared to our 2019 baseline year, thus making steady progress towards our goal to reduce our scope 1 and 2 GHG emissions by 46% by 2030. Electricity remains a key factor in our transition and our progress towards achieving our scope 1 and 2 GHG emissions targets. Additionally, GHG emissions from our fleet are a significant focus area for the Group. In 2024, we developed a plan for fleet electrification, aiming to further reduce our scope 1 GHG emissions. Scope 3 Most of our scope 3 GHG emissions (more than 96%) are distributed between five categories: pur-chased goods and services (category 1), capital goods (category 2), fuel- and energy-related activ-ities not included in scope 1 or 2 (category 3) and upstream and downstream transportation and dis-tribution (category 4 and 9). In 2024, our scope 3 GHG emissions decreased by 6% compared to 2023 and increased by 31% compared to our 2019 baseline. 86% of the reduc-tion can be attributed to reductions in category 1 and 2. The GHG emissions from these categories are dependent on the type and quantity of goods and services acquired for our products and opera-tions. While we have made clear progress in reducing our scope 1 and 2 GHG emissions, it takes time for the scope 3 numbers to reflect our efforts to-wards achieving our targets. The insights that our 2024 scope 3 accounting methodology provides will enable us to better de-fine actions towards GHG emissions reductions in accordance with our climate targets. Included scope 3 categories Out of the 15 scope 3 categories, ten are included in Demantâs inventory: Category 1: Purchased goods and services Category 2: Capital goods Category 3: Fuel- and energy-related activities not included in scope 1 or 2 Category 4: Upstream transportation and distribu-tion Category 5: Waste in operations Category 6: Business travel Category 7: Employee commuting Category 9: Downstream transportation and distri-bution (calculated together under category 4) Category 11: Use of sold products Category 12: End-of-life treatment Excluded scope 3 categoriesThe remaining five categories and the reasons for their exclusion are shown in the table below. Exclusion of Communications We estimate the scope 3 greenhouse gas emis-sions for Communications account for 12% of the Groupâs total scope 3 greenhouse gas emissions in 2024 based on our 2019 baseline and using the previous accounting principles. Based on a high-level recalculation using the rev-enue from EPOS, note 6.2 in the financial state-ments, the Groups total scope 3 GHG emissions would be: 2024: 519,795 tonnes CO2 2023: 551.069 tonnes CO2 2019 (baseline): 397,837 tonnes CO2 Total GHG intensity based on net revenue for 2024 including Communications is estimated to be 25. The metrics including scope 3 data do not in-clude Communications. Scope 3 Scope 3 category ID category Justification Upstream leased Demantâs leased assets are under its operational control 8 assets and therefore included in scope 1 and 2 accounting. Processing of Demant focuses on providing final products, accessories 10 sold products and consumables. Downstream Demant does not own or lease assets to external parties. 13 leased assets Franchises Demant does not own or operate franchises. 14 Investments After screening the GHG emissions associated with this cat-15 egory, it was determined that the share of GHG emissions from investments is less than 0.1% of the total scope 3 GHG emissions. Aligned with the relevance and completeness principles of the GHG Protocol standard and in considera-tion of data quality and availability, this category was ex-cluded. Scope 1 and 2 market-based GHG emissions â (tonnes CO2e) 40,00035,00030,00025,00024,37118,19920,77424,85614,78120,00019,58815,00010,00014,90414,64512,7655,00011,2068,8669,43202019 (baseline) 2020¹ 2021¹ 2022 2023 2024Scope 1 Scope 2Scope 3 GHG emissions â (tonnes CO2e) 600,000492,026 500,000464,103 436,831 404,872 400,000355,211 316,055 300,000 200,000 100,000 -2019 (baseline) 2020¹ 2021¹ 2022 2023 2024¹ 2020 and 2021 were impacted by lower activity due to coronavirus. Total GHG emissions â (tonnes CO2) Year Target Annual % Baseline % vs. Base-target/ Base-2019 2024 2023 % vs. LY line 2030 line¹ Scope 1 GHG emissions Gross scope 1 GHG emissions 11,206 14,645 14,904 -2% 31% 6,051 4% Scope 2 GHG emissions Gross scope 2 location-based GHG emissions² 17,996 19,041 18,419 3% Gross scope 2 market-based GHG emissions² 20,774 14,781 18,199 -19% -29% 11,218 4% Total scope 1 and scope 2 market based GHG emissions 31,980 29,426 33,103 -11% -8% 17,269 4% Category Significant scope 3 GHG emissions Total Gross indirect (scope 3) GHG emissions 355,212 464,103 492,026 -6% 31% 191,814 4% 1 and 2: Purchased goods and services and capital goods 322,094 421,480 444,999 -5% 3: Fuel and energy related services 4,798 7,253 6,767 7% 4 and 9: Transportation 18,870 26,491 26,067 2% 5: Waste in operations 701 1,971 1,008 96% 6: Business travel 4,261 2,741 5,897 -54% 7: Employee commuting 21 28 26 8% 11: Use of sold products 3,830 3,972 6,363 -38% 12: End of life treatment 636 167 899 -81% Total GHG emissions Total location-based GHG emissions 384,414 497,789 525,349 -5% 29% Total market-based GHG emissions 387,192 493,529 525,129 -6% 27% GHG Intensity based on net revenue Total GHG emissions (location-based) per net revenue 26 22 23 -15% Total GHG emissions (market-based) per net revenue 26 22 23 -15% ¹ Annual reduction in percentages from the baseline year 2019 required to reach the 2030 target. ² GHG accounting for electricity applies two methodologies based on the type of emissions factors to use: location and market-based emissions. Location-based emissions consider the average emission intensity of the power grid where the consumption takes place but disregard the use of off-site renewable electricity. Market-based emissions consider the specific type of electricity consumed and the associated specific emission intensity in the emissions calculations. Please refer to the Greenhouse Gas Protocol scope 2 guidance for additional information. Accounting policy Energy consumption Energy consumption includes both primary and estimated usage of electricity, district heating, nat-ural gas, diesel, petrol, coal and liquefied petro-leum gas. Energy consumption is recorded using different units (e.g. liters, kWh, kg) and is later converted to megawatt hours (MWh) for consoli-dation purposes. Energy data is recorded and compiled in our en-ergy management system, with each legal entity providing its monthly consumption figures on a bi-annual basis. The share of renewable energy represents the amount of renewable energy used by Demant in our operations. It is calculated by dividing the en-ergy consumed from renewable sources by the to-tal energy consumed by the Group. Refrigerants are not included in the energy con-sumption, as they account for less than 0.1% of the total energy consumption. Energy intensity Energy intensity is reported as the total energy consumption divided by the total revenue. Accord-ing to ESRS definitions, all of Demantâs business is classified as belonging to a high-climate impact sector. The revenue used as the denominator is the total revenue generated by the Group. Please refer to the Financial statements, Note 1.1, on page 127. Greenhouse gas accounting Demantâs carbon accounting adheres to the Greenhouse Gas Protocol (GHG Protocol) defined by the World Resources Institute and World Busi-ness Council for Sustainable Development in line with the recommendation of the ESRS. Our con-solidated GHG emissions data encompasses all entities under Demantâs operational control, including leased facilities, with emissions quanti-fied in carbon dioxide equivalent (CO2e). Demantâs Inventory Management Plan (IMP) sets the framework for defining, compiling and report-ing Group GHG emissions across all scopes of GHG emissions based on the Greenhouse Gas Protocol. The IMP specifies that baseline recalcu-lations may occur under the conditions defined in the publicly available Baseline Recalculation Pol-icy. Scope 1 and 2 GHG emissions Scope 1 emissions consist of direct GHG emis-sions that arise from the actual and estimated consumption of natural gas, liquefied petroleum gas, coal, petrol, diesel and refrigerants. Scope 2 emissions consist of indirect GHG emis-sions that arise from the actual and estimated consumption of electricity and district heating. The calculation of scope 1 and scope 2 GHG emissions is fully automated within our energy management system, utilising GHG emissions factors provided by the UK Department for Envi-ronment, Food & Rural Affairs (DEFRA), the US Environmental Protection Agency and the Interna-tional Energy Agency. Location- and market-based GHG emissions For scope 2, we calculate location- and market-based GHG emissions and use the latter to benchmark Demantâs performance against our cli-mate targets in accordance with our SBTi ac-counting approach. Scope 3 GHG emissions Demantâs business areas have different needs for data in the accounting of scope 3 GHG emissions. Therefore, we have decided to use different meth-odologies according to the data availability and needs of each business area. Demant employs two different methodologies for scope 3 accounting: one tailored for the Diagnos-tics business area and another for the Hearing Aids and Hearing Care business areas. Both methodologies align with the scope 3 GHG Proto-col standard and follow a combined approach, us-ing hybrid- and spend-based methods for the GHG emissions calculations. Category 1 is calculated using spend data multi-plied by the relevant GHG emissions factors for various types of purchases. Instead of using spend data, the elements of certain goods are classified per material and weighed to determine the quantity purchased. Category 2 includes goods purchased during the year, which have an expected lifetime that ex-ceeds the reporting period. It is calculated using spend data or the amount of capital goods pur-chased and is later multiplied by relevant emission factors. Category 1 and 2 are reported combined, as de-tailed data are not available, and estimating the categories is not possible. We expect to enhance the data quality and provide more detailed data for the reporting year 2025. Category 3 is calculated using actual fuel and en-ergy consumption, not included in scope 1 and 2, multiplied by relevant emission factors. Category 4 and 9 are calculated using primary data obtained directly from our logistics suppliers and are reported combined, as detailed data are not available, and estimating the categories is not possible. We expect to enhance the data quality and provide more detailed data for the reporting year 2025. Category 5 is calculated using actual waste data multiplied by relevant GHG emissions factors. Category 6 is calculated using primary air travel data available multiplied by relevant GHG emis-sions factors. Category 7 is calculated using secondary infor-mation from the passenger mobility statistics of the EU and the number of employees in Demant. Category 11 is calculated by multiplying the rele-vant GHG emissions factors, the number of sold products and the internal data collected by in-house experts on product design, functionality and typical usage patterns. This enables us to deter-mine the energy consumption data associated with each product. Category 12 is calculated using sales numbers, categorised by product type, material composition and the geographical location of the sold prod-ucts. The numbers are then multiplied by relevant GHG emissions factors. The GHG emissions factors used for the calcula-tions are from renowned sources, such as DE-FRA, the Danish Environmental Protection Agency database and the Ecoinvent database. Where needed, consumption and GHG emissions have been extrapolated to account for the whole Group. GHG intensity based on revenue GHG intensity is reported as the total GHG emis-sions of the Group divided by the Groupâs total revenue for the period. Change in accounting policy In 2024, we changed our scope 3 accounting pol-icy by applying a new, more accurate method. The comparative and baseline figures have been adjusted accordingly. For 2024, the total effect of the change in accounting policy is estimated to be approximately 250,000 tonnes lower CO2e com-pared to the previous method. Use of estimates and judgements Scope 3 calculation involves judgement and esti-mates to provide the necessary information that Demant does not have access to. This includes the use of generic emissions factors. The majority of the scope 3 emissions are calculated using spend-based method. We map our suppliers ac-cording to the type of goods or services we pri-marily purchase from them. E5 Resource use and circular economyWe recognise the critical importance of the transition towards a circular economy to minimise the environmental impact, resource consumption and waste generation and to maximise resource efficiency.Product circularity is a material topic that impacts many processes and requires forward-thinking, in-novative solutions and proactive collaboration be-tween Demant and our suppliers. In 2024, we made progress in this area by launch-ing several initiatives and seeding others that will start showing results in 2025. Though there are regulatory limitations to the changes we can make in our products, we are committed to continuous progress in this area. Material topics Product circularity Own Hearing ClinicUpstream Own operationsProduct circularity We are continuously enhancing product circularity through various initiatives led by our Hearing Aids and Diagnostics business areas. We focus on de-sign, packaging, use of secondary materials and maintenance of our prod-ucts.Impacts, risks and opportunities ESRS 2 SBM-3 E5 Material impacts, risks and opportuni-ties and their interaction with strategy and business model With increasing regulations and general customer pressure regarding the productsâ environmental footprint, product circularity is becoming ever more important for Demant. Though there are reg-ulatory limitations to what we can change, we have the opportunity to further increase the rate of recycled components to limit our environmental footprint, reduce costs and use recycled materials. This is especially the case for product packaging, which also represents a negative impact on the environment in the short to medium term. In the long term, there is also a risk of having less avail-ability of essential raw materials required for elec-tronic components. Impact, risk and opportunity management ESRS 2 IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities To identify material IROs related to circular econ-omy, we conducted a qualitative assessment of the materials used in production considering our supply chain. This assessment considered criteria related to resource use and circular economy, such as the percentage of materials not recycled at the end of a productâs life and was based on secondary information from the electronics industry. The findings of the assessment were later presented as input for the general double materiality process that considers both our own operations and our supply chain by assessing the relevance of the identified impacts, risks and op-portunities. E5-1 Policies related to resource use and circular econ-omy Under the umbrella of the Code of Conduct that instructs all employees to ensure efficient use of natural resources, our Sustainability Policy sets the specific direction for circular economy for the Group. Within resource use and circular economy, the Sustainability Policy addresses actions to tackle Demantâs impacts and risks regarding re-source inflows and outflows including: ⢠Integrating circular economy principles and targets to reduce resource use and lower the environmental impact of Demantâs products. ⢠Packaging optimisation to reduce packaging materials and quantities and to transition away from virgin materials, where possible. ⢠Sustainable resource consumption and con-scious waste generation, including appropri-ate disposal, in daily business activities. ⢠Responsible use of other materials, like the ones used for shipping and marketing of prod-ucts, and responsible acquisition of other ele-ments (i.e. interior design and furniture of fa-cilities). ⢠Encouraging business partners to constantly reduce the use of natural resources in their own operations as communicated in our Third-Party Compliance Code. E5-2 Actions and resources related to resource use and circular economy Our circular economy actions include a wide range of topics from resource efficiency and use of secondary raw materials to value retention maximisation and end of life. The following circular economy-related actions are taken in 2024: Design of hearing aids for reuse as testing hearing aids for usersâ trial period Designing a hearing aid intended for use by multi-ple individuals requires efforts to ensure compli-ance with the medical regulation and device sani-tation requirements. We have designed and man-ufactured a testing hearing aid, known as the De-moflex, to be used by up to 50 users during a short trial period. In 2024, the Demoflex resembled one specific hearing aid model from our portfolio and was available in one country. In 2025, it will resemble-new hearing aid models and be available in sev-eral countries worldwide. Resource use in hearing aids packaging In 2024, we launched a redesigned charger pack-aging alternative across all our hearing aids brands globally, with the exception of charger packaging for one private-label customer. The project aimed to eliminate plastic content and re-duce the packaging size to minimise material con-sumption. While we still use plastic bags to protect our products inside the package, both the inside and outside of the packaging itself is now plastic-free. With this modification, we have reduced the pack-aging size, removed a virgin oil-based pouch and eliminated the external plastic lamination. We con-tinue using pulp inlays and FSC-certified paper, as we have done before. This new design reduces the GHG emissions associated with each charger packaging unit by 80%. Resource efficiency in hearing aids accessories We are constantly striving to improve our hearing aids and accessories. Each of our hearing aids comes with a plastic container for storing small, replaceable filters that prevent earwax from enter-ing the instrument. These filters need frequent re-placement, as they accumulate wax. By enhanc-ing the moulding process and redesigning the container, we have reduced plastic consumption per unit produced for the new version of the con-tainer by 53%. The new version was introduced in 2024 and will be used for all of the earwax filter containers from 2025 and forward. Use of secondary raw materials in diagnostic devices In collaboration with our largest supplier of plastic for our diagnostic equipment, some of the plastic we receive and use in our devices is from recy-cled sources. The recycled content in the plastic we use comes from waste generated during our supplierâs internal plastic production. We started using recycled plastic in 2014 and in 2024, we used 1.5 tonnes of recycled plastic. We plan to continue with this initiative in the future. Use of secondary raw materials in packaging for diagnostic devices To reduce the pressure on the extraction of virgin materials and waste generation, our Diagnostics business area has incorporated recycled materials into its packaging. In 2022, we started using recycled polyethylene plastic in the plastic bags we use in our global packaging. In 2024, the recy-cled content of our bags was on average 55.6%, and we used a total of 446 kg of recycled plastic. Moreover, the cardboard used in our packaging contains up to 98% recycled materials, represent-ing more than 50 tons of recycled material. Maintenance and repair of hearing aids In 2024, we continued to provide maintenance and repair services for our hearing aids, both at our hearing clinics and at our service facilities. By ensuring the proper maintenance of our hearing aids or by repairing those that need it, we aim to prolong our usersâ use of our hearing aids. Maintenance and repair services are available worldwide for all hearing aid models of all brands for up to five years after the model has been dis-continued. In 2024, we provided over 1,500,000 repair services in our service facilities. Maintenance and repair of diagnostic devices To maximise the lifetime of our products, we offer maintenance services to our customers to ensure that normal wear and tear does not affect the usa-bility or quality of our devices. This service, which also includes the recalibration of our devices, is usually carried out at the customerâs location or at local in-house workshops. If required, we also of-fer repair service, which we provide worldwide. We guarantee to have spare parts available for up to seven years from the purchase date of our in-struments to ensure that whatever issue the de-vice is experiencing, it can be fixed. Unlike maintenance, the repair is carried out exclusively at one of our sales companies or at a central re-pair facility in Poland or USA. In 2024, we pro-vided 167,104 maintenance and repair services and will continue to do so in the future. Recyclability enhancement of hearing aid ele-ments In 2025, we will introduce a new material for the inlets (elements inside the hearing aids) for our entire hearing aids portfolio, eliminating the use of per- and polyfluoroalkyl substances (PFAS) in this component. This change enhances the recyclabil-ity of our inlets, as they are now PFAS-free. We continuously work towards eliminating these chemicals without compromising the quality and safety of our devices. Metrics and targets E5-3 Targets related to resource use and circular econ-omy As products, consumables and packaging charac-teristics differ greatly between our business areas, our circular economy efforts are led by the busi-ness areas and aim to enhance our circular econ-omy performance in specific topics that may not be applicable to the entire Group. Therefore, we have not yet established targets at Group level. As we recognise the importance of integrating cir-cular economy principles across our operations, we plan to assess our data and actions, and to ex-plore potential Group targets in 2025. Total weight of products and materials inflow â (tonnes)2024 2023 Plastic 604 1,709 Metals 181 346 Cardboard/paper 327 563 Electronic components 1,789 1,930 Wood 50 42 Other¹⾠170 103 Total resource inflow 3,121 4,693 The table above outlines the materials used for manufacturing hearing aids and diagnostic equip-ment in Demantâs own operations and upstream value chain. In 2024, the resource inflow decreased by 1,572 tonnes compared to 2023, mainly due to reduced purchases of plastic by our Diagnostics business area in 2024. Biological materials and reused or recycled materials used for manufacturing products â 2024 2023 Percentage of biological materials used in manufacturing (%) 12.1% 12.9% Reused or recycled materials used in manufacturing and packaging (tonnes) 50 51 Reused or recycled materials used in manufacturing and packaging (%) 1.62% 1.09% Total weight of products and materials outflow â (tonnes)2024 2023 Plastic 1,463 1,566 Metals 258 277 Cardboard/paper 1,026 1,080 Electronic components 218 233 Wood 22 25 Other¹ 51 69 Total resource outflow3,038 3,250 ¹Other consists of smaller categories such as glass, flux and other non-categorised materials The table above shows the total weight of materials that comes out of the manufacturing processes. Accounting policy Resource inflow Resource inflow includes materials directly related to the manufacturing of our products as well as core components of purchased goods and capital goods, including packaging and extra parts. The reported numbers are based on estimates. The resource inflows are categorised according to the origin of the materials. Cardboard in resource in-flow consists mainly of brochures. Biological materials and reused or recycled materials used in the production Biological materials cover biodegradable materi-als, such as wood, paper and cardboard derived from natural polymers found in plants. Reused or recycled materials cover the amount of confirmed recycled materials used in manufactur-ing. Resource outflow Resource outflow includes materials found in products and extra parts, including packaging. The outflow materials are categorised according to the origin of the materials. The reported num-bers are based on estimates. Resource outflow also includes purchased goods that are not used in the manufacturing process. Use of estimates and judgements The resource inflow and outflow are based on es-timates, using internal and external data com-bined with assumptions, and is then extrapolated to the total population based on sales volumes and inventory movements. Key assumptions are for resource inflow including actual weight of the materials found in two hearingaids and then multiplied with the total sales. In-house subject matter experts are consulted to reduce the risk of over- or understating. However, as the reported numbers are based on generic as-sumptions, numbers are subject to change when we gain access to more accurate data. S1 Own workforce Our people are the most valuable part of our business, and their well-being, safety, engagement and development are fundamental to our success. We want to foster an organisational culture of care and respect with diversity, equity and inclusion as important drivers.Guided by our values, we work to create a culture where our over 22,000 employees can belong, grow and contribute. We constantly welcome new colleagues and this growth trend requires a con-tinuous focus on integrating them into the Demant culture and investing in the development of our people, processes and systems. We believe in the strong link between high em-ployee engagement and experience of inclusion and a successful and responsible business. As an employer, we view this as one of our core responsibilities, which is reflected in our targets. Our targets We aim to increase the gender balance in our top-level management to 35/65% (women/men) by 2030. We also strive to reach the top-third level (67th percentile) in employeesâ experience of in-clusion and engagement (Gallup indexes) by 2030. Reach top-third level in employee engagement 52nd67th PERCENTILEPERCENTILE Reach top-third level in Reached top-half 2030 target employeesâ experience of engaged of inclusion companies in 2024 56th67th PERCENTILEPERCENTILE Reached top-half 2030 target of inclusive companies in 2024 Material topics Working conditions Diversity, equity and inclusionTalent attraction and retentionOwn Hearing ClinicUpstream Own operationsWorking conditions Working at Demant should not only be an enjoyable experience, both pro-fessionally and personally, but also physically and psychologically safe. This is the basis of the working environment we want to promote for all our employees. Impacts, risks and opportunities ESRS 2 SBM-3 S1 Material impacts, risks and opportuni-ties and their interaction with strategy and business model For all our employees, we strive to ensure a good work-life balance. However, for some of them, there is a potentially negative impact on their mental health in relation to work, especially from stress, which can occur in the short term. This is especially seen in busy periods, where managing expectations and priorities between employee and manager becomes increasingly important. Impact, risk and opportunity management S1-1 Policies related to own workforce Our commitment to a good working environment is framed in our Code of Conduct, which outlines the minimum standards and ethical principles ap-plicable to all employees regardless of their loca-tion and the nature of their work. To specify what we mean by a good workplace environment, we launched a Global Policy on Hu-man Resources in 2024. The purpose of this Pol-icy is to establish a clear framework for the gov-ernance of employment practices and workplace conditions that align with Demantâs strategy and values. The Policy applies to all employees, in-cluding full-time, part-time, and temporary staff across all departments and locations. The leader of Group HR is responsible for the implementation of this Policy and all policies related to our own workforce, unless otherwise stated. All policies relevant for our own workforce are available through our intranet. In all countries this includes personnel handbooks. In 2024, we began to roll out a global HR portal that we aim to imple-ment progressively during 2025 in the biggest countries (by number of employees). The day-to-day business of HR at Demant is pre-dominantly driven locally. Group HR is accounta-ble for all policies and responsible for implement-ing, monitoring and reviewing them. Cross-Group HR initiatives are prioritised, managed and coordi-nated via dedicated global forums, including the Global HR Board, which sets the direction and ap-proves strategies and budgets. All such global fo-rums are chaired by the leader of Group HR. Respecting human rights We commit to respecting all universally recog-nised human rights as outlined in the Universal Declaration of Human Rights and the International Labour Organization (ILO) Declaration on Funda-mental Principles and Rights at Work. This com-mitment is founded in our Sustainability Policy and covers the human rights of any persons who may be adversely impacted by Demantâs activities and business relationships, including customers, em-ployees, people who work in our value chains, community members and any other potentially af-fected rightsholders. The Sustainability Board is accountable for implementation of the Policy. We endorse the principles of the UN Guiding Prin-ciples on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Our commitments are implemented through our Code of Conduct and other internal policies and procedures such as our Policy on Diversity, Equity and Inclusion and our Anti-Harassment and Dis-crimination Guideline (please refer to page 89). Our Code of Conduct explicitly addresses De-mantâs zero tolerance of any form of slavery or hu-man trafficking, use of compulsory labour or the employment of children, as well as discrimination and harassment, including sexual harassment. The sustainability team and other relevant func-tional teams implement Demantâs human rights commitments. The Executive Leadership Team is ultimately accountable for ensuring that human rights are respected in our own operations and throughout our value chain. Providing a healthy and safe workplace For managing health and safety, we have site-specific prevention policies and management sys-tems across our operational sites. The manage-ment systems include risk assessment processes, health and safety instructions, safety walks and talks, training, accident investigation management and continuous review of processes. Site man-agement is responsible for occupational health and safety. We acknowledge the potentially negative impact on mental health related to work and aim at pre-venting a stressful working context. Our Stress Policy covers all sites in Denmark and explains how to prevent and manage stress. Considering that certain aspects of stress management vary, depending on the location, cultural considerations and local legislation, stress management is han-dled locally by HR departments across the Group. The overall responsibility lies with the local HR Management in close collaboration with local busi-ness leadership. Demant strives to provide a good work-life bal-ance culture and to be a flexible workplace where the tasks and local conditions allow. Our position on workplace flexibility guides the entire Group on how to implement concrete measures to ensure the flexibility of our employees and of the work-place. S1-2 Processes for engaging with own workforce and workersâ representatives about impacts Demant collaborates with employee representa-tives in many areas, and we comply with all legal requirements when it comes to employee repre-sentation. Demant manages, measures and works with employee engagement through the global en-gagement programme, Pulse. It includes an an-nual survey that covers a range of relevant areas, such as well-being and working environment, de-velopment and inclusion. The survey enables identification of attention areas and calls to action, which are then discussed directly by managers and employees throughout the year. The survey is conducted by Gallup and covers the entire Group, except for those countries where local data pri-vacy legislation prevents it. Through quarterly info meetings, where Demantâs CEO gives a business update to employees, we provide a direct platform for employees to ask questions about the business performance and any actual or potential impacts that are likely to af-fect them. These info meetings are available online to the majority of the Groupâs employees, except for those few countries or sites, such as newly acquired entities, that do not have access to our intranet. General Managers of local Demant entities also share and cascade information, for example in info meetings or through other com-munication channels. In 2024, we strengthened our internal communica-tion about human rights in Demant towards our most important rightsholders â our employees. The main objective is to increase awareness of human rights in a business context and to further empower our employees to speak up, if they ex-perience an impact on their rights. S1-3 Processes to remediate negative impacts and chan-nels for own workforce to raise concerns Where Demant may cause or contribute to a ma-terial negative impact on employees, we are com-mitted to take appropriate remedial action. For cases raised directly with Group HR, we collabo-rate with the affected individuals. For any issues that the results of the anonymous engagement survey point out, Demant is committed to plan and execute actions that address such issues. Demantâs whistleblower hotline enables employ-ees to report any concerns about adverse human rights impacts in a confidential and anonymous manner, which enables remedy for human rights impacts. Please refer to page 104. S1-4 Taking action on material impacts on own work-force, and approaches to managing material risks and pursuing material opportunities related to own workers, and effectiveness of those actions How we are progressing We track the development in employee engage-ment through our Pulse survey. The Pulse survey results provide twofold information: Firstly, it is a way of assessing whether, and to what extent, the current initiatives on well-being, flexibility, inclu-sion and engagement are working. Secondly, they serve as the starting point for the further develop-ment of specific actions related to those areas that need special attention. During 2024, we have strengthened the follow-up activities, following the presentation of the survey results, on specific action planning for all teams around the world. We also laid the foundation for what we call the Leadership Compass, which serves as a frame-work that emphasises five essential pillars of lead-ership: purpose, development, performance, be-longing and personal awareness. These pillars highlight the key areas that leaders need to focus on and accelerate. In 2025, we will introduce the Leadership Compass for all leaders at Demant, which will be implemented through a leadership development programme, focusing on learning journeys within each of the five pillars. The five pil-lars are also reflected in the Pulse survey, which enables our leaders to measure progress. Furthermore, we have been working on establish-ing a global standard and a new platform for how we capture and report on HR data, driven by a global effort to standardise key HR processes, such as recruitment, promotion and performance. In 2025, the new platform will be rolled out in our biggest countries (by number of employees) Po-land, USA, Denmark, France, Canada, Germany, Australia and United Kingdom and the rest of the world will follow consecutively. In 2025, we will de-velop and implement a Global Policy on Remuner-ation and Rewards. Through this Policy, we aim to establish a salary philosophy and ensure that we provide guidance for the organisation. We identify and assess our impacts on human rights on an ongoing basis. In the second half of 2024, we carried out a corporate wide human rights assessment, covering the full value chain of activities. The assessment included a review of our own operations, with consideration of the ge-ographies where we operate and the industries we work in. We also mapped actual and potential impacts in our value chain. Having mapped actual and potential impacts, we assessed their salience based on the severity of impact on people and the likelihood of occurrence to prioritise actions to be taken. Following this pri-oritisation, we have initiated a more granular as-sessment of some of the salient issues to deter-mine whether our current impact management is adequate and to make improvements, if and where necessary. For all identified issues, we have management systems in place that help us bring to an end and mitigate actual and potential impacts. Metrics and targets S1-5 Targets related to managing material negative im-pacts, advancing positive impacts, and managing mate-rial risks and opportunities In 2024, Demant set a target to take employee en-gagement to the top-third level by 2030, which corresponds to the 67th percentile or above in the Gallup engagement index. We will measure progress from our 2024 baseline where Demantâs engagement rate reached 4.13, a slight increase of 0.02 compared to 2023. This re-sult places Demant in the 52nd percentile for the second consecutive year. The survey had a par-ticipation rate of 84%, with more than 17,000 em-ployees taking part. The target-setting process involved internal and external experts and was approved by Demantâs Executive Leadership Team and endorsed by the Board of Directors. S1-17 Incidents, complaints and severe human rights im-pacts In 2024, Demant received 11 submissions to its whistleblower hotline related to discrimination and/or harassment. These cases were handled in-ternally according to the Whistleblower Policy and Investigation Guideline. Having been addressed by the relevant internal organisation in collabora-tion with the affected individuals, 8 out of 11 claims have been closed. There were no severe human rights incidents in the period, and therefore no fines, penalties or compensation were paid. Engaged at work â 2024 2023 2022 2021 2020 Engagement score 4.13 4.11 4.08 4.02 3.93 Participation rate 84% 87% 86% 88% 85% Percentile 52nd 52nd 50th 46th 40th Gallup conducts the engagement survey, and we collect data in February each year. Our level of engagement is rated on a scale from 1-5. Percentile rank is used as a benchmark to determinate how a teamâs result compares to those in Gallupâs extensive database. The 52nd percentile indicates that 50% of teams scores lower than Demant on the engagement rate. Number of employees by gender (headcount) â 2024 2023 Male 8,045 8,016 Female 14,594 14,224 Total employees 22,639 22,240 Number of employees by country (headcount) â(Country)2024 2023 Poland 5,087 5,116 USA 3,404 3,317 Denmark 2,111 2,019 France 1,650 1,730 China 1,625 1,654 Canada 1,284 1,216 Germany 1,020 945 Australia 941 874 UK 857 833 Other countries 4,660 4,536 Total employees 22,639 22,240 Number of employees by contract type, broken down by gender (headcount) â 2024 2023 Female Male Total Female Male Total Number of employees 14,594 8,045 22,639 14,224 8,016 22,240 Number of permanent employees 13,772 7,839 21,611 13,418 7,810 21,228 Number of temporary employees 822 206 1,028 806 206 1,012 Number of full-time employees 12,338 7,579 19,917 12,095 7,560 19,655 Number of part-time employees 2,256 466 2,722 2,129 456 2,585 As of 31 December 2024, the Group had 22,639 employees globally. Compared to 2023, the total headcount has increased slightly by 2%. Among all employees, the gender ratio between female and male is 64/36%. This is due to the majority of our employees in hearing care clinics and produc-tion sites being female. Our headquarters in Denmark, along with our sites in Poland and the US, are the sites with the largest number of employees. Accounting policy General The employee data consists of two parts. In 2024, 88% of our employees were registered in our global HR management system. Data on regis-tered employees is extracted directly from the sys-tem. For the remaining employees, an estimation method based on geographical location was ap-plied. Engagement score The employees score their engagement using a scale from 1 to 5 based on the yearly engagement survey conducted by Gallup. Number of employees The number of employees is determined by head-count and as the number of persons employed by the Demant Group as of 31 December 2024. The number includes the total number of employees extracted from the global HR management system plus an estimate covering the entities not using the system. Characteristics of employees Data on the characteristics of employees is dis-closed by headcount. The characteristics of employees are aggregated and include both the analysis of data extracted from our global HR management system and esti-mates covering entities not using the system as stated below. Estimation method For entities not using the global HR management system, the characteristics of employees are esti-mated based on the characteristics of employees in the region where the entity is located. Using our global HR management system, we calculate the characteristics of employees in one region based on an overview of all entities in that particular re-gion. Diversity, equity and inclusion We want to foster a culture built on care and respect for others, character-ised by diversity, equity and inclusion. Impacts, risks and opportunities ESRS 2 SBM-3 S1 Material impacts, risks and opportuni-ties and their interaction with strategy and business model Some minority groups in Demant may at times feel that they cannot be their true selves or have their voices heard, which may have a negative im-pact in the short to medium term. To harvest the true strength of Demantâs diverse culture, we aim to address potential unconscious biases and sameness thinking, and we seek to actively sup-port the engagement of employees, who may oth-erwise refrain from sharing their opinions, ideas and solutions. We believe that working with diversity, equity and inclusion (DE&I) boosts our performance, im-proves our leadership and innovation skills, main-tains high customer satisfaction and supports our efforts to attract and retain talented minds. Impact, risk and opportunity management S1-1 Policies related to own workforce In Demant, the concepts of DE&I are an indisputa-ble priority. We work to foster respect for diversity, and we strive to treat all employees fairly. Demant has a global presence and employs people with different ethnic backgrounds, personalities, na-tionalities, religions, ages, genders, abilities, sex-ual orientation and level of education. Our ap-proach is focused on and guided by our Policy on Diversity, Equity and Inclusion, which applies to all employees globally. This Policy outlines our ambi-tions and commitments to advance diversity and inclusion and further defines key short-term activi-ties planned to ensure that we deliver on these ambitions and commitments. It also outlines tar-gets for the entire Demant Group with a specific focus on gender balance. We also launched the Anti-Harassment and Dis-crimination Guideline. The key objective is to artic-ulate Demantâs approach to preventing, mitigating and acting on cases of discrimination, harass-ment, bullying and unethical behaviour. In De-mant, there is zero tolerance for any form of dis-crimination, harassment or bullying related to our workplace. The Guideline applies to all employees and contractors working for Demant globally, and it guides behaviour at work, at work assignments outside the office and at office-sponsored social functions as well as private behaviour that can be related to Demant (e.g. on social media). The Executive Leadership Team is ultimately ac-countable for adherence to the Policy and to reaching our targets and commitments. We will fully implement the new Guideline through e-learning in 2025. S1-2 Processes for engaging with own workforce and workerâs representatives about impacts Employee resource groups The formation of Employee Resource Groups (ERGs) is a way for our workplaces to become more inclusive. All ERGs are employee-led and formed based on specific traits that group mem-bers possess, want to support or work to enhance. Further, they are sponsored by a mem-ber of senior management, i.e. a Vice President or a Senior Vice President. ERGs provide an avenue for employees to have a sense of community, to raise concerns within specific DE&I-related issues in a safe space and provide input on actual and potential impacts on employees. ERGs are con-sulted on a regular basis and invited to provide in-put, which is invaluable for developing strategies to mitigate potential impacts on inclusion and equal opportunities, e.g. discrimination. Our ERGs attract more members and cultivate a focused agenda for their work on relevant DE&I topics, such as (in)visible (dis)abilities, women in Demant, LGBTQIA+, generational intelligence, in-ternational colleagues, Asian American employee network, mental health advocacy etc. Currently, ERGs are present at our Danish and US loca-tions. We will continue to strengthen the structure and format of as well as the collaboration with ERGs in Demant globally. Our ERGs are supported by Global HR and local HR in Denmark and US, who ensure that engage-ment informs Demantâs approach to diversity and inclusion. S1-3 Processes to remediate negative impacts and chan-nels for own workforce to raise concerns Remediation Our Anti-Harassment and Discrimination Guide-line provides specific information on how to raise grievances regarding harassment and discrimina-tion and the consequential complaints and remedy procedure. S1-4 Taking action on material impacts on own work-force, and approaches to managing material risks and pursuing material opportunities related to own workers, and effectiveness of those actions While diversity across Demant allows us to draw on a wide range of experience for the benefit of us all and our business, inclusion unlocks the strength of this diversity. Through the concept of belonging, we continue to focus on DE&I in our re-cruitment, performance and development pro-cesses and also in the DE&I leadership aware-ness training. Our global recruitment platform contains embed-ded materials designed to prompt inclusive re-cruitment behaviour. Furthermore, we have ex-panded training in unconscious bias, inclusive leadership and psychological safety, and we have developed the capabilities of our HR leaders to drive DE&I-related topics and training locally. To support this, DE&I-specific themes of rele-vance for our employee performance dialogue have been part of the global process for perfor-mance dialogue since the beginning of 2023. This provides input to assess the effectiveness of our actions on DE&I, which is also evaluated through our Pulse survey, as it has specific questions re-garding inclusion and fair treatment. How we are progressing DE&I actions are anchored in the HR function, which has dedicated roles to develop and imple-ment specific actions and initiatives to foster diver-sity and inclusion across Demant. Further, global HR leaders and partners are trained and equipped to drive this agenda. In 2024, we continued supporting the Danish ERGs. Each of the ERGs arranged several talks and hybrid awareness sessions for all employees, focusing on different topics. In 2025, we will fur-ther strengthen our work involving ERGs â also globally. To understand gaps in engagement across gen-der, we conducted a global inclusion survey among female top leaders (from Vice Presidents and above), which provided a better understand-ing of how we can ensure higher engagement among women in the global top-level manage-ment across the Group. We celebrated diversity and inclusion in Denmark through our participation in Copenhagen Pride. In the US, we celebrated DE&I Week. We strive to expand such activities, as we mature our DE&I ef-forts globally. In 2024, we focused our efforts on training our leaders in Poland in DE&I awareness and bias, while delivering on-demand training to focused business areas on psychological safety, bias and DE&I awareness. In 2025, we plan to implement a global leadership programme with core elements of DE&I, while also offering on-demand, virtual classes on the subject. Metrics and targets S1-5 Targets related to managing material negative im-pacts, advancing positive impacts, and managing mate-rial risks and opportunities To drive the implementation and impact of our DE&I commitments, we have set targets for the underrepresented gender in global top-level man-agement (Vice President level and above) and tar-gets for experience of inclusion among all Demant employees, in scope of our annual Pulse survey. S1-9 Diversity metrics Gender diversity in Management â 2024 2023 % Headcount % Headcount Board of directors (Women/Men) 25/75 1/3 40/60 2/3 Top-level management (Women/Men) 31/69 30/66 29/71 27/67 All managers (Women/Men) 50/50 980/975 48/52 832/913 Inclusion at work â 2024 2023 Inclusivity score 4.27 4.26 Participation rate 84% 87% Percentile 56th 53rd In 2024, Demant reached its target of 30% women in top-management positions â one year ahead of 2025, which was the goal year. We have set a new target to increase gender balance to 35/65% (women/men) by 2030. We will measure progress from the new 2024 baseline year. In 2024, our inclusivity score reached 4.27 (+0.01) placing us in the 56th percentile recorded in the annual Pulse survey. Overall, employees feel re-spected, valued for their strengths and trust De-mant to act with integrity and responsibility. In 2024, Demant set a target to take employeesâ experience of inclusion to the top-third level by 2030, which corresponds to the 67th percentile or above in the Gallup inclusion index. Progress will be measured from a 2024 baseline year. External experts from Gallup have been consulted in defin-ing the target level for Demant. The target-setting process involved internal and external experts and was approved by Demantâs Executive Leadership Team and endorsed by the Board of Directors. Please refer to page 42 for diversity targets for the Board of Directors. S1-16 Remuneration metrics Demant is committed to provide transparent infor-mation on the gender pay gap within our organisa-tion. However, for the 2024 reporting period, the specific data required is not available. A project to develop the required information in our HR data management system is launched and is expected to be completed during 2025.CEO remuneration ratio â 6047 50413839 4030201002021 2022 2023 2024In 2024, the CEO remuneration ratio decreased by 6 points to 41 compared to 2023. For more de-tails on remuneration, please refer to our Remu-neration Report. Age distribution of employees Above 50Below 3025%19%40-4930-3930%26%In 2024, the age distribution among Demantâs em-ployees was relatively even. This age distribution reflects a balanced and diverse workforce, ensur-ing not only an extensive exchange of knowledge and perspective but also fostering a collaborative and innovative work environment. Accounting policy Inclusivity score Employees score inclusivity using a scale from 1 (lowest) to 5 (highest) based on the yearly en-gagement survey conducted by Gallup. Gender diversity in Management Board of Directors The gender distribution is based on the share-holder-elected members of the Board of Directors. Global top-level management The gender distribution is shown at management levels from Vice Presidents and above. All managers The gender distribution is shown among all people managers with one or more direct reports. The number is calculated based on data from our global HR management system, covering 88% of Demantâs employees. CEO remuneration ratio The CEO remuneration ratio is calculated as the CEOâs total remuneration (numerator) divided by the average remuneration of all Group employees (denominator) instead of the median Group em-ployee. Demant is committed to enhancing data quality on this topic in future reporting periods. Age distribution of employees The chart shows the age distribution of employees in the Group, covering 100% of Demantâs employ-ees.Talent attraction and retention With the high focus on innovation and technological development in the field of hearing healthcare, it is important for Demant to attract and retain the brightest minds. We are determined to provide an attractive workplace with ample opportunities to develop and grow professionally. Impacts, risks and opportunities ESRS 2 SBM-3 S1 Material impacts, risks and opportuni-ties and their interaction with strategy and business model Shortages of, for example, engineers and audiolo-gists and high turnover of production employees and front desk staff in clinics poses a potential risk to Demant in the short to medium term. To ensure we retain knowledge and know-how and to keep costs of recruitment at an acceptable level, we work actively to mitigate high turnover rates. Impact, risk and opportunity management S1-1 Policies related to own workforce We support both managers and employees in pur-suing relevant career opportunities that exist in the Group through different frameworks. Our Global Policy on Human Resources defines the minimum requirements that our employees are subject to regarding personal and professional de-velopment and growth and the companyâs expec-tations of employees. The Policy applies to all em-ployees at Demant, including full-time and part-time employees, across all functions, business ar-eas and locations. S1-2 Processes for engaging with own workforce and worker´s representatives about impacts We believe that attracting and retaining talented employees is closely related to their development. At Demant, this is addressed in an ongoing devel-opment process between manager and employee. Through performance review meetings, managers and their employees meet on a regular basis to review the employeeâs development. S1-4 Taking action on material impacts on own work-force, and approaches to managing material risks and pursuing material opportunities related to own workers, and effectiveness of those actions We provide our employees with development op-portunities through different global and local learn-ing platforms, focusing on leadership, project management, people development and much more. Development initiatives strengthen and develop leadership competencies to cultivate great leader-ship. A key focus area in the global leadership learning journeys that will be launched in 2025 is employee development and how to facilitate this as a leader. In 2024, 23 graduates were part of our Global Graduate Programme, which offers young profes-sionals opportunities to develop their personal and professional skills over a two-year journey across our entire global organisation. Talent retention efforts are focused on the busi-ness areas with the highest turnover rates. For those areas impacted by higher turnover rates, we have developed strategic initiatives to address specific challenges. At certain production and logistics sites in Poland and Mexico, we have ex-perienced undesired turnover rates and subse-quently developed a specific project to run in these countries. This project aims to reduce vol-untary turnover rates in those areas and to im-prove recruitment and onboarding processes. In our Hearing Care business area, part of the re-tail industry that traditionally has high employee turnover, we have focused specifically on leader-ship development. Career paths and growth op-portunities have been clarified through career frameworks and focus on internal recruitment. In addition, both recruitment and onboarding prac-tices have been improved, and we have strength-ened our overall focus on culture and engage-ment. Metrics and targets S1-6 Characteristics of the undertakingâs employees We measure employee engagement annually, among other factors, to guide our efforts on talent retention. Please refer to page 87 for more infor-mation. Accounting policy Employee turnover rate The employee turnover rate is calculated by divid-ing the total number of terminations (numerator), excluding external employees, by the average number of employees during the reporting period (denominator) and then multiplying by 100. This rate is based on the 88% of Demant Group em-ployees included in our global HR management system. Employee turnover â 2024 2023 2022 2021 Employee turnover (%) 20 25 26 17 Employee turnover (headcount) 4,080 4,795 4,698 2,893 S2 Workers in the value chain Our commitment to caring for people extends not only to our own employees, but also to workers that we impact indirectly in our value chain. We work to ensure that we have the appropriate processes in place to sup-port the protection of rights throughout it. As a global business with a complex value chain spanning the world, we are very aware of how we deal and interact with business partners, including our suppliers. Demant depends on our direct suppliers, who mainly manufacture products within electrome-chanics, electronics and plastics as well as con-sumables and packaging materials. Material topics Responsible supply chain Own Hearing ClinicUpstream Own operationsResponsible supply chain We recognise that our value chain workers are essential stakeholders whose well-being and rights must always be respected. Impacts, risks and opportunities ESRS 2 SBM-3 S2 Material impacts, risks and opportuni-ties and their interaction with strategy and business model Demant engages with suppliers that operate in countries and industries where there is a risk of negatively impacting workersâ rights. This is espe-cially the case in the electronic components man-ufacturing sector where impacts can be severe, e.g. poor health and safety standards, suboptimal working conditions and unfair labour practices. These negative conditions impact the individual workers and their families and take place in the short term. These impacts may be linked to our operations, products or services through our busi-ness relationships. Impact, risk and opportunity management S2-1 Policies related to value chain workers We have several policies in place that are de-signed to identify, document and manage poten-tial impacts on workers in our value chain and to mitigate associated risks. Our Third Party Compliance Code outlines our ex-pectations toward suppliers and business partners regarding working conditions for workers in the value chain. This includes the core International Labour Organization (ILO) standards on working conditions, workplace health and safety, freedom of association, forced/child labour and non-dis-crimination. We expect all new direct suppliers to comply with this Code, which is included as an ap-pendix in all new contracts with suppliers. Leadership of Group Legal and Compliance is ac-countable for the Code, while the implementation of the Code lies with Demantâs supply chain de-partments. Through our Supply Chain Sustainabil-ity Policy, we summarise our commitment to ad-vancing sustainability across our supply chain. The Policy covers all direct upstream buying prac-tices across the Demant Group as well as supplier risk assessment and risk-based due diligence steps. The implementation of this Policy is a shared responsibility between the leadership of the two main supply chain departments in De-mant, Hearing Aids and Diagnostics, respectively. Our commitment to respecting human rights, in-cluding the rights of value chain workers is out-lined in our Sustainability Policy. Please refer to the section S1 on page 86. S2-2 Processes for engaging with value chain workers about impacts Supplier engagement Our strong collaboration with suppliers enables us to consistently deliver quality products in scale and thus ensure timely delivery throughout our value chain. In our Hearing Aids business area, we have deepened this collaboration by integrat-ing sustainability into our partnerships through our supplier engagement programme. The pro-grammeâs objective is to collaborate more closely with suppliers on decarbonisation and addressing human rights impacts in our supply chain. We continuously take steps to gain insight into the perspectives of the impacts of our operations on workers in our value chain. Currently, supplier en-gagement does not involve direct engagement with workers in the value chain. S2-3 Processes to remediate negative impacts and chan-nels for value chain workers to raise concerns Our whistleblower hotline is available to all exter-nal stakeholders, including value chain workers. Please refer to page 104. Currently, Demant does not require its suppliers to establish reporting channels for their own employees to raise con-cerns. This will be considered the next time we update our Third Party Compliance Code. Where Demant may contribute to negatively impacting value chain workers, we are committed to contrib-uting to remediate such impacts. We expect sup-pliers to ensure they have effective remedies in place, as they are responsible for any adverse im-pacts on their own workers. S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions Supplier assessments We have many suppliers in our Hearing Aids and Diagnostics business areas. We therefore take a risk-based approach to identifying and managing the interests, views and rights of value chain workers. The large number of suppliers calls for prioritisation of resources to identify and mitigate the most significant negative impacts first. If a negative impact is reported to or identified by De-mant, we engage directly with the supplier in question to urge them to prevent and mitigate the impact, while clearly communicating our expecta-tion that the supplier provides remedies towards the affected value chain workers. In 2024, we established an updated and more ex-tensive sustainability supplier risk assessment process to identify and document the potential im-pacts that workers in our supply chain are ex-posed to, based on the countries and sectors in which the workers of our suppliers operate. The risk assessment process is based on a quantita-tive and qualitative analysis, using recognised da-tabases, indices and reports. Continuous risk assessment of existing and new suppliers helps us gain an overview of how the interests, views and rights of value chain workers could be materi-ally impacted by Demant, including respect for their human rights. These efforts are embedded in the supplier management process, and dedicated sustainability specialists lead this work in our pro-curement functions. In 2024, selected suppliers, based on spend, were screened as part of the risk assessment process. In the supply chain in our Diagnostics business area, all direct upstream suppliers and approxi-mately 80% of all indirect upstream suppliers to our Danish and Polish production sites were screened, based on the 2023 supplier base. In the supply chain in our Hearing Aids business area, 31% of direct upstream suppliers were screened, based on the 2023 supplier base, covering 99% of total direct spend. During 2025, we will implement the risk assessment process globally and align our due diligence efforts according to risk catego-ries. No severe human rights impacts or incidents con-nected to our upstream or downstream value chain were reported to Demant in 2024. Metrics and targets S2-5 Targets related to managing material negative im-pacts, advancing positive impacts and managing material risks and opportunities In Demant, we continuously evaluate our actions through our current practices, including direct sup-plier engagement, which is a part of the routine re-sponsibilities of the procurement functions in De-mant. We are currently implementing updated supplier risk assessment and due diligence pro-cesses. Therefore, we have not yet set targets to manage impact on workers in the value chain. In 2025, we will explore options to do so. S4 Consumers and end-usersOur core commitment to society is to help people become aware of and overcome hearing loss and improve their quality of life through innovative solutions and access to personalised hearing care.Demant offers innovative technologies, solutions and know-how to help improve peopleâs health and hearing. Our prioritisation is to support the en-tire journey towards better hearing. We believe that the best treatment of hearing loss starts with the hearing care professional, who delivers per-sonalised care by diagnosing the hearing loss, fit-ting the hearing aid and rendering support based on the individualâs needs. In 2024, we improved 10.9 million lives, and we carried out 1.5 million hearing tests in our own clinics. Our targets Our target is to improve more than 16 million lives by 2030. Creating awareness is crucial to fulfilling our purpose, and we also aim to raise awareness of hearing treatment by sequentially increasing test activities to more than 2 million hearing tests performed by 2030. Increasing awareness MORE through hearinTHAN MORE THAN 1.52 MILLION MILLION People tested 2030 target in 2024 Improving lives through hearing health MORE THAN 10.916 MILLION MILLION Lives improved 2030 target in 2024 Material topics Providing life-changing hearing health Hearing health awareness Product quality and safety Right to privacy . Own Hearing ClinicUpstream Own operationsProviding life-changing hearing health and advancing hearing health awarenessAccording to the World Health Organization, one in five people today lives with hearing loss. If untreated, it impacts their ability to interact, contribute and feel a sense of belonging. Impacts, risks and opportunities ESRS 2 SBM-3 S4 Material impacts, risks and opportuni-ties and their interaction with strategy and business model Demantâs purpose, strategy and business model is built upon driving a positive impact, ultimately improving quality of life for our users. This, in turn, poses positive impacts for their families, col-leagues and society at large in the short, medium and long term. Scaling of Demantâs business and innovation is driven by the strategic purpose and ambition of delivering life-changing hearing health globally to as many people as possible. With a stable and growing consumer base, dependencieson consumers do not pose material risks for De-mant. On the contrary, increased life expectancy and underserved markets provide material oppor-tunities to continue to deliver life-changing hearing health to users to drive social impact and solid fi-nancial performance. Raising awareness of the importance of hearing loss among potential hearing aids users in society is important for Demant to drive business growth. Removing the stigma around hearing loss and empowering people to get help in due time, will have a positive impact on the individuals treated, their social network and public health at large in the short, medium and long term. As a leader within diagnostics technology and with a global in-frastructure of hearing clinics, Demant is committed to enabling early detection of hearing loss and thereby increase awareness of the prob-lem. Impact, risk and opportunity management S4-2 Processes for engaging with consumers and end-users about impacts Engaging with users and consumers is integral to Demantâs purpose of providing life-changing hear-ing health. Continuous feedback from users and customers allows focused innovation and enables us to provide a high level of service in our hearing care clinics. We have established user communi-cation procedures for all our business areas. User engagement is at the heart of Demantâs product innovation activities. At Eriksholm Re-search Centre, which is part of our Hearing Aids brand Oticon, researchers make audiological dis-coveries with the potential to significantly enhance user benefits. Such discoveries are based on con-tinuous dialogue with many people living with hearing loss and dedicated hearing care profes-sionals, as well as strong academic partnerships. The Interacoustics Research Unit (IRU), which is a part of our Diagnostics business area, works to change the lives of hearing care professionals and hearing aid users alike by facilitating several pro-jects that engage users to advance diagnostics equipment and methods. S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to con-sumers and end-users, and effectiveness of those actions Since 2018, Demantâs Hearing Care business area has been championing global efforts to put hearing health on the map. Through the Interna-tional Campaign for Better Hearing, many Hearing Care clinics, for example in Canada, actively en-gage with their local communities, providing free hearing aids to individuals through our locally managed give-back programmes. Clinics in other countries, such as Australia, Ireland and Greece carry out other types of awareness-raising activi-ties. The Campaignâs mission is to increase awareness of the critical importance of hearing health, high-lighting both the benefits of treating hearing loss and the consequences of leaving it untreated. To make hearing care more accessible, we offer free screenings to everyone over the age of 60, pro-moting early detection and timely intervention. Our Diagnostics business area offers global ac-cess to the most current and relevant clinical knowledge about hearing and balance. According to the WHO (World Report on Hearing, 2021), early intervention is crucial to minimise the ad-verse impact of hearing loss on language and cognitive development. Building capacity among ear-nose-throat doctors, audiologists and healthcare professionals is therefore crucial to en-sure early intervention. As part of our strategy, we are committed to con-tinuing to invest in R&D and further expanding the distribution of our products in both existing and new markets going forward. We continuously en-gage with customers, healthcare practitioners and other stakeholders to ensure that we develop in-novative products. In 2024, Demant invested DKK 1,394 million in R&D to drive innovation and en-sure continuous technological leadership. R&D costs â (DKK million)1,6001,3941,4001,2261,2001,0829159431,00080060040020002020 2021 2022 2023 2024ACT⢠- one step closer to precise hearing aid fitting The IRU works to change the lives of people with hearing loss by inventing new or improving existing tools to help hearing care professionalsin hearing screening, diagnostic evaluation of hearing and fitting of hearing aids. In 2024, IRU supported the commercial roll-out of the Audi-ble Contrast Threshold (ACTâ¢) test. With the introduction of the ACT test, hearing care professionals can predict the quality of a personâs aided hearing in everyday speech-in-noise scenarios. This enables more precise fit-ting of the hearing aids, which then reduces the need for subsequent fitting and adjustments. Detecting listening fatigue in occupational set-tings The EU-funded project EASYLI is a five-year doc-toral network in collaboration with several Euro-pean universities and industrial partners. The goal of EASYLI is to examine and optimise the ratio between costs and benefits of effortful listening in occupational settings. In demanding or noisy work situations, or for peo-ple with hearing loss, high listening effort may be necessary to maintain satisfactory job perfor-mance. Learnings from project EASYLI can help detect fatigue early on and prevent the negative effects of high listening effort. AI: A strong focus area at Eriksholm Research Centre At Eriksholm Research Centre, we have made AI a dedicated scientific focus area where we explore how AI can be harnessed and utilised to help people with hearing impairment benefit from scientific discoveries at a faster pace than ever. With this focus area, we aim to take ad-vantage of the deep insight we have in cogni-tive hearing science, intent decoding and per-sonalised audiology. We use AI to spearhead research initiatives aimed at creating hearing aid systems that can provide precisely tailored sound experiences for individuals who are using hearing devices. In 2024, Demant launched next gen AI-ena-bled hearing aids. Metrics and targets S4-5 Targets related to managing material negative im-pacts, advancing positive impacts, and managing mate-rial risks and opportunities In 2024, Demant established new targets for ad-vancing positive impacts on people with hearing loss: ⢠Improve more than 16 million lives by 2030 ⢠Increase awareness by performing hearing tests on more than 2 million people by 2030 The targets are set in relation to the overall ambi-tion and purpose of Demant. The targets cover all markets where Demant is present. The target-setting process involved internal ex-perts and was approved by Demantâs Executive Leadership Team and endorsed by the Board of Directors. Consumers and end-users were not di-rectly involved in the process. Lives improved â (million lives) 1210.910.39.4108.88.5864202020 2021 2022 2023 2024Based on the estimated lifetime of hearing aids, the number of hearings aids sold, and fittings made by the Group in 2024, we improved 10.9 million lives in 2024. People tested â (million people) 2.001.751.5 1.501.251.000.750.500.25Data not available0.002020 2021 2022 2023 2024In 2024, Demant tested 1.5 million people with suspected hearing loss. Accounting policy Lives improved The number of lives improved is determined by the number of hearings aids sold and a binaural rate. The number is accumulated based on a five-year product lifecycle. Hearing tests performed Hearing tests performed is the number of tested people in the reporting period. Product quality and safety Ensuring the highest standards of quality and safety in our products, while meeting the regulatory requirements, is crucial to our purpose of providing life-changing differences through hearing health. Impacts, risks and opportunities ESRS 2 SBM-3 S4 Material impacts, risks and opportuni-ties and their interaction with strategy and business model In the hearing healthcare industry, a lack of prod-uct quality and safety could be troublesome, as hearing aid devices and diagnostics equipment are in contact with a personâs skin over extended periods. Thus, the devices need to comply with relevant medical device regulations to obtain the required certifications. If Demant fails to deliver on its product brand strategy of providing excellent innovation and high-quality products, it could pre-sent a risk. If this risk materialises, it could affect Demantâs licence to operate and ability to bring products to market and hence have financial con-sequences for Demant in the short and medium term. Demant invests many resources in maintain-ing high product quality and mitigating risks, which include accurate and accessible product infor-mation on the use of our products. Impact, risk and opportunity management S4-1 Policies related to consumers and end-users Working with quality is vital for us to sustain the high standards and reliability of our products and to ensure the safety of our customers and users. We ensure that the Group complies with relevant regulations related to specific substances and de-fines quality management in quality policies for the Hearing Aids and Diagnostics business areas. The policies cover activities that support product development, manufacturing, marketing and ser-vicing. Each function within the company is ac-countable for the quality of their deliveries. The leadership of the quality functions are accountable for ensuring that quality and compliance are deliv-ered by the organisation. S4-2 Processes for engaging with consumers and end-users about impacts Customer service We have established customer support service platforms for both our Hearing Aids and Hearing Care business areas, providing multiple channels for feedback. These channels are actively shared with users and consumers through the sales and service process and can easily be found on the websites of companies in the Demant Group. In our Hearing Aids business area, the first point of contact for users is the hearing care profes-sional, who in case of complaints or escalations will contact the respective Demant wholesale or-ganisations. Users can also contact Demantâs brands directly. Several of the brands within our Hearing Aids business area have created applica-tions for users to access relevant information as well as support services. We communicate di-rectly with the user in writing through our Instruc-tions for Use. In our Diagnostics business area, our sales and service entities located in 15 different countries have user communication toward the health care professional who uses the diagnostics equipment. This communication is guided by a feedback and complaint procedure and a customer relations management system that documents this dia-logue. Further, many of the brands within our Di-agnostics business area provide technical assis-tance via remote access as well as live online support. These channels allow our stakeholders to raise concerns and communicate cases of nega-tive impact. All complaints are handled by a dedi-cated customer service team, ensuring documen-tation and follow-up with the complainant. This in-cludes any remediation, such as fitting support, repair and replacement, where relevant. S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to con-sumers and end-users, and effectiveness of those actions Quality management Our Quality Management Systems for Hearing Aids and Diagnostics business areas demonstrate our ability to offer medical devices that consist-ently meet customer needs and comply with regu-latory requirements. Working with product quality and safety is our licence to operate, and our sys-tems and processes always align with the high standards expected of us. In our Hearing Aids business area, products are tested against reliability requirements, which are defined during the product development. These requirements are based on standards, regulations and our extensive experience in manufacturing hearing aids. At the end of the development pro-cess, final verification tests are conducted to en-sure safety and effectiveness. Extensive reliability testing ensures that a product is safe and effective throughout its lifetime, and the product is tested at component, assembly and product level. Inter-nally, the system is audited by our quality team and maintained to reflect developments and changes in our organisation. For our diagnostic equipment, we gather infor-mation about customer needs, product require-ments and procedures and apply risk manage-ment throughout the entire product life cycle, when designing new products. We work with sup-pliers that can deliver parts and services of the re-quired quality, we monitor supplier performance, and we give appropriate supplier feedback. When developing new instruments and accessories, we collaborate with external researchers and medical professionals. Before we release products, they are tested extensively by accredited test houses and verified according to established performance standards. We perform a 100% test and final in-spection of our products to ensure that they com-ply with and fulfil all specifications. We furthermore mitigate risks associated with quality and safety by biological safety evaluation, using ISO10993 as a guiding standard. We evalu-ate materials in skin contact in accordance with the standard and, when necessary, we perform animal testing according to ISO10993-10, while evaluating whether chemical extraction and char-acterisation is deemed sufficient instead. These tests are conducted by external partners who are required to meet the expectations of our Third Party Compliance Code. Metrics and targets S4-5 Targets related to managing material negative im-pacts, advancing positive impacts, and managing mate-rial risks and opportunities Demant monitors the quality of its products and uses both external audits and complaints mecha-nisms to assess the effectiveness of our actions. All development and manufacturing sites are au-dited on an on-going basis in accordance with certification requirements. When audited, Demant targets zero major findings. In 2024, in our Hearing Aids business area, the TÃV SÃD audit for ISO13485, MDR and MDSAP resulted in four minor non-conformances. All cor-rective actions and action plans have been ap-proved by TÃV SÃD. We were also audited by the Danish Medicines Agency that found one minor non-conformance. Our response to the non-con-formance finding was reviewed by the authorities, and they have accepted the root cause and ac-tions and have thus closed the inspection. In our Diagnostics business area, all external au-dits made by the certifying body, TÃV SÃD, in 2024 were completed, and no major findings were reported. We have set business area-specific targets for our quality management that support the mitigation of potential impacts on consumers in relation to product safety and use. Product recalls â 2024 2023 2022 2021 2020 Hearing Aids 0 0 0 0 0 Diagnostics 0 0 0 0 0 We had zero product recalls in 2024. Accounting policy Product recalls Product recalls cover both voluntary and manda-tory recalls. Right to privacy Demant is entrusted with personal data on customers, users and business partners, which must be collected and processed in accordance with applicable laws and regulations. Impacts, risks and opportunities ESRS 2 SBM-3 S4 Material impacts, risks and opportuni-ties and their interaction with strategy and business model As our business continues to grow, the complexity of managing customersâ data increases. When it comes to data privacy, Demant has a material po-tentially negative impact on users and consumers on the short term to which no certain groups are particularly exposed. Further, the potentially nega-tive impact is not widespread or systemic. We re-main committed to protecting personal data, and failure to do so could have serious consequences for the people whose data we possess as well as for the Group. Impact, risk and opportunity management S4-1 Policies related to consumers and end-users Demant has a defined Data Privacy Strategy and programme to manage potentially negative im-pacts on the privacy of consumers and users. This includes policies and defined processes for han-dling personal data as well as processes for en-gaging with affected stakeholders and remediating any such impacts. Data privacy is also covered by Demantâs Code of Conduct, which outlines clear expectations of em-ployeesâ conduct in this regard. Demant has im-plemented a global Data Ethics Policy, and it is mandatory for all employees in Demant to comply with the Policy. The Policy covers all processing of data, including personal and non-personal data, and goes be-yond compliance, as we already work diligently to ensure that the processing of personal data is done in accordance with regulatory frameworks. The Policy provides additional protection for the benefit of our customers, users and employees. Data privacy and ethics is governed by our Global Legal & Compliance Board. Group Legal & Com-pliance reports regularly on material issues to the Global Legal & Compliance Board, that includes the Executive Leadership Team, and to the audit committee. Demantâs commitment to human rights, embed-ded in our Sustainability Policy, also covers the rights of users and consumers. Please refer to Demantâs approach to due diligence in relation to human rights on page 86. Neither cases of non-respect of the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines, nor severe human rights im-pacts involving consumers or users, have been reported in Demantâs value chain in 2024. S4-2 Processes for engaging with consumers and end-users about impacts Involvement Information about usersâ and consumersâ data pri-vacy is provided in privacy notices when required by local legislation. Consumers and users are in-formed of the use of their personal data and are also guided on how to exercise their legal rights regarding their personal data. We continue to experience increasing interest in privacy matters from our customers and users, and we spend significant resources on ensuring that all privacy queries are addressed. S4-3 Processes to remediate negative impacts and chan-nels for consumers and end-users to raise concerns Demantâs whistleblower hotline is available to all external stakeholders, including users and con-sumers. Please refer to page 104. S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to con-sumers and end-users, and effectiveness of those actions All collection and processing of personal data are done in accordance with applicable laws and reg-ulations, including GDPR in the EU/EEA and CCPA and HIPAA in the US. Failure to comply with the rules may not only have serious conse-quences for the persons whose data we possess but may also result in large fines for Demant, if the rules are violated. Ways of working We have a dedicated Data Privacy team, which is part of Demantâs Group Legal & Compliance, and in 2024, we welcomed additional privacy profes-sionals to the team. The team is mainly based in Europe and the US, where privacy legislation was first passed and where internal demand for sup-port has been most prevalent. However, the team also supports legal colleagues and the business in other regions, as more countries pass compre-hensive data protection laws and impose local re-strictions on data handling. The team maintains a privacy portal for employ-ees, containing relevant national and international legislation and guidelines that Demant brands must comply with, training materials and access to relevant policies and processes. To ensure local implementation and awareness of data privacy policies and procedures, we have fur-thermore appointed 111 data privacy champions spread across our European sites. They receive ongoing training on privacy matters, and once a year, they participate in the annual internal Data Privacy Summit, which has been held since 2019. The champions reach out to the Data Privacy team if they experience any concerns or com-plaints about data privacy. The data landscape available to Demant supports our internal identification of efficiencies, develop-ment of new products, gaining customer insights, optimising operations and tailoring our business strategies. Collecting personal data is therefore not only necessary for the delivery of our products and services but also presents opportunities. However, any collection and use of data also pre-sent the inherent risk of misuse or access by threat actors, such as hackers and cybercriminals. Protecting data privacy is therefore dependent on a strong IT security system. The Data Privacy team collaborates closely with Demantâs IT Security team. In addition to estab-lished IT security measures, we have a well-func-tioning data breach response procedure. The Data Privacy team monitors any alerts of a poten-tial data breach every day of the year and ensures that appropriate action is taken. Working with data privacy remains a permanent focus area for Demant, and we strive to continu-ously optimise our internal processes in alignment with best practices and standards. G1 Business conduct We take a proactive approach to business ethics to ensure we behave as a company we can be proud of. We strive for high ethical standards and oper-ate our business with integrity and honesty. Conducting business with integrity is important to us and is reflected in the way we connect with em-ployees, users, customers, third parties and other stakeholders. We strive to act responsibly and are committed to operating our business in accord-ance with the law and the minimum standards set in our Code of Conduct. Our target We aim to enhance our business conduct excel-lence by providing code of conduct training to all employees. To ensure we focus our efforts where we have the highest risk in terms of corruption and bribery, we have set a target to increase code of conduct training of our highly exposed employ-ees year over year, aiming to reach 100% by 2030. Increase excellence in business conduct by providing code of conduct training 76%100% Highly exposed 2030 target employees trained in 2024 Material topics Corruption and bribery Advocacy for hearing health Own Hearing ClinicUpstream Own operationsCorruption and bribery We believe that strong and ethical business processes are undeniable as-pects of operating a sustainable business.Impacts, risks and opportunities Certain areas of our organisation are exposed to higher risk of corruption and bribery. This includes working with distributors in countries where there is a risk of bribery and corrupt practices. A bribery or corruption incident could lead to fines and pen-alties for Demant as well as reputational damage that could affect our business relationships with customers and suppliers. The risk of corruption exists in our own operations and in our down-stream value chain and is considered systemic in some of the countries where we have distributor relationships. It occurs in the short and medium term. Impact, risk and opportunity management G1-1 Business conduct policies and corporate culture Our Code of Conduct reflects our commitment to a prominent level of business ethics and is the overarching compliance document for our Group. The Code of Conduct outlines the behaviour we expect of our employees. It sets the minimum standards and ethical principles applicable to all employees, regardless of location and the nature of their work, and provides everyone with a com-mon understanding of how we conduct our busi-ness. Our business ethics programme lays a solid foun-dation for ensuring that Demant can identify, re-port and investigate any concerns about unlawful behaviour or behaviour that contradicts our Code of Conduct. Beyond the Code of Conduct, the business ethics programme covers the global whistleblower hotline as well as a portfolio of global programmes with relevant policies and guidelines, processes, tools, risk assessments, training and advice. Business ethics compliance is governed by the Legal & Compliance Board. The leader of Group Legal & Compliance is accountable for the imple-mentation of all the policies described in this sec-tion. Group Legal & Compliance is supported by a network of 62 business ethics champions ap-pointed in each subsidiary globally and in Group business functions. Group Legal & Compliance re-ports regularly on material reports received through the whistleblower hotline to the audit com-mittee and the Legal & Compliance Board. In H1 2024, we hosted Business Ethics Days at our headquarters in Denmark for all our global business ethics champions and for centralised business functions. The purpose of the days was to further educate our champions on business eth-ics compliance and ensure engagement through-out the championsâ network. Whistleblower hotline Demant has established a whistleblower hotline, which enables employees, business partners and all other internal and external stakeholders to re-port any concerns about serious and sensitive matters confidentially and anonymously. We en-courage employees and external stakeholders to raise their concerns about serious and sensitive actions that (1) fail to comply with our Code of Conduct, (2) fail to comply with applicable laws and regulations and/or (3) jeopardise the health and safety of our employees. Anti-retaliation is a part of our Whistleblower Pol-icy. We are committed to ensuring that there will be no discriminatory or retaliatory action against any employee or third party who in good faith raises a concern through the whistleblower hot-line. Our anti-retaliation efforts comply with Di-rective (EU) 2019/1937. Group Legal & Compliance manages the whistle-blower hotline and has developed an Investigation Guideline, which is a tool that describes step-by-step how an investigation into a concern raised by an employee is conducted. Group Legal & Compliance works closely with Global HR and has, in collaboration with them, de-veloped an HR investigation process, which HR use when conducting HR-related investigations. Employee concerns can also be reported to HR or managers directly and do not have to be reported through the whistleblower hotline. Training and awareness We strive to ensure that all employees are aware that they can safely report concerns through our whistleblower hotline. We have had several global campaigns promoting awareness about the hot-line and, most recently, awareness was created through our global Code of Conduct and Whistle-blower e-learning launched in H1 2024 in 11 lan-guages. Among other things, e-learning informs the em-ployees about the whistleblower hotline, how to report and what they can report and provides in-formation about our anti-retaliation principles. In 2024, all employees globally were asked to com-plete the e-learning, and we plan to relaunch the e-learning every three years. In addition, the busi-ness ethics champions appointed in each subsidi-ary globally help raise awareness about the whistleblower hotline. In 2025, we will update our code of conduct training to ensure a better fit to the different types of employees across Demant. All white-collar employees will be invited to com-plete the e-learning, while we plan to conduct physical training of production and warehouse staff. Anti-corruption and bribery G1-3 Prevention and detection of corruption and bribery It is a fundamental principle for Demant to com-pete for business on fair terms and solely on the merits of our services. Demant is committed to avoiding the use of corruption, wherever we do business. Through an anti-corruption risk assess-ment, we have identified the functions that are ex-posed to the highest risk in respect of corruption and bribery. These, among others, include em-ployees that are in direct contact with public offi-cials, for instance by participating in negotiations for public tenders on Demantâs behalf. We have implemented policies and guidelines to mitigate corruption risks throughout our organisa-tion. This includes an Anti-Corruption Policy, Gifts & Hospitality Guidelines, containing country-spe-cific appendices with local monetary limits and a Third Party Compliance Code, which contains a section on anti-corruption, and which is included as an appendix in contracts with third parties. For third parties, we have a due diligence process where we assess the anti-corruption risk associ-ated with dealing with the third parties in scope of due diligence. Based on our findings, we imple-ment appropriate mitigating measures, such as specific anti-corruption wording in the contract with the third party. The global Code of Conduct and whistleblower e-learning contains a deep dive into anti-corruption. Since all employees have been asked to complete the e-learning, it covers those employees that are exposed to the highest risk in respect of corrup-tion and bribery as well as the Executive Leader-ship Team. In addition to e-learning, we also con-duct in-person training for selected high-risk em-ployee groups on an ad hoc basis. Our business ethics champions have received ex-tensive training on anti-corruption. As they are ap-pointed in each subsidiary globally, they help us detect issues locally that could be problematic from an anti-corruption perspective and ensure that Group Legal & Compliance is involved to the extent necessary. In addition, our business ethics champions help us raise awareness locally about the Code of Conduct as well as on our Anti-Cor-ruption Policy and guidelines, which apply to all employees globally, thereby assisting in the pre-vention of corruption and bribery through training. In 2024, we collaborated with our business ethics champions to create country-specific appendices with local monetary limits to our Gifts & Hospitality Guidelines in all subsidiaries globally. The whistleblower hotline enables employees, business partners and other stakeholders to re-port their concerns relating to corruption and brib-ery confidentially and anonymously. Group Legal & Compliance manages all reports received through the whistleblower hotline and our Whistle-blower Policy and Investigation Guideline ensure that the investigator involved in a specific whistle-blower case is independent from the chain of management involved in the matter. Metrics and targets In 2024, we committed to increasing our business conduct excellence through code of conduct train-ing to reach 100% of highly exposed employees, such as top-level management, senior leaders of commercial functions, procurement and finance managers, by 2030. The target relates to the ob-jectives laid out in our Code of Conduct. The target-setting process involved internal ex-perts and was approved by Demantâs Executive Leadership Team and endorsed by the Board of Directors. In 2024, 58% of all Demant employees completed the e-learning. 76% of highly exposed employees, who are the target group for our 2030 target, com-pleted the training. Data on code of conduct training in our e-learning module for the period from 2020-2023 is not avail-able as e-learning was introduced in 2024. Em-ployees received training through other channels prior to 2024. Code of conduct training â Highly exposed employees100%90%76%80%70%60%50%40%30%20%10%0%2020 2021 2022 2023Code of conduct training â All employees100%90%80%70%58%60%50%40%30%20%10%0%2020 2021 2022 2023Whistleblower reports â 100908780604847402002021 2022 2023 2024In 2024, Demant received 87 reports through the whistleblower hotline. Distributor due diligence â 75806570576053504030201002021 2022 2023 2024In 2024, Demant conducted 53 due diligence screenings. The decrease in number of distributor due diligence is due to backlogs in 2021 and 2022. G1-4 Incidents of corruption or bribery We have had no confirmed incidents of corruption or bribery in Demant in 2024. Therefore, there have been no convictions or fines for violation of anti-corruption and anti-bribery laws in 2024. Accounting policy Whistleblower reports The number of whistleblower reports received through the hotline during the year cover the sub-stantiated reports. Distributor due diligence The number of distributor due diligence conducted as part of our due diligence process for our distrib-utors. Advocacy for hearing health Our advocacy efforts are closely intertwined with our objective of raising awareness about hearing healthcare and driven by our main purpose. Impacts, risks and opportunities G1-5 Political influence and lobbying activities To support Demantâs purpose of creating life-changing difference to people with hearing loss, we engage with international organisations, gov-ernments and local authorities to raise awareness about the importance of hearing health. Ensuring that more people test and treat their hearing loss can have a positive financial impact on Demant in the medium and long term. Impact, risk and opportunity management When exerting political influence, we carry with us our principles of conducting business with integrity and high ethical standards. We engage in political activities through industry organisations, lobbying for a more advanced and better hearing healthcare infrastructure to ultimately ensure the best possible treatment for people with hearing loss. We take active part in relevant industry organisa-tions including, but not limited to, the following: European Hearing Instrument Manufacturers Association (EHIMA) Demant is represented in the General Assembly and the Technical, Regulatory, Public Affairs and Sustainability Committees. Hearing Industries Association (HIA) Demant is represented in the board of directors and the Technical and Regulatory, Market In-sights, Market Analytics and Claims Committees. We are transparent about our stance and advo-cate for topics directly linked to our company pur-pose and strategy. How we engage politically var-ies, depending on local conditions, as activities to promote hearing health depend entirely on coun-try-specific legislation and hearing health infra-structure. Our Anti-Corruption Policy (please refer to page 104) does not allow for political contributions which are defined as contributions to politicians, political campaigns and political parties. Any devi-ations from this Policy must be approved by our Group CEO. In 2024, we did not make any politi-cal contributions. Sustainability reporting risksand internal controlsDemant is committed to ensuring adequate reporting data quality and mitigating significant risks related to sustainability reporting.Scoping of material topics A double materiality assessment is conducted on a yearly basis, please refer to page 62. ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting Risk management in relation to sustainability reporting Demantâs sustainability reporting risk manage-ment framework is designed to identify, assess and manage risks related to sustainability report-ing. Key risk factors include regulatory compli-ance, data accuracy and stakeholder expecta-tions. We employ a comprehensive risk assess-ment process, involving regular reviews and up-dates. Through this process, we ensure that all identified potential risks are adequately addressed based on the scoping of material sustainability topics identified in the double materiality assess-ment. The identified risks are assessed as either high, medium or low. The sustainability reporting risk categorisation is based on inherent reporting risks, such as completeness and accuracy of the data. High risks have a higher prioritisation than medium and low risks. The main reporting risks are related to complete-ness and accuracy of the data submitted. The Sustainability Board receives updates on a quarterly basis and includes any findings in the in-ternal control framework related to sustainability reporting and how to mitigate risks. Disclosure requirements andincorporation by referenceESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertakingâs sustainability statement. The following tables outline all ESRS disclosure requirements in ESRS 2 and five topical stand-ards, which are relevant to Demant and have guided us in the preparation of this Sustainability statement. We have excluded disclosure require-ments in E2, E3, E4 and S3, as they are below our materiality thresholds. These tables serve as a guide for locating infor-mation on specific disclosure requirements in the Sustainability statement. They also indicate where information on a specific disclosure requirement not included in the Sustainability statement can be found. This information is âincorporated by refer-enceâ either in the Management statement and Fi-nancial statements of this Annual Report or in the separately published Remuneration Report. Cross-cutting standards ESRS 2 General disclosures Disclosure requirementsStatementPageBP-1 General basis for preparationSustainability 51 BP-2 Datapoints that derive from other EU legislationSustainability 113 The role of the administrative, management and Management/41, 47, GOV-1 supervisory bodiesSustainability56 Information provided to and sustainability matters Management/addressed by the undertaking's administrative, GOV-2 management and supervisory bodiesSustainability 56 Integration of sustainability-related performance in Remuneration GOV-3 incentive schemesreport 8 GOV-4 Statement on sustainability due diligenceSustainability 116 Risk management and internal controls over sus-GOV-5 tainability reportingSustainability 108 Strategy, business model and value chain (prod-Management/10, 16, SBM-1 ucts, markets and customers)Sustainability20, 59 Strategy, business model and value chain (head-SBM-1 count by country)Sustainability 88 Strategy, business model and value chain (break-SBM-1 down of revenue)Financial 127 SBM-2 Interest and views of stakeholdersSustainability 64 Material impacts, risks and opportunities and their 58, 60-SBM-3 interaction with strategy and business modelSustainability62 Description of the process to identify and assess IRO-1 material impacts, risks and opportunitiesSustainability 62-63 Disclosure requirements in ESRS covered by the IRO-2 undertakingâs sustainability statement Sustainability 109 Environmental standardsESRS E1 Climate change Disclosure requirementsStatementPageE1-1 Transition plan for climate change mitigation Sustainability 68 Material impacts, risks and opportunities, and their ESRS 2, SBM-3 interaction with strategy and business modelSustainability 67 Description of the processes to identify and assess material climate-related impacts, risks and opportu-ESRS 2, IRO-1 nitiesSustainability 67 Policies related to climate change mitigation and E1-2 adaptationSustainability 67 Actions and resources in relation to climate change E1-3 policiesSustainability 68 Targets related to climate change mitigation and E1-4 adaptationSustainability 69 E1-5 Energy consumption and mixSustainability 70 E1-6 Gross Scopes 1, 2, 3 and total GHG emissionsSustainability 70-72 ESRS E5 Resource use and circular economy Disclosure requirementsStatementPageMaterial impacts, risks and opportunities and their ESRS 2 SBM-3 interaction with strategy and business modelSustainability 76 Description of the processes to identify and assess material resource use and circular economy-re-ESRS 2, IRO-1 lated impacts, risks and opportunitiesSustainability 76 Policies related to resource use and circular econ-E5-1 omySustainability 76 Actions and resources related to resource use and E5-2 circular economySustainability 76 Targets related to resource use and circular econ-E5-3 omySustainability 77 E5-4 Resource inflowsSustainability 78 E5-5 Resource outflowsSustainability 78 Social standards ESRS S1 Own workforce Disclosure requirementsStatementPageMaterial impacts, risks and opportunities and their 86, 89, ESRS 2, SBM-3 interaction with strategy and business modelSustainability92 86, 89, S1-1 Policies related to own workforceSustainability92 Processes for engaging with own workers and 86, 89, S1-2 workersâ representatives about impactsSustainability92 Processes to remediate negative impacts and S1-3 channels for own workers to raise concernsSustainability 87, 89 Taking action on material impacts on own work-force, and approaches to managing material risks and pursuing material opportunities related to87, 89, S1-4 own workforce, and effectiveness of those actionsSustainability92 Targets related to managing mate-rial negative im-pacts, advancing positive impacts, and managing S1-5 material risks and opportunitiesSustainability 87, 90 S1-6 Characteristics of the undertakingâs employees Sustainability 88, 92 S1-9 Diversity metricsSustainability 90 Remunerations metrics (pay gap and total remu-S1-16 nerations) Sustainability 90 Incidents, complaints and severe human rights im-S1-17 pactsSustainability 87 Social standardsESRS S2 Workers in the value chain Disclosure requirementsStatementPageMaterial impacts, risks and opportunities, and their ESRS 2, SBM-3 interaction with strategy and business modelSustainability 94 S2-1 Policies related to value chain workersSustainability 94 Processes for engaging with value chain workers S2-2 about impactsSustainability 94 Processes to remediate negative impacts and S2-3 channels for value chain workers to raise concerns Sustainability 94 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those ac-S2-4 tionsSustainability 94 Targets related to managing material negative im-pacts, advancing positive impacts, and managing S2-5 material risks and opportunitiesSustainability 94 Social standardsESRS S4 Consumers and end-users Disclosure requirements Statement Page Material impacts, risks and opportunities, and their 96, 99, ESRS 2, SBM-3 interaction with strategy and business modelSustainability101 S4-1 Policies related to consumers and end-users Sustainability 99, 101 Processes for engaging with consumers and end-96, 99, S4-2 users about impactsSustainability101 Processes to remediate negative impacts and channels for consumers and end-users to raise S4-3 concernsSustainability 101 Taking action on material impacts on consumers and end-users, and approaches to mitigating mate-rial risks and pursuing material opportunities re-lated to consumers and end-users and effective-96-97, S4-4 ness of those actionsSustainability99, 101 Targets related to managing material negative im-pacts, advancing positive impacts, and managing S4-5 material risks and opportunitiesSustainability 98-100 Governance standardsESRS G1 Business conduct Disclosure requirementsStatementPageThe role of the administrative, supervisory and 41, 47, ESRS 2, GOV-1 management bodiesManagement56 G1-1 Business conduct policies and corporate cultureSustainability 104 G1-3 Prevention and detection of corruption and briberySustainability 104 G1-4 Incidents of corruption or bribery Sustainability 105 G1-5 Political influence and lobbying activitiesSustainability 106 Datapoints in cross-cutting and topical standards The table below outlines the list of datapoints in cross-cutting standards that derive from other EU legislation. Benchmark Disclosure SFDR Pillar 3 regulation EU climate law requirements Datapoints referencereferencereferencereferenceReport/section PageManagement's re-ESRS 2 GOV-1 21 (d) Board's gender diversity xxview42 Management's re-ESRS 2 GOV-1 21 (e) Percentage of board members who are independent paragraph xview47-48 Statement on due ESRS 2 GOV-4 30 Statement on due diligence xdiligence116-117 ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities paragraph xxxNot materialESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production xxNot materialESRS 2 SBM-1 40 (d) iii Involvement in activities related to controversial weapons xxNot materialESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of tobacco xNot materialESRS E1-1 14 Transition plan to reach climate neutrality by 2050 xClimate change68-69 ESRS E1-1 16 (g) Undertakings excluded from the EU Paris-Aligned Benchmark xxNot materialESRS E1-4 34 GHG emissions reduction targets xxxClimate change72 Energy consumption from fossil sources disaggregated by sources (only ESRS E1-5 38 high climate-impact sectors) xClimate change70 ESRS E1-5 37 Energy consumption and mix xClimate change70 ESRS E1-5 40-43 Energy intensity associated with activities in high climate-impact sectors xClimate change70 ESRS E1-6 44 Gross scope 1, 2 and 3 and total GHG emissions xxxClimate change 72 ESRS E1-6 53-55 Gross GHG emissions intensity xxxClimate change72 ESRS E1-7 56 GHG removals and carbon credits xNot materialESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks xNot material ESRS E1-9 66 (a) Disaggregation of monetary amounts by acute and chronic physical risk xNot materialESRS E1-9 66 (c) Location of significant assets at material physical risk xNot materialBreakdown of the carrying value of real estate assets by energy- ESRS E1-9 67 (c) efficiency classes xNot materialESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities xNot materialBenchmark Disclosure SFDR Pillar 3 regulation EU climate law requirementsDatapointsreferencereferencereferencereferenceReport/section PageAmount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water ESRS E2-4 28 and soil xNot materialESRS E3-1 9 Water and marine resources xNot materialESRS E3-1 13 Dedicated policy xNot materialESRS E3-1 14 Sustainable oceans and seas xNot materialESRS E3-4 28 (c) Total water recycled and reused xNot material3ESRS E3-4 29 Total water consumption in m per net revenue on own operations xNot materialESRS 2 - SBM 3 - E4 16 (a) i xNot materialESRS 2 - SBM 3 - E4 16 (b) xNot materialESRS 2 - SBM 3 - E4 16 (c) xNot materialESRS E4-2 24 (b) Sustainable land/agriculture practices or policies xNot materialESRS E4-2 24 (c) Sustainable oceans/seas practices or policies xNot materialESRS E4-2 24 (d) Policies to address deforestation xNot materialESRS E5-5 37 (d) Non-recycled waste xNot materialESRS E5-5 39 Hazardous waste and radioactive waste xNot materialESRS 2 - SBM3 - S1 14 (f) Risk of incidents of forced labour xOwn workforce86 ESRS 2 - SBM3 - S1 14 (g) Risk of incidents of child labour xOwn workforce86 ESRS S1-1 20 Human rights policy commitments xOwn workforce86 Due diligence policies on issues addressed by the fundamental Interna-ESRS S1-1 21 tional Labour Organization Conventions 1 to 8 xOwn workforce86 ESRS S1-1 22 Processes and measures for preventing trafficking in human beings xOwn workforce86 ESRS S1-1 23 Workplace accident prevention policy or management system xOwn workforce 86-87 ESRS S1-3 32 (c) Grievance/complaints handling mechanisms xOwn workforce87 88 (b), ESRS S1-14 (c) Number of fatalities and number and rate of work-related accidents xxNot materialESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness xNot materialESRS S1-16 97 (a) Unadjusted gender pay gap xxNot materialESRS S1-16 97 (b) Excessive CEO pay ratio xOwn workforce90 Benchmark Disclosure SFDR Pillar 3 Regulation EU climate law requirementsDatapointsreferencereferencereferencereferenceReport/section PageESRS S1-17 103 (a) Incidents of discrimination xOwn workforce87 Non-compliance with UNGPs on Business and Human Rights and ESRS S1-17 104 (a) OECD Guidelines xxOwn workforce87 ESRS 2 - Workers in the SBM3 - S2 11 (b) Significant risk of child labour or forced labour in the value chain xvalue chain94 Workers in the ESRS S2-1 17 Human rights policy commitments xvalue chain94 Workers in the ESRS S2-1 18 Policies related to value chain workers xvalue chain94 Non-compliance with UNGPs on Business and Human Rights principles Workers in the ESRS S2-1 19 and OECD guidelines xxvalue chain94 Due diligence policies on issues addressed by the fundamental Interna-Workers in the ESRS S2-1 19 tional Labour Organization Conventions 1 to 8 xvalue chain94 Human rights issues and incidents connected to upstream and down-Workers in the ESRS S2-4 36 stream value chain xvalue chain94 ESRS S3-1 16 Human rights policy commitments xNot materialNon-compliance with UNGPs on Business and Human Rights, ILO prin-ESRS S3-1 17 ciples or OECD guidelines xxNot materialESRS S3-4 36 Human rights issues and incidents xNot materialConsumers and ESRS S4-1 16 Policies related to consumers and end-users xend-users 95 Non-compliance with UNGPs on Business and Human Rights and Consumers and ESRS S4-1 17 OECD guidelines xxend-users 95 Consumers and ESRS S4-4 35 Human rights issues and incidents xend-users 95 ESRS G1-1 10 (b) United Nations Convention against Corruption paragraph xBusiness conduct104-105 ESRS G1-1 10 (d) Protection of whistleblowers paragraph xBusiness conduct104-105 ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws paragraph xxBusiness conduct105 ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery xBusiness conduct104-105 Statement on sustainability due diligenceESRS 2 GOV-4 Statement on due diligence The following table provides a mapping of how Demant applies the core elements of due dili-gence in relation to people and the environment and where they are presented in this Sustainabil-ity statement. Paragraphs or pages in the Sustainability Disclosure relating to people and/or Core elements of due diligence Statement environment a) Embedding due diligence in govern-ESRS 2 GOV-2, page 56 People and environment ance, strategy and business model ESRS 2 GOV-3, page 8 in Remuneration Report 2024 People and environment ESRS 2 SBM-3, pages 58-63 People and environment b) Engaging with affected stakeholders ESRS 2 GOV-2, page 56 People and environment in all key steps of due diligence ESRS 2 SBM-2, page 64 ESRS 2 IRO-1, page 62 S1-2, pages 86-87, 89, 92 People S2-2, page 94 S4-2, pages 96, 99, 101 G1-1, page 104 People and environment Paragraphs or pages in the Sustainability Disclosure relating to people and/or Core elements of due diligence Statement environment c) Identifying and assessing adverse ESRS 2 IRO-1, page 62 People and environment impacts ESRS 2 SBM-3, page 58 d) Taking actions to address those ad-E1-1, page 68 Environment verse impacts E1-3, page 68 E5-2, pages 76-77 S1-4, page 87, 89, 92 People S2-4, page 94 S4-4, pages 96-97, 99, 101 G1-1, page 104 People and environment G1-3, page 104 e) Tracking the effectiveness of these E1-4, page 69 Environment efforts and communicating E1-5, page 70 E1-6 pages 70-72 E5-3, page 77 E5-4, page 78 E5-5, page 78 S1-5, pages 87, 90 People S1-6, pages 88, 92 S1-9, page 90 S1-17, page 87 S4-5, pages 98-100 G1-4, page 105 People and environment G1-5, page 106 </mrv:SustainabilityReport>
<fsa:AverageNumberOfEmployees contextRef="ctx-1" decimals="0" id="s10__7__5" unitRef="pure">21381</fsa:AverageNumberOfEmployees>
<fsa:AverageNumberOfEmployees contextRef="ctx-51" decimals="0" id="s10__8__5" unitRef="pure">20690</fsa:AverageNumberOfEmployees>
<mrv:CorporateGovernanceReport contextRef="ctx-1" id="s10__7__13" xml:lang="en">Corporate governance Risks and risk managementOrganisation and governance Risk management activities in the Demant Group include a variety of risk areas, many of which may impact the performance and reputation of the Group. The overall responsibility for risk manage-ment 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 man-agement of the Demant Group. Risks to which business areas, markets and operations are ex-posed 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 lead-ership, 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, develop-ment and risk management in key areas globally, i.e. IT, Finance, HR, Sustainability and Legal & Compliance. The functional boards are responsi-ble for risk management in their respective areas and for ensuring that policies, guidelines and pro-cesses are established to monitor risks and new legislation. The audit committee oversees the risk manage-ment processes related to financial risks, including sufficient and efficient internal controls. The audit committee has assessed the Groupâs existing control environment and concluded that it is ade-quate. Business ethics are an integral part of conducting business in a global world with many stakehold-ers. We continuously expand and improve the Groupâs business ethics programme to reflect our all-important commitment to a high level of busi-ness ethics, including our Code of Conduct, a global whistleblower scheme as well as global pol-icies and guidelines on business ethics. For more information, please refer to Sustainability state-ment on page 102. ⢠Risk management is an integral part of the management of the Demant Group. ⢠Risks are identified, monitored and miti-gated at all management levels. ⢠Functional boards exist to ensure focus on governance, development and risk management. ⢠The audit committee oversees financial risks and internal controls, and the Board of Directors approves and follows up on strategies and business plans. ⢠We are committed to a high level of busi-ness ethics. Innovation and operations Innovation risks We operate in highly product-driven markets where significant R&D initiatives help underpin our market position. It is vital for us to maintain our in-novative edge. We protect and maintain patents for our own groundbreaking technology, while ensuring that we do not infringe the rights of others. We must continue to attract the most competent employees in key areas. An important means to this end is to maintain our strong company culture and high employee engagement. Our investments in people development, leadership training and in-formation-sharing platforms are key to achieving this objective. We track the latest technology and make sure we take advantage of this in our products and ser-vices. Product requirement risks As a major player in the hearing healthcare mar-ket, Demant is exposed to certain regulatory risks in terms of changes to product requirements. We adhere to external regulatory requirements apply-ing to our products and services to ensure that our products are safe and effective to use and meet the requirements and needs of our users. We continuously engage with customers, healthcare practitioners and other stakeholders to ensure that we meet their needs when developing groundbreaking products. We incorporate the re-quirements of international standards and regulations into the design and development of our products to ensure compliance with regula-tions and product safety. All processes in our quality management system (QMS) contribute to ensuring that our products are effective and safe for our users. Notified bod-ies and different local national health authorities inspect our QMS on a yearly basis. Demant works continuously to improve these systems. As a gen-eral principle, our products are designed and mar-keted under risk management guidelines comply-ing with ISO 14971 to ensure the safety of our us-ers. In case of an unexpected incident, we act fast and decisively, following our processes and main-taining a transparent dialogue with relevant stake-holders. For more information on how we manage product quality and safety, please refer to page 99. Supply chain risks Stability in sourcing and delivering high-quality manufactured goods on time is crucial for us to be able to fulfil the commitments we have made to our customers. Supply disruptions may result in delayed deliver-ies or inefficient production set-ups. Lockdowns and other restrictions may also affect the global supply chain and thus increase the risk of sudden changes. We have business and contingency plans in place to secure service to our customers in the best possible way in any given situation. We closely monitor our supply situation and seek to keep adequate safety stocks to counter poten-tial interruptions in our production. Our main pro-duction facilities in Poland and Mexico are in close proximity to our largest markets, which is im-portant for us to be able to quickly and efficiently serve our customers in case of dynamic changes in the supply chain. We continuously evaluate our production footprint and dependency on key suppliers to strike a sound balance between flexibility, exposure and costs. We collaborate closely with our highly spe-cialised suppliers. In our supply chain and throughout our organisa-tion, we actively work to ensure a safe and engag-ing working environment. For more information on how we manage poten-tially negative impacts on our employees and peo-ple in our supply chain and potential risks linked to these, please refer to pages 85-94. Sustainability risks For information about sustainability-related risks, please refer to Sustainability statement on pages 60-61. ⢠We operate in highly product-driven mar-kets. ⢠We protect and maintain our technology through patents. ⢠We track the latest technology and make sure we take advantage of this in our products and services. ⢠We continuously engage with customers, healthcare practitioners and other stake-holders to ensure that we meet their needs when developing groundbreaking products. ⢠We have business and contingency plans in place to secure service to our custom-ers in the best possible way in any given situation. ⢠We continuously evaluate our production footprint and dependency on key suppli-ers to strike a sound balance between. Market and customer risks The hearing healthcare market consists of highly specialised players that operate in an extremely competitive market. While navigating in the cur-rent market conditions, we monitor potential changes to the competitive situation to ensure thatwe respond swiftly and effectively to changes in the market. Macroeconomic impacts on markets Historically, the hearing healthcare market has seen stable growth driven by demographic changes. The current macroeconomic uncertainties, which are still to some extent impacting some regions, may have an adverse effect on the demand for hearing healthcare solutions in those regions. Some countries are also seeing high inflation rates, impacting the economies in some markets. In case of macroeconomic or geopolitical head-winds, we seek to adapt our organisation, activi-ties and costs accordingly to mitigate the financial impacts in the affected markets. After the coronavirus pandemic, we have seen a general stabilisation of the hearing healthcare market. While the pandemic has largely passed, a new pandemic could limit contact with hearing aid users. Although the demand for our hearing healthcare products is not considered cyclical, the demand for hearing aids may suffer if client con-tact is limited, as a significant part of our sales is based on in-person counselling of individuals with hearing difficulties. Regulatory risks in the markets The Group is exposed to certain regulatory risks related to reimbursement schemes and public ten-ders in the markets where we operate. In most markets, the current regulatory landscape is con-sidered stable, so for the time being, we do not expect significant changes in the regulatory envi-ronment. There might be an overlap with commer-cial risks, if the level of reimbursement changes, or if the method of distribution in a market changes. While regulatory changes are an intrinsic part of the hearing healthcare market, we feel well posi-tioned to respond to such changes in the commer-cial environment. We continue to monitor any changes in the regulatory landscape and engage in dialogues with regulators as part of our busi-ness planning. Regulations regarding import and export The Group is subject to regulations regarding the export of products manufactured at our production sites and the import of these products to the mar-kets where they are sold. In case of changes to import regulations or ap-plied tariffs, the Group may incur additional costs. We monitor regulatory changes and apply meth-ods to mitigate the impact of these changes, in-cluding considering alternative production loca-tions and supply chain set-ups, if possible. Go-to-market risks The market development over the last few years has confirmed our belief in the importance of providing a combination of personal counselling, individual fitting, life-long service and highly ad-vanced technology. In the US, the new over-the-counter category of hearing aids has now been available since 2022, and while this may increase general access to hearing aids, we have only seen a limited impact on the hearing aid market in the US. In addition, the US market in general continues to see a large part of hearing aid purchases being covered by in-surance companies. The emergence of large managed care organisations continues to pose a risk to average selling prices in the hearing aid market, as volumes may to an increasing extent be consolidated among fewer players. This con-solidation may also result in lower fitting fees and lost customer loyalty. Sanction-related risks The Group sells its products in countries that may be subject to EU or US sanctions. These sanc-tions include financial sanctions, trade/export con-trols and sanctions against entities and individu-als. To ensure compliance, distributors and other business partners engaging in business in these countries are subject to sanction checks. Where needed, firm and swift actions are taken to ensure that the Group is compliant. Sanctions may in-crease due to geopolitical risks and result in an overall stop to trade in certain cases, as it has been the case for Russia and Belarus. The Group continues to closely monitor the changing legislation in this area and to further de-velop systems and processes to ensure that proper controls and documentation are in place to secure compliance. ⢠We monitor potential changes to the competitive situation to ensure that we respond swiftly. ⢠We seek to adapt our organisation, activi-ties and costs to mitigate the financial im-pacts of macroeconomic uncertainties. ⢠We adapt our operating model when we see changes to reimbursement schemes in markets where we operate. ⢠We continue to monitor changes in the regulatory landscape and engage in dia-logues with regulators. ⢠We are committed to complying with leg-islation related to financial sanctions, ex-port controls and other types of sanc-tions. Data and IT security As our Group becomes increasingly digitalised, more devices and control systems are connected online, resulting in a broader interface across our IT infrastructure that could potentially be compro-mised. As a large, global organisation, we are dependent on numerous IT systems and the general IT infra-structure to operate efficiently across our value chain. This carries an inherent risk of system er-rors, human errors, data breaches or other inter-ruptions that may impact the Group financially. In addition, we may be exposed to attempts to ac-cess or steal information, computer viruses, denial of service and other digital security breaches. Our IT security committee has continuously fol-lowed up on and monitored our IT security set-up to ensure that the Group remains focused on en-suring proper IT security. From 2025, the audit committee will carry this responsibility. Once a year, the committee reviews a maturity as-sessment based on the Cybersecurity Framework of the National Institute of Standards and Technol-ogy (NIST), the purpose of which is to ensure that also in future, we continue to focus on relevant parameters. The assessment was done internally in 2024. Confirming our commitment to protect client data and continuously improve cybersecurity, we have obtained ISO 27001 certification. We train and educate our employees in IT-related topics on an ongoing basis to limit any IT-related incidents caused by human errors. We regularly update policies to ensure that they are up-to-date and reflect the current environment. Demant is entrusted with personal data on em-ployees, customers, users and business partners, which are collected and processed in accordance with applicable laws and regulations. As our busi-ness continues to grow, the complexity of manag-ing customersâ data increases. We remain com-mitted to protecting personal data, and failure to do so could have serious consequences for the people whose data we possess as well as for the Group. We have a global data ethics policy, and it is mandatory for all employees to comply with the policy. The policy covers all processing of data, in-cluding personal and non-personal, and goes be-yond compliance as we already work diligently to ensure the processing of personal data is done in accordance with regulatory frameworks. For more information on how we manage personal data to protect our usersâ right to privacy, please refer to page 101 and our Data Ethics Policy. ⢠We continuously assess our IT maturity and remain focused on ensuring proper IT security. ⢠We train and educate our employees in IT-related topics. ⢠We ensure an adequate response and timely reporting in case of an IT security incident. ⢠We remain committed to protecting per-sonal data. Financial risks Financial risk management focuses on identifying risks related to changes in the financial markets and to customersâ propensity to pay for products and services. The Executive Leadership Team monitors the fi-nancial risks of the company to ensure that these remain well-balanced. Financial risks are man-aged centrally by Group Treasury, which is re-sponsible for securing attractive funding under the prevailing market conditions and for monitoring and mitigating risks related to liquidity, interest rates and exchange rates. Risks related to coun-terparties are managed in the individual markets. Capital structure, funding and liquidity Demant remains a highly cash-generating Group with a strong balance sheet. The Group continu-ously adapts its capital structure to the prevailing market conditions to secure attractive financing. We secure funding based on a strong commit-ment by our banks to provide longer-term bank fa-cilities. To mitigate potential liquidity and refinanc-ing risks, the Group has secured considerable un-drawn committed credit facilities. To minimise financing risks, we aim for more than 50% of our credit facilities to be committed with long-term maturity. Our financial gearing multiple is currently within our desired target range of 2.0-2.5. Interest rate risks Due to an increasing debt level as well as margin-ally increasing interest rates during the year, our financial expenses increased in 2024. Furthermore, credit spreads and debt margins in-creased in the financial markets due to higher capital requirements imposed on the banks. Currently, around 60% of the Groupâs debt is funded through facilities with fixed rates or hedged through financial instruments that limit the interest rate risk. The Group seeks to maintain a balanced mix be-tween fixed and floating rate debt. Exchange rate risks The Group is exposed to exchange rate risks, as it trades with counterparties in a number of coun-tries, and as it has cash flows in different curren-cies. It is therefore important to adequately bal-ance foreign exchange rate risks to avoid unex-pected adverse impacts on the Groupâs financial performance. The majority of Group companies transact mainly in local currencies and are therefore exposed to limited exchange rate risks. The Group does not hedge translation risks result-ing from the consolidation of Group accounts into Danish kroner. Most Group companies are in-voiced from the Danish production entities. Around two-thirds of the invoices out of Denmark are issued in other currencies than Danish kroner or euros. To reduce our exchange rate exposure, we continuously seek to balance incoming and outgoing cash flows in our main trading currencies as much as possible. To ensure predictability in terms of net profit, we hedge expected future net cash flows, mainly through forward exchange con-tracts with a horizon of up to 18 months. In addition, we seek to balance our on-balance net exposure in our main trading currencies and to hedge our exposure, if relevant. It is the Groupâs policy to exclusively hedge financial risks arising from our commercial activities and not to under-take any financial transactions of a speculative nature. Counterpart risks From a commercial point of view, the Group is ex-posed to credit risks if our customers fail to pay for products and services provided. Such risks mainly relate to trade receivables and loans to customers or business partners, and failure to adequately manage credit risks may adversely impact the Group. To minimise the risk of suffering losses on cus-tomers, the Group monitors the credit risks on an ongoing basis. The Group generally has a diversi-fied customer base, and in 2024 the accumulated revenue from our ten largest customers ac-counted for approximately 13% of total consoli-dated revenue. We regularly adjust our financial accounts to reflect the current credit risks. When granting loans to business partners, we re-quire that our counterparties provide security in their business. In general, we estimate that the risk relative to our total credit exposure is well-bal-anced at Group level, and historically, we have only suffered limited credit-related losses. The credit risk on cash is managed in accordance with the Groupâs policy by selecting core banking partners, all with strong credit ratings. Due to its global presence and operations, the Group holds some cash balances; however, these are distrib-uted across multiple banks and locations, minimiz-ing the associated credit risk. Please refer to Financial statements, note 4.1. ⢠To mitigate potential liquidity and refi-nancing risks, the Group has secured ac-cess to considerable undrawn committed credit facilities. ⢠We limit interest rate risks by hedging part of our exposure. ⢠We continuously seek to balance and, if relevant, to hedge our foreign exchange rate exposures. ⢠We monitor the credit risks related to business partners on an ongoing basis. Governance frameworkMaintaining appropriate corporate governance is an ongoing focus area for the Board of Directors and Executive Board in Demant. Once a year, the Board of Directors and Executive Board review the companyâs corporate govern-ance principles, including principles that derive from legislation, recommendations and good prac-tices. We are committed to developing and main-taining a transparent corporate governance struc-ture that promotes responsible business behav-iour and long-term value creation. Recommendations issued by the Danish Commit-tee on Corporate Governance and adopted by Nasdaq Copenhagen are best-practice guidelines for the governance of companies admitted to trad-ing on a regulated market in Denmark. When reporting on corporate governance, we fol-low the âcomply or explainâ principle. Demant complies with 38 of the 40 recommendations. In the two cases where we have chosen to deviate from a recommendation, we provide well-founded explanations and explain what we do instead. To further increase transparency, we provide supple-mentary and relevant information, even when we comply with the recommendations. Corporate Governance Report 2024 provides a complete presentation of the recommendations and how we comply with them. The report as well as the financial reporting process and internal control described in Risk management activities in this Annual Report 2024 constitute Demantâs statement on corporate governance, cf. section 107b of the Danish Financial Statements Act. 1Governance structureIn accordance with Danish legislation, Demant has a two-tier management system, comprising the Board of Directors and the Executive Board. No individual is a member of both. The division of responsibilities between the Board of Directors and the Executive Board is clearly outlined and described in the Rules of Procedure for the Board of Directors and in the Instructions for the Execu-tive Board. The Board of Directors is responsible for the over-all strategic management and the financial and managerial supervision of the company, the ulti-mate goal being to ensure long-term value crea-tion. The Board of Directors supervises the work of the Executive Board. The Executive Board is responsible for the daily operations and develop-ment of the business in accordance with the stra-tegic direction. The members of the Executive Board are the CEO, CFO and the President of Hearing Care, who are registered with the Danish Business Authority. The Executive Board has formed a wider Execu-tive Leadership Team. On 1 November, we wel-comed Anne-Karen Hunt as new President of Di-agnostics. With this addition, the Executive Lead-ership Team is complete with Presidents repre-senting the three business areas (Hearing Aids, Hearing Care and Diagnostics) and the President of Group Services. The CEO is also President of Hearing Aids, and the CFO is President of Group Services. Composition of the Board of Directors Since the annual general meeting in March 2024, the Board of Directors has consisted of seven members: four members elected by the share-holders at the annual general meeting and three members elected by staff in Denmark. Sharehold-ers elect Board members for a term of one year, and staff elect Board members for a term of four years. Staff-elected members are elected in ac-cordance with the provisions of the Danish Com-panies Act. On 1 November 2024, Charlotte Hede-gaard resigned and was replaced by staff-elected alternate, Anders Højsgaard Thomsen. Although the Board members elected by the shareholders at the annual general meeting are up for election every year, the individual Board members are traditionally re-elected and sit on the Board for an extended number of years. This en-sures consistency and maximum insight into the conditions prevailing in the company and the in-dustry. Such consistency and insight are consid-ered important in order for the Board members to bring value to the company. Two of the four Board members presently elected by the shareholders at the annual general meeting are considered independent. The four Board members stand for re-election at the annual gen-eral meeting in March 2025. Additionally, the Board proposes that Katrin Pucknat is elected as a new member of the Board. She will be consid-ered independent. She brings significant experi-ence from the MedTech Industry as well as strong competence within marketing, sale, product inno-vation and digital business transformation. The Board is composed to ensure the right combi-nation of competencies and experience, with ex-tensive international managerial experience, board experience from major listed companies and diversity traits carrying particular weight. On our website, www.demant.com/about/manage-ment-and-governance, we describe the compe-tencies and qualifications that the Board of Direc-tors deems necessary to have at its overall dis-posal in order to perform its tasks for the com-pany. ShareholdersBoard of DirectorsExecutive BoardExecutive Leadership TeamHearing Aids Hearing CareDiagnostics Group ServicesFunctional BoardsDiversity The Board of Directors aims to have at least 40% of the underrepresented gender among the Board members elected by the shareholders, as this constitutes an even distribution in terms of gen-der. In 2024, the Parent, Demant A/S, maintained an even distribution of gender both in the Board of Directors and at other management levels, cf. section 139c of the Danish Companies Act. As part of our ambitions to ensure diversity and in-clusion in the Group, we have a Policy on Diver-sity, Equity and Inclusion, which includes targets to increase diversity and inclusion in the Demant Group. Demant is present in all parts of the world and employs people with different ethnic background, personality, nationality, age, sexual orientation, gender and education. We encourage respect for diversity and strive to treat all employees fairly. Board of Directors 2024 2023 Total number of shareholder- elected mem-bers4* 5 Women 25% 40% Men 75% 60% *Equal to an even (40/60%) distribution, cf. the Danish Busi-ness Authorityâs Guidelines on target figures and policies for the gender composition of management.Evaluation of the performance of the Board of Directors Once a year, the Board of Directors performs an evaluation of the Boardâs work. The evaluation is performed either through personal, individual in-terviews with the Chair and each of the Board members or by means of a questionnaire to be filled out by the individual Board members. In bothinstances, the findings of the evaluation are pre-sented and discussed at the subsequent Board meeting. At least every third year, the evaluation is performed with external assistance. In 2024, the evaluation was performed through in-dividual interviews with the Board members. Over-all, the evaluation confirmed that the Board is sat-isfied with its governance structures and further-more confirmed that the interaction between the Board members works well. The Board of Direc-tors is keen to keep focus on and allocate time to the long-term strategic development of the com-pany to continuously ensure that the companyâs potential is fully exploited. The Board confirmed that the separation of the audit committee meet-ings from the ordinary Board meetings, which wasimplemented in 2023, works well. This has led not only to more in-depth discussions on audit and fi-nancial topics, but also allowed the Board mem-bers to focus more on the strategic development of the company. Furthermore, the Board of Directors has decided to dissolve the IT security committee as a sepa-rate committee by the end of 2024. In the future, the audit committee will follow up on IT security matters. The IT security committee was estab-lished shortly after the IT incident in 2019, and for the past five years, it has served the Board and the company well by emphasising the importance of IT security and report-ing on the progress made by the company in this area. The audit committee will continue the work of the IT security committee. The collaboration between the Board of Directors and the Executive Board works well, and there is an open and trustful working atmosphere. The work performed by the Board of Directors takes its starting point in the annual wheel, which is regu-larly refined and updated and ensures the Boardâs commitment and immersion into relevant areas. Board committees In 2024, the company had four Board committees: an audit, a nomination, a remuneration and an IT security committee. The audit committee has, on an ongoing basis, been engaged in performing its work as a commit-tee separate from the ordinary Board meetings. This has allowed the members of the committee to focus more on audit and financial topics. In 2024, one major focus area for the audit commit-tee has been to ensure that the Group meets the provisions of the Corporate Sustainability Report-ing Directive in its financial and sustainability re-porting. The nomination committee has been engaged in activities in relation to its normal tasks pursuant to the committee charter. The committee has also been engaged in the search for a new candidate for the Board of Directors, who will be proposed for election at the upcoming annual general meet-ing. The remuneration committee has been engaged in supervising the remuneration structure and pre-paring the Remuneration Policy, which was adopted in March 2022. The committee is satis-fied with the Policy, which aims to align the Exec-utive Boardâs focus with value creation on im-portant parameters. The IT security committee has focused on fol-lowing up on and ensuring progress in the plans made. Once a year, the committee performs a maturity assessment based on the Cybersecurity Framework of the National Institute of Standards and Technology (NIST), the purpose of which is to ensure that also in future, we continue to focus on relevant parameters. Board of Directorsâ and ExecutiveBoardâs remuneration Demant has a Remuneration Policy and publishesa Remuneration Report. The current Policy was approved at the annual general meeting in March 2022. Please refer to Remuneration Report 2024 on our website for further details. The Report will be submitted for advisory vote at the annual general meeting in March 2025. Independence and meeting attendance overviewMeeting attendance Board of Audit Nomination Remuneration IT security Name Role Independence Directors committee committee committee committee Niels B. Christiansen Chair, chair of the re-Not independent 7/7 3/3 4/4 3/3 muneration, nomina-tion and IT security committees Niels Jacobsen Vice Chair Not independent 7/7 3/3 3/3 4/4 3/3 Thomas Duer Staff-elected member N/A 7/7 Heidir Hørby Staff-elected member N/A 7/7 Sisse Fjelsted Member, chair of audit Independent 7/7 3/3 3/3 Rasmussen committee Anders Højsgaard Staff-elected member N/A 1/1 1ThomsenKristian Villumsen Member Independent 7/7 3/3 Lars Nørby JohansenChair of the Board of N/A 3/3 Directors of William Demant Foundation Søren Nielsen President & CEO N/A 3/3 Board members who stepped down in 2024 1Charlotte HedegaardStaff-elected member N/A 6/6 2Anja Madsen Member Independent 2/2 1 Anders Højsgaard Thomsen replaced Charlotte Hedegaard as staff-elected member on 1 November 2024. 2 Anja Madsen decided not to stand for re-election in 2024 and stepped down at the annual general meeting on 6 March 2024.Shareholder information Share information(DKK 1,000)2024 2023 2022 2021 2020 Share capital at 1 January 44,788 46,076 48,025 48,138 49,057 Capital reduction -570 -1,288 -1,950 -113 -919 Share capital at 31 December 44,218 44,788 46,076 48,025 48,138 Nominal value per share, DKK 0.2 0.2 0.2 0.2 0.2 Total number of shares, thousand 221,090 223,939 230,378 240,127 240,691 Highest share price, DKK 371.0 312.3 339.3 394.7 244.4 Lowest share price, DKK 249.4 190.0 173.1 219.6 132.2 Share price, year-end, DKK 264.2 296.0 192.6 335.1 240.6 Market capitalisation at 31 December, DKK million¹ 56,278 65,284 42,977 77,117 57,718 Average daily trading turnover, DKK million¹â¾Â²â¾ 93.6 85.6 76.2 111.0 99.8 Average number of shares, million¹ 217.2 223.1 226.0 234.8 239.8 Number of shares at 31 December, million¹ 213.0 220.5 223.2 230.1 239.9 Number of treasury shares at 31 December, million 8.1 3.4 7.2 10.0 0.8 ¹Excluding treasury shares ²Average daily trading turnover on Nasdaq Share price development The price of Demant shares decreased by 10.7% in 2024, and on 31 December 2024, the share price was DKK 264.2 This corresponds to a mar-ket capitalisation of DKK 56.3 billion (excluding treasury shares). The average daily trading turno-ver in 2024 was DKK 94 million. The company is a constituent of the OMX Copenhagen 25 Index (C25), which covers the 25 largest and most fre-quently traded shares on Nasdaq Copenhagen. The C25 Index decreased by 2.4% during the year. Ownership William Demant Foundation is the majority share-holder in Demant through its investment company William Demant Invest and has previously com-municated its intention to maintain an ownership interest of 55-60% of Demantâs share capital. As at 31 December 2024, William Demant Founda-tion held â either directly or indirectly â approxi-mately 56% of the share capital, excluding treas-ury shares. No other shareholders had flagged an ownership interest of 5% or more as at 31 December 2024. Demant had 33,847 individual investors as at 31 December 2024. Excluding shares held by the William Demant Foundation, approximately 40% of the share capital is registered in Denmark and 25% is registered in North America. The remain-ing 35% of the share capital is split between the remaining geographies but is predominantly regis-tered in Europe. As at 31 December 2024, the company held 8,075,473 treasury shares, corresponding to 3.6% of the share capital. Shareholder structure as at 31 December 2024 (excluding treasury shares)William Demant Foundation56%Free Float44%Share capital As at 31 December 2024, Demantâs nominal share capital was DKK 44,217,958.40 divided into 221,089,792 shares of DKK 0.20 each. All shares are the same class and carry one vote each. The change compared to the year before is due to the cancellation of treasury shares amount-ing to DKK 569,929.60, which was approved at the annual general meeting on 6 March 2024. The Board of Directors is authorised to increase the companyâs share capital by a total nominal value of up to DKK 4,800,000. This increase may consist of no more than DKK 4,800,000 of the share capital with pre-emptive rights for existing shareholders and of no more than DKK 4,800,000 of the share capital without pre-emptive rights for existing shareholders. The companyâs share capi-tal can also be increased through a combination of share capital with and without pre-emptive rights, but it cannot exceed a total nominal value of DKK 4,800,000. Furthermore, the Board of Di-rectors is authorised to increase the share capital by an additional nominal value of up to DKK 2,500,000 for shares offered to employees. All au-thorisations have been decided by the annual general meeting and are valid until 1 March 2026. Capital allocation The company follows the principles of its capital allocation policy and uses its cash flow from oper-ating activities for value-adding investments and acquisitions. Subject to Demantâs targeted gearing multiple of 2.0-2.5 measured as net interest-bear-ing debt relative to EBITDA, any excess liquidity is distributed back to shareholders through share buy-backs. Until the next annual general meeting in March 2025, the Board of Directors has been authorised to let the company buy back shares at a nominal value of up to 10% of the share capital. The pur-chase price may not deviate by more than 10% from the price quoted on Nasdaq Copenhagen. Investor Relations Demant strives to ensure a steady and consistent flow of information to Investor Relations (IR) stakeholders in order to promote the basis for a fair pricing of the companyâs shares â pricing that will at any time reflect the companyâs strategies, fi-nancial capabilities and outlook for the future. The flow of information will contribute to a reduction of the company-specific risk associated with invest-ing in Demant shares, thereby leading to a reduc-tion of the companyâs cost of capital. We aim to reach this goal by continuously provid-ing relevant, correct, adequate and timely infor-mation in our company announcements. In the course of the year, we publish an annual report, an interim report as well as interim management statements pertaining to Q1 and Q3, all of which contain updates on the Group and its financial po-sition as well as results in relation to the full-year outlook, including updates on important events and transactions in the period under review. We strive to maintain an active and open dialogue with analysts and with current and potential inves-tors, which helps the company stay updated on the views, interests and opinions of the companyâs various stakeholders. At our annual general meet-ing and through presentations, individual meet-ings, participation in investor conferences, webcasts, capital markets days etc., we aim to maintain an ongoing dialogue with a broad spec-trum of stakeholders. In 2024, we held nearly 400 investor meetings and presentations. We also use our website, www.demant.com, as a means of communication with our stakeholders. At the end of 2024, 25 equity analysts were cover-ing Demant. We refer to our website for a full list of analyst coverage. Demant has a three-week quiet period prior to publication of annual reports, interim reports and interim management statements during which time communication with IR stakeholders on the current market development is restricted. Five-year development in share price 400350300250200150100Jan/20 Jul/20 Jan/21 Jul/21 Jan/22 Jul/22 Jan/23 Jul/23 Jan/24 Jul/24Demant OMX C25 (Rebased)Considered independent: No Considered independent: No Considered independent: Yes Considered independent: Yes Competences: International leadership experience from major, global, industrial, con-sumer goods and high-tech companies, business management and board experience as well as strong insights into industrial policy and sustaina-1bility/ESGCompetences: International leadership experience from major, global companies in the global healthcare and MedTech industry, business management and board experience as well as in-depth insights into financial matters, accounting, 1tax, risk management and M&ACompetences: International leadership experience within the areas of finance and ac-counting, including board and CFO experience from listed companies as well as in-depth insights into value creation, change management, M&A 1and sustainability/ESGCompetences: International leadership experience from the global MedTech industry, management experience from such areas as inno-vation, sales, strategy deployment and commer-1cial excellence</mrv:CorporateGovernanceReport>
<mrv:StatementOfPolicyForDataEthics contextRef="ctx-1" id="s10__7__8" xml:lang="en">As our Group becomes increasingly digitalised, more devices and control systems are connected online, resulting in a broader interface across our IT infrastructure that could potentially be compro-mised. As a large, global organisation, we are dependent on numerous IT systems and the general IT infra-structure to operate efficiently across our value chain. This carries an inherent risk of system er-rors, human errors, data breaches or other inter-ruptions that may impact the Group financially. In addition, we may be exposed to attempts to ac-cess or steal information, computer viruses, denial of service and other digital security breaches. Our IT security committee has continuously fol-lowed up on and monitored our IT security set-up to ensure that the Group remains focused on en-suring proper IT security. From 2025, the audit committee will carry this responsibility. Once a year, the committee reviews a maturity as-sessment based on the Cybersecurity Framework of the National Institute of Standards and Technol-ogy (NIST), the purpose of which is to ensure that also in future, we continue to focus on relevant parameters. The assessment was done internally in 2024. Confirming our commitment to protect client data and continuously improve cybersecurity, we have obtained ISO 27001 certification. We train and educate our employees in IT-related topics on an ongoing basis to limit any IT-related incidents caused by human errors. We regularly update policies to ensure that they are up-to-date and reflect the current environment. Demant is entrusted with personal data on em-ployees, customers, users and business partners, which are collected and processed in accordance with applicable laws and regulations. As our busi-ness continues to grow, the complexity of manag-ing customersâ data increases. We remain com-mitted to protecting personal data, and failure to do so could have serious consequences for the people whose data we possess as well as for the Group. We have a global data ethics policy, and it is mandatory for all employees to comply with the policy. The policy covers all processing of data, in-cluding personal and non-personal, and goes be-yond compliance as we already work diligently to ensure the processing of personal data is done in accordance with regulatory frameworks. For more information on how we manage personal data to protect our usersâ right to privacy, please refer to page 101 and our Data Ethics Policy. ⢠We continuously assess our IT maturity and remain focused on ensuring proper IT security. ⢠We train and educate our employees in IT-related topics. ⢠We ensure an adequate response and timely reporting in case of an IT security incident. ⢠We remain committed to protecting per-sonal data.</mrv:StatementOfPolicyForDataEthics>
<mrv:StatementOfTheDiversityPolicies contextRef="ctx-1" id="s10__7__17" xml:lang="en">Diversity The Board of Directors aims to have at least 40% of the underrepresented gender among the Board members elected by the shareholders, as this constitutes an even distribution in terms of gen-der. In 2024, the Parent, Demant A/S, maintained an even distribution of gender both in the Board of Directors and at other management levels, cf. section 139c of the Danish Companies Act. As part of our ambitions to ensure diversity and in-clusion in the Group, we have a Policy on Diver-sity, Equity and Inclusion, which includes targets to increase diversity and inclusion in the Demant Group. Demant is present in all parts of the world and employs people with different ethnic background, personality, nationality, age, sexual orientation, gender and education. We encourage respect for diversity and strive to treat all employees fairly. Board of Directors 2024 2023 Total number of shareholder- elected mem-bers4* 5 Women 25% 40% Men 75% 60% *Equal to an even (40/60%) distribution, cf. the Danish Busi-ness Authorityâs Guidelines on target figures and policies for the gender composition of management.Evaluation of the performance of the Board of Directors Once a year, the Board of Directors performs an evaluation of the Boardâs work. The evaluation is performed either through personal, individual in-terviews with the Chair and each of the Board members or by means of a questionnaire to be filled out by the individual Board members. In bothinstances, the findings of the evaluation are pre-sented and discussed at the subsequent Board meeting. At least every third year, the evaluation is performed with external assistance. In 2024, the evaluation was performed through in-dividual interviews with the Board members. Over-all, the evaluation confirmed that the Board is sat-isfied with its governance structures and further-more confirmed that the interaction between the Board members works well. The Board of Direc-tors is keen to keep focus on and allocate time to the long-term strategic development of the com-pany to continuously ensure that the companyâs potential is fully exploited. The Board confirmed that the separation of the audit committee meet-ings from the ordinary Board meetings, which wasimplemented in 2023, works well. This has led not only to more in-depth discussions on audit and fi-nancial topics, but also allowed the Board mem-bers to focus more on the strategic development of the company. Furthermore, the Board of Directors has decided to dissolve the IT security committee as a sepa-rate committee by the end of 2024. In the future, the audit committee will follow up on IT security matters. The IT security committee was estab-lished shortly after the IT incident in 2019, and for the past five years, it has served the Board and the company well by emphasising the importance of IT security and report-ing on the progress made by the company in this area. The audit committee will continue the work of the IT security committee. The collaboration between the Board of Directors and the Executive Board works well, and there is an open and trustful working atmosphere. The work performed by the Board of Directors takes its starting point in the annual wheel, which is regu-larly refined and updated and ensures the Boardâs commitment and immersion into relevant areas.</mrv:StatementOfTheDiversityPolicies>
<mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="s10__7__15" xml:lang="en">EU taxonomyThe Demant Groupâs reporting on EU taxonomy follows Regulation (EU) 2020/852 of the European Parliament and of the Council. This requires non-financial listed companies to report their environ-mentally sustainable economic activities that are eligible under the Taxonomy Regulation and aligned with the screening criteria for the six envi-ronmental objectives to be included in the report-ing for 2024. This requires Demant to assess whether there are economic activities that qualify as eligible. To determine Demantâs eligible activities, we have screened our turnover, OPEX (the cost of R&D, short-term leases, maintenance and repair) and CAPEX (net investments in property, plant and equipment, intangible assets and addition of right-of-use assets) against the activities of the Taxon-omy Compass. The three eligible economic activities that are sub-ject to alignment under the EU taxonomy are: ⢠Manufacture of electrical and electronic equip-ment, which relates to our manufacturing of hearing aids and diagnostic instruments. ⢠Data processing, hosting and related activi-ties, which relates to our IT servers. ⢠Acquisition and ownership of buildings, which relate to our offices, manufacturing facilities and retail. Changes since 2023 In 2024, it became mandatory to disclose align-ment with the identified eligible activities. Demant has considered the alignment criteria for each eli-gible activity applicable for Demant and included the result in the EU taxonomy tables of the 2024 report. Alignment For Demant to be able to claim alignment in any of the three eligible activities, the company needs to fulfil all the requirements of the technical crite-ria, the âdo no significant harmâ requirement and the minimum safeguards requirements defined by the EU Commission. Demant has assessed the alignment requirements defined for each of Demantâs eligible activities to determine the alignment percentage for each of them. To ensure compliance with the minimum safe-guards, we have assessed the compliance of our policies and guidelines with UN Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational Enterprises. During the assessment, we ascertained that De-mant aligns with the minimum safeguards require-ments. Nevertheless, for each eligible economic activity, there is at least one technical criteria or âdo no significant harmâ requirement that we do not fulfil. An example of this is the eligible activity under the circular economy objective where our misalignment with the criteria is caused by the technical specifications of our products associated to quality and safety. Looking ahead We continue to monitor the development and guidance of the Taxonomy Regulation. Turnover Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (y/n) Cate-Propor-Climate Climate Water Pollution Protec-Climate Climate Water Pollution Protec-Minimum Propor-gopry tion of change change and ma-preven-tion of bi-change change and ma-preven-tion of bi-social tion of enbling/trAbsolute turnover mitiga-adapta-rine re-Circular tion and odiver-mitiga-adapta-rine re-Circular tion and odiver-safe-turnover ansi-Economic activity Code turnover in 2024 tion tion sources economy control sity tion tion sources economy control sity guards in 2023 tional DKK mil-lion % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activitiesNone0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Turnover of taxonomy aligned ac-tivities (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activities Manufacturing of electrical and elec-tronic equipmentCE 1.2 18,806 84 0 0 0 100 0 0 96 Turnover of taxonomy eligible but not aligned activities (A.2) 18,806 84 0 0 0 100 0 0 96 Turnover of taxonomy eligible ac-tivities (A1 + A2) 18,806 84 0 0 0 100 0 0 96 B. Taxonomy non-eligible activities Turnover of Taxonomy-non-eligible activities 3,613 16 4 Total¹ 22,419 100 100 ¹ Total revenue, Financial statements 2024, note 1.1 CAPEX Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (y/n) Cate-Propor-Climate Climate Water Pollution Protec-Climate Climate Water Pollution Protec-Minimum Propor-gopry tion of change change and ma-preven-tion of bi-change change and ma-preven-tion of bi-social tion of ena-Absolute CAPEX in mitiga-adapta-rine re-Circular tion and odiver-mitiga-adapta-rine re-Circular tion and odiver-safe-CAPEX in bling/tranEconomic activityCodeCAPEX 2024 tion tion sources economy control sity tion tion sources economy control sity guards 2023 sitional DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activitiesNone0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Turnover of taxonomy aligned ac-tivities (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activitiesAcquisition and ownership of build-ingsCCM 7.7 876 57 100 0 0 0 0 0 56 Manufacturing of electrical and elec-tronic equipmentCE 1.2 134 8 0 0 0 100 0 0 0 Data processing and hostingCCM 8.1 28 2 100 0 0 0 0 0 0 CAPEX of taxonomy eligible but not activities (A.2) 1,038 67 100 0 0 100 0 0 56 CAPEX of taxonomy eligible activ-ities (A1 + A2) 1,038 67 100 0 0 100 0 0 56 B. Taxonomy non-eligible activities CAPEX of Taxonomy-non-eligible activities49033 44 Total¹ 1,528 100 100 ¹ Property, plant and equipment, Financial statements, note 3.2 and 3.3 OPEX Substantial contributions to objectives 1-6 (%) Do no significant harm to objectives 1-6 (%) Cate-Propor-Climate Climate Water Pollution Protec-Climate Climate Water Pollution Protec-Minimum Propor-gopry tion of change change and ma-preven-tion of bi-change change and ma-preven-tion of bi-social tion of ena-Absolute OPEX in mitiga-adapta-rine re-Circular tion and odiver-mitiga-adapta-rine re-Circular tion and odiver-safe-OPEX in bling/tranEconomic activity Code OPEX 2024 tion tion sources economy control sity tion tion sources economy control sity guards 2023 sitional DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E/T A.1 Taxonomy aligned activities None0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a OPEX of taxonomy aligned activi-ties (A.1) 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which enabling 0 0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Of which transitional0 0 0 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 n/a Taxonomy eligible but not aligned activitiesData processing and hostingCCM 8.1 49 3 100 0 0 0 0 0 0 OPEX of taxonomy eligible but not activities (A.2) 49 3 0 0 0 0 0 0 0 OPEX of taxonomy eligible activi-ties (A1 + A2) 49 3 0 0 0 0 0 0 0 B. Taxonomy non-eligible activities OPEX of Taxonomy-non-eligible ac-tivities 1,413 97 0 Total¹ 1,462 100 100 ¹ Employee cost by function, Financial statements, note 1.2 Nuclear energy and fossil gas related activities The questionnaire below is related to the manda-tory EU taxonomy disclosure regarding nuclear energy and fossil gas related activities and covers the Turnover, OPEX and CAPEX KPI as the an-swer is the same. Row Nuclear energy related activities Yes/No 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity No generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity No or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process No heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. Fossil gas related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity No using fossil gaseous fuels. 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power gen-No eration facilities using fossil gaseous fuels. 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce No heat/cool using fossil gaseous fuels. Accounting policy Turnover Turnover is reported and defined as taxonomy-eli-gible turnover (numerator) divided by the total turnover (denominator). OPEX Total OPEX covers direct non-capitalised costs pertaining to R&D, renovation of buildings, short-term leases, maintenance and other direct costs relating to the day-to-day servicing of property, plant and equipment. The KPI is defined as taxonomy-eligible OPEX (numerator) divided by total OPEX (denominator). CAPEX CAPEX consists of additions to property, plant and equipment, intangible assets, excluding good-will and addition of right-of-use assets. The KPI is defined as taxonomy-eligible CAPEX (numerator) divided by total CAPEX (denominator).</mrv:DescriptionofTheTaxonomyRegulation>
<sob:StatementByExecutiveAndSupervisoryBoards contextRef="ctx-1" id="s10__7__224" xml:lang="en">Statement by Management The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Demant A/S for the financial year 1 Jan-uary â 31 December 2024. The consolidated financial statements for Demant A/S has been prepared in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act, and the Parent financial state-ments have been prepared in accordance with the Danish Financial Statements Act. Management statement has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial state-ments and the Parent financial statements give a true and fair view of the financial position at 31 December 2024 of the Group and the Parent and the results of the Group and the Parent operations and consolidated cash flows for the financial year 1 January to 31 December 2024. In our opinion, Management statement includes a fair review of the development in the operations and financial circumstances of the Group and the Parent, of the results for the year and of the finan-cial position of the Group and the Parent as well as a description of the most significant risks and elements of uncertainty, which the Group and the Parent are facing. Additionally, the Sustainability statement, which are part of Management statement, have been prepared, in all material respects, in accordance with paragraph 99a of the Danish Financial State-ments Act. This includes compliance with the Eu-ropean Sustainability Reporting Standards (ESRS), including that the process undertaken by Management to identify the reported information (the âProcessâ) is in accordance with the descrip-tion set out in the section titled Double materiality assessment. Furthermore, disclosures in subsec-tion EU taxonomy in the environmental section of the Sustainability statement are, in all material re-spects, in accordance with article 8 of EU Regula-tion 2020/852 (the âTaxonomy Regulationâ). The year 2024 marks the initial implementation of paragraph 99a of the Danish Financial Statements Act on compliance with ESRS. As such, clearer guidance and practice are anticipated in various areas and are expected to be provided in the coming years. Furthermore, the Sustainability statement include forward-looking statements based on disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different, since anticipated events frequently do not occur as expected. In our opinion, the Annual Report of Demant A/S for the financial year 1 January to 31 December 2024 with the file name DEMANT-2024-12-31-en.zip is prepared, in all material respects, in com-pliance with the ESEF Regulation. We recommend that the Annual Report be adopted at the annual general meeting on 6 March 2025. </sob:StatementByExecutiveAndSupervisoryBoards>
<sob:PlaceOfSignatureOfStatement contextRef="ctx-1" id="s10__7__225" xml:lang="en">Smørum</sob:PlaceOfSignatureOfStatement>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-37" id="s10__7__227" xml:lang="en">Søren Nielsen</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-37" id="s10__7__228" xml:lang="en">President & CEO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-38" id="s10__7__229" xml:lang="en">René Schneider</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-38" id="s10__7__230" xml:lang="en">CFO</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfExecutiveBoard contextRef="ctx-39" id="s10__7__231" xml:lang="en">Niels Wagner,</cmn:NameAndSurnameOfMemberOfExecutiveBoard>
<cmn:TitleOfMemberOfExecutiveBoard contextRef="ctx-39" id="s10__7__232" xml:lang="en">President Hearing Care</cmn:TitleOfMemberOfExecutiveBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-40" id="s10__7__233" xml:lang="en">Niels B. Christiansen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-40" id="s10__7__234" xml:lang="en">Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-41" id="s10__7__235" xml:lang="en">Niels Jacobsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:TitleOfMemberOfSupervisoryBoard contextRef="ctx-41" id="s10__7__236" xml:lang="en">Vice Chair</cmn:TitleOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-42" id="s10__7__237" xml:lang="en">Thomas Duer</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-44" id="s10__7__239" xml:lang="en">Heidi Hørby</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-45" id="s10__7__240" xml:lang="en">Sisse Fjelsted Rasmussen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-43" id="s10__7__238" xml:lang="en">Anders Højsgaard Thomsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<cmn:NameAndSurnameOfMemberOfSupervisoryBoard contextRef="ctx-46" id="s10__7__241" xml:lang="en">Kristian Villumsen</cmn:NameAndSurnameOfMemberOfSupervisoryBoard>
<arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="s10__7__243" xml:lang="en">To the shareholders of Demant A/S</arr:AddresseeOfAuditorsReportOnAuditedFinancialStatements>
<arr:OpinionOnAuditedFinancialStatements contextRef="ctx-1" id="s10__7__244" xml:lang="en">Our opinion In our opinion, the Consolidated Financial State-ments give a true and fair view of the Groupâs fi-nancial position at 31 December 2024 and of the results of the Groupâs operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Stand-ards as adopted by the EU and further require-ments in the Danish Financial Statements Act. Moreover, in our opinion, the Parent Company Fi-nancial Statements give a true and fair view of the Parent Companyâs financial position at 31 Decem-ber 2024 and of the results of the Parent Com-panyâs operations for the financial year 1 January to 31 December 2024 in accordance with the Dan-ish Financial Statements Act. Our opinion is consistent with our Auditorâs Long-form Report to the Audit Committee and the Board of Directors. What we have audited The Consolidated Financial Statements of De-mant A/S for the financial year 1 January to 31 December 2024 comprise the consolidated in-come statement and consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement of changes in equity and the notes, including material accounting policy in-formation. The Parent Company Financial Statements of De-mant A/S for the financial year 1 January to 31 December 2024 comprise the income statement, the balance sheet, the statement of changes in equity and the notes, including material account-ing policy information. Collectively referred to as the âFinancial Statementsâ.</arr:OpinionOnAuditedFinancialStatements>
<arr:DescriptionOfQualificationsOfAuditedFinancialStatements contextRef="ctx-1" id="s10__7__245" xml:lang="en">Basis for opinion We conducted our audit in accordance with Inter-national Standards on Auditing (ISAs) and the ad-ditional requirements applicable in Denmark. Our responsibilities under those standards and re-quirements are further described in the Auditorâs responsibilities for the audit of the Financial State-ments section of our report. We believe that the audit evidence we have ob-tained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Ethics Standards Board for Accountantsâ International Code of Ethics for Pro-fessional Accountants (IESBA Code) and the ad-ditional ethical requirements applicable in Den-mark. We have also fulfilled our other ethical re-sponsibilities in accordance with these require-ments and the IESBA Code. To the best of our knowledge and belief, prohib-ited non-audit services referred to in Article 5(1) ofRegulation (EU) No 537/2014 were not provided. Appointment We were first appointed auditors of Demant A/S on 10 March 2022 for the financial year 2022. We have been reappointed annually by shareholder resolution for a total period of uninterrupted en-gagement of three years including the financial year 2024. </arr:DescriptionOfQualificationsOfAuditedFinancialStatements>
<arr:KeyAuditMattersAudit contextRef="ctx-1" id="s10__7__246" xml:lang="en">Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter AcquisitionsAcquisitions are complex transactions, which are subject to significant estimates, including the identification and valuation of assets, liabilities and contingent con-sideration etc. In order to determine the fair value of the separately identified as-sets and liabilities in a business combina-tion, the valuation methodologies require input based on assumptions about the fu-ture and applied discounted cash flow forecasts, including market development and WACC.We focused on this area because of the significance to the Financial Statements, the inherent complexity and high degree of estimation in the accounting for acqui-sitions, as well as the potential inherent risk related to the control environment.Reference is made to section 6.1 âAcqui-sition of enterprises and activitiesâ in the Consolidated financial statements.How our audit addressed the key audit matter We performed risk assessment procedures with the pur-pose of achieving an understanding of it-systems, proce-dures and relevant controls relating to acquisition account-ing. In respect of controls, we assessed whether these were designed and implemented effectively to address the risk of material misstatement. Our audit procedures included assessing the appropriate-ness of the accounting policies for acquisitions applied by Management and assessing compliance with IFRS Ac-counting Standards. We assessed the valuation methodologies applied by Management and challenged Managementâs significant assumptions used to determine the fair value of the ac-quired assets and liabilities in the acquisitions, including the fair value of the intangible assets. Finally, we assessed the adequacy of disclosures relating to the acquisitions. Key audit matter Revenue recognition Recognition of revenue is inherently complex due to the extent of different revenue streams, several performance obligations, trial periods and prepaid dis-counts, which are subject to interpreta-tion, including the point in time of satis-faction of the performance obligations and recognition of related deferred in-come in respect of e.g. extended warran-ties, after sales services, etc.We focused on this area because of the significance to the Financial Statements, as well as the complexity and high de-gree of estimation related to e.g. prepaid discounts, provision for sales returns and extended warranties and deferred in-come. In addition, we focused on this area as revenue comprises a substantial number of transactions, with different characteristics depending on the busi-ness area the revenue relates to.Reference is made to section 1.1 âReve-nue and segment disclosuresâ in the Consolidated financial statements.How our audit addressed the key audit matter Our audit procedures included considering the appropri-ateness of the accounting policies for revenue recognition applied by Management and assessing compliance with IFRS Accounting Standards. We performed risk assessment procedures to understand the information processing activities in relation to revenue recognition and evaluated whether the information sys-tems appropriately support revenue recognition and measurement in accordance with the accounting policies. We identified controls addressing risk of material misstate-ments determined to be significant risk and evaluated the design of the controls and determined whether the con-trols have been implemented. We assessed the accounting estimates related to the recognition and presentation of revenue with Manage-ment. Further, we performed substantive procedures regarding invoicing, significant contracts, cut-off at year-end and provision for e.g. sales returns and extended warranties in order to assess the accounting treatment and principles applied. We applied data analysis in our testing of selected reve-nue streams in order to identify transactions outside the ordinary transaction flow, including journal entry testing. Finally, we assessed the adequacy of disclosures relating to revenue recognition</arr:KeyAuditMattersAudit>
<arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements contextRef="ctx-1" id="s10__7__247" xml:lang="en">Statement on Management statement Management is responsible for Management statement. Our opinion on the Financial Statements does not cover Management statement, and we do not as part of the audit express any form of assurance conclusion thereon. In connection with our audit of the Financial State-ments, our responsibility is to read Management statements and, in doing so, consider whether Management statement is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. Moreover, we considered whether Management statement includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99 a re-lated to the sustainability statement covered by the separate auditorâs limited assurance report hereon. Based on the work we have performed, in our view, Management statement is in accordance with the Consolidated financial statements and the Parent Company financial statements and has been prepared in accordance with the require-ments of the Danish Financial Statements Act, ex-cept for the requirements in paragraph 99 a re-lated to the sustainability statement, cf. above. We did not identify any material misstatement in Man-agement statement. </arr:StatementOnManagementsReviewAuditorsReportOnAuditedFinancialStatements>
<arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements contextRef="ctx-1" id="s10__7__248" xml:lang="en">Managementâs responsibilities for the Financial Statements Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Statements Act and for the preparation of parent company fi-nancial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Manage-ment is responsible for assessing the Groupâs and the Parent Companyâs ability to continue as a go-ing concern, disclosing, as applicable, matters re-lated to going concern and using the going con-cern basis of accounting unless Management ei-ther intends to liquidate the Group or the Parent Company or to cease operations, or has no realis-tic alternative but to do so.</arr:StatementOfExecutiveAndSupervisoryBoardsResponsibilityForFinancialStatements>
<arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed contextRef="ctx-1" id="s10__7__249" xml:lang="en">Auditorâs responsibilities for the audit of the Financial Statements Our objectives are to obtain reasonable assur-ance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an au-ditorâs report that includes our opinion. Reasona-ble assurance is a high level of assurance, but is not a guarantee that an audit conducted in ac-cordance with ISAs and the additional require-ments applicable in Denmark will always detect a material misstatement when it exists. Misstate-ments can arise from fraud or error and are con-sidered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the ba-sis of these Financial Statements. As part of an audit in accordance with ISAs and the additional requirements applicable in Den-mark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ⢠Identify and assess the risks of material mis-statement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and ob-tain audit evidence that is sufficient and appro-priate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one re-sulting from error, as fraud may involve collu-sion, forgery, intentional omissions, misrepre-sentations, or the override of internal control. ⢠Obtain an understanding of internal control rel-evant to the audit in order to design audit pro-cedures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the effectiveness of the Groupâs and the Parent Companyâs internal control. ⢠Evaluate the appropriateness of accounting policies used and the reasonableness of ac-counting estimates and related disclosures made by Management. ⢠Conclude on the appropriateness of Manage-mentâs use of the going concern basis of ac-counting and based on the audit evidence ob-tained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Groupâs and the Par-ent Companyâs ability to continue as a going concern. If we conclude that a material uncer-tainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Financial Statements or, if such disclo-sures are inadequate, to modify our opinion. Our conclusions are based on the audit evi-dence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern. ⢠Evaluate the overall presentation, structure and content of the Financial Statements, in-cluding the disclosures, and whether the Fi-nancial Statements represent the underlying transactions and events in a manner that gives a true and fair view. ⢠Plan and perform the group audit to obtain suf-ficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial State-ments and the Parent Company Financial Statements. We are responsible for the direc-tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with govern-ance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with rele-vant ethical requirements regarding independ-ence, and to communicate with them all relation-ships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We de-scribe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter.</arr:StatementOfAuditorsResponsibilityForAuditAndAuditPerformed>
<arr:AuditorsReportOnXbrlTagging contextRef="ctx-1" id="s10__7__250" xml:lang="en">Report on compliance with the ESEF Regulation As part of our audit of the Financial Statements, we performed procedures to express an opinion on whether the annual report of Demant A/S for the financial year 1 January to 31 December 2024 with the filename DEMANT-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic For-mat (ESEF Regulation) which includes require-ments related to the preparation of the annual re-port in XHTML format and iXBRL tagging of the Consolidated Financial Statements including notes. Management is responsible for preparing an an-nual report that complies with the ESEF Regula-tion. This responsibility includes: ⢠The preparing of the annual report in XHTML format; ⢠The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to ele-ments in the taxonomy, for all financial infor-mation required to be tagged using judgement where necessary; ⢠Ensuring consistency between iXBRL tagged data and the Consolidated Financial State-ments presented in human-readable format; and ⢠For such internal control as Management de-termines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. Our responsibility is to obtain reasonable assur-ance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have ob-tained, and to issue a report that includes our opinion. The nature, timing and extent of proce-dures selected depend on the auditorâs judge-ment, including the assessment of the risks of ma-terial departures from the requirements set out in the ESEF Regulation, whether due to fraud or er-ror. The procedures include: ⢠Testing whether the annual report is prepared in XHTML format; ⢠Obtaining an understanding of the companyâs iXBRL tagging process and of internal control over the tagging process; ⢠Evaluating the completeness of the iXBRL tag-ging of the Consolidated Financial Statements including notes; ⢠Evaluating the appropriateness of the com-panyâs use of iXBRL elements selected from the ESEF taxonomy and the creation of exten-sion elements where no suitable element in the ESEF taxonomy has been identified; ⢠Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and ⢠Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. In our opinion, the annual report of Demant A/S for the financial year 1 January to 31 December 2024 with the file name DEMANT-2024-12-31-en.zip is prepared, in all material respects, in com-pliance with the ESEF Regulation.</arr:AuditorsReportOnXbrlTagging>
<arr:SignatureOfAuditorsPlace contextRef="ctx-1" id="s10__7__251" xml:lang="en">Hellerup</arr:SignatureOfAuditorsPlace>
<cmn:NameOfAuditFirm contextRef="ctx-48" id="s10__7__254" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:NameOfAuditFirm contextRef="ctx-47" id="s10__7__253" xml:lang="en">PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab</cmn:NameOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-47" id="s10__7__255">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:IdentificationNumberCvrOfAuditFirm contextRef="ctx-48" id="s10__7__256">33771231</cmn:IdentificationNumberCvrOfAuditFirm>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-47" id="s10__7__257" xml:lang="en">Rasmus Friis Jørgensen</cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-47" id="s10__7__258" xml:lang="en">State-Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-47" id="s10__7__259">mne28705</cmn:IdentificationNumberOfAuditor>
<cmn:NameAndSurnameOfAuditor contextRef="ctx-48" id="s10__7__260" xml:lang="en">Torben Jensen</cmn:NameAndSurnameOfAuditor>
<cmn:DescriptionOfAuditor contextRef="ctx-48" id="s10__7__261" xml:lang="en">State-Authorised Public Accountant</cmn:DescriptionOfAuditor>
<cmn:IdentificationNumberOfAuditor contextRef="ctx-48" id="s10__7__262">mne18651</cmn:IdentificationNumberOfAuditor>
<arr:AddresseeOfAuditorsReportOnSubstainabilityReports contextRef="ctx-1" id="s10__7__265" xml:lang="en">To the stakeholders of Demant A/S</arr:AddresseeOfAuditorsReportOnSubstainabilityReports>
<arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport contextRef="ctx-1" id="s10__7__266" xml:lang="en">Limited assurance conclusion We have conducted a limited assurance engage-ment on the sustainability statement of Demant A/S (the âGroupâ) included in Management state-ment in the Annual Report for 2024 (the âSustain-ability Statementâ), page 50 â 117, for the finan-cial year 1 January â 31 December 2024.</arr:IdentificationOfMattersOnWhichAssuranceReportIsProvidedAndDescriptionOfAssuranceEngagementSubstainabilityReport>
<arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport contextRef="ctx-1" id="s10__7__267" xml:lang="en">Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all ma-terial respects, in accordance with the Danish Fi-nancial Statements Act paragraph 99 a, including: ⢠Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sus-tainability Statement (the âProcessâ) is in ac-cordance with the description set out in the section âDouble materiality assessmentâ; and ⢠Compliance of the disclosures in subsection âEU taxonomyâ within the environmental sec-tion of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ).</arr:OpinionOnSubjectMatterOfAssuranceReportSubstainabilityReport>
<arr:AuditorsReportOnSubstainabilityReport contextRef="ctx-1" id="s10__7__264" xml:lang="en">Independent auditorâs limited assurance report on the sustainability statement To the stakeholders of Demant A/S Limited assurance conclusion We have conducted a limited assurance engage-ment on the sustainability statement of Demant A/S (the âGroupâ) included in Management state-ment in the Annual Report for 2024 (the âSustain-ability Statementâ), page 50 â 117, for the finan-cial year 1 January â 31 December 2024. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all ma-terial respects, in accordance with the Danish Fi-nancial Statements Act paragraph 99 a, including: ⢠Compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sus-tainability Statement (the âProcessâ) is in ac-cordance with the description set out in the section âDouble materiality assessmentâ; and ⢠Compliance of the disclosures in subsection âEU taxonomyâ within the environmental sec-tion of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the âTaxonomy Regulationâ). Basis for conclusion We conducted our limited assurance engagement in accordance with International Standard on As-surance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or re-views of historical financial information (âISAE 3000 (Revised)â) and the additional requirements applicable in Denmark. The procedures in a limited assurance engage-ment vary in nature and timing from, and are less in extent than for, a reasonable assurance en-gagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditorâs re-sponsibilities for the assurance engagement sec-tion of our report. Our independence and quality management We are independent of the Group in accordance with the International Ethics Standards Board for Accountantsâ International Code of Ethics for Pro-fessional Accountants (IESBA Code) and the ad-ditional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these require-ments and the IESBA Code. Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality man-agement including policies or procedures regard-ing compliance with ethical requirements, profes-sional standards and applicable legal and regula-tory requirements. Managementâs responsibilities for the Sustainability Statement Management is responsible for designing and im-plementing a process to identify the information reported in the Sustainability Statement in accord-ance with the ESRS and for disclosing this Pro-cess as included in the section Double materiality assessment of the Sustainability Statement. This responsibility includes: ⢠Understanding the context in which the Groupâs activities and business relationships take place and developing an understanding of its affected stakeholders; ⢠The identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and op-portunities that affect, or could reasonably be expected to affect, the Groupâs financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; ⢠The assessment of the materiality of the iden-tified impacts, risks and opportunities related to sustainability matters by selecting and ap-plying appropriate thresholds; and ⢠Making assumptions that are reasonable in the circumstances. Management is further responsible for the prepa-ration of the Sustainability Statement, which in-cludes the information identified by the Process, in accordance with the Danish Financial Statements Act paragraph 99 a, including: ⢠Compliance with the ESRS; ⢠Preparing the disclosures as included in sub-section âEU taxonomyâ within the environmen-tal section of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation; ⢠Designing, implementing and maintaining such internal control that management deter-mines is necessary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and ⢠The selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasona-ble in the circumstances. In reporting forward-looking information in accord-ance with ESRS, management is required to pre-pare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be differ-ent since anticipated events frequently do not oc-cur as expected. Auditorâs responsibilities for the assurance engagement Our responsibility is to plan and perform the as-surance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered mate-rial if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in ac-cordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process in-clude: ⢠Obtaining an understanding of the Process, but not for the purpose of providing a conclu-sion on the effectiveness of the Process, in-cluding the outcome of the Process; ⢠Considering whether the information identified addresses the applicable disclosure require-ments of the ESRS; and ⢠Designing and performing procedures to eval-uate whether the Process is consistent with the Groupâs description of its Process, as disclosed in the section âDouble materiality assessmentâ. Our other responsibilities in respect of the Sus-tainability Statement include: ⢠Identifying where material misstatements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures respon-sive to disclosures in the Sustainability State-ment where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omis-sions, misrepresentations, or the override of internal control. Summary of the work performed A limited assurance engagement involves per-forming procedures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on profes-sional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement. In conducting our limited assurance engagement, with respect to the Process, we: ⢠Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by manage-ment; and reviewing the Groupâs internal doc-umentation of its Process; and ⢠Evaluated whether the evidence obtained from our procedures about the Process imple-mented by the Demant A/S was consistent with the description of the Process set out in the section Double materiality assessment. In conducting our limited assurance engagement, with respect to the Sustainability Statement, we: ⢠Obtained an understanding of the Groupâs re-porting processes relevant to the preparation of its Sustainability Statement including the consolidation processes by obtaining an un-derstanding of the Groupâs control environ-ment, processes and information systems rel-evant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their op-erating effectiveness; ⢠Evaluated whether the information identified by the Process is included in the Sustainability Statement; ⢠Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the ESRS; ⢠Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement; ⢠Performed substantive assurance procedures on selected information in the Sustainability Statement; ⢠Where applicable, compared disclosures in the Sustainability Statement with the corre-sponding disclosures in the financial state-ments and Management statement; ⢠Evaluated the methods, assumptions and data for developing estimates and forward-looking information; and ⢠Obtained an understanding of the Groupâs process to identify taxonomy-eligible and tax-onomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement. Other matter The comparative information included in the Sus-tainability Statement of the Group was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter. HellerupPricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR No 3377 1231 Rasmus Friis Jørgensen State-Authorised Public Accountant mne28705 Torben Jensen State-Authorised Public Accountant mne18651</arr:AuditorsReportOnSubstainabilityReport>
<arr:StatementOfAuditorsResponsibilitySubstainabilityReport contextRef="ctx-1" id="s10__7__268" xml:lang="en">Auditorâs responsibilities for the assurance engagement Our responsibility is to plan and perform the as-surance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered mate-rial if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in ac-cordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Process in-clude: ⢠Obtaining an understanding of the Process, but not for the purpose of providing a conclu-sion on the effectiveness of the Process, in-cluding the outcome of the Process; ⢠Considering whether the information identified addresses the applicable disclosure require-ments of the ESRS; and ⢠Designing and performing procedures to eval-uate whether the Process is consistent with the Groupâs description of its Process, as disclosed in the section âDouble materiality assessmentâ. Our other responsibilities in respect of the Sus-tainability Statement include: ⢠Identifying where material misstatements are likely to arise, whether due to fraud or error; and ⢠Designing and performing procedures respon-sive to disclosures in the Sustainability State-ment where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omis-sions, misrepresentations, or the override of internal control.</arr:StatementOfAuditorsResponsibilitySubstainabilityReport>
<arr:EmphasisOfMatterSubstainabilityReport contextRef="ctx-1" id="s10__7__269" xml:lang="en">Other matter The comparative information included in the Sus-tainability Statement of the Group was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter.</arr:EmphasisOfMatterSubstainabilityReport>
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<cmn:IdentificationNumberCvrOfAuditFirmSubstainability contextRef="ctx-50" id="s10__7__275">33771231</cmn:IdentificationNumberCvrOfAuditFirmSubstainability>
<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-49" id="s10__7__276" xml:lang="en">Rasmus Friis Jørgensen</cmn:NameAndSurnameOfSubstainabilityAuditor>
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<cmn:NameAndSurnameOfSubstainabilityAuditor contextRef="ctx-50" id="s10__7__279" xml:lang="en">Torben Jensen</cmn:NameAndSurnameOfSubstainabilityAuditor>
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<cmn:fIdentificationNumberOfSubstainabilityAuditor contextRef="ctx-50" id="s10__7__281">mne18651</cmn:fIdentificationNumberOfSubstainabilityAuditor>
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<gsd:InformationOnTypeOfSubmittedReport contextRef="ctx-1">Annual report</gsd:InformationOnTypeOfSubmittedReport>
<cmn:TypeOfAuditorAssistance contextRef="ctx-1">Auditor's report on audited financial statements</cmn:TypeOfAuditorAssistance>
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<gsd:ReportingPeriodStartDate contextRef="ctx-1">2024-01-01</gsd:ReportingPeriodStartDate>
<gsd:ReportingPeriodEndDate contextRef="ctx-1">2024-12-31</gsd:ReportingPeriodEndDate>
<gsd:PrecedingReportingPeriodStartDate contextRef="ctx-1">2023-01-01</gsd:PrecedingReportingPeriodStartDate>
<gsd:PredingReportingPeriodEndDate contextRef="ctx-1">2023-12-31</gsd:PredingReportingPeriodEndDate>
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<fsa:ClassOfReportingEntity contextRef="ctx-1">Reporting class D</fsa:ClassOfReportingEntity>
<arr:TypeOfModifiedOpinionOnAuditedFinancialStatements contextRef="ctx-1">Opinion</arr:TypeOfModifiedOpinionOnAuditedFinancialStatements>
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<sob:DateOfApprovalOfAnnualReport contextRef="ctx-1">2025-02-05</sob:DateOfApprovalOfAnnualReport>
<arr:SignatureOfAuditorsDate contextRef="ctx-1">2025-02-05</arr:SignatureOfAuditorsDate>
<arr:SignatureOfSubstainabilityAuditorsDate contextRef="ctx-1">2025-02-05</arr:SignatureOfSubstainabilityAuditorsDate>
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