Sonova Holding AG

### ESG governance

Sonova has a defined governance structure to manage, improve, and report on our ESG performance. The ESG governance structure involves our highest governance body – the Board of Directors –, the Management Board and ESG Council, the Corporate Sustainability team, ESG topic owners and experts at Group level, as well as local Group company representatives.

GRI 2-9, GRI 2-12, GRI 2-13, GRI 2-14, GRI
2-16, GRI 2-17

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The Board of Directors bears the overarching responsibility for Sonova's strategic
direction – which includes the ESG strategy, key targets, and performance. The Board of
Directors is also responsible for the approval of critical business policies, such as the
[Code of Conduct and the Human Rights Policy; as of the 2021/22 financial year, it also](https://report.sonova.com/2023/app/uploads/SON_CoC_ENGLISH_V2019.pdf)
reviews and approves the annual ESG Report. The Board of Directors receives a monthly
ESG update from the CEO, and ESG topics were on the agenda and discussed at most of
the regular Board of Directors and committee meetings during 2022/23. Critical ESG
topics of specific relevance during the 2022/23 financial year were for example
greenhouse gas emissions reduction progress and target setting in line with the Science
Based Targets initiative, diversity and inclusion, human rights, ESG reporting and
assurance, as well as regulatory developments.

The two sub-committees of the Board of Directors – Audit Committee and Nomination
and Compensation Committee – have specific responsibilities related to ESG. The Audit
Committee reviews the performance and effectiveness of external and internal audit,
which includes the external limited assurance of the ESG Report. The Audit Committee is
informed quarterly about critical concerns raised via SpeakUp, our internal and external
anonymous whistleblowing platform. The Nomination and Compensation Committee
considers ESG capabilities as part of the process for selecting potential Board
candidates, and also reviews and approves ESG related targets in the compensation for
Management Board members. Sonova ensures that newly elected members of the Board
of Directors are given appropriate introduction and orientation and that the members
receive continuing training about their responsibilities.

The Management Board is responsible for oversight of Sonova's ESG activities across all
material ESG topics; and individual responsibilities per ESG topic are assigned to
respective members of the Management Board. Progress on various ESG topics and
target is regularly reviewed and discussed at Management Board meetings. ESG targets
have been an integrated element of each member's variable cash compensation (VCC)
since the 2020/21 financial year. ESG performance objectives represent 10% of the
overall VCC for each Management Board member: in general, 5% is allocated to two
objectives that are consistent for all Management Board members, and 5% to one to
three individual objectives for each member. The performance objectives that must be
met to achieve the target VCC are mutually agreed upon at the beginning of the financial
year.

The ESG Council consists of the Sonova Group CEO, CFO, GVP Operations, GVP Human
Resources Management & Communications, Group General Counsel & Compliance
Officer, and the Director Corporate Sustainability. The ESG Council met on a quarterly
basis during 2022/23; it reviewed the monthly development and implementation of the
Group's ESG strategy, including its commitments and targets, and monitored progress on
ESG key performance indicators and initiatives, defining measures and assigning
responsibility for actions. In addition to the quarterly meetings, the ESG Council
members received frequent updates on key ESG targets and performance development.

Sonova's Corporate Sustainability team, led by the Director Corporate Sustainability,
provides expertise to the Management Board on relevant ESG topics, implements and
further develops the ESG strategy and initiatives across Sonova, monitors
progress, prepares quarterly ESG Council meetings, regularly engages with relevant
internal and external stakeholders, and closely collaborates with ESG topic owners and
functional/business experts at Group level, as well as local Group company
representatives. These local representatives report data on ESG progress and
performance to the Corporate Sustainability team and drive relevant ESG initiatives
locally within a specified country or region.

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ESG governance Sonova has a defined governance structure for managing, improving, and reporting on our ESG GRI 2-12, GRI 2-13, GRI 2-14, GRI 2-16, GRI 2-17 performance. The ESG governance structure involves our shareholders at the Annual General Meeting, the Board of Directors, the Management Board and ESG Council, the Corporate Sustainability team, topic owners, and experts as well as local Group company representatives. The Board of Directors bears overall responsibility for Sonova's strategic direction, including ESG strategy, key targets, and performance. The Board of Directors has reviewed and approved the annual ESG Report since the 2021/22 financial year. In the 2024 Annual General Meeting shareholders will, for the first time, be able to endorse the ESG Report in a non-binding advisory vote. The Board of Directors is also responsible for the approval of critical business policies, such [as the Code of Conduct and the Human Rights Policy. The Board of Directors receives a monthly](https://report.sonova.com/2024/downloads/en/201911_Code%20of%20Conduct.pdf) update from the CEO including updates on selected ESG topics, and ESG topics were on the agenda and discussed at most of the regular Board of Directors and committee meetings during [...] ESG Council consists of the Sonova Group CEO, CFO, GVP Operations, GVP Human Resources Management & Communications, Group General Counsel & Compliance Officer, and the Director Corporate Sustainability; the council meets on a quarterly basis. The purpose of these meetings is to review the monthly development and implementation of Group ESG strategy, including its commitments and targets, and progress on ESG key performance measurements and initiatives, defining measures and assigning responsibility for actions. In addition to the quarterly meetings, the ESG Council members receive frequent updates on key ESG targets and performance development.

Sonova has a defined governance structure for managing, improving, and reporting on our ESG performance. The ESG governance structure involves our shareholders at the Annual General Meeting, the Board of Directors, the Management Board and ESG Council, the Corporate Sustainability team, topic owners, and experts as well as local Group company representatives. The Board of Directors bears overall responsibility for Sonova's strategic direction, including ESG strategy, key targets, and performance. The Board of Directors has reviewed and approved the annual ESG Report since the 2021/22 financial year. In the 2024 Annual General Meeting shareholders will, for the first time, be able to endorse the ESG Report in a non-binding advisory vote. The Board of Directors is also responsible for the approval of critical business policies, such as the Code of Conduct and the Human Rights Policy. The Board of Directors receives a monthly update from the CEO including updates on selected ESG topics, and ESG topics were on the agenda and discussed at most of the regular Board of Directors and committee meetings during 2023/24. During the 2023/24 financial year, critical ESG topics of specific relevance included ESG strategy and target review, the double materiality assessment, reporting and assurance, and progress on implementation of relevant regulations. The Board of Directors receives updates about Sonova's engagement with key stakeholders, including key investors, and also engages directly with them. Two sub-committees of the Board of Directors, the Audit Committee and the Nomination and Compensation Committee, have specific responsibilities related to ESG. The Audit Committee reviews the performance and effectiveness of our external and internal audits, including the external limited assurance of the ESG Report. Quarterly, the Audit Committee is informed about critical concerns raised via SpeakUp, our internal and external anonymous whistleblowing platform. In the process of selecting potential Board candidates, the Nomination and Compensation Committee considers appropriate representation of ESG capabilities and experience across the Board. In addition, the Nomination and Compensation Committee reviews and approves ESG-related targets linked to the variable compensation for Management Board members. Sonova ensures that members of the Board of Directors are given appropriate introduction, orientation, and continuing training about their responsibilities. Oversight of Sonova's activities across all material ESG topics lies with the Management Board, in addition to which responsibilities for specific ESG topics are assigned to individual members of the Management Board. ESG progress is regularly reviewed and discussed at Management Board meetings, and ESG targets have been an integrated element of each member's compensation since the 2020/21 financial year. ESG performance objectives represent 10% of the overall variable cash compensation (VCC) for each Management Board member. The performance objectives that must be met to achieve the target VCC are mutually agreed upon at the beginning of the financial year. The ESG Council consists of the Sonova Group CEO, CFO, GVP Operations, GVP Human Resources Management & Communications, Group General Counsel & Compliance Officer, and the Director Corporate Sustainability; the council meets on a quarterly basis. The purpose of these meetings is to review the monthly development and implementation of Group ESG strategy, including its commitments and targets, and progress on ESG key performance measurements and initiatives, defining measures and assigning responsibility for actions. In addition to the quarterly meetings, the ESG Council members receive frequent updates on key ESG targets and performance development. Sonova's Corporate Sustainability team, led by the Director Corporate Sustainability, provides expertise on ESG topics to the Management Board, implements and further develops ESG strategy and initiatives across Sonova, monitors progress, prepares quarterly ESG Council meetings, regularly engages with relevant internal and external stakeholders, and closely collaborates with ESG topic owners and functional/business experts, as well as local Group company representatives. These local representatives report data on ESG progress and performance to the Corporate Sustainability team and drive relevant ESG initiatives locally within a specified country or region."
"Sonova operates in a highly regulated environment. The number of international health and safety regulations, which are essential for assuring the efficacy and reliability of our products, is always increasing. Policy related risks such as governmental pricing and reimbursement, regulatory requirements, and geopolitical conflicts could impact our business and the hearing care industry. Our public affairs focus includes active engagement in public discussions and providing insights on evolving policy changes. We raise awareness of the societal impact of hearing loss and the positive effects of hearing care, while maintaining our commitment to high standards of business ethics and integrity in accordance with applicable laws. Sonova does not allow donations to political parties, as defined in our Global Anti-Bribery Policy. [...] To share our specialist knowledge and support high quality standards for hearing instruments and cochlear implants, we participate actively in multiple associations and external initiatives, including: - Hearing Instrument Manufacturers' Software Association (HIMSA) - European Hearing Instrument Manufacturers Association (EHIMA) - Hearing Industries Association (HIA) - Medical Device Manufacturers Association (MDMA) - Hearing Instrument Manufacturers' Patent Partnership (HIMPP) - Hearing Industry Research Consortium (IRC) - European Telecommunications Standards Institute (ETSI) Sonova is represented on the governance bodies of several of these associations: our CEO Arnd Kaldowski is the current President of EHIMA; Stefan Launer, VP Audiology and Health Innovation, is Chair of HIMPP's Board of Directors; Victoria Carr-Brendel, President/GVP Cochlear Implants, is a board member of MDMA; and Sandra Brandmeier, President Sonova USA, is Chair of HIA's Board of Directors. We are also represented in various professional and scientific associations relating to the science and technologies relevant to our business. In the 2023/24 financial year, we contributed more than CHF 1.38 million in membership fees to trade associations and non-commercial organizations. The largest contributions (including membership fees) are those to the Hearing Industries Association (HIA), a forum for hearing aid manufacturers, suppliers, distributors, and hearing health professionals in the United States; European Hearing Instrument Manufacturers Association (EHIMA), and Swiss Medtech. We made no contributions to political organizations, parties and candidates, nor to ballot measures or referendums.

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Sonova's internal audit function performs independent performance assessments on ethical standards and reports these to the Audit Committee. [...] Compliance is a shared responsibility at Sonova. Ultimate oversight lies with the Board of Directors. The Management Board is expected to lead by example. Local Compliance Champions ensure implementation of the Group Compliance program within each group company. The Group Compliance program covers all employees, including part-time workers and contractors. [...] During the 2019/20 financial year, Sonova continued to strengthen the Group Compliance program, with a particular focus on our compliance culture, including training sessions (at leadership and at field level) and process enhancements in ethics and anti-bribery compliance. We reinforced overall Code of Conduct compliance with "Speak-Up!", an internal communication and training campaign rolled out across the Sonova Group worldwide with a particular focus on employees with less access to online reporting channels, such as those in operations or audiological care stores. Its two main goals are to increase awareness of the revised Code of Conduct and to foster a culture where employees feel comfortable about raising compliance questions and reporting compliance issues. Posters are visibly displayed in numerous locations and clearly indicate how to easily report non-compliance.

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### ESG governance

The governing body overseeing our ESG activities is Sonova's ESG Council. It consists of the Group CEO, CFO, GVP Operations, GVP Human Resources Management & Communications, Group General Counsel & Compliance Officer, and the Corporate Responsibility team. In its quarterly meetings the Council's responsibility is to oversee the development and implementation of the Group's ESG strategy, including its commitments and targets, and to monitor progress on ESG key performance indicators and initiatives. The full Management Board also regularly reviews progress on ESG targets, which comprise an element of each member's variable cash compensation.

The role of Sonova's Corporate Responsibility team is to provide expertise and advice to the Management Board on relevant ESG topics and, in close collaboration with internal experts, to drive the implementation of the ESG strategy and initiatives across the Group. The functional experts are drawn from Group-wide business functions or are country or regional experts representing Sonova Group companies within a given territory and driving ESG initiatives locally.

The ultimate approval of the Group's ESG strategy and key targets lies with the Board of Directors. In 2021/22, ESG topics were discussed at least quarterly, either by the full Board of Directors or one of the sub-committees. Information on selected ESG indicators was also included in monthly updates by the CEO to the Board of Directors." [...] "Governance
The ultimate oversight and responsibility for climate-related risks and opportunities lies with the Sonova Board of Directors. The Board of Directors receives a monthly written update by the CEO on the overall progress on selected ESG topics, including climaterelated matters. A summary of the results of our first TCFD climate risk scenario analysis was presented to the Audit Committee of the Board of Directors in November 2021.

Our progress on climate-related actions and metrics is reviewed at least quarterly in ESG Council meetings by the CEO, CFO, GVP Operations, GVP Corporate HRM & Communication, General Counsel & Compliance Officer, as well as the Corporate Responsibility team. Progress on our Scope 1 + 2 GHG emissions is reported monthly to the GVP Operations.

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Sonova has established an ESG Council to oversee and further develop the Group's ESG strategy, including its commitments and targets. The Council also monitors progress on key performance indicators and initiatives. It meets at least quarterly and consists of the Group CEO, selected members of the Management Board, the Group General Counsel & Compliance Officer, and the Corporate Responsibility team. Progress on ESG targets is also regularly reviewed by the full Management Board and are an element of each member's variable compensation. The Board of Directors approves the ESG strategy, initiatives, and targets and receives progress updates on at least a yearly basis. [...] Good governance is supported by a regular dialogue on ESG topics with proxy advisors, investors, and rating agencies, and by Sonova's continuous and active risk management and compliance functions. [...] Sonova's Corporate Responsibility team provides expertise and advice to the Management Board on relevant ESG topics and drives the implementation of the ESG strategy and group-wide initiatives in close collaboration with internal experts. These are functional experts linked to Group-wide business functions as well as country or regional experts, representing Sonova Group companies within a given territory and driving ESG initiatives locally.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Sonova has internal processes in place which ensure that all our direct and indirect activities that influence policy are consistent with our overall strategy. As an example, engagements with trade associations and other groups are vetted by our investor relations and communication functions, so that prior to endorsing or contributing to policy opinions, alignment to company policies, principles, and activities is checked.