Pandora Sustainability Report 2022

WE GIVE A VOICE TO PEOPLE'S LOVES S U S TA I N A B I L I T Y R E P O RT 2 0 2 2
Pandora A/S · Havneholmen 17-19 · 1561 Copenhagen V · Denmark · CVR no. 28505116
OUR PURPOSE
WE GIVE
A VOICE TO
PEOPLE'S
LOVES
Pandora is the world’s largest jewellery
brand. Known by more people and
crafting more jewellery than any other
brand in our industry, we provide
affordable luxury to consumers in more
than 100 countries.
Made from high-quality materials

and with endless possibilities for
personalisation, millions of people
around the world cherish and collect
Pandora jewellery to express who they
are and what matters to them.
Sustainability Report
CONTENTS 20
Our Sustainability Report provides detailed in-
SOCIAL formation on sustainability and our responsible

business behaviour. The Sustainability Report
serves as a supplementary document to the
United Nations Global Compact Communica-
21 Inclusion and diversity
tion on Progress, which will be submitted later
24 Responsible marketing in 2023 using the new CoP digital platform, and
26 Human rights as such is our disclosure in accordance with
sections 99(a), 99(b) and 107(d) of the Danish
31 Responsible sourcing Financial Statements Act. The report is available
34 Health and safety at pandoragroup.com/sustainability/resources/
sustainability-reports following approval by the
Board of Directors.
4 SUSTAINABILITY
AT PANDORA
5 Letter from our CEO
35 GOVERNANCE
36
39
Sustainability governance
Business ethics
Annual Report
and our Chair of the Board Our Annual Report is our detailed annual disclo-
sure relating to company performance, strategy,
6 Sustainability at a glance corporate governance and financial results.
42
7 Our business model The report is available at pandoragroup.com/
investor/news-and-reports/annual-reports
8 Materiality and sustainability ANNEX and at cvr.dk following approval at the Annual
strategy General Meeting.
43 Task Force on Climate-Related

Financial Disclosures
11
45 EU Taxonomy
ENVIRONMENT 48 Stakeholder engagement
50 United Nations Sustainable
12 Low-carbon business Development Goals
Remuneration Report
17 Circular innovation 51 About this report
Our Remuneration Report includes full disclo-
52 Sustainability data sure of the Board of Directors and Executive
Management remuneration. The report is
61 Statement by Executive Man-
available at pandoragroup.com/investor/corpo-
agement rate-governance/remuneration-reports
62 Independent auditor’s report
5 Letter from our CEO and our
Chair of the Board
6 Sustainability at a glance
7 Our business model
8 Materiality and sustainability strategy
SUSTAINABILITY
AT PANDORA
SUSTAINABILITY REPORT 2022 SUSTAINABILITY AT PANDORA 5
LETTER FROM OUR CEO AND OUR CHAIR OF THE BOARD
SUSTAINABILITY MORE
IMPORTANT THAN EVER
We wish to lead the transformation of We are on track to halve emissions across our full value-chain In 2022, we advanced on our strategic priority of achieving
by 2030 as part of our ambitious science-based target. Since more diversity in our senior leadership. 29% of our senior ALEXANDER LACIK
our industry and show that beautiful, 2019, we have cut total emissions by 6%. leaders (VP+) are women, good progress from 23% President & Chief Executive Officer
crafted jewellery goes hand in hand in 2021. We launched a comprehensive human rights pro-
with sustainable business practices. Raw materials are the largest contributor to our value chain gramme and continued our support of vulnerable children
emissions, and we are working with our suppliers to reach our through our partnership with UNICEF. Pandora has raised a
goal of using 100% recycled silver and gold by 2025. This will be total of USD 10 million for UNICEF since 2019.
It has been no small endeavour to navigate through 2022. central to fulfilling our climate ambition and is also key to our
The business climate has been marked by geopolitical and circularity agenda. Lastly, we anchored sustainability firmly in the way we
economic turbulence, but Pandora’s priorities for sustainable manage Pandora. We have formalised sustainability oversight
business remain unchanged. We wish to lead the way. In 2022, we were proud to be recognised by the leading cli- at the Board level, introduced sustainability targets as part
mate organisation, CDP, with an A-rating for our climate action of the remuneration package for our senior leaders, and
Leadership in sustainability is a key foundational pillar of our and disclosure. elevated the leadership of our sustainability teams to reflect
Phoenix business strategy because it supports our long-term their strategic importance. We continue our commitment to
growth and helps us future-proof the company. Our perfor- The introduction of Diamonds by Pandora in North America is the United Nations Global Compact.
mance in this area makes us more resilient and positions us an example of how we can bring high-quality jewellery with a
well to meet the changing demands from regulators, con- reduced climate impact to more consumers. The transform- As we close the year, we are pleased to see sustainability
sumers, and investors. ative collection uses lab-created diamonds that are grown, embedded in our everyday business practices. With the
cut and polished with 100% renewable energy and set in 100% current global instability, it is easy to lose focus, but concern
In 2022, we made significant progress on our three strategic recycled silver and gold – a first for Pandora. and consideration for our surroundings are more important
priorities to become a low-carbon, circular, and inclusive, than ever. This mindset has always been part of Pandora’s PETER A. RUZICKA
diverse and fair business. culture and will continue to guide us as we look ahead. Chair of the Board of Directors
SUSTAINABILITY
AT A GLANCE
A 100% #3
Pandora recognised with 'A' renewable energy and 100% recycled Pandora ranked #3 out of 30
score for transparency and silver and gold used in our companies in Denmark on docu-
performance on climate Diamonds by Pandora collection menting respect for human rights1
change by CDP
6% 100% 99.6%
reduction in total greenhouse man-made stones used of waste recycled at
gas emissions compared to in Pandora products2 our crafting facilities
our 2019 baseline
61% AAA 10M Read more about

recycled silver and gold MSCI ranking for the seventh USD donated to UNICEF
purchased in 2022 consecutive year since 2019 Diamonds by Pandora
on page 16.
Danish Institute for Human Rights, 2022, Documenting respect for human rights.
1
2
Excluding pearls.
OUR BUSINESS
Every day, millions of people express who they are and what
matters to them with their Pandora jewellery. Whether it is a display
of friendship or romance, or a love for art, gardening or our planet.
MODEL Our jewellery is a way to show these loves. That is our purpose:
We give a voice to people’s loves.
INPUT BUSINESS ACTIVITIES OUTPUT OUTCOME
Natural resources: Natural resources:

Raw materials, Processed materials, Affordable
water and energy emissions, waste and luxury with
waste water sustainability
Community: integrated from
Employees and Community: source to sale
stakeholder engagement Job creation and
tax contribution
Innovation:
Industry-leading
Data and Innovation:
profitable
design BUY Relevant and growth
personalised products
Manufacturing:
Crafting facilities Manufacturing:
High-quality products
Supply chain:
Supplier partnering Design Responsible and Crafting Efficient Strong Omnichannel Supply chain:
inspired by circular sourcing at scale distribution marketing retail
Sustainable supply chain
art and data and brand operations
Financial:
Cash flows Financial:
Shareholder returns
MATERIALITY AND
SUSTAINABILITY STRATEGY
In 2022, we conducted a materiality Materiality assessment stakeholder engagement
assessment based on the principle Pandora's
of double materiality.
STAKEHOLDER ENGAGEMENT TYPE material issues
EXTERNAL Investors
STAKEHOLDERS
Civil society 3 interviews The results of our 2022 double
Materiality
materiality assessment will be
In 2022, through research, stakeholder engagement, and Authority/regulator
used to make relevant updates to
assisted by a third party, we explored how Pandora’s activ- our list of material issues, found
Customers Desktop research
ities impact the environment and people and conversely below. This calibration will take
how sustainability-related factors and external events may INTERNAL Communications Workshops with place in 2023.
impact Pandora’s business. We consulted external experts, STAKEHOLDERS subject matter
Crafting
Pandora’s leadership and specialists from key functions experts and senior • Business ethics and compliance
Finance management to • Circular approach to business
across Pandora to validate the impact ranking and discuss
• Climate change
the implications of the assessment. identify and rank
Global Legal, Risk & Compliance • Conflict minerals
risks and opportuni-
• Data security and privacy
Specifically, we identified and described the material sustain- Global Sustainability ties and to validate • Employee health, safety and
ability topics we need to address and report on across our the findings of the labour rights
Human Resources
own operations and value chain. By performing this exercise, double materiality • Inclusion and diversity
Innovation & Product Development analysis • Packaging
we are moving towards a more structured, documentable and
• Product quality and safety
insights-driven approach to ensure that our work on sustaina- Marketing • Responsible marketing
bility adds as much value as possible to our business and • Responsible sourcing
reduces our impact on people and the environment. Omni Operations & Logistics
• Sustainable materials
Moreover, the revised materiality approach aligns with the Retail
adopted EU Corporate Sustainability Reporting Directive and
Supply Chain
European Sustainability Reporting Standards requirements.
Going forward, we will investigate how to implement and The overall ambition is for Pandora to be a sustainability
disclose the results of the double materiality approach. leader in the jewellery industry and beyond. We wish to lead
Sustainability is not only This includes exploring how to integrate emerging issues by example to contribute to the sustainable transformation
Our
good corporate citizenship, in our strategy and planning, including relevant models of of the industry. We want to significantly lower our impact on strategic
it also serves to future-
stakeholder engagement and governance. the planet and create positive outcomes for people and
communities touched by our business.
priorities
proof our company. Our sustainability strategy
We are transforming our business to help shape the future This is not only good corporate citizenship, it also serves to
of luxury. future-proof our company as we foresee an array of new
demands on companies from regulators, investors, consumers
Pandora’s growth strategy, Phoenix, counts sustainability and other stakeholders, and we wish to stay ahead of the curve.
as one of five foundational pillars that will support the
company’s long-term growth ambitions. Placing sustainability Our sustainability strategy has three overarching priorities:
Low-carbon
at the core of our business reflects that we strive to be low-carbon business, circular innovation, and an inclusive,
business
a responsible and leading global brand. diverse and fair culture. These are all highly material, and
drivers of future growth and opportunities for positive impact.
We have set ambitious long-term targets and developed
detailed roadmaps for each of the three priorities.
Read more about our sustainability targets on page 10.
Our sustainability strategy builds on high standards for

responsible business operations, including our approach to Circular
innovation
responsible sourcing, waste management and corporate giv-
ing, and we continue to expand the implementation of good
practices at Pandora.
To deliver on our ambition and targets, in 2022 we continued

to increase the number of people involved in this work, build-
ing strong teams at our head office in Copenhagen, Denmark
and in our crafting and supply organisation in Thailand, as well
as other strategic locations. In addition, we have elevated Inclusive, diverse
the leadership of our sustainability function and anchored and fair culture
it more firmly in the top tiers of our organisation. Read more

about our sustainability governance on pages 36-38.
Achieved progress against target
Increase in emissions compared to baseline
OUR SUSTAINABILITY TARGETS PROGRESS AND STATUS Yet to be achieved OUR NEXT STEPS UN SDGs3
LOW-CARBON BY 2030 – Reduce total greenhouse SCOPES 1, 2 AND 3

BUSINESS gas emissions by 50% from a 2019 2019 2030 We have decreased our total greenhouse gas emissions
baseline (Scopes 1, 2 and 3) by:
by 6% compared to our 2019 baseline.
- Reducing emissions in own oper-
2022: 6% In 2022, we reduced emissions from own operations • S
copes 1 and 2: We will continue the geographic
ations by at least 90% to become
carbon neutral (Scopes 1 and 2 by 27% compared to 2021. This was achieved primarily roll-out of purchasing Renewable Energy Certificates
market-based). SCOPES 1 AND 2 (tonnes CO2e) through the purchase of Renewable Energy Certificates to cover more markets in the short term, while also
to cover most of our owned and operated stores and exploring other opportunities to source renewable
- Reducing value chain emissions 2019 2021: 22,160 2025
offices in Europe and 100% of electricity consumption energy (for example, Power Purchase Agreements).
by 42% (Scope 3).
at our crafting facilities in Thailand.
BY 2040 – Achieve net zero 2022: 16,146
emissions.
SCOPE 3 (tonnes CO2e) In 2022, our Scope 3 emissions increased by 4% since • Scope 3: In 2023 and beyond, we will continue the
2021: 255,290 2030 2021, largely due to a higher level of purchased goods development and implementation of our supplier
and services. We saw reductions in other areas thanks engagement programme and scale our outreach to
to increased supplier-specific data. The overall Scope 3 suppliers on collection of carbon footprint data and
increase was expected and reductions will materialise in dialogue on carbon reduction initiatives.
2019
the coming years.
2022: 264,224
CIRCULAR BY 2025 – Use only recycled silver RECYCLED SILVER AND GOLD The share of recycled silver and gold purchased in • I n 2023, we will focus on transitioning our
INNOVATION and gold in the crafting of our 2022 was 61%. Over the course of 2022, we transi- component and contract manufacturers and
jewellery. 2019 2021: 54% 2025 tioned procured silver and gold for in-house produc- suppliers to recycled sources, expanding our options
tion to recycled sources, and we completed third-party for recycled sources, and begin phasing out any
audits for most of our component suppliers and non-recycled stock in our inventory.
contract manufacturers to strengthen end-to-end
2022: 61% traceability.
INCLUSIVE, BY 2025 – Create an inclusive INCLUSION • W

e have achieved our inclusion score target, so our
workplace and increase the share focus will be on maintaining and improving our score.
DIVERSE AND We achieved an inclusion score of 86% in our latest
FAIR CULTURE
of underrepresented groups.
— 2
86% 85% employee survey. The resulting score ranks us in the
top quartile within our global benchmark, and has us on
For example, we are analysing survey data to have a
better understanding of how we can best support
BY 2030 – Achieve full gender 2021 2022 2025 underrepresented groups.
track for our 85% target by 2025.
parity1, reaching 1/3 women
in leadership by 2025. • W
e have developed and designed an additional learning
WOMEN IN LEADERSHIP module to address the importance of inclusive leader-
ship. We are working to integrate the module as part of
BY 2025 – Reflect societal diversity
in our customer engagement. 23% 29% 33% 50% We made good progress in 2022 by
improving gender parity in leadership
by 6 percentage points to 29%.
our global leadership programme, Pandora RISE.
2021 2022 2025 2030 • W

e will be reviewing inclusion within our recruitment
process and succession planning to ensure a sustaina-
ble approach towards achieving gender parity.
1
Gender parity in leadership refers to an equal number (50/50) of men and women in leadership positions from Vice President and up (including the Board) with a +/- 5 percentage point variation.
• W
e will continue to build guidelines and reporting
2
We use '-' to indicate that data for the data point has not previously been disclosed.
3
Read more about our commitment and targets to the United Nations’ Sustainable Development Goals on page 50. systems to track progress on our customer engage-
ment targets.
12 Low-carbon business
17 Circular innovation
ENVIRONMENT
NEXT STEPS IN DECARBONISATION AND CIRCULARITY
SUSTAINABILITY REPORT 2022 ENVIRONMENT 12
LOW-CARBON
BUSINESS
In 2022, we made important progress on our journey to become a
low-carbon business, both within our own operations, and across
A LIST
2022 our suppliers. We are firmly committed to supporting global efforts
CLIMATE to curb the effects of climate change.
In 2022, Pandora was
recognised for leadership Transitioning Pandora to a low-carbon business in support To halve emissions by 2030 we will:
in corporate transparen- of the global community’s climate efforts is front and centre
cy and performance on of our sustainability strategy. Our integrated business model • Become carbon neutral2 in our own operations by 2025,
climate change by global
and continued focus on renewable materials allow us to reducing emissions by at least 90% from a 2019 baseline
environmental non-profit
CDP, securing a place on
move fast, and we are committed to climate targets that (Scopes 1 and 2 market-based). Carbon removal mecha-
its annual ‘A List’. remain among the most ambitious in the jewellery industry. nisms and offsets will balance out any remaining emissions.
Based on data report- Pandora is working towards two long-term targets on carbon • Reduce value chain emissions by 42% by 2030 from
ed through CDP’s 2022 emissions, approved by the Science Based Target initiative1: a 2019 baseline (Scope 3).
Climate Change question-
naire, Pandora was one of
• To cut greenhouse gas emissions by 50% across own op- We have achieved a 6% reduction in total emissions com-
around 2% of CDP-evalu-
ated companies to achieve erations and entire value chain of suppliers and business pared to our 2019 baseline - this has us on track against our
an ‘A’ out of nearly 15,000 partners by 2030 (Scopes 1, 2 and 3) from a 2019 baseline. target to halve our emissions by 2030.
companies scored.
• To achieve net zero emissions by 2040 by further reduc- 1
Approval by the Science Based Target initiative ensures that a company’s target is
aligned with the Paris Agreement’s ambition to limit global warming to well below
ing our climate footprint and removing or offsetting any 2°C and pursue efforts to limit it to 1.5°C compared to pre-industrial levels.
remaining emissions. 2
Carbon neutral is defined as net zero CO2 emissions. This can be achieved by elimi-
nating emissions through efficiency measures, shifting to renewable energy sources
and balancing any remaining emissions of CO2 with its carbon removal.
EMISSIONS REDUCTIONS Scopes 1 and 2 emissions1 Reductions in own operations We are on

Reductions roadmap to reach Scope 3 emissions well under way
net zero target Carbon removals We are on track to become carbon neutral in own operations track to
by 2025 through energy-saving measures in our crafting become carbon
90% facilities and by sourcing more renewable energy.
neutral in own
reduction of Scope 1 and 2 Of Pandora’s total emissions in 2022, 6% occurred in our own operations
emissions1 operations (Scopes 1 and 2), driven by electricity and heating. by 2025.
Total energy consumption grew by 4%, mainly due to increased
2019 50% production volumes and return to normal ways of working

after COVID-19 restrictions were lifted. However, energy
11%
reduction across efficiency increased thanks to energy reduction initiatives in
Scopes 1, 2 and 3 emissions1,2 our crafting facilities. In 2022, we won the ''Induction Soldering
Machine for Jewellery Industries'' award, as part of ASEAN
2025
Energy Awards 2022 by ASEAN Centre for Energy.
reduction in
Net zero In 2022, we reduced our emissions1 by 27%. Reductions were emissions
mainly the result of increased sourcing of Renewable Energy
intensity
EMISSIONS REDUCTIONS
Certificates (RECs).
2030 compared
Continued use of renewable energy
at our crafting facilities
to 2021.
2040 At our crafting facilities in Thailand, we continue to cover
our electricity consumption using 100% renewable energy
through on-site production of solar power and RECs. The
solar panels installed on the roofs of our facilities produced
1,369 MWh of renewable electricity in 2022, equal to around
2% of our total energy consumption in crafting. In 2022, we
CARBON REMOVALS
decided to increase the number of solar panels and will begin

installation in 2023. This will increase on-site electricity pro-
duction to around 6%.
1
Scopes 1, 2 and 3 reductions are from a 2019 baseline. Scope 2 are market-based.
For more information about our greenhouse gas accounting policies, see page 52.
2
Reduce value chain emissions by 42% by 2030 from a 2019 baseline. 1
Scopes 1 and 2 (market-based).
In addition, we are working with public and private partners In 2022, our Scope 3 emissions increased by 4%. This was Franchise emissions decreased in 2022, driven by the re-
on a small-scale pilot project to develop the necessary expected and reductions will materialise in the coming years. duced number of franchise stores. We converted a number
We have policies, legislation and financial mechanisms in Thailand The increase was largely due to a higher level of purchased of franchise stores to Pandora owned-and-operated stores,
achieved a to establish virtual Power Purchase Agreements (PPAs) for

renewable energy. This is an important step for the needed
goods and services. As part of our work on circular innova-
tion, we continued progress on the sourcing of recycled silver
and we also closed franchise stores in some markets, for
example in Russia.
6% reduction development of new renewable energy capacity in Thailand’s and gold, which will contribute to reducing overall Scope 3
in total energy grid, and we are pleased to contribute to the growth emissions. We are also continuing to increase recyclability of
of the sustainable energy supply. our point-of-sale materials, which will drive progress towards
emissions2 - both our low-carbon and circularity ambitions.
on track to Moving ahead in retail, offices Building for
and distribution long-term growth
halving our Energy consumption in our owned and operated stores
Read more about Circular innovation on pages 17-19.
emissions increased by 4%, primarily due to an increase in the num- Further, we gained access to more supplier-specific data in
In 2022, we announced that we will build a new
crafting facility in Vietnam, our first outside of
by 2030. bers of stores. In 2022, our emissions1 decreased by 27%, as 2022, and this will help us reduce emissions from important Thailand. The new facility is planned to be built
we sourced renewable energy for almost all our owned and categories including media, marketing and transportation. The according to the LEED Gold standard, a leading
operated stores in Europe through the purchase of wind and shipping industry is decreasing its emissions and we see this green building certification, and using 100%
solar RECs. We will expand the purchase of RECs to cover reflected in the emissions intensity data from our suppliers. renewable energy.
more markets, while exploring other opportunities to source We will continue to seek low-carbon transportation solutions.
renewable energy, such as PPAs for the longer term.
Pandora operates its own distribution centres in Germany,

Thailand and the United States. All centres are in the process
of converting to renewable energy by 2025.
Progress on Scope 3 reductions

Scope 3 emissions represent 94% of Pandora’s total green-
house gas emissions and relate to activities such as raw
materials, packaging, transportation, and franchise stores.
To reduce these emissions, we have initiated a supplier
engagement programme. The first step is to understand
data availability and climate action preparedness, secondly
to support suppliers on energy efficiency measures and a
switch to renewable energy.
1
Scopes 1 and 2 (market-based).
2
Compared to 2019 baseline, see page 52.
GREENHOUSE GAS 0.4%

Scope 1 5.6%
EMISSIONS IN 2022
Scope 2
(market-based)
0.4% Scope 1 0% Packaging and point-of-sale

1
Emissions from refrigerants and fossil fuels materials
used at Pandora’s facilities. Bags, boxes, printed materials, campaign
items, displays and trays, and other
5.6% Scope 2 (market-based)
types of packaging.
Emissions from electricity and heating used at
Pandora’s facilities.
9% Transportation
94% Scope 3 Transportation and distribution of
Emissions from other sources outside of Pandora jewellery, including inbound
Pandora’s own operations: and outbound logistics and third-party
distribution.
29% Crafting materials
Raw materials such as silver, gold, copper, 6% IT
cubic zirconia and other metal alloys, Outsourcing services, hardware, telecom
and production materials like gypsum data, and IT consultants.
and enamel.
5% Franchises
24% Other Pandora franchises, wholesale and other
Fuel and energy-related activities, busi- points of sale not directly owned by
ness travel, employee commuting, water Pandora.
supply, waste generated in operations,
3% Capital goods
consultancy services, and facilities
Various machines, crafting equipment
management.
and furniture in stores.
14% Media & marketing
94%
Media spend across all channels ranging Read more information about our actual emis-
from TV campaigns to digital ads and sions on page 52.
email marketing.
Scope 3
SUSTAINABILITY REPORT 2022 STORY 16
STORY
LESS CO2 WITH LAB-CREATED

DIAMONDS AND RECYCLED
SILVER AND GOLD
In 2022, we launched the Diamonds by Even though the diamonds in the
Pandora collection, featuring lab-created Diamonds by Pandora collection are
diamonds that are grown, cut and pol- grown in a laboratory, they are exactly
ished using 100% renewable energy and the same as mined diamonds as they
set in 100% recycled silver and gold. have the same optical, chemical, thermal
and physical characteristics and are
The lab-created diamonds point to a fu- graded by the same standards known as
ture with low-carbon jewellery. Thanks to the 4Cs – cut, colour, clarity and carat.
the use of renewable energy, the carbon
footprint of these diamonds is 95%
lower1 than that of mined diamonds.
For perspective, if all diamonds were

mined with the same low-carbon foot-
print as Pandora’s lab-created diamonds,
it would save more than 6 million tonnes
of CO2e emissions annually.
1 2 3 4 5 6 7 8
Begins with tiny Seeds placed in Chamber filled Using 100% Carbon atoms The lab-created Pandora chooses Lab-created
seeds of high- vacuum chamber with carbon-rich renewable energy, bond to the seeds diamonds are cut lab-created diamonds are set
S&P Global, 2019, The socioeconomic and environmental
1 quality lab-created with very high heat gas microwave energy and they grow and polished using diamonds with in jewellery crafted
impact of large-scale diamond mining. diamonds heats the gases one layer at a time 100% renewable high-quality with 100% recycled
and gas molecules energy grading silver and gold
break apart
CIRCULAR
INNOVATION The share of recycled
silver and gold
In 2022, we took further steps towards becoming a circular business. purchased in 2022
We reached 61% purchased recycled silver and gold in 2022, and are was 61%.
on track to reach our target of 100% by 2025. The launch of lab-cre-
ated diamonds marked a milestone in the industry and creates a path
for the future of the luxury.
By driving our business towards circularity, we believe we can through product care and repair in many of our owned and
fundamentally change our impact on the planet and inspire operated stores.
the rest of the industry to follow. We have shifted entirely
away from mined gemstones and are working to increase our Towards recycled silver and gold
use of recycled metals. We are also investigating new prod- Reaching our target to use 100% recycled silver and gold in
ucts and services, in tune with new regulatory demands and the crafting of all our jewellery by 2025 will not only have a
consumer interest for updated business models. positive impact on our environmental footprint, but it also
has the potential to contribute to the positive development
Our key activities in this area include circular design and the of our industry.
use of recycled materials, most importantly the switch from
virgin to recycled silver and gold. This is of major importance The share of recycled silver and gold purchased in 2022 was
as the materials we use to craft our jewellery represent our 61%, compared to 54% in 2021. In 2022, silver made up ap-
largest impact on the planet and natural resources. We also proximately 77% of purchased product materials, measured
put efforts into prolonging the life of each piece of jewellery by weight. We are well on our way to transitioning the silver
and reducing production waste through reuse and recycling and gold purchased for our in-house crafting to certified
materials. We also continue to provide light repair services recycled silver and gold.
to customers to extend the lives of their Pandora purchases,
1 DESIGN We work to identify innovation

Diamonds by Pandora collection,
opportunities and assess the
launched in 2022, is made with feasibility of these to build circularity
100% renewable energy, crafted
using 100% recycled silver and gold.
into every stage of our value chain.
Read more on page 16.
2 SOURCING
The share of recycled silver and
gold purchased in 2022 was
61%. We engage with suppliers
to ensure traceability and verify
the credibility of recycled metal
claims.
3 CRAFTING BUY
In 2022, we recycled 99.6% of
all waste and 100% of our four
primary waste streams. Read
more about waste manage-
ment on page 19.
4 RETAIL
Safe products Suppliers must provide proper
records as proof, and test certifi- In 2022, we continued to
above all cates are required as compliance optimise our transport and con-
evidence. There were no report- sumer packaging in accordance
Our jewellery does not contain ed major incidents of non-com- with circularity principles and
any hazardous substances and pliance concerning the health regulatory trends around the 5 END OF LIFE
we communicate to suppliers and safety impacts of products world.
about which substances they in 2022. The health and safety We provide light repair services in
are restricted from using when impacts of our products are many of our owned and operated
working with us. This also applies governed by the active ISO 9001 stores to extend product life
to our consumer packaging. (Quality Management) certifica- time. Surplus and faulty products
tion of our crafting facilities. are returned to crafting facilities.
For jewellery parts that are sourced from partners, we further not widely adopted across industries working with recycled After efforts to reduce and reuse waste in its own processes,
tightened our criteria for when metals can be considered materials. By being among the frontrunners, we hope our Pandora prioritises the ability to recycle waste in the selec-
99.6%
“recycled” and rolled out a third-party audit mechanism to efforts will help pave the way for the industry to develop a tion of third-party waste contractors. If no contractor can re-
assess supplier practices. These audits are carried out against a common set of standards. cycle it, incineration is the next option, with landfill disposal
set of Pandora requirements inspired by the Responsible Jew- as a last resort. In 2022, we did not send any waste to landfill.
of waste was recycled ellery Council’s Chain of Custody Certification and provenance Designing for circularity
in 2022. claims. We audited 69% of our silver and gold supplier base in Circularity goes beyond recycling, it also covers the quality In 2022, we produced 1% more waste at our crafting facilities.
2022, ensuring that more than 96% of the total volume of silver of materials, including their composition, durability and One initiative that has been key in securing the low increase
and gold used came from certified or audited suppliers. reusability and the environmental impact across their entire in total waste, is our reduction in gypsum waste sludge filter
life cycle. To choose the best possible materials, we have press system. As such, we have achieved a very high recycling
A key challenge we have faced is the lack of a common developed and implemented a Materials Standard that rate of this waste stream and now recycle 99.6% of waste,
standard on recycled materials. Definitions, traceability outlines our sourcing principles. The Standard prioritises which is above our target of 98%.
requirements and certification standards are still new and renewable and recycled materials followed by sustainable
materials (for example FSC-certified paper in packaging). New regulation in Thailand regarding the disposal of hazard-
ous waste came into force in 2022. To ensure compliance, we
In addition, we have developed a materials scorecard, provid- changed the disposal methods for some waste categories
ing a tool for colleagues to better understand the properties by switching from landfill to incineration or by finding waste
and sustainability credentials of different materials and to disposal suppliers that were able to reuse waste.
make informed decisions with sustainability as a key criterion.
We have five recycled waste types, which are gypsum, rubber,
We continue to monitor the increasing regulatory demands murano, wax and other recycled waste. Some examples of
for circular business practices and will update our Materials how we recycled our waste are:
Standard accordingly.
• A nearby construction centre uses and recycles our gypsum
Read more about our Materials Standard on page 38. waste, which accounted for over 50% of the waste at our
crafting facilities in 2022;
Identifying more opportunities • Other manufacturers use our wax waste to make candles or
in waste management as a moulding material; and
A central component of working towards circular practices is • The cement industry converts our rubber waste into plastic
understanding how waste streams are managed and directed products.
towards reuse or recycling of materials.
We will continue dialogue with waste disposal suppliers to
The majority of the waste produced by Pandora comes from find solutions for the remaining waste that is still being sent
its crafting facilities. The main waste categories are raw ma- for incineration. This is the case for 20 of the total of 92
terials, waste from production processes, and waste water. waste fractions from our crafting processes.
21 Inclusion and diversity
24 Responsible marketing
26 Human rights
31 Responsible sourcing
34 Health and safety
SOCIAL
A RESPONSIBLE GROWING BUSINESS
SUSTAINABILITY REPORT 2022 SOCIAL 21
INCLUSION Pandora’s inclusion and diversity goals

We believe that Inclusion, diversity and fairness are core tenets of a responsible
AND DIVERSITY
growing business, and we encourage all voices to pursue and share their loves.
GOAL TARGETS
WORKPLACE Create an inclusive • 8

5% score on inclusion in employee listening
survey
workplace and
increase the share • A
nnual reporting for transparency on equal
pay for equal work
of underrepresented
• I ndustry-leading global parental leave
groups
programme
In 2022, we made important progress • W
orkforce with proportionate share of
Pandora signs on our inclusion and diversity agenda. underrepresented groups1
the Women's
Empowerment A higher share of women are now in
Principles leadership, we received a top rating Achieve gender parity • A
chieve 1/3 women in leadership by 2025, and
LEADERSHIP
reach full gender parity no later than 20302
on inclusion in an employee in leadership
• C
ompany-wide sustainability targets in our
In February 2022, we
listening survey and we set new Long-Term Incentive Programme, and individual
inclusion and diversity targets for all leaders
signed the Wom- Employee Resource Groups into • A
ll hiring and succession shortlists for
en’s Empowerment
Principles (WEPs),
motion. Directors and above to have at least 1/3
of underrepresented gender and a proportion-
established by the ate share of candidates from other under-
UN Global Compact represented groups2
and UN Women. We We believe that inclusion, diversity and fairness are core tenets
are pleased to stand of sustainable business growth. Advancing progress on inclusion
behind the WEPs as a and diversity helps us attract and retain customers and drives a
common language of new generation of younger consumers to our brand. CUSTOMER Reflect societal • 3
0% of our brand ambassadors in our global
communication to come from underrepresent-
commitment and to diversity in our
initiate dialogue and
ENGAGEMENT ed groups by 2025
Inclusion and diversity are rooted in our values and strategy. customer
measure progress on • 3
0% of our branding content budget to be spent
It is important that our stakeholders feel included and engagement with suppliers owned by women and other
inclusion, diversity and
respected by the Pandora brand, regardless of gender, age, underrepresented groups by 2025
fairness.
nationality and other identity characteristics.
1
F
or geographies that allow recording of diversity data.
2
Vice President level to Board of Directors.
We have set ambitious targets to not only increase diverse

representation among employees, and suppliers, but also to
Employee Resource Groups promote
create an inclusive environment in our workplace.
an inclusive culture
In March 2022, employees at Pandora Similarly, a group of employees in We are committed to equal rights and opportunities for all, and
WORKPLACE
launched the Women & Allies Network, Pandora UK launched a Pride Network this is reflected in our policies and standards, including: our In-
an Employee Resource Group that to create awareness around inclusion clusion and Diversity Policy, our Human Rights Policy, our Code Bringing inclusion to life
supports regular initiatives to promote for LGBTQ+ communities. of Conduct, our Supplier Code of Conduct, and our Responsible We aim to provide an inclusive and diverse working environ-
a culture of inclusion and belonging for Marketing Standard. ment for our employees across crafting, retail, distribution and
women at work. We have created a plan to enable all
in our offices.
employees across locations to set up
Employee Resource Groups in 2023.
In 2022, we introduced a biannual inclusion and diversity
employee survey. The survey measures how good we are at
accepting people of all backgrounds, employees’ sense of
belonging, and whether employees feel valued at Pandora. The
resulting score was 86%, which ranks us in the top quartile of
our consumer benchmark.
We will work to maintain a score above 85% towards 2025, as

we proceed with raising awareness and education on inclusion
and diversity. The survey has helped set direction for this work.
A special focus is to gain a better understanding of how we can
support underrepresented groups. We are working towards
a data collection structure that provides us with relevant
information, complies with regulation on data collection, and is
sensitive to different cultural contexts.
To create an inclusive environment for our diverse customer

base, we are planning to provide training for all retail employ-
ees on this topic in 2023.
GENDER RATIO (FEMALE / MALE)

% 2022 2021 2020
33% LEADERSHIP
Creating a better gender balance

We have set out to achieve one-third women in senior leader-
Crafting
Retail
Office
59/41
94/6
67/33
59/41
95/5
66/34
56/44
52/481
-
women in leadership Distribution 60/40 56/44 -

to be achieved by 2025, and ship by 2025 and reach gender parity no later than 2030. For
Total gender ratio 77/232 - -
gender parity to be reached this target, we define senior leadership as positions at Vice
no later than 2030. President level and above, including the Board of Directors. Leadership Team 29/71 23/77 -
Leadership Team Pandora A/S 20/80 - -
We made good progress towards our target in 2022. The gender Executive Leadership Team 12.5/87.5 12.5/87.5 12.5/87.5
distribution for senior leadership was 29% women and 71% Board of Directors 43/57 43/57 75/25
men in 2022 and 23% and 77% in 2021. The increase in 2022 1
For 2020, only global office was part of reporting scope for the office category.
2
193 employees have chosen not to have a binary gender associated with their employee registration for a number of reasons and are therefore not included in the ratio.
for women in senior leadership was driven by external hiring, 3
This target is applicable only for Pandora A/S.
promotions and efforts to improve gender representation in
our succession processes.
In 2022, we invested in the development of our people lead-

ers. We provided regular performance coaching and created an
inclusive environment through Pandora’s new global leadership
programme, called Pandora RISE. Additionally, we designed a
module to further address the importance of inclusive leader-
ship for integration into Pandora RISE. We also analysed pro-
CUSTOMER ENGAGEMENT
motion structures and succession planning and will integrate
inclusion and diversity factors in these activities in 2023. At Reflecting societal diversity in our
year end, our Board of Directors was composed of 43% women customer engagement
and 57% men, the same composition as in 2021. As a leading global company, we look closely at how we
bring our jewellery to consumers in a responsible way.
Read more about the Board of Directors' composition in the Inclusion and diversity are key aspects of bringing respon-
Annual Report 2022. sible marketing to life. This gives us an opportunity to
reflect the diverse society in which we operate and project
In order to comply with new provisions on gender diversity the inclusive behaviors that we should all live up to.
targets for leadership in the Danish Companies Act, Pandora
has set the following additional target: by 2027, we will achieve Read more about our customer engagement on
representation of 40% women in the two tiers of leadership pages 24-25.
below the Board of Directors3.
RESPONSIBLE
MARKETING
In 2022, we made important strides towards
a documented and collaborative approach to responsible
marketing of Pandora products. We began implementing
our newly published Responsible Marketing Standard, and
started to track progress on our targets for diversity in
customer engagement.
As a global company, we look closely at how we bring our

jewellery to consumers in a responsible way. They can
100+ purchase Pandora’s products at 6,500 points of sale in over

100 countries, and we market our products through various
mediums and platforms. Our reach is significant, and in 2022,
we registered more than 600 million visits to our stores and
countries where
Pandora's products online platforms.
are available.
Because we are present in approximately half the world’s
countries, our customer base is highly diverse, and our
6,500 opportunity to influence consumer perception is evident.

As a brand, we must constantly evolve and change in step
with the world around us, and communicate to our
consumers thoughtfully and responsibly.
points of sale.
Our work and how we make progress Observant of data protection legislation, we expect to report
Our Responsible Marketing Standard sets out principles and on progress for financial year 2023, including how we will take
>600 standards for our employees, suppliers and third parties

when marketing Pandora products towards consumers. An
online training module on the Standard is expected in 2023.
further steps to reflect the diverse and global nature of our
audience in our marketing content.
million customer visits to our

stores and online. We also embedded processes to ensure that our sustaina-
bility data and legal teams are consulted in the development
of marketing campaigns to ensure compliance with our
Standard.
No major non-compliance issues related to marketing, label-

ling regulations or voluntary codes were identified in 2022.
CUSTOMER ENGAGEMENT
Reflect societal diversity in our customer

engagement
To drive our focus on reflecting societal diversity in our
customer engagement, we have set two targets:
• 30% of our brand ambassadors in our global communica-

tion to come from underrepresented groups by 2025.
• 30% of our branding content budget to be spent with sup-
pliers owned by women or other underrepresented groups
by 2025.
In 2022, we began building the relevant guidelines and

reporting system to track progress on these two targets.
HUMAN RIGHTS
In 2022, Pandora sig-
nificantly improved its
rating on the human rights
scorecard from the Danish
Institute for Human Rights,
and now ranks third among
30 Danish companies.
Whilst we are pleased with

this recognition, we will
continue our efforts to
fully manage our human
rights impact.
In 2022, we made important progress on our work to ensure respect for

human rights. We launched a company-wide human rights programme,
and developed policies for new risk areas such as artificial intelligence.
We received recognition from the Danish Institute for Human Rights and
continued our efforts to embed processes to safeguard human rights
across our business and value chain.
As a global company, we are exposed to human rights risks In 2022, we formalised our human rights programme based
and impacts across our business. We are committed to on the third-party human rights impact assessment com-
respecting human rights across our own operations and value pleted the year before. This included broad internal engage-
chain worldwide. ment to develop roadmaps for human rights due diligence
across the company to identify, mitigate and remediate
Our Human Rights Policy is based on the UN Guiding Princi- impacts in our business and value chain. In 2023, we will
ples on Business and Human Rights (UNGPs) and other rele- ensure progress is made against each business area’s
vant, international human rights standards and regulations, roadmap in line with the UNGPs.
and we expect employees, suppliers and partners to assist
Pandora in its efforts to operate in line with this commit-
Our salient human rights risks, as reported in our Sustainability Report 2021, are:
1
ment. The policy also lists our salient human rights issues, access to grievance mechanisms, child labour and young labour, discrimination
which constitute the most significant risks to our business and equality, freedom of association and collective bargaining, harassment and
gendered impacts, modern slavery and forced labour, online advertising, privacy,
and value chain.1 working hours, wages and benefits.
Our approach Our presence in Thailand is significant, with 39% of our Recognised for labour relations
employees and the majority of our suppliers based there. in our crafting facilities
Address most severe human rights risks across Both these factors, and the variation in suppliers’ business The employees’ right to organise and negotiate with manage-
our business, working to promote positive impact. models and experience in working with human rights, add ment is a core part of our work on human rights. By listening
complexity to the task of fully implementing our policies and to employees’ experience of the workplace, and enabling
processes. consistent and constructive dialogue between management
and employees, we support continuous improvement of
To gain a deeper understanding of our salient human rights working conditions.
risks, in 2022 we collaborated with an expert third party
Act
to reduce risk, prevent to conduct a deep-dive assessment of our human rights At our crafting facilities in Thailand, management and em-
adverse impacts impacts in Thailand. We will identify areas of improvement ployee representatives meet quarterly to discuss and pro-
2.
and remediate
TA
based on the results of the assessment, which we will receive vide solutions for working environment and welfare issues. In
KE
at the start of 2023. 2022, the design and implementation of COVID-19 measures
AC
Understand Monitor was prominent on the agenda for these meetings. The same
TIO
risks and OWN OPERA performance Read more about our management of human rights in the forum is in charge of annual negotiations on the collective
TIO
N
opportunities and progress
through due N value chain in the Responsible sourcing section on bargaining agreement for workers at our facilities. In 2022,
1. LAY FOUNDATION
dilligence
S
VISION pages 31-33. the negotiations were successfully concluded after appropri-
ate consultations.
We respect the human
rights of everyone
CHISES
touched by our This system of constructive social dialogue has led to Pando-
business, ensuring they
are treated fairly and ra receiving a Thailand Labour Management Excellence Award
AN
have an empowered from the Thai Government every year since 2019. The award
FR
Embed voice
is presented to companies based on performance in three
AI
human rights into

H
C Communicate
our governance, Y categories: labour protection, employee benefits meeting
PL transparently
policies and SUP and regularly labour law requirements, and good labour relations between
training
employers and employees.
Seize
opportunities
to promote
positive impact
3. POS Aligns with UN Guiding Principles

ITIVE IMPACT
on Business and Human Rights.
STORY
EMBEDDING
ETHICAL ARTIFICIAL
INTELLIGENCE
AT PANDORA
We are conscious of how certain uses of The policy outlines how we seek to apply
technology or data can impact human non-discriminatory measures in terms of
rights negatively, particularly the right the segmentation, personalisation and
to non-discrimination. For example, it is use of algorithms. It also states that we
known that the use of algorithms in data do not conduct activities or apply exist-
processing can unintentionally reinforce ing, new technology or use data in a way
conscious and unconscious bias, and we that results in unintended consequences
strive to actively address potential issues for our consumers or employees.
and work towards reducing these.
Read more about Pandora's Data Ethics
When applying technology in our use Policy in the Annual Report 2022.
of data, we aim to ensure that we have
procedures that govern, control and doc- We also recognise the importance of arti-
ument the development of algorithmic ficial intelligence safety. For this purpose,
models. This is embedded in Pandora's we have created a Global AI Safety Stand-
Data Ethics Policy. ard, which sets out principles for the safe
use of AI. We will begin implementation of
the Standard in 2023.
Helping children in Our donation supports UNICEF’s programmes to fund

partnership with UNICEF learning and skills development, personal empowerment,
Since 2019, Pandora has partnered with UNICEF to support and gender equality activities. In 2022, our support helped
the world’s most vulnerable children and provide opportu- more than 129,000 children and a further 260,000 children
nities for young people to lead healthier, safer lives and fulfil indirectly benefited from these activities.
their potential.
Following Russia’s invasion of Ukraine, Pandora was the first
To date, Pandora has donated a total of USD 10 million, help- corporate partner to answer UNICEF’s call to support its
©
UNICEF/Nepal2021/LPNgakhusi
ing more than 1.2 million children through the partnership. relief efforts in the war-torn country. With a swift donation of
Pandora is a flexible funding champion, allowing UNICEF to USD 1 million, the funds were directed towards the provision
allocate resources where they are needed the most to help of essential health care to 4.5 million children and women, as
children around the world to survive and thrive. well as mental health and psychosocial support to 2.2 million
children and caregivers in and around Ukraine.
STORY
EMPOWERING GIRLS IN
NEPAL THROUGH TRAINING
“
AND LIFE SKILLS
In Nepal, people between 10-24 years old account for one-
Pandora’s donation is not only timely but also
third of the population. Challenges faced by this younger gen-
significant in size. Responding quickly to our
eration are often unaddressed, leaving many in exploitative
humanitarian appeal helps us to act swiftly and
provide assistance for those that need it most. situations – especially in the aftermath of the COVID-19 pan-
In crises, timing is everything. demic. In response to these risks, UNICEF and local counter-
parts are working to identify, access and provide skills to girls
who are working in the most dangerous forms of child labour,
CARLA HADDAD MARDINI namely in the adult entertainment industry. So far, Pandora’s
Director of Private Fundraising and financial contributions to the project have helped fund the
Partnerships Division, UNICEF provision of vocational training and life skills for more than 300
©
UNICEF/UN0599682/Câtu vulnerable girls in and around Kathmandu and Pokhara.
STORY
ACTIVELY ENGAGING
OUR LOCAL
COMMUNITY IN
THAILAND
Our crafting facilities in Thailand A mainstay of our community outreach
employ 13,509 people and have close in Thailand is the “My School Project”,
ties to the surrounding communities. where for the past 17 years we have built,
For many years, we have been raising refurbished or provided educational ma-
funds through charitable events and terials to primary schools in rural areas in
employee engagement initiatives and Thailand. The schools are nominated by
directing these towards supporting our Thai colleagues, and the project has
organisations such as hospitals, local so far touched the lives of thousands of
NGOs and temples that work with the children in Thai communities. The school
disabled, the elderly and other commu- selected in 2022 now has a new building
nity members. For example, in 2022, we built by local workers and construction
planted community gardens, donated companies, thus also supporting the
fire extinguishers to fight forest fires, area’s business community.
donated COVID-19 protective kits, and
much more.
RESPONSIBLE
SOURCING
In 2022, we took stock of our Responsible Sourcing
Programme and launched new initiatives. We cre-
ated a roadmap to manage our supply chain in line
with our ambitions for the environment and human
rights, and gained a better understanding of our
suppliers.
Ensuring the sustainability of our suppliers is fundamental to Increasing regulation in sustainable supply chain manage- Meanwhile, our indirect supply base is more extensive and
our success as a business. As well as reducing the environment also means that we need to know more about the prov- our audit programme to date has focused on high-risk areas.
89%
mental impact in our supply chain, we have a responsibility to enance of our products and services and the conditions in These include point-of-sale materials and furniture and
ensure that our activities do not adversely impact the human which they are made. This requires innovative approaches to fixtures. These suppliers are largely located in China and
rights of the workers in our supply chains. ensure the information we receive and report on is accurate. Southeast Asia.
of our jewellery is crafted at
our facilities in Thailand. With our extensive procurement of materials and services, We craft 89% of our jewellery at our two facilities in Thailand. Our Responsible Sourcing Programme is governed by three
our role is to set high environmental and social standards This means we can operate a lean product supply chain that documents: our Supplier Code of Conduct, our Responsible
and support our suppliers to meet our expectations. We allows us to build long-term relationships with our suppli- Sourcing Policy and our Materials Standard. Read more about
acknowledge that suppliers are at different points in their ers and focus on minimising risks. In total, we work with 105 these on page 38 , in our Transparency in Supply Chains
sustainability journey and operate in different contexts, and direct product suppliers, the majority of which are based in (TISC) Statement and on our corporate website.
we therefore tailor our approach to ensure progress is made. and around Thailand.
Towards more engagement for impact Sourcing silver and gold

We are evolving our Responsible Sourcing Programme to We are well on our way to using only recycled silver and gold
deliver continued improvements on both social and environ- in our products by 2025. Until then, we rely partly on mined
mental topics: silver and gold, which are purchased.
1 Capacity-building pilots launched for selected Thai sup- Mining activities are associated with known social and envi-
pliers with on-the-ground support beginning early 2023. ronmental risks. We strive to avoid contributing to these by
At each site, an external provider contracted and paid ensuring that all the silver and gold used in making our jewel-
for by Pandora is engaging with cross-functional teams lery comes from certified responsible refiners according to
to conduct root cause analysis and support the site to the Responsible Jewellery Council Code of Practices or the
improve management systems. London Bullion Market Association Good Delivery Rules. This
is confirmed by due diligence on our suppliers.
2 COVID-19 recovery visits conducted at a range of Chi-
nese, Thai and Indian direct product and indirect suppli- A list of our key silver and gold grain suppliers can be found
ers to understand the effects of the pandemic on working on our corporate website.
conditions. We contracted a third party to conduct inter-
views with management and workers as well as documen- Supplier performance for 2022
tation reviews. By increasing focus on worker interviews Social audits form a part of our Responsible Sourcing Pro-
and having an interpreter present to facilitate migrant gramme to help us monitor how well our suppliers adhere
worker interviews in their own language, we uncovered to our Supplier Code of Conduct. Although we recognise
issues that were not highlighted in previous audits. We are that audits alone do not lead to holistic supply chain risk
working closely with suppliers to address the findings. management, we view them as a minimum starting point for
engaging suppliers on the importance of decent working
3 Purchasing practices - Thirteen of our suppliers were conditions. All direct product and high-risk indirect suppliers,
invited for interviews as part of our Human Rights Impact such as point-of-sale and furniture and fixtures suppliers,
Assessment in Thailand to understand how our internal are screened according to identified risk criteria. Our TISC
processes and practices may impact human rights in our Statement provides further information on our approach to
supply chain. Using the feedback shared by suppliers, we auditing suppliers.
will launch a wider purchasing practices workstream as
part of our Responsible Sourcing Programme in 2023. We audit our direct product suppliers over a two-year audit
cycle using third-party auditors. We audited 11 and 15 sup-
4 Scope 3 pilot – Read more on page 14. pliers in 2021 and 2022 respectively, covering 16 factories in
2021 and 19 in 2022. The results of these audits can be seen
in the graphic on page 33.
The 15 suppliers audited in 2022 represented 15% of our through our supplier upgrading its production method to Supplier audit performance in 2021 and 2022
total product spend. Other product suppliers are either due include automation and comply with local legal limits. Number of non-conformances against Pandora's Supplier Code of Conduct1
for their biannual audit in 2023 (13%) or were already certi- during a two-year audit cycle2
fied to an approved standard (72% of product spend). Our For compensation and benefits, an example of a non-con-
Responsible Sourcing Policy outlines our approved standards, formance identified was a security services contractor
and we do not want to create an additional audit burden on mistakenly undercalculating total hours worked. After this 2022 120 47 8 15
Health
our suppliers. When non-conformances are identified, we was highlighted with the supplier and security contractor, and safety3 2021 41 51 9 5
collaborate with our suppliers to agree an improvement plan the contractor updated to a more accurate payroll system
Working 2022 11 17 1
and resolve any issues found. and all underpayments were reimbursed to workers for the
hours 2021 4 9
previous year.
In 2022, the direct product supplier audits identified 346 Compensation 2022 15 12 2
non-conformances: 68 categorised as minor issues and 278 Two young labour non-conformances were found at one and benefits 2021 8 9 1 14
as major issues. No zero tolerance non-conformances were factory relating to a juvenile employee. Although the employ-
Environmental 2022 8 9 6 2
identified. The majority of non-conformances in 2022 related ment was legal, regular physical examinations were not pro-
management 2021 5 5 2 10
to areas such as health and safety, environmental manage- vided and they were not registered with the local authorities.
ment, and compensation and benefits. Within the 278 major Both non-conformances were closed. Regular 2022 17 51
issues, 180 have been resolved and closed, 66 are expected employment 2021 4 16
to be closed within the grace period, and 32 remain out- In our Sustainability Report 2021, we reported 207 non-con-
Management 2022 1 3 9 7
standing with a time-bound corrective action plan in place. formances. By the end of 2022, 17 of these issues were still
system 2021 1 1 7
open (14 major and 3 minor), bringing the total number of
A prevalent non-conformance within the health and safety open issues by year end to 144. These issues are taking longer Disciplinary 2022 3 3 7
category is fire safety. For example, some emergency exit than the grace period to close out due to challenges in local practices 2021 3 2 15
doors did not comply with local law nor our standards. To operating contexts and loss of documents that cannot be re-
2022 8
correct this, one supplier rearranged their evacuation map to placed. We will continue working with suppliers to complete Ethics Major - Remediation Complete
2021 6 15
ensure at least two emergency doors remained in the same remediation in 2023. No non-conformances remain open Major - Remediation in Progress
area, another installed equipment to ensure the door re- from our 2020 audits. 2022 21 Minor - Remediation Complete
Discrimination
or harassment Minor - Remediation in Progress
mained open during working hours and two others changed 2021 1
their doors to open outwards rather than inwards. We value the insights gained from our third-party social audits
1
N
umber of non-conformances against
2022 1 2 Pandora’s Supplier Code of Conduct in a
and will continue to seek open and honest dialogue with our Freedom of two-year audit cycle. 2021 and 2022 data is
association 2021 2 for different factories – in 2021, 16 factories
An example of a working hours non-conformance identified suppliers on the challenges they face. However, the deep- were audited and in 2022, 19 factories were
was overtime hours exceeding the legal limit of 36 hours er-dive COVID-19 recovery visits demonstrated that we can do Child or 2022 2 audited.
2
The supplier audit performance for 2021 is
per month in China, where overtime laws are stricter than more to ensure all serious issues are discovered. In 2023, we will young labour 2021 16 as per 31December, 2021.
3
For the health and safety non-conformanc-
international standards. Remediation was monitored over a adjust the design and requirements of our audit programme to es, the graph is not displayed to scale.
2022 1
period of seven months to gradually reduce worker overtime allow for greater transparency and support for suppliers. Subcontracting
4
Minor – Remediation Completed.
2021 1 5
Minor – Remediation in Progress.
6
Major – Remediation in Progress.
HEALTH AND In 2022, our overall health and safety nurse coverage, occupational physicians’ support four hours
per week, medical doctors’ support four hours per week, and
performance remained strong, and regular health checks for new and existing employees. All of
SAFETY
our efforts to keep people safe at our these services are provided free of charge to all new employees
crafting facilities were recognised by in accordance with Thai legislation. COVID-19 measures were
in place in 2022, including temperature screening on entry,
the Thai government. and mask requirements for all people that entered the facili-
ties on a daily basis.
Pandora wishes to maintain healthy and safe working condi-
tions that at a minimum comply with local laws. Our Health Our crafting facilities are certified against the ISO 45001
and Safety Policy covers workers, including contractors and Standard on occupational health and safety. This ensures that
visitors to our sites. We provide training to all staff, monitor a management system driving continuous improvement is in
performance closely and engage management and elect- place, with annual reviews and discussions of our safety culture
ed employee representatives in dialogue where relevant. and how to drive performance towards zero injuries.
Health and safety has not been assessed as a material risk to
Pandora. In 2022, we were recognised by the Thai Government’s White
Flag Green Star Programme for our work on employee health
Top priority at our crafting facilities and safety. In our crafting facilities, we continue to work
At our crafting facilities we improved our performance in towards our three targets: zero injuries culture, zero health
2022, as measured by the number of work-related lost-time risks, and zero non-compliance, as determined by internal and
In October 2022, a fire broke injuries, of which there were none. This compares with six external standards.
out at our European Distribution
work-related lost-time injuries in 2021. Consequently, the
Centre in Hamburg. Our first
priority was the health and safety
lost-time injury frequency rate (LTIFR) was zero, which was Performance in retail, distribution and
of employees, and fortunately better than our target of 0.14 for the year. All work-related offices
no one was injured in the fire. incidents are thoroughly investigated and tracked. In 2022, 76 injuries occurred in our owned and operated
Business continuity plans stores, resulting in a LTIFR of 2.74. Our distribution centres’
were successfully activated to To engage employees and ensure early indications of im- LTIFR for 2022 was 16.45 and for offices it was 0.76.
secure back up flows, relying on provement opportunities, we provide a range of feedback
temporary increased capacity
opportunities. Emergency plans are in place and in our From 2023, we will look to improve our performance across
at our distribution centre in
Thailand. This incident brought
crafting facilities we have established an internal award for these areas through strengthened health and safety aware-
into sharp focus our supply chain safety at work. ness, trainings and management guidance.
resilience and ability to swiftly
protect both our people and In addition, we focus on ensuring that employees have access
our business. to proper health services at our crafting facilities. This includes
health promotion activities, wellbeing programmes, 24-hour
36 Sustainability governance
39 Business ethics
GOVERNANCE
STEPPING UP SUSTAINABILITY GOVERNANCE
SUSTAINABILITY REPORT 2022 GOVERNANCE 36
SUSTAINABILITY
GOVERNANCE
Sound governance structures provide accountability and transparency
in decision-making, ensure that our sustainability strategy and activities
fulfil Pandora’s sustainability ambitions, and support the business.
Board of Directors
Our governance structure Five of the nine Sustainability Board members have a seat on
Pandora’s Board of Directors has oversight duties for all the Pandora’s Executive Leadership Team, including the CFO, who
company’s activities, including those related to the manage- chairs the Sustainability Board. The following corporate func- Executive Leadership Team
ment of sustainability subjects and plans, while responsibility tions are currently represented on the Sustainability Board:
for the execution of the sustainability strategy lies with the Supply Chain, Product, Retail, Human Resources, Marketing,
Executive Leadership Team. Finance, and Corporate Communications and Sustainability. Responsible Sourcing Committee
Sustainability Board members are responsible for integrating
Responsibility to execute on strategy is delegated to Pando- sustainability into the operations of their respective functions
Sustainability Board
ra’s Sustainability Board, while the Global Sustainability Team with support provided by the Global Sustainability Team.
is tasked with overseeing the day-to-day implementation of
the strategy. The Sustainability Board engages on a quarterly Pandora’s sustainability leadership was elevated within the Responsible Marketing Committee
basis, and acts as a decision-making and strategy-setting organisation in 2022, with the Global Sustainability Team
body on sustainability. In addition, it receives regular updates reporting to the SVP of Global Communications and Sustain-
from the Global Sustainability Team on strategy implemen- ability. The team manages the company’s global sustainabil- Global Sustainability Team
tation, progress towards achieving our sustainability targets, ity strategy, and is based out of Pandora’s Global Office in
and identified risks and opportunities. Copenhagen, Denmark.
The team is anchored within the Chief Human Resources Deeper integration of sustainability • Reporting annually on our progress through our Annual
Officer’s organisation, meaning that sustainability has direct at the top Report and Sustainability Report.
oversight from a member of the Executive Leadership Team. As of 2022, the Board of Directors receives biannual updates In 2022,
Also in 2022, dedicated sustainability resources were em- on sustainability at Pandora and conducts a formal Board Identifying sustainability risk Pandora’s
bedded across relevant areas of the business, including Sup- review of the Sustainability Report. From 2023 onwards, the Pandora has an enterprise risk management process in place
ply Chain, Indirect Procurement, Retail, and Finance. We also Audit Committee on governance, controls and processes re- with management teams across our value chain responsible sustainability
have a dedicated sustainability team in place at our crafting lated to sustainability data will be introduced. Furthermore, for the continuous identification, assessment, mitigation and leadership
facilities in Thailand. ongoing education of the Board of Directors on sustainabil-
ity matters is being developed. The company’s Long-Term
reporting of current and emerging risks. Pandora also has a
dedicated Risk Management Policy and a business continuity
was elevated
Pandora’s Responsible Sourcing Committee oversees Incentive Programme (LTIP) for senior leadership includes function. within the
sustainability-related supply chain governance, including sustainability performance. organisation.
the implementation of the Responsible Sourcing Policy and For information specifically related to climate risks, read
Programme. The committee’s seven members review and The sustainability component of the LTIP for senior leader- more on pages 43-44.
recommend approaches for new policies, strategies and ship consists of three targets: our Science Based Target to
supplier engagement. The Responsible Sourcing Committee reduce our greenhouse gas emissions, our target to use only All relevant areas of our business are required to report their
is co-chaired by the VP, Supply Chain and Sustainability, and recycled silver and gold in our jewellery, as well as our target most significant risks to the Global Insurance and Risk Office,
the VP, Global Sustainability, and reports to the Sustainability to achieve gender parity in leadership. These targets hold a along with assessments of those risks and an overview of
Board. In 2022, one meeting was held with the Responsible weight of 25% of the total LTIP. planned and implemented mitigating actions, on a quarterly
Sourcing Committee to approve our responsible sourcing basis. Risk assessments take into account the likelihood of an
roadmap and provide an update on our newly developed Read more about LTIP in Pandora's Remuneration report event and its potential financial impact on the business. Risks
Materials Scorecard for colleagues and suppliers. 2022. are assessed in terms of both gross and net risk. The Global
Sustainability Team participates in this process by assessing
Pandora’s Responsible Marketing Committee (RMC) is respon- How we implement strategies relevant risks, and has identified two main sustainability-
sible for updates to and implementation of the Responsible and policies related risks:
Marketing Standard. It is headed by a representative from Pandora’s approach to implementation consists of: • Consumer backlash over sustainability targets and claims
the Marketing Leadership team and includes representatives • Training relevant employees on strategies and policies • Environmental, social and governance compliance
from various functions within the business. In 2022, the RMC and how they can contribute to their implementation.
held two meetings and guided the development of training • Scaling up sustainability resources to guide specific areas Each of these risks are mitigated through the programmes and
activities as well as the work to build a robust system around of the business. projects related to our sustainability strategy and these risks
ensuring inclusion and diversity in our marketing activities. In • Embedding sustainability considerations early on in are not assessed as being among Pandora’s 10 significant risks.
addition, the RMC discussed the evolving regulatory landscape business decision-making. As science and global consensus continue to evolve, we are ac-
around responsible marketing and how to ensure that the • Advising across the business through regular check-ins with tively reviewing our sustainability risks to further advance this
business follows best practices. our Global Sustainability Team. agenda. The sustainability risks are included at a high level in
• Using formalised governance structures to review the top risk profile in the Annual Report 2022, page 33.
implementation.
Policies and Standards

Read more
Pandora Code of Conduct Global Human Rights Policy
about the Policies and Standards
Our Code of Conduct sets out our ethical commitment, and We are committed to respecting human rights and this Policy
on our corporate website.
the standards of behaviour and conduct to which we expect details our commitment to follow international standards,
the entire Pandora organisation to adhere. It provides a basic including the United Nations Guiding Principles on Business
compliance framework to guide employees through Pando- and Human Rights. It also outlines our salient human rights
ra’s core values. It is also the foundation to our Anti-Bribery issues, key stakeholder groups and how we implement human
and Corruption Policy, Gifts and Entertainment Standard and rights across the business.
Conflicts of Interest Policy.
Responsible Sourcing Policy Inclusion and Diversity Policy Pandora Whistleblower Policy
This document outlines how we implement our Supplier The Inclusion and Diversity Policy outlines Pandora’s ambitions Our Whistleblower Policy describes the process for all
Code of Conduct through risk assessment, management and commitments to create an equitable, inclusive and diverse employees, Board members, business partners and other
systems, traceability, audits, reporting and disclosure. It out- workplace. It provides an insight into the collective responsibil- stakeholders of Pandora to report any serious and sensi-
lines our three core objectives for our Responsible Sourcing ities within the company to ensure all employees understand tive concerns. It includes information on how to access our
Programme: responsible, transparent and traceable. how they can effect change to create a culture of inclusion. third-party Whistleblower Hotline.
Environmental Policy Supplier Code of Conduct Global Data Ethics Policy

Pandora’s Environmental Policy requires employees to exhibit This outlines our basic expectations of suppliers on environ- This policy describes our approach to data ethics and the princi-
environmental thoughtfulness and sound practices, including mental, social and legal compliance criteria. It aligns with inter- ples we apply to our processing of data. It includes our data ethical
on waste in daily operations. It requires employees to actively national standards, including the Ethical Trading Initiative Base principles: applying equality and fairness, respecting the person
participate in relevant environmental training and campaigns. Code and International Labour Organisation conventions. behind the data and focusing on sustainable data practices.
Materials Standard Responsible Marketing Standard Global Donation Standard

The Materials Standard was launched in 2021. It outlines gen- This standard sets out applicable principles and standards The Global Donation Standard outlines the rules for how and
eral sourcing principles and guidance for materials sourcing for the company and its partners when marketing Pandora’s when it is acceptable for our employees and subsidiaries to
and selection. jewellery towards consumers. provide charitable donations on behalf of Pandora.
Privacy Policy Tax Policy Health and Safety Policy

Our Privacy Policy determines the principles we apply when The purpose of our tax policy is to establish a clear and Pandora’s Health and Safety policy sets out the commitment
handling personal data submitted to us by consumers or aligned tax approach to all transactional, reporting and com- to maintaining safe and healthy working conditions for all
employees. pliance aspects of Pandora. employees.
BUSINESS ETHICS
In 2022, we expanded training across a range of business
ethics topics, developed a new Global Donation Standard
and investigated all whistleblowing reports.
Pandora is fully committed to ethical business practices, and Whistleblower hotline
71
we aim to conduct business lawfully, appropriately and with Our Whistleblower Policy outlines our process for dealing
honesty and integrity. We strive to adhere to applicable laws with issues raised through our whistleblower hotline.
and regulations, exercise sound judgment and take actions to
minimise negative impacts from our activities on people and In 2022, there were a total of 71 cases reported to the
cases were raised
the planet. whistleblower hotline. Most cases related to store staff and
through the
whistleblower hotline. involved reports of potential harassment, unfair treatment,
A dedicated function, Global Compliance, is charged with conflicts of interest and other unethical behaviour. A few cas-
operationalising all commitments to regulatory compliance es related to office and production staff, involving reports of
and internal policies concerning anti-bribery and corruption, potential bribery and inappropriate or unethical behaviour.
privacy, anti-money laundering and fair competition. Some of the cases related to potential harassment, unfair
treatment, conflicts of interest and other unethical behav-
Our Code of Conduct sets out the ethical business prac- iour, which resulted in disciplinary action.
tices and standards of behaviour that we expect the entire
Pandora organisation to adhere to. Not all cases reported were substantiated with evidence,
but we investigated all cases, providing anonymity where
During 2022, we continued training activities related to the possible, and non-retaliation measures. None of the cases
Code of Conduct by developing e-learning modules, with had a severe impact on our business operations or a material
particular focus on providing training to employees working financial impact.
in our crafting facilities and stores (made available in relevant
languages).
We also conducted a review of our whistleblower hotline Protecting personal data to

against the UNGP’s Grievance Mechanism effectiveness crite- respect the right to privacy
ria and prepared a large, internal campaign to raise aware- Our Privacy Policy determines the principles we apply when
ness of the whistleblower hotline which we expect to launch handling personal data from our consumers or employees.
in 2023, encouraging a speak-up culture.
Pandora uses personal data only when we have a legitimate
Mitigating the risk of bribery and purpose for doing so. The data is used, stored, shared and
corruption protected in accordance with the relevant legal basis upon
Pandora has a zero-tolerance policy towards bribery and collecting the data, and in accordance with applicable privacy
corruption. As part of this commitment, we have a dedicated legislation.
compliance programme that applies globally.
Privacy training and awareness raising initiatives for all em-
Using Pandora’s Code of Conduct as the foundation, the An- ployees are carried out regularly. In 2022, we provided face-
ti-Bribery and Corruption Policy, the Gifts and Entertainment to-face training for office employees at our headquarters and
Standard and the Conflicts of Interest Policy provide further in regional offices that are most likely to work with personal
details on how Pandora and its employees can prevent and consumer and employee data. We also launched a film on pri-
combat bribery and corruption to protect our brand. In vacy awareness for office employees in selected regions and
2022, we also introduced a Global Donation Standard, which organised a “Deletion Day” to educate employees at our head
outlines the rules for how and when it is acceptable for our office on handling and storage of personal data.
employees and subsidiaries to provide charitable donations
on behalf of Pandora. Standardising our approach to chari- The general purpose of all training sessions is to help em-
table giving has helped guide our local community outreach ployees identify situations where they work with personal
while ensuring that all charitable donations undergo proper data so they can reach out to the Privacy team for further
due diligence, benefit the intended stakeholders, and reflect guidance on how to safely process the data.
the values of Pandora.
Complaints are investigated and resolved in line with ap-
In 2022, we began live, online training for employees who plicable legislation. In 2022, there were no substantiated Tax
face a higher risk of corruption and bribery due to their roles claims concerning breaches of consumer privacy or losses Pandora’s tax strategy is to pay a fair tax in all markets where
and physical work locations. A series of e-awareness videos of consumer data. One incident related to employee data we operate. Pandora is committed to ensure compliance Pandora has a
will be released on anti-bribery and corruption topics in was reported by Pandora to the Information Commissioner’s with the letter and spirit of tax law in these locations, while zero-tolerance
2023, and we will review internal policies. Office in the UK in accordance with local legislation. The inci-
dent involved internal data only and has been rectified. The
striving to maximise shareholder value in a responsible way.
Pandora follows what is known as a principal tax model,
policy towards
There were no reported cases of corruption and bribery authorities did not consider it necessary to take any action. where profit follows risk and value creation throughout the bribery and
related to Pandora’s business in 2022. No other substantiated issues related to Pandora’s handling value chain. corruption.
of personal data were reported in 2022.
This means that Pandora allocates a profit margin, based on company holds the retail business in Panama and operates In 2022, Pandora was recognised by both PwC and Økonomisk
benchmark studies, to entities in the Group and this profit two Pandora stores. Ugebrev for its Tax Governance. We were ranked no. 1 among
Pandora’s tax margin is taxed in local markets, and the residual profit (or all Danish companies when it comes to tax transparency and
strategy is to loss) remains in Denmark, where it is taxed. The majority of

internal transfers are related to commercial activity.
Pandora’s total global tax contribution amounted to more
than DKK 6.5 billion compared to DKK 5 billion in 2021. Around
standing out from other companies by publishing tax infor-
mation for all the countries where we operate – the so-called
pay a fair tax 40%, compared to around 30% for 2021, was incurred by Pan- Country-by-Country reporting.
in all markets Pandora does not avoid taxes or exploit the lack of transpar- dora for corporate income taxes and duties and the remaining
ency and information exchange by operating in tax havens. part was collected by Pandora as VAT, sales taxes, tax on wages To learn more about Pandora’s tax principles and practices,
where we We use the OECD definition of tax havens, and as of 31 and dividends. The Board of Directors is responsible for the see our Tax Policy.
operate. December 2022 we had two companies in the Pandora Group Tax Policy. The responsibility for tax risk management lies
located in a tax haven (Panama). One of the companies acts with the Group CFO and is overseen by the Audit Committee, Combating money laundering and
as the regional office for all of Latin America and receives a which reviews the Tax Policy annually. ensuring compliance with sanctions
standard arm’s length service fee for this activity. The other Pandora recognises the importance of complying with
applicable regulations on anti-money laundering, terrorist
financing, due diligence, economic sanctions and embargoes,
and is committed to conduct its business in full compliance
with applicable laws.
We have an Anti-Money Laundering Programme in place,

setting the global minimum standards with which all Pandora
subsidiaries and affiliates must comply. It includes written
policies and procedures for third-party due diligence and
screening, and ensures that Pandora complies with applica-
ble economic sanctions and embargoes. The programme is
tested on a regular basis.
In 2022, Pandora paid a fine of USD 758,394.69 (declaration fees

and civil penalties) and executed a settlement agreement with
U.S. Fish and Wildlife Service for a notice of violation issued in
2021 for failure to complete certain required export documen-
tation as well as failure to pay certain export fees for the export
of jewellery products made with oyster shell (Pinctada Maxima).
43 Task Force on Climate-Related
Financial Disclosures
45 EU Taxonomy
48 Stakeholder engagement
50 United Nations Sustainable
Development Goals
51 About this report
52 Sustainability data
61 Statement by Executive Management
62 Independent auditor’s report
ANNEX
SUSTAINABILITY REPORT 2022 ANNEX 43
TASK FORCE ON
CLIMATE-RELATED
FINANCIAL DISCLOSURES
We respond to requests for transparency from regulators
and the financial sector on financially material climate
change impacts for Pandora, as recommended by the Task
Force on Climate-Related Financial Disclosures (TCFD)1.
Governance Strategy
Pandora’s climate and renewable energy targets are governed Pandora’s sustainability strategy focuses on meeting
by the Sustainability Board, which has five members from the stakeholder expectations and future-proofing the company
Executive Leadership Team. Climate-related risks and oppor- by becoming a low-carbon business with circular practices
tunities are part of Pandora’s Enterprise Risk Management integrated wherever possible.
reporting. Pandora's Global Sustainability Team works with the
Global Insurance and Risk Office and other key stakeholders We have set ambitious climate targets, see page 12. One
across the organisation to identify and assess climate-related of these targets is approved by the Science Based Target ini-
physical risks, transition risks and opportunities. tiative. Our progress to date has us on the right track towards
meeting this target.
The Board of Directors receives and assesses the sustainability
risks associated with Pandora’s business and operations once
a year. The Executive Leadership Team is responsible for risk To promote consistency in reporting, the Financial Stability Board, an international
1
body that monitors and makes recommendations about the global financial system,
management execution, and managers at all levels are respon- created the Task Force on Climate-Related Financial Disclosures (TCFD), which re-
sible for identifying and managing risks related to their areas. leased a disclosure framework in 2017.
To increase our business resilience against future impacts of Through our risk management reporting process, we monitor
climate change, in 2022 we performed a qualitative climate and review climate-related risks, for example:
scenario analysis. It assessed the likelihood and impact of
various climate-related risks and opportunities relevant • Environmental and carbon taxes or import and export
to Pandora's direct operations and value chain from three licensing requirements and regulations related to climate,
different climate scenarios, including a 1.5°C scenario, as which can impact energy prices, compliance, transportation
recommended by the TCFD. and operational costs, and sourcing availability as well as
the ability to operate in certain markets.
As part of the assessment, 13 internal stakeholders from a • Growing consumer expectations and preferences for trans-
range of functions were interviewed, including the CFO and parency on the carbon footprint of our products, including
representatives from operations, supply chain, risk, sustaina- both our own operations and our supply chain.
bility, and logistics. The climate-related risks and opportuni-
ties assessed were the ones considered most material to the As part of this process, we also consider if any of these risks
business by the stakeholders. could present Pandora with opportunities due to its status
as a relatively low-emitting company.
The main conclusion was that Pandora is likely to face both cli-
mate change mitigation and physical risks in all three scenarios. We recognise that there is further work to be done to inte-
grate and disclose climate risks and opportunities, and to use
Risk management insights to inform strategic planning across our business. We
Actions taken in line with our sustainability strategy serve will continue our work on this in 2023.
to mitigate many of the risks established in both our risk
management processes and scenario analysis. These actions Metrics and targets
include changing our energy supply and our sourcing of raw We focus on reducing our climate impact through low-
materials, and securing our operations against extreme carbon targets and related initiatives, which can be seen on
weather events. Other mitigating actions are under consider- page 10.
ation following the scenario analysis.
Read more about Pandora's climate progress and data on
page 52.   
EU TAXONOMY
activities for the Revenue KPI and for both category (a) and and disclose no Taxonomy-alignment for the identified eco-
(c) of the CAPEX and OPEX KPIs. We identified areas where nomic activities for the reporting period.
we had any eligible economic activities in the reporting pe-
riod, which were subject to further assessment of eligibility. Accounting policies
• Assessment of eligible economic activities: Each of the iden- The share of Taxonomy-eligible economic activities is
tified economic activities was assessed with regard to how expressed as the proportion of revenue, total investments
the description of the economic activity in the Annex corre- (CAPEX) and operational expenditures (OPEX) related to
In 2022, we initiated our EU Taxonomy (“Taxonomy”) sponds to how Pandora performs the economic activity. assets or processes listed in the Taxonomy.
• Assessment of the alignment of economic activities: For
assessment focusing on assessing the applicability of
each of the eligible economic activities we identified key • Revenue: Total revenue is aligned with the revenue report-
the economic activities listed in the environmental internal stakeholders to help locate and collate documen- ed in the Annual Report 2022. The revenue KPI is defined
objectives on climate change mitigation and climate tation that would fulfill the alignment criteria. as Taxonomy-eligible revenue (numerator) divided by total
revenue (denominator).
change adaptation to Pandora’s core business. Taxonomy-eligibility
Our core jewellery industry economic activities are not • CAPEX: Total CAPEX is aligned with additions reported in Note
covered by the Climate Delegated Act and consequently are 3.1 Intangible assets (IAS 38), Note 3.2 Property, plant and
The EU Taxonomy is an EU classification system identifying Taxonomy non-eligible; hence, we have no eligible Revenue. equipment (IAS 16) and Note 3.3 Right-of-use assets (IFRS
environmentally sustainable economic activities. In 2022, we For the reporting of 2021, our assessment on eligibility was 16) of the Annual Report. Goodwill is not included in CAPEX
Given the initiated our Taxonomy assessment focusing on assessing the based on the interpretation that eligibility should be con- because it is not defined as an intangible asset in accordance
relatively new applicability of the economic activities listed in the environ-

mental objectives on climate change mitigation and climate
sidered for our crafting of jewellery economic activities only,
hence no eligible activities were identified. For the reporting
with IAS 38. The CAPEX KPI is defined as Taxonomy-eligible
CAPEX (numerator) divided by total CAPEX (denominator).
nature of the change adaptation to Pandora’s core business. We did so of 2022, the interpretation has changed, and the eligibility
Taxonomy, we noting that the crafting of jewellery is not in scope for these assessment has broadened to consider other economic ac- • OPEX: According to the Taxonomy, OPEX is defined as direct
two environmental objectives. To report on the Taxonomy, we tivities in terms of CAPEX and OPEX. Based on this interpre- non-capitalised costs that relate to research and develop-
note that the have identified and determined which economic activities tation, we have identified CAPEX and OPEX related eligible ment, building renovation, short-term lease, maintenance
requirements are eligible under the Taxonomy definition and subsequently economic activities that meet the Taxonomy’s definition. and repair and any other direct expenditures relating to
for Taxonomy- allocated financial numbers to these economic activities.

Taxonomy-alignment
the day-to-day servicing of PPE. The OPEX KPI is defined as
Taxonomy-eligible OPEX (numerator) divided by total OPEX
alignment are The process for assessing compliance with the criteria set Given the relatively new nature of the Taxonomy, we note that (denominator).
still evolving. out in Article 3 of Regulation (EU) 2020/852 has been con- the requirements for Taxonomy-alignment are still evolving.
ducted in three stages: Having reviewed the extensive substantial contribution and ‘do • Double counting: For the calculation of the denominator of
no significant harm’ criteria for the identified eligible economic the Revenue, CAPEX and OPEX KPIs we have extracted the
• Screening of eligible economic activities: We performed a activities, it has become apparent that we currently do not have figures directly from the ERP system and therefore ensure
screening of the technical annexes of the Climate Dele- all required detailed documentation readily available in the that the figures are only counted once in each KPI. For the
gated Act to identify any potentially eligible economic same place. Hence, we chose to adopt a conservative approach allocation of the numerator for CAPEX, we have first identified
the relevant figures and then we have allocated the primary CAPEX or OPEX, respectively, depending on whether the Read more about our Policies and Standards on page 38.
related economic activity in the Climate Delegated Act. In this requirements for capitalization are met. There are no CAPEX
way, we ensure that no CAPEX is considered more than once. plans to upgrade a Taxonomy-eligible economic activity to In 2022, there have not been any incidents where Pandora was
become Taxonomy-aligned or to expand a Taxonomy-eligible found to be in breach of human rights laws, guilty of breaching
Changes in calculations compared to economic activity (“category b” according to Sect. 1.1.2.2 of tax laws, finally convicted of corruption or bribery or found in
previous period Annex I to the Art. 8 Delegated Act). The numerator of the breach of competition laws. Likewise, Pandora has not been
This is our first year of reporting on the Taxonomy alignment, OPEX KPI is, in addition to activity 8.2 as described above, subject to complaints of alleged breaches of the OECD guide-
i.e., no changes in calculations have occurred. driven by activity 6.5 regarding vehicles used by Pandora and lines or been non-compliant with the OECD MNE guidelines
activity 7.2 renovation of stores and buildings. and has therefore not collaborated with any OECD National
Contribution to multiple objectives Contact Points to resolve these in 2022. Finally, Pandora has
Regarding our identified economic activities, we note that Minimum safeguards not been approached by the Business and Human Rights
none of these contribute to multiple objectives. Pandora has established a human rights due diligence (HRDD) Resource Centre, and therefore has not been non-responsive
process following the guidance in the UN Guiding Principles to the Centre nor found to be responding inadequately to
Disaggregation of KPIs and OECD Guidelines for Multinational Enterprises (MNEs). affected stakeholders or their representatives’ concerns in
There has been no disaggregation of KPIs for any economic More precisely, our business conduct is guided by the follow- 2022. The KPIs indicate that Pandora might have potential to
activity assessed. ing policies: Human Rights Policy, Responsible Sourcing Policy, contribute to the green transition with our CAPEX and OPEX
Materials Standard, Responsible Marketing Standard, Data activities reported as taxonomy-eligible. As Pandora is at the
Contextual information about KPIs Ethics Policy and Privacy Policy. We do this in order to ensure beginning of our EU taxonomy journey, it is likely that a lower
The numerator of the CAPEX KPI for economic activity 7.1 is we continuously focus on identifying, preventing, mitigat- share of activities will comply with the substantial contribu-
driven by new leases of DKK 1.7 billion, which makes up 73 ing, tracking and remediating actual and potential adverse tion criteria outlined in the taxonomy. This total overview will
% of the total for this economic activity. The remaining 27% impacts in our own operations, in our supply chains or in our be built during 2023, when we will continue the assessment
can be attributed to activity 8.2 regarding investments in our business relationships. of the alignment with the EU Taxonomy.
digital innovation and capabilities, which are reported under
Substantial contributions (%) Do no significant harm (Y/N)

Bio- Bio-
Climate Climate Water and diversity Climate Climate Water and diversity Taxonomy
TURNOVER 1
Absolute Proportion change change marine Circular and eco- change change marine Circular and eco- Minimum aligned
DKK million Code turnover of turnover mitigation adaptation resources economy Pollution systems mitigation adaptation resources economy Pollution systems safeguards turnover Category
Taxonomy aligned activities

None 0 0% 0%
Taxonomy eligible but not aligned activities
None 0 0% 0%
Taxonomy non-eligible activities 26,463 0%
Total 26,463 100 %
1
Turnover is used in the table to be in compliance with the EU Directive.

Bio- Bio-
CAPEX Absolute Proportion change change marine Circular and eco- change change marine Circular and eco- Minimum aligned
DKK million Code CAPEX of CAPEX mitigation adaptation resources economy Pollution systems mitigation adaptation resources economy Pollution systems safeguards CAPEX Category

None 0 0%
7.1 Construction of new buildings 2,341 77 %
8.2 Computer programming, consultancy
and related activities 361 12 %
Taxonomy non-eligible activities 335 11 %
Total 3,037 100 %

Bio- Bio-
OPEX 1
Absolute Proportion change change marine Circular and eco- change change marine Circular and eco- Minimum aligned
DKK million Code OPEX of OPEX mitigation adaptation resources economy Pollution systems mitigation adaptation resources economy Pollution systems safeguards OPEX Category

None 0 0%
6.5 Transport by motorbikes, passenger cars
and light commercial vehicles 11 2%
7.2. Renovation of existing buildings 84 16 %
8.2. Computer programming, consultancy
and related activities 264 49 %
Taxonomy non-eligible activities 178 33 %
Total 537 100 %
1
The total OPEX base cannot be reconciled to the Annual Report 2022 due to a narrow OPEX definition in the Taxonomy.
STAKEHOLDER
ENGAGEMENT TYPE ENGAGEMENT SUBJECT(S)
EXTERNAL Suppliers Circularity, Human rights, Responsible sourcing,

STAKEHOLDERS Meetings, Audits , Site visits, Sustainable materials, Conflict minerals, Product quality
ENGAGEMENT
Deep dive assessments, and safety
Impact assessments
Communities Inclusion and diversity, Human rights, Biodiversity,
UNICEF partnership, Philanthropic out- Socioeconomic development in communities
reach, Impact assessments
Governments Climate change, Conflict minerals,
Regulatory mapping, Reporting compli- Responsible sourcing, Data security and privacy,
We include stakeholder feedback in our work on materi- ance, Consultation, Impact assessments Biodiversity, Sustainable materials
ality, strategy, target setting and reporting. This results in Chemicals and hazardous materials
We joined increased disclosure and transparency in our sustainability Multilateral institutions Responsible sourcing, Human rights, Climate change
the Watch reporting, new assessments and risk mitigation activi-

ties, enhanced grievance mechanisms, new memberships,
Reporting, Conferences, Meetings,
Impact assessments
Conflict minerals
& Jewellery participation in ratings and rankings, updated policies and NGOs Circularity, Human rights, Responsible sourcing,
Initiative programmes, and new targets. Meetings, Conferences,

Workshops, Impact assessments
Sustainable materials, Conflict minerals, Children's rights
2030 to make We engage with key stakeholder groups, including employees,

Industry organisations Responsible sourcing, Employee health,
Conferences, Meetings Safety and labour rights, Inclusion and diversity,
a positive consumers, franchisees, governments, multilateral institu- Sustainable materials, Circularity
impact in tions, NGOs, industry organisations, investors, suppliers and
their workers and local communities. We do this as part of Investors Circularity, Responsible sourcing, Human rights,
the jewellery our daily operations and in formalised settings, for example Surveys and reports, Meetings, Modern slavery, Sustainable materials, Conflict minerals,
industry. meetings to assess performance against targets or partner- Research projects, Impact assessments Climate change, Product quality and safety, Corporate
governance, Business ethics and compliance
ships to expand our sustainability programme.
Customers Inclusion and diversity, Responsible marketing,
Surveys and focus groups, Social media, Human rights, Climate change, Circularity
In 2022, we engaged stakeholders across the following key
Customer support feedback, In-store
areas: feedback
• We joined the Watch & Jewellery Initiative 2030 – an indus-
Franchisees Human rights, Employee health, Safety and labour rights
try alliance bringing brands together to drive sustainability Meetings, Audits, Site visits
and make a positive impact in the jewellery industry.
• Conducted a double materiality assessment by consulting Employees Circularity, Human rights, Responsible sourcing,
INTERNAL
external experts and internal colleagues across the busi- STAKEHOLDERS Listening surveys, Workshops, Social Sustainable materials, Climate change,
ness to better understand the sustainability impacts, risks, media, Internal communication channels, Corporate governance, Business ethics and compliance,
Customer feedback, In-store feedback, Talent and development, Employee health, Safety and
and opportunities across Pandora’s own operations and
Impact assessments labour rights
value chain.
• Matured our approach to climate change by engaging sup- • Analysed packaging legislation in key markets and its impli- • Engaged suppliers to understand how their recovery from
pliers on carbon emissions, improving our understanding of cations on Pandora’s operations with a third-party expert. COVID-19 has impacted workers through expert third-par-
our retail carbon footprint and working with public and pri- • Engaged suppliers and business partners to stop sourcing raw ty site visits.
vate partners to develop the necessary policies, legislation materials, products or services supplied to Pandora directly or • Partnered with internal stakeholders to advance progress
and financial mechanisms in Thailand to establish virtual indirectly from Russia or Belarus. We have also provided ongo- on our inclusion and diversity targets.
PPAs for renewable energy. ing support to our Ukrainian franchisee during the war.
• Engaged with UNICEF on our approach to children, and • Formalised our human rights programme with broad inter- Partnerships and collaborations
adolescents’ rights. nal engagement to develop roadmaps across the business We also engage actively in partnerships on key sustainability
• As a follow-on to our Global Materials Standard, we worked and collaborated with an expert third party to conduct a topics and are active members of business networks that
with key functions across the business to develop a Materi- deep-dive assessment of our human rights impact in Thai- allow us to engage in an open dialogue with cross-industry
als Scorecard to provide guidance for colleagues to better land, which included interviews with local communities. players on specific issues.
understand the properties and sustainability credentials of
materials.
Notable partnerships and collaborations
WATCH & JEWELLERY

DISCLOSURE INSIGHT ACTION INITIATIVE 2030
BSR CDP Nordic Business Task Force on UNICEF United Nations Watch and Jewellery
BSR is an organisation of sus- CDP (formerly Carbon Disclo- Network for Climate-related Pandora and UNICEF have Global Compact Initiative 2030
tainable business experts that sure Project) is a not-for-profit been partnering since 2019 to
Human Rights Financial Disclosures Pandora is a signatory to the Pandora is a member of the
works with its global network of charity that runs the global give young people the tools United Nations Global Compact Watch and Jewellery Initiative
Pandora is a member of the Pandora is a supporter of the
the world’s leading companies disclosure system for investors, and opportunities they need (UNGC) and acknowledges its (WJI) 2030. WJI 2030 is guided
Nordic Business Network for Task Force on Climate-related
to build a just and sustainable companies, cities, states and to pursue their passions and responsibilities in the areas of by the Ten Principles of the
Human Rights, a professional Financial Disclosures (TCFD)
world. Pandora has been a mem- regions to manage their envi- fulfil their potential. The funds human rights, labour, environ- United Nations Global Compact
network for global companies and their recommendations to
ber of BSR since 2018 and uses ronmental impacts. Pandora donated support UNICEF’s ed- ment and anti-corruption. and the 17 SDGs. It aims to
who work with human rights increase transparency of cli-
its membership to advance its reports on climate risks, op- ucation, gender equality, rights accelerate positive impact in
impacts in their organisations mate-related risks and oppor-
understanding of best practice portunities, and progress in its awareness, personal empow- three areas: building climate
or supply chains. Moderated by tunities on financial markets.
in sustainability management annual CDP disclosure. erment and civic engagement resilience, preserving resources,
the Danish Institute for Human
and to collaborate with peers. programmes. The partnership is and fostering inclusion.
Rights, member companies also
also raising funds for UNICEF’s
include Arla, BioMar, Danfoss,
core work across the world to
Hempel, IKEA, Lego, Lundbeck,
ensure that every child survives
Neste, Norsk Hydro, Novo Nor-
and thrives.
disk, Statkraft, Vestas and Yara.
United Nations Sustainable Development Goals
Gender equality Affordable and Decent work and Responsible consump- Climate action
clean energy economic growth tion and production
5.1 End all forms of discrimination 7.2 By 2030, increase substantially 8.5 By 2030, achieve full and produc- 12.5 By 2030, substantially reduce 13.2 Integrate climate change
against all women and girls every- the share of renewable energy in the tive employment and decent work waste generation through preven- measures into national policies,
where. global energy mix. for all women and men, including tion, reduction, recycling and reuse. strategies and planning.
5.5 Ensure women’s full and effective for young people and persons with 12.6 Encourage companies, especial- 13.3 Improve education, aware-
participation and equal opportuni-
Our commitment disabilities, and equal pay for work of ly large and transnational companies, ness-raising and human and insti-
We are committed to using 100%
ties for leadership at all levels of de- equal value. to adopt sustainable practices and tutional capacity on climate change
renewable electricity at our crafting
cision-making in political, economic 8.7 Take immediate and effective to integrate sustainability informa- mitigation, adaptation, impact
facilities and are exploring options
and public life. measures to eradicate forced labour, tion into their reporting cycle. reduction and early warning.
to build additional onsite solar
end modern slavery and human traf-
capacity. We are also committed to
Our commitment ficking and secure the prohibition Our commitment Our commitment
transitioning energy consumption in
We are committed to advancing and elimination of the worst forms We continuously work to reduce We are aligning our activities with
offices, retail stores and distribution
inclusion and diversity through our of child labour, including recruitment our wider environmental footprint, the Paris Agreement by setting a
centres to renewable sources.
efforts to fulfil the targets in our and use of child soldiers, and by focusing on water usage and waste at science-based target in line with a
inclusion and diversity strategy, our 2025 end child labour in all its forms. our crafting facilities, using recycled 1.5°C trajectory and by setting a net
Responsible Sourcing Programme, 8.8 Protect labour rights and promote raw materials and other circular zero emissions goal for 2040. We
our integration of human rights in safe and secure working environments practices. We are accountable for disclose our emissions footprint and
company processes, and our part- for all workers, including migrant work- our actions and publish an annual help to educate stakeholders on how
nership with UNICEF to support girls’ ers, in particular women migrants, and sustainability report detailing our to reduce our shared footprint.
education and empowerment. those in precarious employment. work towards becoming a low-car-
bon, circular, inclusive, diverse and
Our commitment fair business.
Across offices, stores and crafting
facilities, we strive to provide safe
and healthy working conditions
for our employees. Through our
Responsible Sourcing Programme, we
monitor working conditions at our
supplier locations.
SUSTAINABILITY REPORT 2021
2022 ANNEX 51
ABOUT THIS
REPORT
This report covers Pandora’s global operations for the fiscal report. We have also provided information on alignment
year 2022, which runs from 1 January to 31 December 2022. with Sustainability Accounting Standards Board (Apparel,
Our last report, published in February 2021, covered the Accessories & Footwear), and Task Force on Climate-re-
2021 fiscal year and is available with previous sustainability lated Financial Disclosures standards. We have assessed
reports at pandoragroup.com. activities according to the EU Taxonomy for sustainable
activities. This report has also been prepared in accord-
The content and scope of this report were defined based ance with sections 99(a), 99(b) and 107(d) of the Danish
on the significance of topics to both stakeholders and the Financial Statements Act. Pandora is committed to the Ten
sustainable growth of the company as determined by our Principles of the United Nations Global Compact and this
sustainability materiality assessment. The double materiality report serves as our Communication on Progress. We use '-'
principle will be applied going forward. to indicate that data for the data point has not previously
been disclosed.
The scope covers our crafting facilities, distribution centres,
retail stores operated by Pandora and our offices. It also We have obtained independent external limited assurance
includes our value chain. All data boundaries are specified on selected sustainability data disclosed in this report,
alongside reported metrics. We are not able to provide his- specifically for our Scopes 1, 2 and 3 emissions and recy-
torical data for metrics reported for the first time in 2022. cled silver and gold total (%). For the independent auditor's
assurance report, see pages 62-63.
This report has been prepared in accordance with the Global
Reporting Initiative Standards’ “Core” option. A GRI Index Please contact [email protected] if you have any
Table is available at pandoragroup.com, specifying each of questions or feedback on sustainability at Pandora.
the GRI Standards and listing all disclosures included in the
SUSTAINABILITY DATA
ENVIRONMENT
GREENHOUSE GAS EMISSIONS1

tonnes CO2 equivalent2 2022 2021 2020 Pandora's total emissions have increased by 1% from 277,450
mtCO2e in 2021 to 280,370 mtCO2e in 2022. The 1% increase ACCOUNTING POLICIES
Scope 1 1,118 1,163 1,250
can mainly be explained by a reduction in our Scope 2 mar-
All emissions are accounted for in accordance with the
Scope 2 ket-based emissions and an increase in our Scope 3 emis- methodology set out in the Greenhouse Gas Protocol
Location-based 48,590 48,053 47,949 sions. The Scope 2 emissions have decreased by 28% due Corporate Standard. All CO2e emission factors used for
Market-based 15,028 20,997 22,409 to the introduction of more renewable energy through the fossil fuels and electricity are in accordance with the 2006
purchased of RECs. The Scope 3 emissions increased by 4%, Intergovernmental Panel on Climate Change Guidelines
Scope 3
largely due to an increase in purchased goods and services. for National Greenhouse Gas Inventories.
C1: Purchased goods and services 207,138 185,862 157,908
C2: Capital goods 7,650 5,487 9,121 In 2022, we introduced more supplier data, which impacts SCOPE 1 emissions include on-site fuels used to craft
C3: Fuel- and-energy related activities 3,941 3,785 3,685 our Scope 3 emissions in a positive direction. As a result, our jewellery, refrigerants to cool the crafting facilities, and
emissions intensity has improved by 11% from 2021 to 10.59 fuel used in employee trams. Fossil fuel volumes and
C4: Upstream transportation 25,023 31,218 40,637
in 2022, as the total emissions have increased less than our refrigerant leakage volumes are multiplied by emission
C5: Waste generated in operations 3,757 2,752 2,654
factors from the UK Department for Environment, Food
C6: Business travel 105 36 350 revenue has increased.
and Rural Affairs (DEFRA).
C7: Employee commuting 947 606 606
SCOPE 2 emissions include the purchase of electricity and
C8: Upstream leased assets 1,499 1,557 1,298
district heating for offices, distribution centres, crafting
C14: Franchises 14,164 23,987 26,158
facilities and Pandora owned stores. The emissions are
Total Scope 3 264,224 255,290 242,416
calculated using both the market-based approach, which
includes the purchase of Renewable Energy Certificates, and
Total emissions (market-based) 280,370 277,450 266,075
the location-based approach. Where available, the electric-
ity and district heating consumption from meter readings
Emissions intensity,
2019 BASELINE YEAR (SCOPES 1, 2 AND 3) and invoices is used for crafting facilities, stores, distribution
tonnes CO2equivalent/revenue in DKK million 10.59 11.86 14.00
centres, and offices.
The total greenhouse gas emissions for 2019 baseline year
Scopes 1, 2 and 3 are included in the scope of the external limited assurance. See the Independent auditor's report on pages 62-63.
1
was 296,777 tonnes CO2 e. Continued on next page
2
All emissions are in metric tonnes, as aligned with the Greenhouse Gas Protocol.
ACCOUNTING POLICIES (CONTINUED) SIGNIFICANT ACCOUNTING ESTIMATES
Where meter readings and invoices are not available, con- • C3 – Includes upstream greenhouse gas emissions from fossil The calculation of greenhouse gas emissions is to a large degree
sumption is estimated based off spend or size on location. The fuels, heating, and electricity based on invoices used in our based on generic secondary emission factors and estimated
electricity and district heating consumption is multiplied by crafting facilities, stores, offices, and distribution centres. data. Pandora continues to engage suppliers to obtain actual
emission factors (IEA) for their respective countries to calculate Emission factors from IEA for transmission and distribution data and primary emission factors in order to increase the accu-
the emissions. Emissions from satellite offices with less than 30 losses and DEFRA for fuels. racy of the emissions reported.
• C4 – Includes inbound and outbound logistics, and transpor-

people is omitted. These correspond to emissions from 5% of
employees in our offices.
tation and distribution services conducted by third-party
SCOPE 3 emissions are reported based on the Greenhouse Gas logistics providers. A combination of supplier-specific and
Protocol, which divides the Scope 3 inventory into 15 subcat- supply chain emission factors for spending on products from
egories (C1-C15) of which the nine listed below are relevant to DEFRA is used to calculate the emissions. Emissions from oth-
Pandora. Emission factors from DEFRA (incl. VAT) are used to er transport types are included in the emission factors used
calculate emissions based on spend (excl. VAT), unless otherwise for purchased goods and services.
• C5 – Includes waste volumes and spend amounts on waste

specified. We have corrected the emissions factors to represent
the monetary value and energy intensity of 2022, considering the
services
general inflation and improvement of energy intensity between
2011and 2022: • C6 – Includes spend amounts on car rental and travel expens-
• C1 – Includes materials and services. Where available, material es.
volumes are multiplied by the Life Cycle Assessment (LCA)

emission factors. If not available, spend amounts are used and
• C7 – Includes Pandora employees' commute from home to
work. It is based on a Trucost estimate from 2018 and the
multiplied by DEFRA supply chain emission factors for spend- figure was revised in 2022 based on an updated estimation of
ing on products. Key LCAs include: Mined and recycled silver employees working from home and the increase in number of
CO2e/kg: GaBi database, 2019; Mined gold CO2e/kg: World employees.
Gold Council, 2018; Recycled gold CO2e/kg: C. Hafner, 2019.
C1 also includes categorised spend amounts on services (for • C8 – Includes spend amounts on upstream leased cars.
example, media and marketing). For a few emission factors, we
have collected supplier specific emission factors.
• C14 – Electricity consumption for franchises is estimated
based on the number of franchise stores and the kWh/square
• C2 – Includes categorised spend data for machinery, fixtures metre average across Pandora owned stores. The estimated
electricity consumption is then multiplied by the correspond-
and furniture, and other capital goods multiplied by relevant
LCA and supply chain emission factors (DEFRA). ing IEA country emission factor.
ENVIRONMENT
ENERGY
MWh 2022 2021 2020 RENEWABLE ENERGY CERTIFICATES 2022 2021 2020
Crafting 61,966 62,883 56,909 Total Renewable Energy Certificates, MWh 82,117 62,838 55,768
Own solar energy generated 1,369 1,347 1,141 Share of renewable energy, % 70 56 51
Retail 50,425 - -
Energy intensity, MWh/revenue in DKK million 4.52 4.89 5.83
Office 3,708 - -
Distribution 2,226 - -
Total energy 119,694 114,489 110,876
Pandora's total energy consumption increased by 4%, which was expected due to growth and by the increase in revenue. The share of renewable energy increased from 56% in 2021 to 70%
an increase in the number of stores operated by Pandora. Our energy intensity in the same in 2022, which can also be seen in the decrease of CO2e emissions in the market-based Scope 2
period improved from 4.89 MWh/revenue in DKK million in 2021 to 4.52 in 2022, mainly driven emissions.
ACCOUNTING POLICIES
Energy consumed consists of the purchased and generated quantities of electricity and district
heating for crafting, retail (Pandora's owned and operated stores), offices (with more than 30 em-
ployees) and distribution centres. RECs correspond to the MWh covered by the purchased. The
share of renewable energy is the total MWh covered by RECs and own solar energy generated
divided by total energy. The energy intensity is calculated as the total energy divided by revenue
in DKK million.
ENVIRONMENT
WATER WASTE, CRAFTING FACILITIES

m3 2022 2021 2020 tonnes 2022 2021 2020
Crafting 1,138,524 1,052,700 973,481 Recycled waste 8,995 8,720 6,287

– Water recycled, % 21 19 16 Waste for landfill 0 174 662
Distribution 4,608 - - Hazardous waste 38 78 22
Total water 1,143,132 - - Total waste 9,033 8,982 6,970
Recycling percentage, % 99.6 97 90
In 2022, water consumption increased by 8% in our crafting facilities due to increased production An important part of our commitment to a more environmentally sustainable business is our
and an increased use of automated washing of the jewellery. Our ability to recycle and reuse water waste management. In 2022, we increased our total recycled percentage from 97% in 2021 to
improved in 2022. In 2022, we initiated several water recycling and conservation projects aiming 99.6% in 2022. This improvement was mainly driven by crafting's ability to recycle more of the
to reduce city water consumption. This entailed both investments in actual recycling initiatives waste fractions and completely eliminating waste to landfill.
and a more stringent monitoring and managing of water consumption in general. 2022 was the
first year in which we collected and reported on water usage for our distribution activities. Water
consumption at our European Distribution Centre increased towards the end of 2022, due to the
washing of smoke-damaged jewellery as a result of a fire.
ACCOUNTING POLICIES ACCOUNTING POLICIES
Water consumed consists of the purchased volumes of water for crafting and distribution Waste generated consists of the total waste generated in tonnes at our crafting facilities. The
centres. Water used in the distribution centre in Thailand, our owned and operated stores, and waste is either recycled or if this is not possible, sent to landfill or disposed of as hazardous
offices, has not been included, as it has been assessed as insignificant compared to the water waste. Recycled waste primarily consists of gypsum, glass, wax and rubber. Waste to landfill
consumption in our crafting and distribution. Water recycled is the volume of water that has consists of industrial waste, which is collected and treated by municipalities. Hazardous waste
been looped back into crafting processes before being sent to wastewater treatment. consists primarily of chemical waste and jewellery ceramic casting flasks. The recycling percent-
age is calculated as the share of recycled waste divided by total waste. Waste generated in our
owned and operated stores (Retail), offices and distribution has not been included, as it has
been assessed as insignificant compared to the waste in our crafting.
CIRCULAR AND SUSTAINABLE JEWELLERY
CIRCULAR AND SUSTAINABLE JEWELLERY RESPONSIBLE SOURCING

% 2022 2021 2020 % 2022 2021 2020
Recycled silver and gold total1 61 54 57 Total direct supplier spend audited by a third party >99 >99 >99
Share of recycled silver and gold audited or certified New product suppliers screened using social criteria 100 100 -
suppliers by a third party 69 - -
Man-made stones2 100 100 >99
1
Total recycled silver and gold is within the audit assurance scope. See the Independent auditor's report on pages 62-63.
2
Excluding pearls.
We have increased the share of recycled silver and gold suppliers' chain of custody processes. In total, 69% of our Both the total direct supplier spend audited by a third-party and the number of new suppliers
purchased in 2022 to 61%, up from 54% in 2021. In order to suppliers were audited or had an existing certification of screened using social criteria performance stayed strong at respectively more than 99% and
support the goal of 100% recycled silver and gold by 2025, their chain-of-custody processes, covering more than 96% of 100% in 2022.
in 2022 we have been auditing most of our silver and gold the total volume.
ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING ESTIMATES ACCOUNTING POLICIES
The percentage of recycled silver and gold is calculated as the A significant part of the recycling percentages used to calcu- Total direct spend audited by a third party is calculated as the share of spend audited by a
share of total purchased silver and gold. Recycled silver and late the recycled silver and gold total is based on self-declared third party. New product suppliers screened is calculated as the share of new product suppli-
gold are precious metals that have been previously refined. percentages by the suppliers. Pandora has not validated the ers screened.
Our products may contain fractions of silver and gold coming self-declarations. A significant share of the suppliers delivering
from non-recycled sources due to difficulties in separating recycled silver and gold has had their chain of custody processes
sources in the refining process. Total purchased silver and gold audited by an external third party. The aim is to use only silver
consists of grains, components, plating solutions for Pandora and gold from suppliers that have been audited. To mitigate
in-house production, and finished goods from external pro- the risk of manual errors when dealing with the self-declared
duction (Original Design Manufacturers and Original Equip- percentages, the reported self-declared recycling percentages
ment Manufacturers). It excludes refinery from scrap and go through thorough local and central internal checks.
rework metals from Pandora in-house production, production
material, tooling, and machinery.
The share of recycled silver and gold audited or certified

suppliers by a third party is calculated as the share of suppliers
audited. The percentage of man-made stones is calculated as the
share of procured man-made stones. Pearls are excluded.
CIRCULAR AND SUSTAINABLE JEWELLERY
THIRD-PARTY AUDIT SUMMARY

Number 2022 2021 2020 In 2022, 346 non-conformances were identified in the direct
product supplier audits. This is an increase of 40%, which is a
Number of factories assessed 19 16 15
result of the onboarding of new suppliers to Pandora. Most
Number of factories with social issues identified 18 11 13
of the non-conformances, 55% are related to non-conform-
Number of factories with environmental issues identified 13 8 9
ances on health and safety. 63% of the total non-conform-
Total issues found 346 207 274
ances had been closed at the end of 2022. The remaining
Total issues closed 219 88 203
27% are in the process of being closed.
Total issues open 1271 119 71
Accumulated open issues 144 - -
Minor social issues closed 33 19 92 ACCOUNTING POLICIES

Minor social issues open 27 17 32
Pandora audits its direct spend suppliers on a regular
Major social issues closed 172 62 80 basis against our Supplier Code of Conduct based on
Major social issues open 89 87 26 robust external protocols. Audits are planned in two-year
Zero tolerance social issues closed 0 0 1 cycles. The number of issues reported relates to the year
Zero tolerance social issues open 0 0 1 the audit was conducted. Pandora classifies findings in
three categories: minor, major and zero tolerance. Open
Total social issues found 321 185 232
issues are defined as non-conformances that were not
Minor environmental issues closed 6 2 18 closed by the agreed deadline. The issues within a grace
Minor environmental issues open 2 10 7 period are issues that were not closed by year end, but
are still within the agreed timeframe for closing out. The
Major environmental issues closed 8 5 12
accumulated number of open issues is calculated as the
Major environmental issues open 9 5 5
accumulated number of open issues by year end, covering
Zero tolerance environmental issues closed 0 0 0 the period from 2020 until 2022, excluding the number of
Zero tolerance environmental issues open 0 0 0 non-conformances that have been closed.
Total environmental issues found 25 22 42
1
Of the 127 open issues, 38 have been delayed with a time-bound corrective action plan in place and the remaining 89 issues are in the process of being closed.
WORKPLACE AND SOCIETY
EMPLOYEES GENDER RATIO (FEMALE / MALE)

Number 2022 2021 2020 % 2022 2021 2020
Crafting 13,509 13,996 11,384 Crafting 59/41 59/41 56/44

Retail 17,318 - - Retail 94/6 95/5 -
Office 3,282 - - Office 67/33 66/34 52/481
Distribution 190 - - Distribution 60/40 56/44 -
Total employees 34,299 30,533 26,003 Total gender ratio 77/232 - -
Note: The regional headcount split can be found in Pandora’s GRI and SASB tables 2022.
Leadership Team 29/71 23/27 -
Leadership Team Pandora A/S 20/80 - -
Executive Leadership Team 12.5/87.5 12.5/87.5 12.5/87.5
Board of Directors 43/57 43/57 75/25
1
or 2020, only global office was part of reporting scope for the office category.
F
2
193 employees have chosen not to have a binary gender associated with their employee registration for a number of reasons and are therefore not included in the ratio.
The total number of employees in Pandora increased by 12% in 2022 compared to the year The total gender ratio in Pandora is 77/23, with the majority December 2022, our Executive Leadership Team consisted
before, reflecting our growing business. The vast majority of our workforce works in either being female. The same trend is seen in all areas of busi- of one female and seven males. Three of our Board members
crafting or retail, constituting almost 90% of our total number of employees. ness. In retail, the vast majority – 94% – of our colleagues are female and four are male. We will continue focusing on
are female and in crafting, 59% of our workforce is female. increasing gender diversity in leadership in the coming years,
The number of females in the Leadership Team for the to achieve gender parity in leadership by 2030.
Group increased from 23% in 2021 to 29% in 2022. As of 31
The number of employees accounts for all recorded individuals, except external contractors, The gender ratio is based on the total number of employees Board of Directors. Leadership Team Pandora A/S comprises of
at the end of the year. year end attributed to binary gender of either female or male. the members of the Executive Leadership Team and their di-
The Leadership Team comprises of Vice Presidents, Senior Vice rect reports, who have employee responsibility in Pandora A/S.
Presidents, members of the Executive Leadership Team and the
AGE SPLIT EMPLOYEE TURNOVER NEW EMPLOYEE HIRES

% 2022 2021 2020 % 2022 2021 2020 % 2022 2021 2020
Below 20 years 7 - - Crafting 6.0 7.3 - Crafting 13 - -

20-29 years 38 - - Retail 58.8 52.9 - Retail 78 - -
30-39 years 43 - - Office 25.6 22.7 - Office 8 - -
40-49 years 8 - - Distribution 26.0 25.8 - Distribution 1 - -
50-59 years 3 - - Total employee turnover 31.1 29.3 26.0 Total employee hires,
60-69 years 0.7 - - Number 14,565 12,003 7,763
Above 70 years 0.1 - -
Total employees, Number 34,299 30,533 26,003
The majority of Pandora's employees are aged between 20 and In terms of employee turnover, we saw an increase from 29.3% in 2021 to 31.1% in 2022. The In 2022, we increased the number of new hires to 14,565
39 years with 38% in the age group from 20-29 and 43% in the rate can largely be explained by a high turnover in retail. In both distribution and in our offices, from 12,003 in 2021, which is an increase of 21%. 78% of the
age group from 30-39. 1% of our workforce is age 60 or above. turnover rate was around 26%, which is a slight increase compared to the previous year. Our new employee hires joined the retail part of our business,
employee turnover in crafting remains low and decrease from 7.3% in 2021 to 6% in 2022. which was expected due to the volatility of retail.
ACCOUNTING POLICIES ACCOUNTING POLICIES ACCOUNTING POLICIES
The age split is based on the full number of employees Employee turnover is calculated as the number of employees, excluding temporary and The number of new employee hires covers all new em-
year end attributed to an age split based on their record- seasonal employees, who left Pandora in the reporting year divided by the average number of ployees, who joined Pandora in the reporting year, from
ed date of birth. employees, excluding temporary and seasonal employees, during the reporting year. outside the organisation, including employees joining
Pandora through acquisitions.
LOST-TIME INJURY FREQUENCY RATE EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS

Rate 2022 2021 2020 % 2022 2021 2020
Crafting 0.00 0.20 0.27 Crafting 41 - -

Retail 2.74 - - Retail 10 - -
Office 0.76 - - Office 6 - -
Distribution 16.45 - - Distribution 0 - -
Total lost-time injury frequency rate 1.55 - - Total employees covered 571 46 56
1
he countries where employees are covered by collective bargaining agreements are Argentina, Austria, Belgium, Brazil, Denmark,
T
France, Italy, Luxembourg, Mexico, Netherlands, Norway, Portugal, South Africa, Spain, Sweden, Switzerland, Thailand and Turkey.
In 2022, the overall Lost Time Injury Frequency Rate (LTIFR) for Pandora amounted to 1.55. The number of employees covered by collective bargaining agreements (CBAs) increased from
2022 was the first year that we reported this number for the entire organisation. Previously, we 46% in 2021 to 57% in 2022, mainly due to an increase in the number of employees in crafting.
have only reported it for our crafting facilities. At our crafting facilities, we managed to bring
the LTIFR rate down to zero in 2022, which of course is a rate that we are extremely satisfied
with and will strive to sustain in 2023. The part of our business with the highest LTIFR rate was
distribution, where there were five injuries with absence. In retail, the most common injuries
are caused by falling from ladders and fingers getting stuck in safety deposit boxes.
The lost-time injury frequency rate (LTIFR) is calculated as the reported number of occupa- Employees covered by collective bargaining agreements are employees included in the full
tional injuries with absence per million nominal working hours. Contractors, visitors, employ- headcount who are covered by at least one collective bargaining agreement. Collective bar-
ees on unpaid leave and interns are not included. An occupational injury with absence is any gaining refers to all negotiations that take place between one or more employers or employ-
work-related injury causing at least one day of absence in addition to the day of the accident. ers’ organisations, on the one hand, and one or more workers’ organisations (trade unions), on
the other, to determine working conditions and terms of employment or to regulate relations
between employers and workers.
STATEMENT BY
EXECUTIVE MANAGEMENT
The Executive Management have considered and adopted

the Sustainability Report 2022 of Pandora A/S for the period
1 January to 31 December 2022. Copenhagen, 8 February 2023
The Sustainability Report 2022 has been prepared in accord-

ance with the accounting policies described on pages 52-60.
In our opinion, the accounting policies are appropriate, and Executive Management
the Sustainability Report 2022 provides a true and fair view
of Pandora’s sustainability activities and the results of our
sustainability efforts for the period 1 January to 31 Decem-
ber 2022. Further, in our opinion, the information given in
the Sustainability Report is consistent with the accounting Alexander Lacik Anders Boyer
policies applied. President & Chief Executive EVP and Chief Financial
Officer Officer
INDEPENDENT
AUDITOR’S REPORT
To the stakeholder of Pandora A/S Management's responsibilities
As agreed, we have performed an examination with a limited Pandora's Management is responsible for selecting the ac-
assurance, as defined by the International Standards on counting policies and for presenting the selected sustainabil-
Assurance Engagements, on Pandora A/S Group’s (‘Pandora’) ity data in accordance with the accounting policies in all ma-
Scopes 1,2 and 3 emissions and recycled silver and gold total terial respects. This responsibility includes establishing and
(%) (the ‘selected sustainability data’) on pages 52 and 56 maintaining internal controls, maintaining adequate records,
for the period from 1 January to 31 December 2022. and making estimates that are relevant to the preparation
of the selected sustainability data, such that it is free from
In preparing the selected sustainability data, Pandora applied material misstatement, whether due to fraud or error.
the accounting policies described on pages 52, 53 and 56.
The selected sustainability data needs to be read and Auditor's responsibilities
understood together with the accounting policies which Our responsibility is to express a conclusion based on our ex-
Management is solely responsible for selecting and applying. aminations on the presentation of the selected sustainability
The absence of an established practice on which to derive, data in accordance with the scope defined above.
evaluate and measure the selected sustainability data allows
for different, but acceptable, measurement techniques and We conducted our examinations in accordance with ISAE
can affect comparability between entities and over time. 3000 Assurance Engagements Other than Audits or Reviews
of Historical Financial Information and additional require-
Other than as described in the preceding paragraph, which ments under Danish audit regulation to obtain limited
sets out the scope of our engagement, we did not perform assurance for the purposes of our conclusion.
assurance procedures on the remaining information includ-
ed in the Sustainability Report 2022, and accordingly, we do EY Godkendt Revisionspartnerselskab is subject to Interna-
not express an opinion on this information. tional Standard on Quality Control (ISQC) 1 and thus uses a
comprehensive quality control system, documented policies As part of our examinations, we performed the below In our opinion, the examinations performed provide
and procedures regarding compliance with ethical require- procedures: a sufficient basis for our conclusion.
ments, professional standards, applicable requirements in
Danish Law and other regulations. • Interviewed those in charge of the selected sustainability Conclusion
data to develop an understanding of the process for the Based on our examinations and the evidence obtained,
We have complied with the independence and other ethical preparation of the the Sustainability Report 2022 and for nothing has come to our attention that causes us to believe
requirements of the International Ethics Standards Board carrying out internal control procedures. that Pandora’s Scopes 1, 2 and 3 emissions, and recycled
for Accountants' International Code of Ethics for Pro- silver and gold total (%) (the ‘selected sustainability data’) on
fessional Accountants issued by the International Ethics • Performed analytical review of the data and trends to iden- pages 52 and 56 for the period from 1 January to 31
Standards Board for Accountants (IESBA Code), which is tify areas of the selected sustainability data with a higher December 2022 have not been prepared, in all material re-
founded on fundamental principles of integrity, objectivi- risk of misleading or unbalanced information or material spects, in accordance with accounting policies described on
ty, professional competence and due care, confidentiality misstatements and obtained an understanding of any ex- pages 52, 53 and 56.
and professional behaviour as well as ethical requirements planations provided for significant variances.
applicable in Denmark.
• Designed and performed further procedures responsive
Description of procedures performed to those risks and obtained evidence that is sufficient and
In obtaining limited assurance over the selected sustaina- appropriate to provide a basis for our conclusion.
bility data on pages 52 and 56, our objective was to perform
such procedures as to obtain information and explanations • Based on inquiries, we evaluated the appropriateness of
which we consider necessary in order to provide us with accounting policies used, their consistent application and
sufficient appropriate evidence to express a conclusion related disclosures of the selected sustainability data. Copenhagen, 8 February 2023
with limited assurance. This includes the reasonableness of estimates made by EY Godkendt Revisionspartnerselskab
management. CVR no. 30 70 02 28
The procedures performed in connection with our exami-
nation are less than those performed in connection with a • In connection with our procedures, we read the other
reasonable assurance engagement. Consequently, the degree sustainability information in the Sustainability Report 2022
of assurance for our conclusion is substantially less than the of Pandora and, in doing so, considered whether the other Jens Thordahl Nøhr Lars Fermann
assurance which would be obtained had we performed a sustainability information is materially inconsistent with the State Authorised State Authorised
reasonable assurance engagement. selected sustainability data or our knowledge obtained in Public Accountant Public Accountant
the review or otherwise appear to be materially misstated. mne32212 mne45879
Pandora A/S
Havneholmen 17-19
1561 Copenhagen V
Denmark
CVR no. 28505116
Phone +45 3672 0044
www.pandoragroup.com

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WE GIVE A VOICE TO PEOPLE'S LOVES S U S TA I N A B I L I T Y R E P O RT 2 0 2 2

Made from high-quality materials

SOCIAL formation on sustainability and our responsible

43 Task Force on Climate-Related

LETTER FROM OUR CEO AND OUR CHAIR OF THE BOARD

61% AAA 10M Read more about

INPUT BUSINESS ACTIVITIES OUTPUT OUTCOME

Natural resources: Natural resources:

Read more about our sustainability targets on page 10.

Our sustainability strategy builds on high standards for

To deliver on our ambition and targets, in 2022 we continued

it more firmly in the top tiers of our organisation. Read more

LOW-CARBON BY 2030 – Reduce total greenhouse SCOPES 1, 2 AND 3

INCLUSIVE, BY 2025 – Create an inclusive INCLUSION • W

2021 2022 2025 2030 • W

EMISSIONS REDUCTIONS Scopes 1 and 2 emissions1 Reductions in own operations We are on

2019 50% production volumes and return to normal ways of working

decided to increase the number of solar panels and will begin

achieved a to establish virtual Power Purchase Agreements (PPAs) for

Pandora operates its own distribution centres in Germany,

Progress on Scope 3 reductions

GREENHOUSE GAS 0.4%

0.4% Scope 1  0% Packaging and point-of-sale

LESS CO2 WITH LAB-CREATED

For perspective, if all diamonds were

1 DESIGN We work to identify innovation

INCLUSION Pandora’s inclusion and diversity goals

WORKPLACE Create an inclusive • 8

We have set ambitious targets to not only increase diverse

We will work to maintain a score above 85% towards 2025, as

To create an inclusive environment for our diverse customer

GENDER RATIO (FEMALE / MALE)

Creating a better gender balance

women in leadership Distribution 60/40 56/44 -

In 2022, we invested in the development of our people lead-

As a global company, we look closely at how we bring our

100+ purchase Pandora’s products at 6,500 points of sale in over

6,500 opportunity to influence consumer perception is evident.

>600 standards for our employees, suppliers and third parties

million customer visits to our

No major non-compliance issues related to marketing, label-

Reflect societal diversity in our customer

• 30% of our brand ambassadors in our global communica-

In 2022, we began building the relevant guidelines and

Whilst we are pleased with

In 2022, we made important progress on our work to ensure respect for

human rights into

3. POS Aligns with UN Guiding Principles

Helping children in Our donation supports UNICEF’s programmes to fund

Towards more engagement for impact Sourcing silver and gold

Policies and Standards

Environmental Policy Supplier Code of Conduct Global Data Ethics Policy

Materials Standard Responsible Marketing Standard Global Donation Standard

Privacy Policy Tax Policy Health and Safety Policy

Pandora is fully committed to ethical business practices, and Whistleblower hotline

We also conducted a review of our whistleblower hotline Protecting personal data to

strategy is to loss) remains in Denmark, where it is taxed. The majority of

We have an Anti-Money Laundering Programme in place,

In 2022, Pandora paid a fine of USD 758,394.69 (declaration fees

43 Task Force on Climate-Related

EMISSIONS REDUCTIONS Scopes 1 and 2 emissions1 Reductions in own operations We are on

0.4% Scope 1 0% Packaging and point-of-sale

• C4 – Includes inbound and outbound logistics, and transpor-

• C5 – Includes waste volumes and spend amounts on waste