TCFD reporting

An overview of our reporting in line with recommendations outlined by the Task Force on Climate-Related Financial Disclosures (TCFD) is provided below.

Governance

Disclosure of the Board’s oversight of climate-related risks and opportunities.

Pandora’s Board of Directors (the Board) maintains oversight of climate-related risks and opportunities as part of its broader governance responsibilities. This includes evaluating the alignment of climate. related initiatives with Pandora’s purpose and strategy and ensuring the integration of sustainability into our strategic objectives. The Board approves Pandora’s climate transition plan, receives updates on the progress of strategic sustainability priorities, including climate-related risks and mitigation strategies, and evaluates sustainability performance and reporting annually. In 2024, the Board was presented with the updated double materiality assessment, conducted in compliance with the Danish Financial Statements Act. For further information see the AR24 here.

Strategy

Disclosure of the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning where such information is material.

We aspire to be a low-carbon business, aiming to limit our climate impacts across the entire value chain. In 2024, we advanced this ambition by having our net zero by 2040 target validated by the Science Based Target initiative (SBTi). For further information on our low-carbon strategy, initiatives and targets, see our Greenhouse gas emissions chapter. For further information see the AR24 here.

Risk management

Disclosure of how the organisation identifies, assesses and manages climate-related risks.

We operate an enterprise risk management system, where management teams across our value chain are responsible for the continuous identification, assessment, mitigation and reporting of current and emerging risks. All relevant business functions provide quarterly updates on their most material risks, which are presented to the Risk Management Board for review and potential inclusion in Pandora’s most material risks.

In 2022, Pandora conducted a qualitative scenario analysis to enhance our business resilience against future climate change effects. This analysis was aligned with Pandora’s risk management matrix. The scenario analysis assessed the materiality of different climate-related risks and opportunities relevant to Pandora’s direct operations and value chain (upstream, direct operations and downstream) using three different climate scenarios, including a high-emissions scenario and a 1.5°C scenario, aligned with scenarios and assumptions used in Pandora’s TCFD and CDP disclosures and SBTi target-setting.

Thirteen internal stakeholders from a range of functions, including our Chief Financial Officer and representatives from operations, supply chain, risk, sustainability and logistics were interviewed as part of the assessment. The climate-related risks and opportunities assessed in the climate scenario analysis were the ones considered most material to the business by the stakeholders, and the input was validated by our Chief Financial Officer. The exercise helped identify and inform assets and business activities where significant efforts are required to be compatible with Pandora’s transition to low-carbon operations.

Metrics and targets

Disclosure of how metrics and targets are used to assess and manage relevant climate-related risks and opportunities where such information is material.

We are committed to reducing our climate impact through clear targets and impactful initiatives. Our long-term incentive plan (LTIP) for senior leadership incorporates sustainability performance as a key component, including our science-based target to reduce greenhouse gas emissions. For more information on our sustainability targets, refer to the respective chapters. For further details on the LTIP, see the Remuneration Report here.