Social information

The following sections are covered in the social information chapter:

• Our employees
• Talent management
• Working conditions
• Diversity and inclusion
• Occupational health and safety
• Working conditions in the value chain and affected communitiesʼ rights
• Corporate citizenship
• Our consumers
• Access to hearing care
• Awareness raising on hearing health
• Product quality, reliability and safety
• Ethical marketing and sales practices
• Data privacy and digital ethics

Our employees

We recognize that our employees are vital to our success. They drive our innovative solutions and services, care for our customers and consumers, and enable us to achieve our business goals. Our workforce includes several categories, such as research and development, manufacturing, distribution, sales and service of hearing care and consumer hearing products. Whether our colleagues are working at our production sites, serving our consumers in audiological stores or supporting us in functional roles, they are essential for the success of Sonova.

Number of employees

Employees by region
✔ Data externally assured (limited assurance)

Employees by employment contract and by gender
✔ Data externally assured (limited assurance)

Over the past three years, our total employee turnover rate remained stable at around 14.7% and during the 2024/25 financial year, the voluntary turnover rate decreased from 10.5% to 9.7%. Our overall talent management practices, including a focus on leadership development and internal leadership career progression, as well as acting on employee feedback to improve engagement, have contributed to the voluntary turnover reduction.

Employees turnover rates
✔ Data externally assured (limited assurance)

Non-employees
✔ Data externally assured (limited assurance)

Employee rights and engagement

Sonovaʼs Human Rights Policy governs our human rights due diligence (HRDD) across the entire value chain, delivered through an HRDD framework that aligns with the United Nations Guiding Principles on Business and Human Rights (UNGP). It also outlines key salient issues applicable across the value chain, including our employees. A list of these issues is available in the Sustainability note 6 - Salient human rights issues. Sonova also reports on its human rights due diligence practices in compliance with local regulations, including the UKʼs Modern Slavery Act, the Norwegian Transparency Act and Canadaʼs Fighting Against Forced Labour and Child Labour in Supply Chains Act.

Our human rights due diligence framework

Sonovaʼs commitment to human rights is further reinforced by its SpeakUp Policy and SpeakUp process. The policy provides clear guidance on grievance mechanisms and details on the availability of SpeakUp, our anonymous reporting platform, which is available for employees, contractors, and other stakeholders to report concerns, including potential human rights violations. The policy outlines the SpeakUp process, including the steps for the remediation, corrective actions and disciplinary measures when necessary. Importantly, the policy explicitly prohibits retaliation against anyone who, in good faith, reports a suspected violation. Our employees receive annual training on these policies to ensure awareness and adherence. Sonovaʼs Group General Counsel is responsible for the SpeakUp process as well as human rights monitoring and implementation, while the Audit Committee reviews the process quarterly. For further details about SpeakUp and our policy training, please refer to the Business ethics section.

Sonova conducts social audits and human rights assessments to identify and evaluate potential human rights risks related to employeesʼ working conditions across our business operations. These assessments include monitoring the implementation of recommended actions and address identified concerns, such as working conditions, wage practices, and workplace discrimination. Additional details on the social audit performed in the 2024/25 financial year are available in the Working conditions section. We also conduct internal audits for Group functions and at a Group company level to ensure compliance with local labor laws and internal regulations.

Sonova acknowledges the significance of employee engagement in shaping its strategy and addressing impacts. Engagement with employees takes place through various channels, such as annual and monthly employee engagement surveys, our human resources processes, local exchanges with unions and employeesʼ representatives, and exchanges with our employee resource groups. Engaging with employees globally and locally helps us gain comprehensive insights and take effective improvement actions. Sonovaʼs GVP Corporate Human Resource Management & Communications has the overall responsibility for employee engagement.

In addition to the engagement methods described above, we value employeesʼ input to solve business challenges, improve customer experience and reduce waste in our processes. Through Sonova X – our business system and mindset for continuous process improvement, our leadership training programs, and our change management approach, we ensure that our improvement actions are both practical and adaptable, and effectively address internal and external challenges at every level in the organization.

Talent management

Strategy, governance and IROs

Material impacts, risks and opportunities related to talent management:

We use sustainable processes to attract, develop and retain talents, with special focus on audiology and R&D. We develop talents by encouraging internal mobility and providing an environment where employees take accountability for continuously improving their skills and owning their career progression. We have a continuous focus on employee engagement and the working environment. This keeps critical talents within the Group, which helps to sustain our competitive advantage and long-term success, and mitigate the material risk.

Sonovaʼs GVP Corporate Human Resource Management & Communications is responsible for overseeing talent management, including setting the strategic direction, monthly oversight, and tracking. Monthly key talent management performance metrics, including employee turnover rate and internal recruitment rate, are reviewed at global, business and local levels to track the effectiveness of our actions. Updates on key talent metrics are communicated monthly to the Management Board and regularly to the Board of Directors. Risks and mitigation actions are reported regularly to the Audit Committee through the enterprise risk management process.

Policies and actions

Our commitments to our employees are governed by our Code of Conduct and our Human Rights Policy. Detailed information about these policies can be found in the sections Our employees and Business ethics. In addition, multiple internal policies and standard operating procedures govern specific aspects of working experience.

In the 2024/25 financial year, we initiated several key talent development actions, rolling out our new Leadership Principles and launching an enhanced leadership curriculum, the Leadership Excellence Hub, along with further learning offerings such as LinkedIn Learning. The Sonova Leadership Principles form our common leadership framework, serving as our collective identity, the foundation for decision making and ways of working applicable to each and every Sonova colleague. The Leadership Principles allow us to jointly elevate our Sonova culture and deliver more for our customers, consumers and shareholders. The Leadership Excellence Hub consists of webinars, immersive workshops, and internal leadership developmental programs to empower all to become better leaders. LinkedIn Learning, launched for all employees in April 2024, offers more than 15,000 courses, from professional growth to the latest in technology, creative skills, and leadership essentials. These talent management actions all relate to our strategic aim to keep talent within Sonova by offering learning and development opportunities, and they therefore all serve to mitigate the relevant material risk.

The performance management process at Sonova further reinforces our culture of accountability where people leaders and employees have a pre-defined timeline through the financial year to set performance objectives, continuing through the year with performance check-ins, and closing with a performance appraisal discussion at the end of the year. The process encourages dialogue to provide clarity on what customer, consumer and shareholder outcomes are expected of each of our colleagues as well as what behaviors are expected from individuals in how they lead themselves, their teams and thus Sonova – in line with the Sonova Leadership Principles.

HearMe, our annual employee survey, gathers insights on how engaged our colleagues are, as well as their feedback on key themes such as workplace culture, innovation, accountability, operational excellence and people leadership. In the 2024/25 financial year, the external survey provider was changed to better leverage more advanced technology and an external research-proven methodology. We continue with our practice in which people leaders conduct HearMe workshops to discuss the survey results with their teams and commit to improvement actions. In addition to the annual survey, monthly engagement surveys were reestablished in 2024/25 to get more frequent “pulse” feedback on the improvement actions.

Performance metrics and targets

Employee engagement

Almost 17,300 eligible employees were invited to complete HearMe. We maintained our consistently high participation rate, which indicates that our employees are open to sharing their feedback and confident that Sonova is acting on it.

Due to the external survey provider change, the employee engagement score is not comparable to the prior year and therefore cannot be assessed against our target. The new engagement score methodology measures three core questions covering employer advocacy, sense of accomplishment and discretionary efforts. The 2024/25 engagement score is 68%, which is five points lower compared to the new Healthcare equipment and services benchmark. We are committed to further enhancing our employee engagement, with actions in place to maintain or improve our employee engagement score for 2025/26 compared to the new 2024/25 baseline.

Employee engagement survey participation rate and engagement score
✔ Data externally assured (limited assurance)

Learning and development

Development plan
✔ Data externally assured (limited assurance)

In the 2024/25 financial year, more than 4,000 employees completed 20,000 hours of Leadership Excellence Hub learning, and in addition, our employees completed 7,200 hours of training via LinkedIn Learning. We also introduced a 360-degree feedback tool, cross-unit exchanges for coaching, and “action learning” sets to facilitate learning transfer and to work on real business challenges.

Talent attraction

New hire rate
✔ Data externally assured (limited assurance)

Internal leadership recruitment rate (ILRR)
✔ Data externally assured (limited assurance)

Working conditions

Strategy, governance and IROs

Material impacts, risks and opportunities related to working conditions:

We are dedicated to fostering a workplace that ensures employeesʼ rights, job stability, equitable compensation, and fair working conditions while promoting constructive dialogue. We aim to create a workplace where employees feel valued, empowered, and supported in balancing their accountability to deliver performance objectives with their professional and personal lives. We recognize that a safe and healthy work environment with a focus on employee wellbeing is enabling our colleagues to create more value for our customers, consumers and shareholders and to deliver business outcomes as well as improving employee engagement. Our wellbeing framework is based on five pillars:

• Physical: nutrition, exercise, sleep, medical care and ergonomics
• Mental: relaxation, mindfulness, stress management, resilience and mental health
• Financial: retirement and ancillary benefits
• Social: team spirit and leadership
• Purpose: purpose in life and work, beliefs & values and charitable activities

Sonovaʼs GVP Corporate Human Resource Management & Communications is responsible for overseeing working conditions, including setting the strategic direction, monthly oversight, and tracking. Performance metrics are reviewed monthly at global, business and local levels. The Group General Counsel is responsible for monitoring and implementing of the SpeakUp process, including our anonymous whistleblowing platform, and other human rights initiatives. Employee wellbeing is led and managed through a cross-functional global health team, supported by local champions in our Group companies. In addition, we conduct internal audits for Group functions and at a Group company level to ensure for compliance with local labor laws as well as our own regulations.

Policies and actions

Our commitment to our employees is described in our Code of Conduct and Human Rights Policy. Key aspects include respecting the personal integrity of our employees, freedom of association and promoting human rights. Detailed information about the policies can be found in the Our employees and the Business ethics sections. Multiple internal policies and standard operating procedures govern specific aspects of working conditions. They are globally standardized and locally implemented in accordance with country-specific laws and regulations. The internal policies are tailored to the differing work needs of employees in different role and working in different business environments.

During the 2024/25 financial year, we launched a new wellbeing guide and training program for our employees to help them manage their time and energy effectively by setting workspace boundaries. We also provided a new training for people leaders on having meaningful 1:1 conversations with the teams to address topics like workload management and task prioritization. We have also provided several other wellbeing-related activities, including online events, training, guides and communication on the Sonova intranet.

Performance metrics and targets

Wellbeing

In the 2022/23 financial year, we launched the Mental Health First Aid Conversations for Managers training to equip people leaders with the skills to recognize early signs of mental health challenges and engage in meaningful conversations to support their teams. Throughout the past three financial years, we have successfully trained 1,085 of our people leaders, achieving our target. We will continue to foster mental health awareness in the organization.

People leaders trained in Mental Health First Aid Conversations for Managers
✔ Data externally assured (limited assurance)

Sonovaʼs Employee Assistance Program (EAP) provides anonymous counseling services for employees and immediate family members with personal concerns, both at and outside work. In the 2024/25 financial year 83% of our employees had access to the EAP. We measure employee wellbeing as part of HearMe, our annual engagement survey, the score is based on the questions about energy at work, trusted relationships with colleagues and self-perception at work. In the 2024/25 survey, Sonovaʼs wellbeing score was 77, one percentage point above the Health Care Equipment & Services industry benchmark.

Collective bargaining and protecting employeesʼ rights

Sonovaʼs global grievance process, including our anonymous online SpeakUp platform, gives ample scope for raising potential human rights issues and forms part of our human rights monitoring. Information about the SpeakUp process, key policy training and regular campaigns for awareness raising can be found in the Business ethics section.

Diversity and inclusion

• Governance: We have a global governance structure with representatives from the main regions in which we operate and from key diversity dimensions.
• Targets: We set objectives and measure our progress toward achieving them, while ensuring their alignment with other business objectives.
• Attraction and development: We stand for equity, equal opportunity, diversity and inclusion in how we attract and develop talents.
• Training: We train our employees and people leaders on the importance of equal opportunities, diversity and inclusion.
• Communication: We drive transparent communication to foster an inclusive culture, promote equal opportunities workplace and encourage role model behavior.
• Supportive environment: We strive to make our physical, technical and cultural work environment inclusive.

Our Global D&I Council, chaired by GVP Corporate Human Resource Management & Communications, oversees our D&I initiatives. We also have regional D&I councils and several employee resource groups, including: the Global Wo/Menʼs Network, the Global OutLoud Network and the Global Hearing Loss Network. Our employee resource groups have grown to over 450 members by the end of the 2024/25 financial year.

In order to promote a supportive workplace, we offer flexible working conditions, including part-time work, flexible hours, breastfeeding rooms, discounted daycare and extended maternity and paternity leave. As an example, in the United States, our family bonding leave policy includes eight weeks of leave for all new parents, regardless of gender. In Switzerland and Canada we have equipped meeting rooms with our Roger™ wireless communication devices at our sites to enhance sound clarity and amplification for our colleagues with hearing aids.

As part of our commitment to equal pay we prioritize fair compensation through our job evaluation and grading process, during hiring and salary review processes. In Switzerland, we received certification from the Fair-ON-Pay Association for our equal pay analysis. In the United Kingdom, we published the legally required gender pay gap report.

Gender diversity across the organization 2024/25

Women in management positions
✔ Data externally assured (limited assurance)

Employees by age
✔ Data externally assured (limited assurance)

Women in people leader positions, STEM positions, and revenue generating functions and as people leaders
✔ Data externally assured (limited assurance)

Employees and people leaders by nationality (top 5)
✔ Data externally assured (limited assurance)

Occupational health and safety

Occupational health and safety
✔ Data externally assured (limited assurance)

Working conditions in the value chain and affected communitiesʼ rights

At Sonova, we recognize that workers throughout our value chain play a critical role in sustaining our operations and achieving our goals. Our dedication to respecting and adhering to human rights standards extends beyond our own operations and comprises workers in our value chain and the communities impacted by our operations.

We acknowledge that the biggest potential for human rights violations within our operational footprint arises from the extracting and sourcing of materials in our supply chain. We collaborate closely with business partners, including suppliers to identify and mitigate potential human rights risks over time. Our commitment to human rights is described in our Code of Conduct, Supplier Code of Conduct and Human Rights Policy. Sonovaʼs dedication to safeguarding and monitoring workersʼ rights within the upstream value chain is governed by its Supplier Code of Conduct which sets expectations for ethical labor standards and safe working conditions. The Human Rights Policy supports the key elements of the human rights due diligence (HRDD) framework, as described in the Our employees section. The Human Rights Policy outlines the key human rights risks (salient issues) identified by Sonova within its value chain, the list is available in the Sustainability note 6 - Salient human rights issues. Furthermore, Sonovaʼs global SpeakUp policy outlines our grievance mechanisms and details of our SpeakUp platform, available for all stakeholders along the value chain to voice their concerns. More information about SpeakUp and our SpeakUp Policy can be found in the Business ethics chapter.

Corporate citizenship

Sonova is committed to being a responsible corporate citizen, supporting the local communities around our sites and society beyond, through the Hear the World Foundation, charitable activities, volunteering, and in-kind and financial donations. Sonova has also sponsored hearing-related research projects. In addition, various Group companies engage with local communities through fundraising campaigns and volunteering.

Hear the World Foundation

The Hear the World Foundation (HTWF) focuses on increasing access to hearing care and improving the quality of life for children in low- and middle-income countries. Sonova supports HTWFʼs mission by providing funding, expertise, employee volunteers, and hearing solutions.

In the 2024/25 financial year, we surpassed our target by fitting 5,168 hearing aids through HTWF-supported projects, compared to 4,067 in the previous year. HTWF supported 14 projects worldwide during the period, providing more than 110,000 hearing screenings for newborns and children. In addition, HTWF enabled audiological training for 4,978 volunteers and hearing care professionals, and Sonova employees contributed over 1,000 hours of voluntary work. Further information about the activities, goals, and impacts of HTWF in 2024/25 is published in the annual Activity Report on the HTWF website.

Hear the World Foundation activities
✔ Data externally assured (limited assurance)

Our consumers

We envision a world where everyone enjoys the delight of hearing and therefore lives a life without limitations. Our consumers are at the center of our actions, and we are committed to building strong relationships across all levels of interaction.

Consumer rights and engagement

We are committed to respecting and protecting the rights of our consumers. Sonovaʼs Code of Conduct and Human Rights Policy govern this commitment and are aligned with international frameworks. Our Human Rights Policy outlines key salient issues and applies to all aspects of Sonovaʼs operations, including its downstream value chain. A list of these issues is available in the Sustainability note 6 - Salient human rights issues. Our grievance mechanism process is defined in our SpeakUp Policy and managed through the SpeakUp process. The policy provides guidance on grievance mechanisms, such as SpeakUp, our anonymous reporting platform which enables stakeholders to report concerns, including potential human rights violations. The policy also outlines steps for any necessary remediation, corrective actions, and disciplinary measures while ensuring protection against retaliation for good-faith reports. The Group General Counsel is responsible for the monitoring and implementation of the SpeakUp process. The complaints raised are reviewed quarterly by the Audit Committee. For further details about SpeakUp, please refer to the Business ethics section.

We also provide accessible channels for consumers to report product-related safety and quality concerns as well as service-related concerns. Consumers can report complaints by contacting the respective support teams through the contact form available on the brandsʼ websites or via dedicated customer service hotlines. Complaint handling teams are responsible for receiving, reviewing, and evaluating complaints related to product safety and product performance trends. Complaints are evaluated to determine whether they represent an event that is required to be reported under applicable regulatory and legal requirements.

Sonova acknowledges the importance of consumer engagement in shaping its strategy and addressing impacts. We directly engage consumers through digital platforms, training programs, and direct feedback channels. Engagement with consumers occurs at multiple points in the product lifecycle and contributes to our continuous improvement efforts, particularly in early-stage product design, feature development, service optimization, and post-market surveillance. Insights gathered from consumer interactions are regularly shared in leadership meetings.

Access to hearing care

Strategy, governance and IROs

Material impacts, risks and opportunities related to access to hearing care:

Untreated hearing loss can affect both society and individuals through its social, developmental, academic, and professional consequences. Hearing loss can also have a negative impact on cognition, as recent studies suggest. In response, we develop innovative hearing care solutions, accessible to as many people as possible, and help to educate and develop HCPs. Access to hearing care is closely linked to our Group strategy, especially in such aspects as omnichannel audiological care, innovation, multichannel partnerships, and investment in high-growth markets.

The hearing care market requires a wide range of hearing solutions and service channels to meet the needs of consumers. Our goal is to offer the most innovative hearing solutions and services available to consumers worldwide across various price levels, continuously improving speech intelligibility, sound resolution and quality, and ease of use. In addition, Sonova is committed to training and developing HCPs worldwide to meet the rising demand for hearing care and support the increasing population living with hearing loss.

The material topic of access to hearing care is governed within Sonovaʼs individual businesses. However, our aim is to establish a group-wide access to hearing care program to guide the access to hearing care approach and business-specific actions.

Policies and actions

Access to hearing care is governed within our businesses and is integrated into our business practices. We do not have a specific policy related to access to hearing care.

Our products and services are available in over 100 countries, and we offer products for every type of hearing loss: from enhanced hearing, through light amplification products and hearing aids, to cochlear implants for advanced or complete hearing loss. Access to hearing care is still a challenge for many people in low- and middle-income countries, as well as for underprivileged social groups in high-income regions. The cost of hearing care, both for products and services, is usually met jointly between the consumer and an institutional reimbursement or insurance scheme. Pricing is therefore highly dependent on the policies of these schemes. We work closely with the insurers and social or governmental organizations in the countries where we operate, such as the National Health Service in the United Kingdom and the Department of Veterans Affairs in the United States, to offer bundled pricing which allows consumers to get the right hearing care product and support. Our offering of prescription hearing instruments is complemented by over-the-counter (OTC) hearing aids from our Consumer Hearing business. OTC hearing aids can be purchased online or across various retail channels in the United States and in China, and can be self-fitted to support easier access. They allow consumers to improve their hearing earlier and at a lower cost.

To support continuous innovation, we have multiple research and development hubs in Switzerland, the United States and Canada, as well as clinical study centers in China, the United States, Canada and Singapore. We also collaborate through open exchanges and long-term partnerships with universities, research institutions, hospitals and companies. Innovation is not limited to our products: it also drives the way we approach the market through our wholesale companies, distributors, and through our omnichannel Audiological Care network. By operating through many channels, we multiply consumersʼ potential paths to hearing. Sonovaʼs Audiological Care business has more than 3,700 stores and clinics in 20 countries. Sonova continuously extends the digital solutions that bring together healthcare providers and consumers through different stages of the hearing journey. Our various apps and digital solutions include such advancements as health measurements, continuous data monitoring, and statistical analysis of listening situations to enable user-specific fine tuning of the hearing experience, as well as more targeted advice to our consumers. Our digital solutions, which are both built into and support our products, improve access to expert hearing care, particularly in remote areas or where access to HCPs is limited. We enable online or app-based hearing screenings in numerous countries, as well as supporting both remote hearing aid fittings and adjustments, and setting adjustments for cochlear implants, linking consumers to their HCP without requiring a face-to-face consultation.

At a global level, Audiological Careʼs Global Academy was established in the 2024/25 financial year to strengthen our offerings for continued education and growth to HCPs working across Audiological Care stores globally. The Academy also oversees the Swiss International Hearing Academy (SIHA) program and works in close collaboration with its network of regional academies, including in Germany and China, to educate highly qualified HCPs. In 2024/25, the Audiological Care Academy engaged over 5,000 HCPs in training programs on new products, as well as on critical holistic hearing care topics such as tinnitus and cognition.

The SIHA is a Sonova Group initiative offering a pioneering blended-learning program in audiology for aspiring HCPs worldwide. The program is established to further strengthen individualsʼ expertise and make training available in countries where vocational education facilities are limited or non-existent. The program is offered over six or twelve months, with more than 1,350 hours of study. It includes instructor-led lectures, online modules, self-study, and clinical work. In 2024/25, the SIHA program was launched in Spanish to serve Latin America.

Performance metrics and targets

Accessibility

In the 2024/25 financial year, we reached a 67% increase compared to 2018/19, and therefore achieved our target.

Sales growth in low- and middle-income countries
✔ Data externally assured (limited assurance)

Innovative hearing solutions

As part of our innovation process, we filed 47 new patent applications in the 2024/25 financial year across our businesses. By the end of the financial year, Sonova owned in total 1,929 active granted patent and design rights.

Patents and design rights
✔ Data externally assured (limited assurance)

Training and education

During the 2024/25 financial year, 555 HCPs in low- and middle-income countries graduated and additionally, 567 were enrolled in the SIHA program at the end of the 2024/25 financial year.

SIHA graduates in low- and middle-income countries
✔ Data externally assured (limited assurance)

Awareness raising on hearing health

We are committed to raising awareness on hearing health and addressing hearing loss stigma. According to World Health Organization (WHO) statistics, more than 1.5 billion people, representing 20% of the global population, experience some degree of hearing loss¹. Among them, over 5% of the worldʼs population suffers from moderate to severe hearing loss². Nearly 30 million have profound or complete hearing loss in both ears. These numbers are expected to rise significantly due to aging populations and the effects of continued noise pollution. The WHO estimates that 2.5 billion people will experience some degree of hearing loss by 2050, and over 700 million people will require hearing care due to a moderate or higher grade of hearing loss¹. It also puts a heavy cost burden on society. Direct and indirect costs related to unaddressed hearing loss are estimated at USD 980 billion annually, of which more than 50% are borne by low- and middle-income countries in direct health costs, loss of productivity and societal costs¹. Unaddressed hearing loss is among the three most prominent causes of years lived with disability (YLD) around the globe. All these facts highlight the need for increased hearing-health awareness among consumers, insurers, distributors, and society. Raising awareness covers the entire hearing journey, beginning with hearing loss prevention, then accompanying people at the first detection of hearing loss, and progressing to successful treatment with a hearing aid or a cochlear implant.

In the 2024/25 financial year, Sonova undertook initiatives and actions through a wide range of channels to improve hearing health awareness. For many years we have been offering free online hearing tests, and provided more than 800,000 of these during the 2024/25 financial year. We regularly conduct free hearing test days in our stores to reach the broader public. Around 500 medical partners of our Audiological Care business took part in virtual events to present the latest research and best practices in the field of hearing loss and its relation to cognitive health and artificial intelligence. We also organized several awareness-raising initiatives, such as workshops and various professional training programs. Finally, we continue to offer a wide range of products for hearing loss prevention through multiple sales channels geared towards different needs, such as work-related noise or for hobbies.

Sonova has been supporting and participating in clinical research for decades. In the 2024/25 financial year, Sonovaʼs research program continued to support the ACHIEVE (Aging and Cognitive Health Evaluation in Elders) study, led by the Johns Hopkins Bloomberg School of Public Health. The study was designed to determine whether treating hearing loss in older adults

reduces cognitive decline over a three-year period. The research program has recently released three scientific papers with new findings. One of the findings confirms that hearing aids significantly reduce the burden of hearing loss in daily life and moreover, study participants continued to use their hearing aids regularly throughout the three years rather than leaving them aside after a limited period of use. Another publication demonstrates that hearing care positively affects social participation, leading to an increase in both social network size and diversity. A third study finds that hearing aid users report feeling less fatigued at the end of the day, emphasizing the broader wellbeing benefits of effective hearing solutions.¹

Recognizing the importance of these insights, our Phonak brand continues to offer the ECHHO (Enhancing Cognitive Health via Hearing Optimization) training program. This program was launched during the 2023/24 financial year and covers the relationship between hearing loss and cognition, best practices for integrating cognition into the clinical conversation, and working with clients exhibiting signs of cognitive decline or dementia. The program encourages hearing care professionals to integrate cognitive health into the audiological counselling they give their clients, thereby strengthening understanding of the benefits of hearing technology beyond simply hearing better.

Product quality, reliability and safety

Strategy, governance and IROs

Material impacts, risks and opportunities related to product quality, reliability and safety:

Sonova has integrated quality, reliability and safety considerations into every stage of our processes, from research, product design, development and production to post-sale product use. We closely monitor our markets and use relevant design for reliability (DFR) principles in our development processes, ensuring that product quality is built in from the design to the manufacturing phase. Sonovaʼs hearing instruments and cochlear implants are regulated globally by government agencies, healthcare authorities, and other regulatory bodies who verify our compliance throughout the life cycle of our products. We work to maintain transparent, constructive and professional relationships with all applicable regulatory authorities on matters of policy, product submission, compliance and product performance.

Each of our businesses operates under a dedicated quality framework for quality, reliability and safety to fulfill the specific requirements of each product and enable prompt, detailed actions for improvement. We adhere to key regulatory requirements, including design controls, marketing approvals, good manufacturing practices, vigilance systems, clinical studies and other relevant product regulations, standards, and normative documents specified by regulatory agencies. To support this, we have established quality management systems where applicable as well as cross-functional quality, reliability and safety teams. Product quality, reliability and safety is governed within each of our businesses. Quality and reliability teams within the businesses review key performance metrics monthly to drive continuous improvement and ensure regulatory compliance. Updates on these topics are provided to the full Management Board and to the Board of Directors at least annually to ensure ongoing oversight and strategic alignment.

Additionally, Sonova conducts internal audits of its established systems to determine the effectiveness of the quality management system and its conformance to the requirements of ISO standards, FDA regulations, relevant European legislation, and other country-specific and Medical Device Single Audit Program (MDSAP) requirements. Procedures have been established to define the responsibilities and requirements for planning and conducting audits, reporting results and maintaining records. We document and file reports on the audit findings, corrective actions and other follow-up activities. After each audit is completed, its data is reviewed to identify possible trends.

Policies and actions

Sonovaʼs policies and standard operating procedures for quality, reliability and safety ensure adherence to regional and global regulations while promoting a quality culture and awareness across the organization. In the 2024/25 financial year, we introduced a new quality policy for Hearing Instruments business that serves as the primary framework, guiding our quality standards. This policy applies to all our operations sites, and has been approved by our CEO. For hearing instruments, our procedures comply with healthcare authority requirements relevant to each territory in which they are distributed, such as the European Unionʼs Medical Device Regulation 2017/745 and Radio Equipment Directive 2014/53/EU, and the US Food and Drug Administration (FDA) standards for Class I (hearing aids), Class II (wireless hearing aids) and over-the-counter (OTC) hearing aids categories.

Cochlear implants and their accessories comply with healthcare authority requirements relevant to each territory in which they are distributed. For example, in the European Union new products are compliant with the Medical Device Regulation (MDR) 2017/745 and are subject to a technical documentation review before receiving the mandatory conformity (CE) marking and being placed on the market. Similarly, in the United States, cochlear implants are classified as Class III medical devices and subject to pre-market approval, where the FDA evaluates the safety and effectiveness of these devices before commercialization. Sonova carefully monitors changes in the relevant worldwide regulatory environment to ensure its products always conform.

Customer and consumer complaints are documented and reviewed to determine product quality, reliability and safety, and performance trends through a system that complies with applicable regulatory and legal requirements. Early warnings of quality problems become an input for corrective and preventive actions. Our decisions are made based on risk analysis and health hazard evaluation, as applicable. We maintain records of all customer and consumer complaints and resulting investigations. If the investigation determines that activities outside Sonova contributed to the customer complaint, we take it up with the relevant supplier. We ensure that regulatory authorities are notified according to national or regional regulations whenever advisory notes or recalls are necessary and/or adverse events occur that meet specified reporting criteria.

During the 2024/25 financial year, we completed the transition of our key manufacturing and service sites to our multi-site certificate which meets the requirements of the ISO 13485 standard. This multi-site certification ensures the consistent application of established processes and procedures at our key sites ensuring we achieve our desired results and making it easier to encourage innovation and growth. A multi-site certificate demonstrates Sonovaʼs commitment to excellence in every facet of the organization.

Performance metrics and targets

Product quality and reliability

The reliability rate of hearing instruments improved by 10% compared to 2023/24, however, we did not reach our annual target. The cochlear implant externals/processors reliability rate improved by 16% compared to the previous year, not achieving our target. We will continue to sharpen our focus on reliability for the coming financial year.

Product reliability rates year-over-year improvements
✔ Data externally assured (limited assurance)

Hearing Instruments (HI) and Cochlear Implants (CI) businesses: Product safety indicators¹
✔ Data externally assured (limited assurance)

Ethical marketing and sales practices

Strategy, governance and IROs

Material impacts, risks and opportunities related to ethical marketing and sales practices:

Sonova promotes ethical marketing and sales practices by implementing rigorous compliance measures and structured training programs. We help people make informed choices and contribute to improved hearing healthcare in society by educating and guiding hearing care professionals (HCPs) and by giving consumers access to trustworthy information.

Sonova has two separate governance structures for marketing and sales practice: one covering medical devices, including related accessories and services, and one for non-medical devices. The regulatory and scientific compliance of product performance claims is assured through an interdisciplinary and cross-department development activity, involving functions such as Marketing, Research and Development, Clinical Affairs, and Legal. The GVPs of our Hearing Instruments, Cochlear Implants, and Consumer Hearing businesses oversee these functions. The Group General Counsel leads legal governance, including brand intellectual property and compliance, with support from senior legal experts. The Management Board and Board of Directors are regularly informed about relevant topics including clinical studies, regulatory and scientific compliance of product performance, and claims studies.

Policies and actions

Our commitment to ethical marketing and sales practices is embedded in our Code of Conduct and detailed in relevant policies, guidelines, and standard operating procedures. Our Anti-Bribery Policy and its related standard operating procedures and country-specific guidelines define how we should interact in an ethical manner with HCPs such as audiologists and acousticians, professors, surgeons, ear, nose and throat specialists, and researchers. We continually interact with HCPs in various roles and settings and at all times, our cooperation with them is governed by our Four-Leaf Clover Principles:

Our mandatory Code of Conduct training covers the principles of anti-bribery and ethical conduct. Further dedicated anti-bribery training is mandatory for employees in defined roles, including sales, marketing, and finance, as well as for Group company roles such as Managing Directors and company controllers. Our standard operating procedures for claims management set out clearly how to create compliant safety and performance claims for both medical devices and non-medical devices, including their related accessories and services, adhering to global regulatory requirements. For medical devices, before being disseminated, all claims go through a standardized review and approval process to ensure sufficient evidence, quality, and compliance with global regulatory requirements. Employees from relevant functions are identified and assigned to our mandatory annual training on the claims management procedure.

In the 2024/25 financial year, Sonova updated its social media guidelines to strengthen awareness of responsible social media use. The revised guidelines emphasize the importance of preventing employees from unintentionally making new claims, regardless of whether they post from personal or business accounts. To support this, Sonova has introduced additional training for all employees on responsible communication. We provide this training to offer clear guidance on responsible and appropriate behavior in communications, and specifically when interacting with social media platforms to ensure that Sonova employees do not intentionally or unintentionally create any new, potentially unsubstantiated claims on social media.

Sonovaʼs anonymous reporting platform, SpeakUp, is available to all stakeholders for submitting concerns, including potential violations of marketing and sales ethics. For further details about SpeakUp, see the Business ethics section.

Performance metrics and targets

Data privacy and digital ethics

Strategy, governance and IROs

Material impacts, risks and opportunities related to data privacy and digital ethics:

We have established organizational and technical safeguards to protect the data we gather and hold relating to our employees, customers, consumers and business partners, as well as to mitigate the increasing threat of data breaches and cyber-attacks. We adhere to the data protection laws and regulations of the jurisdictions in which we operate, and we monitor developments in data protection law.

Privacy by design and default is a central aspect of our product development and business processes. Sonovaʼs Global Privacy function is responsible for implementing and monitoring the Sonova Data Protection program and provides training and guidance to our business functions and employees. To support it, a network of Privacy Champions is tasked to embed privacy protection at the Group company level. Both the Global Privacy function and Internal Audit are tasked to monitor program and policy effectiveness. The Data Protection program continuously evolves to meet the changing legal landscape. In order to ensure ethical use of personal data, Sonova has a Compliance and Digital Ethics Committee which is responsible for and has oversight of ethical use of personal data in the digital realm. It works to establish AI ethics oversight measures, frameworks and governance structures to ensure the responsible integration of digital technologies.

Sonova has a dedicated Information Security Officer (CISO) with oversight responsibility across information security domains (including IT, Operations, and product cyber security) for all business units and global functions. The Information Security function defines our information security strategy and its roadmap to execution. It sets up governance structures to manage information security risks and to report and escalate these to senior management, establishes and sustains a firm-wide cyber aware culture to ensure information security is a shared responsibility, defines information security policies, and provides guidance and support to business. The Information Security function reports directly to the Group CFO. The Management Board and the Board of Directors receive regular updates on information and cyber security. Risks and mitigation actions are reported regularly to the Audit Committee through the enterprise risk management process.

In the 2024/25 financial year, Sonova developed a new information security strategy and roadmap which prioritizes risks and aligns with its business objectives. This structured approach ensures risk management effectiveness, addressing the most critical issues first. With strong support from the Management Board, the strategy reinforces Sonovaʼs commitment to safeguarding its operations, products and customer data.

Policies and actions

Sonovaʼs Group Data Protection Policy covers all personal data collected or processed by Sonova, and applies to all Sonova Group companies and their employees and business partners on a worldwide basis. The policy provides transparency to our customers and gives assurance of our meeting privacy requirements across the globe. The policy is complemented by standard operating procedures and guidelines to provide more detailed guidance on specific data protection and privacy topics. Sonova deploys mandatory annual online training for all employees, complemented by on- and offline training for specific departments and teams, webinars, and communication platforms for knowledge exchange. Training courses cover essential legal principles and requirements, including Sonovaʼs Data Protection Policy and such legal frameworks as the EU General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), the California Consumer Privacy Act (CCPA), the Personal Information Protection and Electronic Documents Act (PIPEDA) and relevant Chinese data protection and security laws.

Sonova has a Global Information Security Policy that specifies information security mandate and key principles, as well as key roles and responsibilities. It is complemented by a set of directives, standards, and guidelines governing cyber security for the functions and subsidiaries controlled by Sonova, covering areas such as the acceptable and secure use of information and information systems and the cyber security of our products. This information security policy framework is amended and supplemented regularly to meet fast moving changes in IT and cyber security. Sonova regularly tests its disaster recovery plans and incident response procedures and conducts further annual tests with external providers. In areas with heightened exposure or security risk, proactive penetration tests are conducted annually by qualified external providers. Sonova also performs regular internal assessments and periodic third-party vulnerability analysis. Sonova holds an information security risk insurance policy.

Sonova has a global information security awareness program to establish and sustain a cyber aware firm-wide culture and ensure information security is a shared responsibility. In addition to mandatory training for all employees on best practices, Sonova provides targeted awareness training for specific functions, as well as global and local campaigns and events, and performs regular cyber security resilience exercises (e.g., phishing). During the 2024/25 financial year, we organized an Information Security awareness month featuring month-long communication, sessions and activities for all Sonova employees globally, as well as an onsite event at our headquarters in Stäfa, Switzerland. Such campaigns focus on emerging cyber threats and risks (e.g., deepfakes) with the goal of deepening our employeesʼ understanding and relevance of information security for our business.

Performance metrics and targets

Breaches overview
✔ Data externally assured (limited assurance)