We engage with our most important stakeholders regularly and work to integrate relevant input into our ESG and sustainability activities and risk assessments. We define our most important ESG and sustainability impacts according to best practice reporting standards defined by GRI, the Global Reporting Initiative. As a result, we used the process of double materiality to identify our most material issues.

The double materiality assessment (DMA), involves comprehensive stakeholder engagement to gather insights from our key stakeholders on specific areas of importance to them. This approach considers the impacts of our activities on stakeholders and the environment and how these external factors affect our business. We then integrate their input into our strategy and activities in a focused and proactive way, ensuring that both the inward and outward impacts are addressed. Continuous engagement with stakeholders ensures that our decision-making and prioritisation reflect the most critical areas of concern and where our business has the most significant impact and is most impacted.

During 2023/24, we have been working towards ensuring compliance with the new reporting requirements. CSRD mandates that materiality is assessed through a DMA, which considers both Bang & Olufsen’s impact on environmental, social and governance topics (known as impact materiality) and how environmental, social and governance topics impact Bang & Olufsen’s business (known as financial materiality). Topics identified as material in this process must be reported on according to the European Sustainability Reporting Standards (ESRS).

In 2024/25, we will focus on the implementation of reporting processes and assurance for the relevant ESRS disclosures according to our material issues.