Strategy

Sustainability program

As the world’s leading provider of hearing solutions, Sonova has both a duty to act responsibly and an ability to make a positive impact on society. Our sustainability program aligns closely with our business strategy as well as the United Nations Sustainable Development Goals (SDGs).

Materiality analysis

Identification and prioritization

At Sonova, material issues are those economic, social, and environmental topics that either create significant value, cause potential risks, or have negative impacts for our internal and external stakeholders.

As a medical technology company, Sonova complies with numerous international, governmental, and industry regulations, standards, and agreements. In addition, Sonova draws on a number of sources to compile a broad initial list of topics that could be considered relevant to the organization’s economic, environmental, or social impact, or could be influential in its stakeholders’ views and decisions. Along with the generic GRI economic, social and environmental topics and the UN Sustainable Development Goals (SDGs), Sonova’s sources for these topics include: peer reviews, public media, investor & ESG analyst feedback, global standards reviews, customer and employee surveys, and stakeholder interviews. Topics with little or low relevance for Sonova or its stakeholders are not included.

Sonova prioritizes its relevant topics on the basis of interviews with key personnel, management workshops, and expert advice. Sonova holds workshops and meetings to determine the significance of Sonova’s economic, environmental, and social impact related to each topic. To determine each topic’s influence on stakeholder assessments and decisions, Sonova identifies its key stakeholders and determines their relative importance; each topic is then assessed for its relevance for each key stakeholder. The relative importance of stakeholders and relevance of the topic to those stakeholders is then charted along the axis of influence on stakeholder assessments and decisions.

List of material topics

The key topics identified from the materiality matrix are further consolidated in the Sonova sustainability landscape presented below, either as part of the four core commitments Sonova makes towards its stakeholders, or as part of our governance, risk, and compliance management. The connections between the detailed topics from the materiality matrix and the five consolidated themes presented in the sustainability landscape are outlined below:

Customer-focused solutions: Innovation, product reliability
Access to hearing care: Access to hearing care
Investment in people: Human capital
Safeguarding the environment: Environment and climate change
Governance, risk, and compliance management: Legal compliance and business ethics, human rights and labor practices, patient data privacy and security

Sustainability landscape

The Sonova sustainability landscape is our guiding framework for sustainability management and reporting at Sonova. The sustainability landscape shows how we intend to create value and encompasses our vision, our values and our commitments.

Our vision – the “why”

Our company’s vision is the motivation for our actions and provides the basis for our sustainability program. Over 15% of the world’s adults experience some degree of hearing loss, but very few are treated for it. At Sonova, our vision is straightforward: We foster a world in which all people equally enjoy the delight of hearing and live a life without limitations.

Our values – the “how”

Our shared core values of innovation, engagement, and responsibility describe how we interact with each other and how we do business. We help people hear the world by providing the most innovative technology, by dedicating ourselves to service, and by accepting responsibility for all of our actions. Our governance, risk, and compliance management further substantiate and formalize our values.

Our commitments – the “what”

The four commitments explain what we do to transform our vision into reality: we are creating value for our stakeholders by providing customer-focused solutions; and also by expanding access to hearing care. We are doing business in a responsible manner by investing in our employees and partners, as well as by maximizing our eco-efficiency. We live up to our commitments through specific, defined fields of activity. The sustainability report is structured in terms of the commitments and provides information on the progress we made in each of these defined activities.

Validation

Our sustainability program aligns closely with our business strategy. The management board assesses the sustainability program for completeness and determines its significance to the organization’s economic, environmental, and social impact. Both the management board and the Board of Directors also regularly assess the program’s effectiveness, based on the yearly reporting and ad-hoc updates on specific initiatives.

Topic boundaries

The sustainability program is defined by its relevance to the whole Sonova Group and therefore all defined fields of activity are assumed to be material to all or nearly all of the entities covered by this report. Sonova assigns each field of activity to its appropriate stage or stages of the value-creation process, from raw material supply to after-sales refurbishing or recycling. Those aspects of our material topics that are also or primarily material outside the organization relate to our supply chain (human rights and labor practices, environmental program) or to the utilization of our products and services (new products and markets, eSolutions, Hear the World Foundation).

Key corporate responsibility targets and performance

Sonova has defined key corporate responsibility (CR) targets for each of the material topics. Our sustainability program and targets are well aligned with the SDGs.

In line with SDG 3 (good health and well-being), SDG 4 (quality education), and SDG 9 (industry, innovation and infrastructure), Sonovaʼs goal is to foster innovation and technology to offer a broad range of solutions that create value for consumers and enable us to offer a path to better hearing. Our portfolio includes a suite of innovative and easy-to-use products specially designed for children. Our target is to apply for a minimum of 40 patents annually. In 2018/19, we continued to invest substantially in research and development and filed 81 new patent applications across the Sonova Group (2017/18: 50). This contributes to SDG targets 4.5 and 9.5 and is in line with SDG indicator 9.5.1, “Research and development expenditure as a proportion of GDP.”


Sustainability program	Related SDGs	Priority goal/KPI	Target (target year)	2018/19 performance
Customer-focused solutions: We continuously push the limits of technology and innovation to offer the best solutions to our customers.	3, 4, 9	Apply for a minimum of 40 patents each year.	40 patents (each year)	81 patents
Access to hearing care: We provide access to hearing care and improve the quality of life for millions of people with hearing loss.	3, 4	Conduct 14,000 hours of Sonova employee volunteer work for the Hear the World Foundation, starting in 2013/14.	14,000 hours (2020/21)	11,520 hours (2013/14 – 2018/19)
Investment in people: We support the development of our employees and offer a flexible and inclusive work environment.	5, 8	Achieve >35% female representation in upper management.	>35% (2022/23)	31%
Safeguarding the environment: We ensure eco-efficient practices across all our business activities.	6, 7, 9, 12, 13	Reduce greenhouse gas emissions per revenue by 30% compared to 2017/18.	-30% (2022/23)	-11.7%
Governance, risk, and compliance management: We adhere to good corporate governance and strictly ethical business practices	8, 16	No fines or non-monetary sanctions for non-compliance with laws and regulations.	0 (each year)	0

Our efforts to increase access to hearing care and improve the quality of life for millions of people with hearing loss closely aligns with SDG 3 (good health and well-being) and SDG 4 (quality education). Our target is to conduct a total of 14,000 hours of Sonova employee volunteer work for the Hear the World Foundation by 2020/21. The Foundation focuses on supporting children, enabling them to develop their fullest potential. In 2018/19, Sonova employees conducted 3,120 hours of volunteer work, which brings the total to 11,520 hours since 2013/14. This contributes to the SDG targets 3.8, 3.C, 3.D, and 4.5.

By investing in the development of our employees and offering a flexible and inclusive environment, we have an impact on SDGs 5 (gender equality) and 8 (decent work and economic growth). We have a special focus on recruiting and promoting women and employees from different cultures in leadership and executive positions. By striving for gender balanced representation in filling open positions, we aim to achieve a 35% proportion of women in upper management by 2022/23. In 2018/19, 31% of upper management positions were held by women (2017/18: 29%). This corporate responsibility target is well aligned with SDG target 5.5 and SDG indicator 5.5.2, “Proportion of women in managerial positions.” Our first-time selection to the Bloomberg Gender-Equality Index shows that our comprehensive diversity and inclusion strategy is bearing fruit.

Sonova is committed to protect the environment and ensure eco-efficient practices across all our business activities. This commitment contributes to several SDGs related to the environment (6, 7, 9, 12, 13). In 2018/19, we defined several new environmental targets, the most important being to reduce our ratio of group-wide greenhouse gas (GHG) emissions to revenues by 30% by 2022. In 2018/19, we have already reduced GHG emissions intensity by 11.7%, keeping us well on track to achieve our long-term goal. This contributes to SDG target 9.5 and SDG indicator 9.4.1, “CO₂ emission per unit of value added.”

We adhere to good corporate governance and strictly ethical business practices, thereby positively influencing SDGs 8 (decent work and economic growth) and 16 (peace, justice and strong institutions). No fines or non-monetary sanctions for non-compliance with laws and regulations were levied against the company in the 2018/19 financial year. This confirms our endeavors to promote ethical conduct at all levels of the organization, which is well aligned with SDG target 16.5, “Substantially reduce corruption and bribery in all their forms.”

Management approach

Customer-focused solutions

Our commitment: We continuously push the limits of technology and innovation to offer the best solutions to our customers.

Priority goal

We will continue to offer the broadest range of technologically advanced hearing solutions to our customers by substantially investing in R&D and by applying for a minimum of 40 patents each year.

Approach

Investment in expertise and training: We continuously strengthen the expertise of hundreds of engineers working in our R&D centers around the world to drive innovation in hearing aids, cochlear implants, wireless communication systems, and professional hearing care solutions.
Strong partnerships: We leverage the complementary strengths of all our business brands and foster know-how transfer through close collaboration with expert networks and universities around the globe.
eSolutions: We strategically focus on the development of eSolutions to establish one-to-one, real-time relationships with our customers.

Performance

Read about our achievements and progress in 2018/19 in the corresponding section of this CR Report: Customer-focused solutions.

Access to hearing care

Our commitment: We provide access to hearing care and improve the quality of life for millions of people with hearing loss.

Priority goal

We aim to provide access to hearing care and improve the quality of life. By 2020/21, we want to conduct 14,000 hours of Sonova employee volunteer work for the Hear the World Foundation.

Approach

Extensive product portfolio: At Sonova, we offer a wide range of performance and pricing levels, from standard to premium solutions.
Hearing care infrastructure: By developing new service formats and distribution channels and by supporting the education of local specialists, we can provide hearing care services and treatment to groups who are currently underserved.
Partnerships: By building productive partnerships and collaborations with local organizations, we can offer the fullest benefit of our skills and services to the people who need them.
Foundation: Affordable hearing care is still a challenge for people in countries with low-to-middle income and for underprivileged social groups in countries with high income. We cater to these groups through our charitable Hear the World Foundation.

Performance

Read about our achievements and progress in 2018/19 in the corresponding section of this CR Report: Access to hearing care.

Investment in people

We support the development of our employees and offer a flexible and inclusive work environment.

Priority goal

We will achieve >35% female representation in upper management by 2022/23.

Approach

Professional career development: We develop our employees to higher levels of success with a systematic talent management process including a strategic approach to training, succession, and career planning.
Employee engagement: We foster employee engagement through a holistic Diversity & Inclusion strategy and other initiatives, such as the group-wide Body & Mind initiative.

Performance

Read about our achievements and progress in 2018/19 in the corresponding section of this CR Report: Investment in people.

Safeguarding the environment

We ensure eco-efficient practices across all our business activities.

Priority goal

We aim to reduce our greenhouse gas emissions in relation to revenues by 30% by 2022/23.

Approach

Operational energy efficiency: We reduce our carbon footprint by fully utilizing capacity, renewing equipment, remodeling existing buildings, or moving to new buildings.
Alternative energy: We generate power using renewable sources and purchase green power.
Environmental management systems: We have established a ISO 14001-certified environmental management at all our key manufacturing and distribution centers and urge our suppliers to follow the same standard.

Performance

Read about our achievements and progress in 2018/19 in the corresponding section of this CR Report: Safeguarding the environment.

Governance, risk, and compliance management

We adhere to good corporate governance and strictly ethical business practices.

Priority goal

We aim for no fines or non-monetary sanctions for non-compliance with laws and regulations to be levied against Sonova.

Approach

International labor standards: We conduct business and align our codes and principles according to internationally recognized standards of the United Nations (UN), the International Labor Organization (ILO), and the Organization for Economic Cooperation and Development (OECD). All our employees, business partners, and suppliers are expected to comply with these standards.
Compliance program: We continue to strengthen the Group compliance program through training sessions and process enhancements in ethics and anti-bribery compliance, and we intensify our efforts to support Code of Conduct compliance through the global "Speak-Up!" campaign.
Continuous supply chain management: We require that all our suppliers be as committed to sustainable development as we are and ensure compliance with the Sonova Group Supplier Principles (SGSP).

Performance

Read about our achievements and progress in 2018/19 in the corresponding sections of this CR Report: Ethics and integrity and Corporate governance.