Governance information

Sonova is committed to ethical business conduct across the organization at all levels, and in our dealings with stakeholders. We are committed to following the laws and regulations of every country in which we operate, as well as to abiding by our own Code of Conduct and other internal policies and standards. Business ethics is defined as shaping corporate culture and following our Code of Conduct by fighting fraud, corruption, bribery, and anti-competitive practices, along with whistle-blower protection.

Sonovaʼs Code of Conduct defines general principles for ethical behavior and applies to all employees of the Sonova Group, its subsidiaries, and any third parties such as distributors, agents, or suppliers while they are performing work for Sonova. An acknowledgment of the Code of Conduct is part of every new employment and third-party contract. The Code of Conduct is approved by the Board of Directors, reviewed regularly, revised when necessary, and governs all relevant aspects of Sonovaʼs business operations. It covers compliance with laws and regulations, conflicts of interest, and anti-competition, along with Sonovaʼs commitment to social and environmental responsibility such as human rights, diversity and inclusion, non-discrimination, and workplace safety. Sonovaʼs Code of Conduct training is mandatory for all employees worldwide and is delivered through our eLearning platform or periodically via classroom training for employees who do not have access to a computer in performing their role. It provides guidance on how to act with integrity and how to identify and report potential violations such as conflict of interest, harassment, fraud, discrimination, corruption, or breach of secrecy. Third parties are regularly instructed to ensure adequate understanding and compliance with the Code of Conduct.

The principles of the Code of Conduct are further refined in various internal guidelines and policies, including – but not limited to – antibribery, interactions with hearing care professionals, anti-competitive practices or infringement of intellectual property, human rights, data protection, securities trading, public disclosure, and reporting. Non-compliance with the Code of Conduct or Sonovaʼs internal policies and guidelines triggers disciplinary action, up to and including termination of the employment contract. Sonovaʼs distributors, suppliers and vendors go through an onboarding due diligence process before being contracted for their services. This helps ensure that our upstream and downstream partners conduct their business in accordance with Sonovaʼs Code of Conduct and in compliance with the relevant individual policies. In addition, Sonovaʼs Supplier Code of Conduct also serves as a binding principle for its suppliers. Suppliers are required to provide written certification that they will always adhere to these requirements in all of their business transactions, operations, goods, and services pertaining to Sonova.

Sonovaʼs Anti-Bribery Policy prohibits all forms of corruption and provides the framework for ethical interaction with customers, consumers, and third parties – with a particular focus on Sonovaʼs interactions with hearing care professionals (HCPs) and health care organizations. The Anti-Bribery Policy has been communicated to all Sonova employees, and third parties must commit to complying with the principles described in the Anti-Bribery Policy. The content of the Anti-Bribery Policy is integrated in the annual mandatory Code of Conduct training and in addition, mandatory yearly training on the Anti-Bribery Policy has been rolled out to employees in defined high-risk functions such as sales and marketing, finance, as well as senior and middle management and Group company roles such as Managing Directors and company controllers. The training offers an in-depth understanding of anti-bribery principles, incorporating case studies and real-world applications. Sonovaʼs Global Competition Law Policy describes the basic principles of fair competition while conducting business. All Sonova employees worldwide have access to the policy and must comply with the principles it sets out.

Sonova strongly encourages every employee, contractor or other stakeholder who knows of or suspects a violation of applicable laws, regulations, the Code of Conduct, or related internal policies and procedures to report it through the SpeakUp reporting platform. To further support the culture of SpeakUp, Sonova has implemented a SpeakUp Policy which outlines the escalation process to handle and report SpeakUp complaints. The complaints are classified according to their impact (global/local) and/or the implicated person. The escalation process includes the handling of local matters by local management under the guidance and oversight of the Global Compliance team. All matters with global impact (both in severity and/or where senior members of management are implicated) are investigated by the Global Compliance team. Sonovaʼs SpeakUp platform and process are compliant with the EU Whistleblower directive and have been audited and verified by external auditors. Employees may report a concern to their line manager, their local HR function, a compliance manager, or directly via the SpeakUp platform, which is available online and via phone. The SpeakUp platform is operated by an independent third-party provider and ensures the anonymity of the reporter. We also include the SpeakUp Policy in our annual Code of Conduct training for all employees.

No fines or non-monetary sanctions for non-compliance, including violation of anti-corruption and anti-bribery laws were levied against Sonova in the 2024/25 financial year.

In 2024/25, we continued to embed sustainability in our core procurement processes. Sustainability remains an integral part of the predictive procurement risk assessment matrix and critical supplier assessment process, both based on EcoVadis scorecards and risk pre-screening. Sustainability requirements are also increasingly included in new supplier agreements and RFx (request for proposal, information, or bid) processes. Sustainability aspects such as ESG risk profiles, material compliance and decarbonization potential are discussed monthly within the procurement function and we offer training on the topic for buyers and category leaders. Our suppliers who register for an EcoVadis assessment also receive access to EcoVadis Academy e-learning courses. We further support our suppliers through one-to-one engagement about their specific needs, such as building their decarbonization capability, successfully completing the EcoVadis assessment, or creating corrective action plans.

Suppliers with low assessment scores are engaged and helped to develop an action plan to improve their practices. In 2024/25, one supplier was identified with improvement needs and engaged to put an action plan in place to ensure meaningful improvement. In addition to the assessment of high ESG risk suppliers, 20 suppliers (based on largest spend, high carbon emissions and strategic tenders) were asked to conduct the self-assessment. In total, 77% of our direct material spend in 2024/25 was covered by the EcoVadis assessments. In addition, our Consumer Hearing business conducted four onsite audits, and our Hearing Instruments business more than 75 supplier visits, which included assessment and discussion of sustainability aspects.

Sonova maintains and continuously assesses a critical supplier list, which included 30 suppliers at the end of the 2024/25 financial year. Critical suppliers include those whose materials have a direct impact on the performance of our products or come into direct contact with the skin of users, those whose items or materials are not substitutable and those who supply high volumes. The classification of critical suppliers is carried out at the beginning of each new supplier relationship and is reviewed regularly.

Sonova operates in a highly regulated environment, and our public affairs efforts focus on active engagement in public discussions and providing insights on evolving policy changes. These changes include regulations affecting the market placement of hearing instruments and consumer products, as well as public access to medical technology. We work to raise awareness about the societal impact of hearing loss and the benefits of hearing care, all while upholding high standards of business ethics and integrity in compliance with applicable laws. In line with our Global Anti-Bribery Policy, Sonova does not permit donations to political parties.

We recognize the importance of animal welfare in advancing medical research and are committed to ethical practices and the responsible treatment of animals in compliance with international standards. Sonova does not conduct any animal testing in-house and works with only a small number of third-party organizations. We adhere to ISO 10993-1, which requires animal testing in certain cases to demonstrate the biological safety of medical devices that come into contact with the human body. As part of our research contributions, we provide components of cochlear implants to a few selected research centers and universities. We are dedicated to the Three Rs principle – replacement, reduction, and refinement – to minimize the need for animal testing.