ESG strategy and governance
Vision and values
We envision a world where everyone enjoys the delight of hearing and therefore lives a life without limitations. The Sonova core values are foundational for our corporate culture and inspire our actions. They are shared with all our employees across every brand and region of our global organization. Our core values are:
- 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 acting responsibly and create long-term value for all our stakeholders is defined in our Code of Conduct and deeply rooted in our vision, values, and culture. More information about our strategy and our four businesses can be found in the Strategy and businesses section.
ESG strategy and targets
Sonovaʼs ESG strategy, IntACT, aligns our sustainability commitments into four strategic pillars. The name IntACT emphasizes the ultimate goal – keeping our planet and people intact – and underlines the urgency to ACT.
- 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 metrics. In the table below, we list our key ESG targets. The chapters of this report provide further information about how we manage and govern our ESG commitments, along with specific policies, actions and performance metrics.
Key ESG targets | ESG topic | Progress | 2024/25 performance | 2025/26 target | ||||
|---|---|---|---|---|---|---|---|---|
Environment | ||||||||
We reduce scope 1 and 2 greenhouse gas emissions by 78.3% vs. 2019/20 by 2032/33. | On track | 68.4% reduction of scope 1 and 2 CO2e emissions compared to 2019/20 | ✔ | |||||
We reduce scope 3 greenhouse gas emissions by 32.5% vs. 2019/20 by 2032/33. | On track | 19.3% reduction of scope 3 CO2e emissions compared to 2019/20 | ✔ | |||||
We reduce energy consumption per FTE by 10% vs. 2022/23 by 2027/28. | Achieved | 13% reduction in energy consumption per FTE compared to 2022/23 | ||||||
We reduce packaging material weight by 20% vs. 2023/24 by 2026/27. | Behind schedule | 2.6% reduction in packaging weight compared to 2023/24 | ✔ | |||||
We reduce operational waste per FTE by 5% vs. 2022/23 by 2027/28. | Achieved | 6% reduction in operational waste per FTE compared to 2022/23 | ||||||
We reduce water withdrawal per FTE by 5% vs. 2022/23 by 2027/28. | Achieved | 15% decrease in water withdrawal per FTE compared to 2022/23 | ||||||
Social | ||||||||
We maintain or improve our annual employee engagement score year-over-year. | - | Due to the change of survey provider and methodology, performance cannot be compared to the 2023/24 engagement score | ✔ | |||||
We increase the share of women in senior management to 35% by 2028/29. | On track | 30.5% women in senior management compared to 28.3% in 2023/24 | ✔ | |||||
We increase the share of women in middle management to 50% by 2028/29. | On track | 41.6% women in middle management compared to 39.9% in 2023/24 | ✔ | |||||
We increase unit sales of hearing instruments in low- and middle-income countries by 50% by 2024/25 vs. 2018/19. | Achieved | 67.3% increase compared to 2018/19 | ||||||
We initiate a Group-wide access to hearing care program in 2025/26. | - | New target for financial year 2025/26 | ✔ | |||||
We increase lives impacted by the Hear the World Foundation by 10% year-over-year. | Achieved | 27.1% increase compared to 2023/24 | ||||||
We train >1,000 people leaders on Mental Health First Aid Conversations for Managers by 2024/25. | Achieved | 1,085 people leaders trained since 2022/23 | ||||||
We conduct at least one social audit per year. | Achieved | One social audit conducted in 2024/25 | ✔ | |||||
We improve the product reliability rate by >20% year-over-year for hearing instruments. | Not achieved | 10% improvement of the hearing instruments product reliability rate compared to 2023/24 | ✔ | |||||
We improve the product reliability rate by >20% year-over-year for cochlear implants (externals). | Not achieved | 16% improvement of the cochlear implants product reliability rate compared to 2023/24 | ✔ | |||||
We achieve an annual on-time mandatory Anti-Bribery Policy training completion rate of > 95% completion (for senior- and middle management, and relevant functions). | - | New target for financial year 2025/26 | ✔ | |||||
We achieve an annual on-time employee Data Privacy training completion rate of >95%. | - | New target for financial year 2025/26 | ✔ | |||||
Governance | ||||||||
We achieve an annual on-time employee Code of Conduct training completion rate of >95%. | Achieved | 98% on-time completion of annual Code of Conduct training in 2024/25 | ✔ | |||||
We conduct assessments of >90% of direct material suppliers with potential high ESG risk by 2024/25. | Achieved | 90% of identified potential high ESG risk suppliers assessed in 2024/25 |
The key ESG targets table also indicates targets relevant for the 2025/26 financial year. We have further streamlined our targets to align with material ESG topics.
ESG governance
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 managers and experts, as well as local Group company representatives. 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. Similar to the prior financial year, shareholders at the 2025 Annual General Meeting will be able to endorse the ESG Report in a non-binding advisory vote. The Board of Directors is also responsible for approving 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. Most of the regular Board of Directors and committee meetings during 2024/25 included ESG topics on the agenda for discussion. During the 2024/25 financial year, critical ESG topics specifically dealt with by the Board and its committees included ESG target-setting and achievement progress, the double materiality assessment, reporting and assurance, and progress on implementing relevant sustainability 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 reporting, 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 the appropriate representation of ESG capabilities and experience across the Board. In addition, the Nomination and Compensation Committee reviews and approves ESG-related targets and achievements 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.
The Management Board is responsible for Sonovaʼs activities across all material ESG topics, with specific responsibilities assigned to individual members for certain ESG topics. These material topics are identified through the double materiality assessment (DMA). Further details on the DMA process and methodology are available in the Double materiality assessment chapter. ESG actions and target progress are regularly reviewed and discussed at Management Board meetings. ESG targets, derived from expert discussions and DMA findings, are set and monitored by the Corporate Sustainability team, topic managers, and members of the Management Board. ESG targets are integrated into performance objectives for each Management Board memberʼs variable cash compensation (VCC), accounting for 10% of overall VCC. More information on the VCC targets and performance outcomes for the 2024/25 financial year can be found in the compensation report.
The ESG Council includes the Sonova Group CEO, CFO, GVP Operations, GVP Human Resources Management & Communications, Group General Counsel, and VP Sustainability & Infrastructure. The council meets quarterly to review the monthly development and implementation of the Group ESG strategy, including its commitments and targets, progress on ESG performance metrics and initiatives, defining measures, and assigning responsibility for actions. The council members also receive frequent updates on key ESG targets and performance development.
Sonovaʼs Corporate Sustainability team, led by the VP Sustainability & Infrastructure, provides expertise on ESG topics to the Board of Directors and the Management Board, implements and develops ESG strategy and initiatives, monitors progress, prepares quarterly ESG Council meetings, and regularly engages with relevant internal and external stakeholders. The team collaborates closely with ESG topic managers and functional/business experts, as well as local Group company representatives. These local representatives report ESG progress and performance data to the Corporate Sustainability team and/or topic managers and drive relevant ESG initiatives within specific countries and regions. In 2024/25, Sonova also established a sustainability reporting team within the Finance function.