5.1 Basis for preparation
5.1.1 General basis for preparation of the sustainability statement
The sustainability statement has been prepared for the year ending 31 December 2024. The information is consolidated on the same basis as the financial statements, meaning the scope covers Nedap N.V. and its subsidiaries (jointly referred to as Nedap), without any exemptions.
The sustainability statement covers Nedap's upstream and downstream value chain. Our reported Scope 3 greenhouse gas (GHG) emissions cover our upstream GHG emissions, specifically GHG emissions from Tier 2 suppliers, as well as downstream GHG emissions from the use phase and end-of-life phase of products, although we may not know the (end) customer.
There will be no omittance of information based on intellectual property, know how or the results of innovation, nor an exemption under articles 19a (3) and 29a (3) of Directive 2013/34/EU.
Policies, actions, targets and metrics
In the topical sections of our sustainability statement, we disclose information about our policies, actions and targets arising from those policies, and the metrics used to monitor progress for each topic.
Unless stated otherwise, the following points apply to all our policies, actions, targets and metrics:
All policies, actions and targets apply to all our activities worldwide, and to all our own employees globally.
The Board of Directors is accountable for the implementation of the policies.
All policies relevant for our stakeholders are made public on our website.
All actions are planned for the medium term.
No external body other than the assurance provider has validated the metrics.
All metrics with a currency in the unit of measure use euro as the currency.
5.1.2 Disclosures in relation to specific circumstances
Other than the disclosures below, there are no specific circumstances to mention.
Time horizons
For the preparation of the sustainability statement, we have used the same definitions for short-, medium- and long-term time horizons as defined by ESRS 1 section 6.4, being the reporting year, up to five years after the reporting year and more than five years after the reporting year.
Estimations
Preparing the sustainability statement involves making judgements, estimates and assumptions that impact the reported amounts, both financially and non-financially. These are based on management's experience and various other factors considered reasonable under the circumstances. Nedap's management reviews these estimates and assumptions regularly. Within the sustainability statement, our Scope 3 GHG emissions and the durability of our products require the highest degree of judgement and are more complex. Future changes in these assumptions and estimates could lead to different results than those presented in this sustainability statement and will be changed accordingly. These Scope 3 GHG emission metrics include upstream or downstream value chain data estimated using indirect sources, such as sector-average data or industry averages. We choose sources that are relevant to the location where the GHG emissions take place. For material GHG emissions, we aim to make use of the most accurate values possible to limit estimations. More detailed information on estimations and assumptions will be included alongside the disclosures they apply to. For our durability calculations, we use internal subject matter experts, product specification information, sales information in product databases and business partner inquiry.
The sustainability statement may contain ambitions, objectives, targets and expectations that are subject to changes in the future and are hence deemed uncertain information.
Changes in preparation or presentation of sustainability information
In 2024, Nedap is presenting its sustainability information in compliance with the Corporate Sustainability Reporting Directive (CSRD) for the first time. We have disclosed our Scope 1 and 2 GHG emissions in previous annual reports since 2020. Where applicable and possible, Scope 3 GHG emissions are added to the prior years' GHG emissions statements. The GHG emission factors (EFs) used to measure our GHG emissions were updated in 2024. We applied these new EFs to recalculate GHG emissions for previous years, ensuring the comparability of our data. As a result, this report includes minor adjustments compared to previously reported GHG emissions. These changes are not material, and the restatements reflect our updated methodology, not errors.
Other than the disclosures pursuant to the EU Taxonomy Regulation, no other disclosures will be added to the sustainability statement.
Transitional provisions
As permitted under Appendix C of ESRS 1, we have made use of the transitional provisions and omitted the following disclosure requirements in our first year of reporting under the CSRD:
E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities.
E5-6 Anticipated financial effects from material resource use and circular economy-related risks and opportunities.
Additionally, we have made use of the transitional provision to omit comparison data for S1-13 Training and skills development metrics, as that data is unavailable.
5.1.3 Disclosures incorporated by reference
Some of the disclosures mandatory under the CSRD are incorporated by reference, referring to other parts of our management report. The following list includes instances of incorporation by reference:
ESRS 2 GOV-1, paragraph 19: Information about the members of the Supervisory Board is disclosed in the subsection Supervisory Board composition and skills matrix of section 4.1 Report of the Supervisory Board.
ESRS 2 GOV-3, paragraph 27: Information related to the remuneration of members of the Board of Directors is disclosed in the Remuneration summary subsection of section 4.2 Renumeration report and for Supervisory Board members in subsection Supervisory Board member remuneration of that same section.
ESRS 2 SBM-2, paragraph 45b: A description of stakeholder interests and views is provided in the subsection stakeholder table of section 1.5 Sustainability.
ESRS 2 IRO-1, paragraph 53 d, e and f: Information related to risk management and control systems is disclosed in the subsection Nedap Risk Management Framework of section 3.2 Risk management & internal controls.
ESRS E1 24/ESRS 2 65a: Key contents of our Sustainability policy are disclosed in section 1.5 Sustainability.