Demant

The role of the administrative, management and supervisory bodies

Reference: pages 40, 46-47, 55.

Demant has a two-tier management system: the Board of Directors and the Executive Board, with "no individual... a member of both" (page 40). The Board of Directors is "responsible for the overall strategic management and the financial and managerial supervision of the company" and supervises the Executive Board, which "is responsible for the daily operations." Since the 2025 AGM the Board has had eight members (five shareholder-elected, three staff-elected), with three committees in 2025: audit, nomination and remuneration (page 42).

On sustainability specifically, the Board of Directors evaluates progress on our sustainability ambition and ESG priorities twice a year and has final oversight, while the audit committee oversees sustainability reporting (page 55). Demant's Sustainability Board, comprising the Executive Leadership Team, "sets the overall strategic direction for sustainability" and meets five times a year, with Group Sustainability holding functional responsibility.

Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

Reference: page 55.

The Board of Directors "evaluates progress on our sustainability ambition and ESG priorities twice a year and has final oversight," with the audit committee overseeing sustainability reporting specifically. Demant's Sustainability Board, comprising the Executive Leadership Team, "sets the overall strategic direction for sustainability," and "all Group targets are approved by Demant's Executive Leadership Team and endorsed by the Board of Directors."

The Executive Leadership Team represents all business areas and functions on the Sustainability Board "to ensure that decisions made by the Sustainability Board are communicated and implemented across their respective business areas and the Group Services Leadership teams." The Sustainability Board meets five times a year, and Group Sustainability holds global functional responsibility for setting strategic direction and executing major initiatives.

Integration of sustainability-related performance in incentive schemes

Reference: page 105 (ESRS 2 IRO-2 disclosure requirements table).

Demant's own content index states that this disclosure requirement is addressed in the Remuneration Report, not in the Sustainability statement:

The Annual Report explains the practice generally: "certain disclosure requirements are disclosed in other publicly available documents. When incorporation by reference is used, it is clearly indicated" (page 50). The Annual Report itself notes that the Remuneration Policy is subject to shareholder approval and "will be proposed for adoption at the annual general meeting on 5 March 2026" (page 42), but the specific mechanics of how sustainability performance is integrated into incentive schemes sit in the separately published Remuneration Report 2025, which is outside the scope of this extraction.

Statement on due diligence

Reference: page 61.

Demant describes its due diligence process under the Double materiality assessment section. In 2025 the company "initiated a corporate-wide sustainability due diligence mapping process... which is aligned to best practices in the OECD Guidelines and the UNGPs," building on the human rights assessment and environmental analysis conducted in 2024.

The objective was "to assess the adverse impacts that Demant has or may have on defined human rights and in environmental and governance areas," focusing "on the more likely impacts, not all imaginable impacts," starting from a value chain mapping that defined own operations as "entities with operational control" and scoped supply chain mapping to "main tier-one suppliers' activities."

The materiality scoring incorporated "scale, scope and irremediability to assess impact severity, and likelihood," with severity taking precedence over likelihood for potential negative human rights impacts. Disclosures on pages 56-61 and 64-101 map how the main due diligence steps are applied.

Risk management and internal controls over sustainability reporting

Reference: page 103.

Demant states it is "committed to ensuring adequate reporting data quality and mitigating significant risks related to sustainability reporting." A double materiality assessment is conducted yearly, and the sustainability reporting risk management framework is "designed to identify, assess and manage risks related to sustainability reporting," with key risk factors including "regulatory compliance, data accuracy and stakeholder expectations."

The "main reporting risks are related to completeness and accuracy of the data submitted." Identified risks are categorised as high, medium or low based on inherent reporting risks such as completeness and accuracy of data, with high risks prioritised over medium and low. The Sustainability Board receives updates on a quarterly basis and includes findings in the internal control framework related to sustainability reporting, along with mitigation measures.

Strategy, business model and value chain

Reference: pages 12, 16, 19, 56; employee data pages 83, 88; revenue breakdown in the Financial statements, page 128.

Demant operates three business areas - Hearing Aids, Hearing Care and Diagnostics - reporting 2025 external/segment revenue of DKK 9,841 million, DKK 10,724 million and DKK 2,406 million respectively (page 12). The Group serves customers in "more than 130 countries," manufactures hearing aids and diagnostic equipment mainly in Poland, and operates more than 4,500 hearing care clinics in over 25 countries.

Group strategy - "leading hearing healthcare" - rests on three choices (innovation, distribution consolidation, geographic/channel growth) and three enablers, including "drive responsible and sustainable business practices" (page 17-19). As at 31 December 2025 the Group had 26,704 employees globally, an 18% increase mainly from the KIND acquisition (page 82). Value chain IROs span upstream component sourcing, own manufacturing/clinics, and downstream distribution and end-of-life (page 56-57).

Interests and views of stakeholders

Reference: pages 61-62.

Demant engages "on a continuous basis" with key stakeholder groups, anchored in relevant functions across the organisation. The stakeholder table on page 62 covers employees (surveys, performance/development, health and safety processes), hearing aid users (daily clinic engagement, quality surveys), business customers (commercial teams, customer surveys), suppliers (operational engagement and due diligence processes), shareholders (investor meetings and calls), regulators and authorities (compliance monitoring, industry advocacy), industry organisations and interest groups, and academia (research collaboration).

Outcomes of engagement are described for each group, for example "a healthy and safe working environment that is informed by employee perspectives" for employees and "ensuring compliance with Demant's Third Party Compliance Code" for suppliers. Views and interests are "shared with and discussed by our functional boards and business area leadership teams."

Material impacts, risks and opportunities and their interaction with strategy and business model

Reference: page 56, with topical detail on pages 65, 75, 84, 86, 90, 92, 94, 96.

Demant identified material IROs across six topical standards: E1 climate change, E5 resource use and circular economy, S1 own workforce, S2 workers in the value chain, S4 consumers and end-users, and G1 business conduct. In aggregate, "they consist of one positive impact, 11 negative impacts, six risks and three opportunities." The company states "no IROs were identified within the topical standards E2 pollution, E3 biodiversity, E4 water and S3 affected communities."

All identified IROs "are integral to our business model" and "do not require any major changes to our strategy or operations beyond ongoing adjustments and continuous improvements." Versus 2024, several IRO groups were disaggregated into more granular items (e.g. "product circularity" split into resource consumption, non-circular economy practices and packaging), and climate change adaptation was assessed as not material (page 59).

Description of the processes to identify and assess material impacts, risks and opportunities

Reference: page 61.

The impact assessment built on a 2025 due diligence mapping process aligned with OECD Guidelines and UNGPs, starting from value chain and supply chain mapping and identification informed by "desktop research, using sources, such as established risk indices for country and sector risks and expert articles from NGOs and academia," qualified through internal and external stakeholder engagement. Materiality scoring used scale, scope, irremediability and likelihood.

The financial assessment started from identified impacts and assessed dependencies, risks and opportunities using size of financial effect, likelihood and reputational impact, with input from risk management, commercial operations, Investor Relations and Finance. Climate transition risks were assessed under scenarios "limiting global warming... to 1.5°C with minimal overshoot" to 2050, and physical risks using IPCC scenarios (RCP2.6, RCP4.5, RCP8.5) to 2065. A final list of material IROs was validated by the Sustainability Board and the audit committee.

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

Reference: page 104.

Demant sets out tables (pages 104-107) listing "all ESRS disclosure requirements in ESRS 2 and five topical standards, which are relevant to Demant and have guided us in the preparation of this Sustainability statement." The company states it has "excluded disclosure requirements in E2, E3, E4 and S3, as they are below our materiality thresholds."

The tables "serve as guides for locating information on specific disclosure requirements in the Sustainability statement" and indicate where disclosures not included in the statement are instead "incorporated by reference," either in the Management statement and Financial statements of the Annual Report or in the separately published Remuneration Report (e.g. GOV-3, pages 6-9 of the Remuneration Report). A companion table on pages 108-110 lists individual EU-legislation datapoints, several of which are separately marked "Not material."

Transition plan for climate change mitigation

Reference: page 66.

Demant's transition plan is "a dynamic framework that consolidates the climate initiatives set by the Group to reduce the GHG emissions and reach our climate targets," currently focused on the 2030 near-term targets, and validated by the Science Based Targets initiative (SBTi) as aligned with limiting warming to 1.5°C. The plan, "approved by the Sustainability Board in 2024," consists of six decarbonisation levers: supplier engagement programme, decarbonisation of transportation and of product design (scope 3), and energy efficiency, renewable electricity and vehicle fleet electrification (scope 1 and 2).

"While no locked-in emissions are expected to compromise the achievement of our 2030 targets, addressing these emissions will be essential to meet our 2050 climate targets." Demant "is not excluded from the 'Paris-aligned benchmarks' established by the European Commission." Financial resources required for lever implementation "are yet to be determined."

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1, where this content is disclosed in the FY2025 report (page 61), and from the E1 climate change mitigation section (page 65). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Climate-related risks were identified as part of the 2025 double materiality assessment. Transition risks were assessed "under scenarios limiting global warming by the end of the century to 1.5°C with minimal overshoot," considering "different types of transition events, influencing our own operations and those of the supply chain within a 2050 horizon" (page 61).

Physical risks across own and key supplier sites were assessed "using IPCC scenarios (RCP2.6, RCP4.5, RCP8.5) with a 2065 horizon," covering hazards "such as wildfires and droughts." Based on this analysis, "climate-related physical risks were not financially material to Demant" (page 61). The E1 section (page 65) confirms the same 1.5°C transition-risk scenario and a 2050 resilience-analysis timeframe aligned with the net-zero target.

Resilience in relation to climate change

Back-filled from the E1 climate change mitigation section, where this content is disclosed in the FY2025 report (page 65) under the heading "ESRS 2 SBM-3 E1." This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"Demant's resilience analysis assesses our strategy and business model and their ability to cope with the identified material climate risk. The assessment concludes that Demant is resilient to this risk and has implemented measures to minimise their materialisation." The analysis builds on the double materiality assessment, considers only material risks, and "uses a 2050 timeframe for the scenario analysis, aligning with Demant's net-zero targets," with transition risks identified under a 1.5°C scenario and physical risks under scenarios "beyond the 1.5°C."

Uncertainties relate mainly to "the use of secondary data in the double materiality assessment, which is not specific to Demant or our industry, but is rather based on global trends and the energy sector," expected to decrease as the assessment process matures.

Policies related to climate change mitigation and adaptation

Reference: page 65.

Under the heading "Policies that guide our behaviour, E1-2," Demant's Sustainability Policy (further described on page 54) "sets the direction for climate change mitigation for all Demant entities and describes roles, responsibilities and focus areas to tackle GHG emissions." The Policy addresses "all GHG scopes for climate change mitigation" and covers "topics, such as energy efficiency, deployment of renewable electricity, fleet electrification and value chain emissions."

At the Group level, the Sustainability Policy also commits Demant "to the objectives of the Paris Agreement, aiming to limit global temperature rise to 1.5°C above pre-industrial levels," underpinning the SBTi-validated targets (page 54). The Policy is publicly available on demant.com, with the Vice President of Corporate Communication & Sustainability responsible for implementation across business areas.

Actions and resources in relation to climate change policies

Reference: page 67.

Under the six decarbonisation levers, 2025 actions include: energy efficiency improvements to heating/ventilation and manufacturing processes at multiple sites; renewable electricity, where Demant "consumed 1,226 MWh of on-site renewable electricity" (reducing market-based emissions by 580 tonnes CO2e) and 28,363 MWh off-site (a further 15,479 tonnes CO2e reduction), progressing toward the 100%-by-2030 target; vehicle fleet electrification, where "phase one" launched in six European countries, expected to avoid 3,556 tonnes CO2e by 2030; and the Sustain supplier engagement programme, whose phase one (2024-2025) collects primary environmental data from selected goods suppliers ahead of phase two decarbonisation commitments from 2026.

Financial resources for implementing the levers "are yet to be determined, as this depends on further defining the decarbonisation levers and their reduction potential."

Targets related to climate change mitigation and adaptation

Reference: page 68.

Demant's climate targets were validated by the SBTi in 2023 against a 2019 baseline, aligned with limiting warming to 1.5°C. Near-term (2030): -46% absolute scope 1 and 2 GHG emissions and -46% absolute scope 3 GHG emissions. Long-term (2050): -90% for both scope 1&2 and scope 3, with Demant committing "to reaching net-zero GHG emissions across the value chain by 2050... neutralis[ing] the remaining 10% of our GHG emissions, which cannot be reduced, through carbon removal."

Targets cover 100% of GHG emissions using the operational control boundary and an absolute contraction approach under the SBTi Corporate Net-Zero Standard V1.0. "Demant does not consider GHG emissions removals, carbon credits and avoided GHG emissions as means of achieving our near- or long-term targets."

Energy consumption and mix

Reference: page 69.

Total energy consumption increased 10% to 133,595 MWh in 2025 (from 121,209 MWh in 2024), driven mainly by electricity and heating growth in Hearing Care and higher vehicle fleet fuel use. Energy from fossil sources was 103,902 MWh, up 1% year on year, of which 26,363 MWh related to non-renewable electricity.

53% of the Group's electricity consumption was sourced from renewable energy in 2025, mainly through Energy Attribute Certificates and green tariffs, with 4% self-generated on-site (solar, across Poland, Mexico, Denmark, South Africa, Italy, Australia and France). Energy intensity rose from 5.41 to 5.82 MWh per DKK million revenue, as energy consumption grew faster than revenue. Electricity remained "our only source of renewable energy" currently.

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 70-71.

Against a 2019 baseline: gross scope 1 emissions were 15,893 tCO2e in 2025 (up 42% vs baseline, up 9% vs 2024); gross scope 2 market-based emissions were 10,888 tCO2e (down 48% vs baseline, down 26% vs 2024), reduced "mostly driven by our transition to renewable electricity"; combined scope 1 and market-based scope 2 were 26,781 tCO2e (down 16% vs baseline). Gross scope 3 emissions were 194,976 tCO2e, up 24% vs baseline but down 7% vs 2024, with purchased goods and services (69%), upstream transportation (12%) and capital goods (8%) the largest categories.

Total market-based GHG emissions were 221,757 tCO2e (up 17% vs baseline). Eleven scope 3 categories are included; categories 8, 10, 13 and 14 are excluded with stated justifications (e.g. leased assets under operational control, no franchises).

Policies related to resource use and circular economy

Reference: page 75.

Demant's Code of Conduct "encourages all employees to use natural resources efficiently." Building on this, the Sustainability Policy "addresses our commitment to resource use and circular economy," requiring "all business areas to integrate circular economy principles, reduce resource use and minimise the environmental impact of our products, packaging and general operations." The Third Party Compliance Code "urges business partners to work systematically to prevent, minimise and remedy the adverse environmental impact of their activities, products and services."

These policies apply across own operations and, via the Compliance Code, the upstream value chain, covering resource use, packaging and general operational practices. The section is tagged "ESRS 2 SBM-3 E5," linking the policy commitments to the material IROs identified for resource use and circular economy (page 75).

Actions and resources related to resource use and circular economy

Reference: page 75.

Actions addressing resource consumption include continuing to use "at least 50% recycled plastic" in hearing aid blisters and cases (avoiding 93 tonnes of virgin fossil-sourced plastic), supplier-side recycled-plastic integration in Diagnostics equipment (avoiding 2.9 tonnes), and recycled content in packaging (at least 50% recycled polyethylene and 98% recycled cardboard, avoiding 529 kg and 50.7 tonnes of virgin material respectively). Battery durability improvements in the Oticon Intent model extend product lifetime without replacement.

Circularity actions include expanding the Demoflex multi-user demonstration range to 33 alternatives across 35 countries, and maintenance/repair services: over 1,545,000 repairs performed at Hearing Aids service facilities in 2025, plus 182,868 Diagnostics instrument repairs/maintenance, with spare-part availability guaranteed for up to seven years after discontinuation.

Targets related to resource use and circular economy

Reference: page 76.

Under "Tracking effectiveness and metrics, ESRS 2 MDR-T and E5-3," Demant states: "circular initiatives are driven by individual business areas and focus on specific topics that may not apply to the whole Group. For this reason, we have not yet established Group targets." The company says it "continue[s] building our understanding of what circular economy means for Demant and assessing the relevance of setting Group targets in the future."

In the absence of quantified Group-level targets, effectiveness is tracked through individual business-area initiatives described under E5-2 (e.g. recycled-content packaging thresholds, battery durability programmes) and through resource inflow/outflow metrics disclosed under E5-4 and E5-5, consistent with the MDR-T approach of describing how progress is monitored where no formal target exists.

Resource inflows

Reference: page 76.

The 2025 total resource inflow was 6,901 tonnes, a 7% decrease from 2024's restated 7,455 tonnes, "mainly due to a reduction in the acquisition of electronic components and plastic." By material: plastic 753 tonnes (2024: 1,051), metals 1,705 tonnes (2024: 1,197), cardboard/paper 825 tonnes (2024: 949), electronic components 2,713 tonnes (2024: 3,315), wood 58 tonnes (2024: 22), other 846 tonnes (2024: 919).

Sustainably sourced biological materials used in manufacturing were 0% in both 2025 and 2024 (restated from 12.1% for 2024 due to a methodology update). Reused or recycled materials used in manufacturing and packaging rose to 147 tonnes (2%) from 50 tonnes (1%) in 2024. Resource inflow figures are based on primary data combined with estimates, including some use of large language models for weight estimation, "associated with high uncertainty."

Resource outflows

Reference: pages 76-77.

Demant addresses resource outflows through durability and repairability. Hearing aid durability is set at "five years, which is based on the tests we perform." Diagnostics equipment "remained in use for 6.5 years on average," based on over 20 years of service records. Products are designed for disassembly and component replacement, and spare-part availability is guaranteed "for as long as the model is sales active, plus an additional five years after the model is discontinued" (Hearing Aids) or seven years from invoice date (Diagnostics).

On recyclable content, Demant states it "is working to be able to report on this in 2026" - not yet disclosed for 2025. Repair services span three levels (user, local service, service centre), with over 1.5 million repairs performed in 2025 across Hearing Aids and Diagnostics.

Policies related to own workforce

Reference: pages 81, 84, 86.

Demant's Code of Conduct "outlines the minimum standards and ethical principles applicable to all employees," explicitly addressing "zero tolerance of any form of slavery or human trafficking, use of compulsory labour, the employment of children as well as discrimination and harassment." The Global Policy on Human Resources "establishes a clear framework for the governance of employment practices and workplace conditions," anchored in the Leadership Compass's five drivers of engagement and wellbeing.

For working conditions, site-specific health and safety management systems apply "in accordance with country legislation," plus a Stress Policy covering Danish sites. For equal treatment, the Diversity and Inclusion Policy (revised 2025, effective Q1 2026) and the Anti-Harassment and Discrimination Guideline articulate "zero tolerance of any form of discrimination, harassment or bullying." The Senior Vice President of HR is accountable for Group workforce policies.

Processes for engaging with own workforce and workers' representatives about impacts

Reference: pages 81, 84.

Demant "collaborates with employee representatives in many areas" and "compl[ies] with all legal requirements when it comes to employee representation." Engagement is measured through the global Pulse engagement programme, which "includes an annual engagement survey" covering wellbeing, working environment, development and inclusion, plus a mid-year survey introduced in 2025. Participation reached 85% in 2025.

Quarterly info meetings let the CEO "give a business update to employees" and provide "a direct platform for employees to ask questions." Health and safety committees, "mandatory under national regulations" at many locations, provide a further channel, ensuring "employee engagement in guaranteeing that our workplace remains safe and healthy" and inviting employees "to help define actions to prevent and mitigate health and safety incidents."

Processes to remediate negative impacts and channels for own workforce to raise concerns

Reference: pages 81, 84.

Where Demant "may cause or contribute to negative impacts on employees," it is "committed to taking appropriate remedial action." Cases are escalated to the Senior Vice President of HR, who involves HR business partners able "to act independently and neutrally in understanding and assessing the incident." Substantiated incidents can lead to "oral or written warnings, mandatory training and mediation," with top management informed for organisational learning.

The whistleblower hotline "enables employees to report any concerns about adverse human rights impacts in a confidential and anonymous manner." For health and safety specifically, "when incidents occur, we ensure access to immediate first aid and, where necessary, enable medical evaluation and support and appropriate return-to-work arrangements," with all incidents "reported, reviewed and investigated to identify root causes."

Taking action on material impacts on own workforce

Reference: pages 81, 84, 86.

Against health and safety, Demant conducted "an in-depth assessment of how we manage occupational health and safety (OHS)" in 2025, replacing a carcinogenic-labelled chemical agent in Poland, improving ergonomics in Mexico, and introducing digital incident reporting in Australia/New Zealand. Against working time, tracking supports "employee-leader dialogue" to prevent excessive overtime, in line with the EU Working Time Directive.

On talent attraction and retention, a strategic project addressing high manufacturing turnover in Mexico and Poland delivered "the lowest turnover ever measured," with Group turnover down 2 percentage points to 18%. On equal treatment, 2025 actions included a mandatory Anti-Harassment and Discrimination e-learning and an inclusive-leadership development journey, alongside 38 whistleblower reports of harassment/discrimination (32 resolved) versus 11 in 2024.

Targets related to own workforce

Reference: pages 85, 87.

Demant has set 2030 targets to take employee engagement "to the top-third level," corresponding to the 67th percentile or above in the Gallup engagement index (2025: 55th percentile, up from 52nd in 2024), and employees' experience of inclusion to the same top-third/67th-percentile threshold (2025 inclusion score: 57th percentile). A gender balance target of 35/65% (female/male) in top-level management by 2030 is also tracked (2025: 33% female, up from 31%).

For health and safety, working time and employee turnover, Demant states plainly: "Demant has not set any specific targets for health and safety, working time or employee turnover at this time," instead relying on the metrics disclosed in those sections to "assess progress and improvement."

Characteristics of the undertaking's employees

Reference: pages 82-83, 85.

As at 31 December 2025, Demant had 26,704 employees globally (up 18% from 22,639 in 2024, mainly from the KIND acquisition), split 17,314 female / 9,390 male (65/35% gender ratio). Of these, 25,253 were permanent and 1,451 temporary; 23,450 full-time and 3,254 part-time. Largest countries by headcount: Poland (5,241), Germany (4,484), USA (3,415) and Denmark (2,201).

Employee turnover was 18% in 2025, down from 20% in 2024, with 4,341 terminations on a restated full-workforce basis. Data is drawn from Demant's global HR management system, covering 77% of employees, supplemented by regional estimates for the remainder. Turnover figures for 2022-2024 were restated to include employees outside the HR system for comparability.

Diversity metrics

Reference: page 87.

Board of Directors (all members): 38% female / 62% male in 2025 (3 of 8), up from 29/71% (2 of 7) in 2024. Top-level management: 33% female / 67% male (2024: 31/69%), progressing toward the 2030 target of 35% female. All managers with direct reports: 51% female / 49% male (1,018 vs 990 headcount).

Under the Danish Financial Statements Act section 107f, the Parent company Board (shareholder-elected members) was 40/60% female/male, and staff-elected members 33/67%; the Board "aims to have at least 40% of the underrepresented gender" among shareholder-elected members. Age distribution across the Group in 2025 was relatively even: 25% below 30, 27% aged 30-39, 30% aged 40-49, and 18% aged 50 and above.

Health and safety metrics

Reference: page 85.

In 2025, 100% of employees were covered by a health and safety management system. There were zero fatalities as a result of work-related injuries and work-related ill health. Recordable work-related accidents numbered 154, giving a rate of 3.2 per million hours worked (calculated as recordable accidents x 1,000,000, divided by estimated total hours worked based on full-time equivalents at a 40-hour week).

Reported incidents were "mostly minor injuries, mainly cuts, trips and falls," which the company says shape preventive actions. This is the first year Demant discloses these specific quantified health and safety metrics under this format; no comparative 2024 figures are shown alongside them on this page.

Compensation metrics (pay gap and total compensation)

Reference: page 88.

The unadjusted gender pay gap at Demant was 28% in 2025 (not reported for 2024 "due to unavailable underlying data," now available following completion of an HR data management enhancement project). Demant attributes the gap to "the distribution of employees across organisational levels and geographies, with more men in senior roles and a high share of women employed in manufacturing facilities in Poland and Mexico and in our hearing care clinics." A detailed analysis of pay differences across comparable job levels in Hearing Care and manufacturing found the gap "below 5%," which the company presents as evidence that "pay practices are equitable for similar roles."

The CEO remuneration ratio rose 1 point to 42 in 2025 (2024: 41), calculated as CEO total remuneration divided by the average remuneration of all Group employees.

Incidents, complaints and severe human rights impacts

Reference: page 88.

In 2025, Demant received 38 reports through its whistleblower hotline concerning discrimination and/or harassment (2024: 11), an increase the company attributes to anti-harassment and discrimination training introduced in Q3, which "strengthened employee awareness"; 32 of the 38 claims had been handled. Zero complaints were filed to National Points for OECD Multinational Enterprises, and zero fines, penalties or compensation for damages were paid, both unchanged from 2024.

There were "no severe human rights incidents in 2025, and therefore no fines, penalties or compensation for damages were paid." Severe human rights incidents are defined as "confirmed cases, involving forced labour, human trafficking, child labour or other serious infringements of internationally recognised human rights." No confirmed severe human rights incidents connected to own workforce were recorded in either 2025 or 2024.

Policies related to value chain workers

Reference: page 90.

Demant's Third Party Compliance Code "outlines what we expect of our suppliers and business partners when it comes to working conditions for workers in the value chain," covering "the core International Labour Organization (ILO) standards on working conditions, workplace health and safety, freedom of association, trafficking, forced/child labour and non-discrimination." All new direct suppliers "are required... to accept this Code or to comply with their own code of equivalent standard," and the Code is appended to new supplier contracts.

The Demant Group Supply Chain Sustainability Policy, updated in 2025, "summarises our commitment to advancing sustainability across our supply chain" and covers upstream buying practices, managed jointly by the Hearing Aids and Diagnostics procurement leadership. The Senior Vice President of Group Legal & Compliance is accountable for the Third Party Compliance Code.

Processes for engaging with value chain workers about impacts

Reference: page 90.

Demant "continuously take[s] steps to understand the potential impacts of our operations on workers in our value chain." The whistleblower hotline is accessible to all external stakeholders, including value chain workers. In the Hearing Aids business area, the Sustain supplier engagement programme integrates sustainability into supplier relationships, and "when we audit suppliers in relation to ESG, we interview workers directly."

Demant notes a current gap: "Demant does not require its suppliers to establish reporting channels for their own employees to raise concerns. This will be considered the next time we update our Third Party Compliance Code" - an explicit, self-identified limitation in the current engagement process for workers employed by suppliers rather than by Demant directly.

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Reference: page 90.

The whistleblower hotline, open to external stakeholders including value chain workers, is the primary remediation channel (page 99). "If a negative impact is reported to or identified by Demant, we engage directly with the supplier to urge them to take preventive and corrective action, while clearly communicating our expectation that remedies are provided to the affected value chain workers." In 2025, "no severe human rights impacts or incidents connected to our upstream or downstream value chain were reported."

In Hearing Aids, new direct suppliers in high-risk territories are audited against the Third Party Compliance Code by an external provider; "when issues are raised, we engage in dialogue and plan for corrective action." Diagnostics conducts initial on-site audits for vendor approval in select high-risk locations before onboarding new suppliers.

Taking action on material impacts on value chain workers

Reference: page 90.

Demant takes "a risk-based approach to managing potentially negative impacts on value chain workers." The supplier sustainability risk assessment process, updated in 2024, "enables the identification and documentation of potential impacts that workers in our supply chain are exposed to, based on suppliers' country and sector risks," led by dedicated sustainability specialists in procurement. In 2025, Demant "focused on implementing the sustainability supplier risk assessment process across the Group," including onboarding and training buyers and introducing an ESG questionnaire for selected high-risk suppliers.

However, "due to internal prioritisation and unclear legislative expectations in the EU, progress on implementing the updated risk and due diligence processes in 2025 was slower than intended," with full implementation now planned for 2026. In 2025, Demant conducted 86 distributor due diligence screenings, up from prior years.

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: page 90.

Under "Tracking effectiveness, ESRS 2 MDR-T and S2-5," Demant states: "we are currently focusing on aligning due diligence processes to coming legislative requirements. We have not yet set specific targets related to the impact on workers in the value chain but will explore options to do so, as we mature our internal processes."

In the absence of a quantified target, effectiveness is tracked through "continuous evaluation of our actions and practices... embedded in our ways of working," reflected in the supplier audit programme (external audits for new direct suppliers in high-risk territories in Hearing Aids) and the distributor due diligence screening volume (86 assessments in 2025), consistent with the MDR-T approach of describing monitoring in place of a formal target.

Policies related to consumers and end-users

Reference: pages 94, 96.

For product quality and safety, Demant "define[s] quality management in policies for the Hearing Aids and Diagnostics business areas," embedded in decision-making to meet requirements including "the EU Medical Device Regulation (MDR) and MDSAP requirements, as well as all local country regulatory requirements," covering product development, manufacturing, marketing and servicing. The Executive Leadership Team "carries the overall responsibility for product quality and safety."

For right to privacy, Demant "has a data privacy programme to manage potentially negative impacts on the privacy of our employees, customers and users," anchored in a global Data Ethics Policy and a Data Privacy Policy implemented as a General Operating Procedure applicable to "all Demant employees, who receive, handle, access, distribute, transmit, protect or store personal or sensitive personal data in any form," governed by the Global Legal & Compliance Board.

Processes for engaging with consumers and end-users about impacts

Reference: pages 92, 94, 96.

Demant maintains "customer support service platforms and channels for our three business areas, enabling complaints and feedback from users throughout the user journey," with "user quality surveys and daily engagement... through our global network of hearing clinics" enabling continuous assessment of product quality and safety issues (page 94).

On privacy, "all relevant stakeholders are informed of the use of their personal data and are also guided on how to exercise their legal rights regarding their personal data," through privacy notices where required by local legislation, with the Data Protection Officer's contact details communicated to stakeholders (page 96). Broader engagement on hearing health is also delivered through "continuous feedback from users, hearing care professionals and wholesale customers," which "drives us to focus on research and development" (page 92).

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Reference: pages 94, 96.

For product issues, "all complaints are handled by dedicated customer service teams, ensuring documentation and follow-up with the complainant. This includes any remediation, such as fitting support, repair and replacement, where relevant." Incidents related to product quality or safety are handled through a CAPA (corrective and preventive action) system, "through which we conduct methodical risk analyses and root cause analyses, take corrective actions and initiate preventive measures," with incidents reported to national health authorities when required.

For data privacy, Demant "ha[s] a well-functioning data breach response procedure": the Data Privacy team "monitors any alerts of a potential data breach every day of the year," and after a breach the Data Breach Response Team "reviews the incident and implements measures to prevent future breaches," which can include policy review, training or sanctions.

Taking action on material impacts on consumers and end-users

Reference: pages 92, 94, 96.

On providing life-changing hearing health, Demant invested DKK 1,402 million in R&D in 2025 and ran outreach ("Love your ears") and free hearing-screening activities to address stigma and low treatment rates (page 92). On product quality and safety, Hearing Aids and Diagnostics operate ISO 13485-certified quality management systems; 2025 audits found "no major findings and three minor findings" in Hearing Aids and "one major finding and 12 minor findings" in Diagnostics, all handled via CAPA; Demant recorded zero product recalls in 2025 (page 94).

On right to privacy, roughly 100 data privacy champions were appointed across European sites in 2025, and updated data privacy training began rolling out, "mandatory for relevant employees," to prevent future data breaches (page 96).

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: pages 92-95, 96.

Demant has set 2030 targets to "improve more than 16 million lives" (2025: 12.1 million, up from 10.9 million in 2024) and "increase awareness by performing hearing tests on more than 2 million people" (2025: 1.6 million) (page 92).

For product quality and safety, "Demant has not set group targets related to product quality and safety," instead assessing effectiveness "through business area-specific indicators related to product quality and safety... monthly process quality control (PQC), achievement progress for internal audit plans and a continuous target of zero vigilance cases" (page 95). For data privacy, "Demant has not set group targets related to data privacy," instead continuously evaluating processes and practices and aiming "for year-on-year improvement" in limiting data breaches (page 96).

Business conduct policies and corporate culture

Reference: page 99.

Demant's Code of Conduct "reflects our commitment to a high level of business ethics and is the overarching compliance document for our Group," setting "minimum standards and ethical principles applicable to all employees, regardless of location and the nature of their work." The business ethics programme also includes "the global whistleblower hotline as well as a portfolio of global programmes with relevant policies and guidelines, processes, tools, risk assessments, training and advice."

In 2025, Demant updated its General Manager Instructions (renamed the Demant Group Management Instructions from 1 January 2026) to extend scope to broader top management, and prepared a new Conflict of Interest Guideline, effective 1 January 2026. About 65 business ethics champions are appointed across subsidiaries globally to help detect local issues and raise awareness.

Prevention and detection of corruption and bribery

Reference: page 99.

Demant "identified the functions that are exposed to the highest risk in respect of corruption and bribery," including employees in direct contact with public officials, through an anti-corruption risk assessment. Mitigating measures include an Anti-Corruption Policy (updated in 2025), Gifts & Hospitality Guideline with country-specific monetary limits, and a Conflict of Interest Guideline prepared in 2025 (effective 1 January 2026). For distributors, "we have a due diligence process where we assess the ethical risks, including anti-corruption risk," resulting in 86 due diligence screenings in 2025.

The Code of Conduct e-learning trains employees on anti-corruption; 99% of highly exposed employees completed Code of Conduct training in 2025 (up 23 percentage points from 76% in 2024), and 86% of all employees completed it (2024: 79%).

Targets related to business conduct

Reference: page 100.

Under "Targets and metrics," Demant states: "Demant is committed to increasing business conduct excellence, and in 2024, we set a target to ensure that 100% of highly exposed employees complete Code of Conduct training by 2030." The target "aligns with the objectives outlined in our Code of Conduct." Progress in 2025 was 99% of highly exposed employees, up from 76% in 2024.

This is a stated, measurable business conduct target with a defined deadline and baseline, addressing the MDR-T requirement for G1. Demant does not report a separate quantified target for the anti-corruption or whistleblower dimensions of business conduct beyond this training-completion metric; effectiveness there is instead tracked through whistleblower report volumes and due diligence screening counts disclosed under G1-3 and G1-4.

Incidents of corruption or bribery

Reference: page 100.

"We had no confirmed incidents of corruption or bribery in Demant in 2025. Therefore, there have been no convictions or fines for violation of anti-corruption and anti-bribery laws in 2025." This is consistent with the risk described under G1-3 (page 98): "we have identified one risk related to business conduct: Demant operates in countries with risks of corruption and bribery, exposing our commercial departments to financial risk," partly mitigated through due diligence on distributors operating in higher-risk jurisdictions.

Separately, Demant received 126 whistleblower reports in 2025 (up from 90 in 2024), which the company attributes to "increased employee awareness of the whistleblower hotline," though "not all reports received qualify as whistleblower cases," and the reports are not broken down by category on this page.

Political influence and lobbying activities

Reference: page 101.

Demant states it identified "one opportunity related to political influence and lobbying activities: engaging with governments and local authorities to raise awareness about the importance of hearing health... represents an opportunity for Demant." The Anti-Corruption Policy "does not allow political contributions, whether direct or indirect... to politicians, political campaigns and political parties." The Vice President of Corporate Communication & Sustainability oversees advocacy activities.

Demant participates in industry associations including the European Hearing Instrument Manufacturers Association (EHIMA), registered in the EU Transparency Register under ID 34590331316-73, and the US Hearing Industries Association (HIA), engaging in board and technical/regulatory committees of both. In 2026, Demant "plan[s] to implement lobbying and advocacy guidelines to ensure alignment across the Group" and "define a stronger governance structure."