ESG strategy and governance

vision-and-values

Vision and values

• We care: We care for our employees, customers, and consumers, as well as our shareholders and society.
• We drive innovation: We courageously pioneer new ideas and approaches to come up with impactful innovations, to delight customers and consumers.
• We strive for excellence: We act with agility. We aim to excel. We are continuously working on improving products, services, processes, and skills, to realize growth.
• We take accountability: We deliver on our commitments. We take accountability to provide outcomes in agreed quality and time, always acting with integrity.
• We build the best team: We team up. We grow talent. We collaborate with people of diverse backgrounds to win with the best team in the marketplace.

Our commitment to act responsibly and create long-term value for all our stakeholders is defined in our Sonova Group Code of Conduct and is deeply rooted in our corporate vision, values, and culture. More information about our strategy and our four businesses can be found in the Strategy and businesses section of our 2023/24 Annual Report.

ESG-strategy-and-targets

ESG strategy and targets

• Protecting the planet: We drive the transition to a resource-efficient and low-carbon future of our operations throughout the life cycle of our products and services.
• Serving society: We constantly innovate in hearing health care, improve access for people in under-served areas, and engage actively with our communities.
• Advancing our people: We foster our employeesʼ development, wellbeing, and engagement in an inclusive work environment that embraces diversity.
• Acting with integrity: We behave ethically and apply the highest quality and safety standards to everything we do.

Our sustainability management approach has defined tangible and measurable targets with firm dates for achievement and regularly assessed performance measurements. In the table below, we list our key ESG targets and progress under the four pillars of the IntACT strategy. More information about how we manage and govern, as well as our policies, targets, and performance measurements, is provided in the corresponding sections of this ESG Report. 

Progress on key ESG targets

Key ESG targets as of 2024/25

ESG-governance

ESG governance

The Board of Directors bears overall responsibility for Sonovaʼs 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 Sonovaʼs 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 Sonovaʼs 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 memberʼs 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.

Sonovaʼs 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.