Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Innovation
• Responsible Sourcing
• Climate Change Mitigation
• Eco-efficiency
• Employee Engagement
• Workplace Safety
• Health and Wellness
• Biodiversity
• Traceability
• Transparency
• Community Support
• Human Rights
• Anti-corruption
• Corporate Governance

Environmental Achievements

• Achieved significant reductions in CO2 emissions, energy consumption, and waste production.
• Met most 2020 eco-efficiency targets ahead of schedule.
• Announced strengthened targets for 2020: to stabilize carbon footprint by reducing absolute CO2 emissions by at least 4% year on year, reduce waste production and energy consumption per tonne of product by 4% year on year.
• Awarded a top score of 100A on The Climate A List by CDP.
• Certified European flavour production sites with the RSPO supply chain certification.
• Met and surpassed all REACH registration objectives.

Social Achievements

• Launched Leadership Senses initiative, a leadership development program.
• Increased percentage of female employees in senior leadership positions to 20.7%.
• Reduced Lost Time Injury (LTI) rate by 59% against 2009 baseline (though it increased by 17% since 2014).
• Published new Employer Value Proposition (EVP).
• Launched initiatives to increase collaboration and inclusiveness.

Governance Achievements

• Anchored sustainability into the 2020 strategy.
• Expanded Executive Committee to include dedicated roles for Human Resources, Procurement, and Science and Technology.
• Created the new position of Responsible Sourcing Lead.
• Continued to work towards achieving REACH compliance goals.

Climate Goals & Targets

Environmental Challenges

• Institutionalising Givaudan safety culture in new markets and businesses acquired through acquisitions and joint ventures.
• Climate change and biodiversity loss.
• Adaptation to changing consumer expectations and leveraging opportunities for growth.
• Ensuring the same sustainability standards are upheld across the entire supply chain.
• Managing supply chain risks.

Mitigation Strategies

• Swiftly supporting and onboarding new colleagues to Givaudan's integrated safety platform.
• Developing alternative sourcing strategies.
• Investing in research and development for low-carbon products.
• Strengthening relationships with suppliers through trust and transparency.
• Creating the Responsible Sourcing Leader position.

Supply Chain Management

Supplier Audits: 192 suppliers audited in 2015

Responsible Procurement

• Global Vendor Expectations document.
• Sedex registration and SMETA audits.
• Ethical sourcing initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001 (five manufacturing locations)

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Mahonial™ fragrance ingredient
• Mechacaps™ microcapsule technology
• TasteSolutions® Richness
• New enzyme and fermentation technologies
• Mariliance™ active cosmetic ingredient

Awards & Recognition

• CDP Climate A List (100A score)
• Lush Black Box prize (for KeratinoSens®)
• RAPS excellence award (from Reckitt Benckiser)
• Nestlé Creating Shared Value award (for vanilla rural development programme)

Environmental Metrics

ESG Focus Areas

• Creations
• Nature
• People
• Communities

Environmental Achievements

• Reached 81% renewable electricity in 2020
• Reduced scope 1 and 2 GHG emissions intensity by 44% since 2015
• Decreased water intensity by 31% since 2009
• Reduced total quantity of COD discharged by 57% since 2019

Social Achievements

• Granted a gross bonus amount to employees for their dedication during the COVID-19 pandemic
• Achieved 94% completion rate for women and 83% for men in regular performance and career development reviews in 2020
• Reduced Total Recordable Case Rate from 1.76 in 2009 to 0.88 in 2020
• Increased LTI-free sites from 47% in 2009 to 84% in 2020

Governance Achievements

• Ranked in the top 1% of EcoVadis Corporate Social Responsibility (CSR) assessment in 2020, achieving Platinum medal
• Achieved a CDP score of A for both climate change and water security in 2020
• Continued to roll out ethics and compliance program, including training for employees in acquired companies

Climate Goals & Targets

Environmental Challenges

• Climate change risks including water scarcity and raw material availability issues
• COVID-19 pandemic impacting operations and supply chain
• Deforestation and land degradation putting ecosystems at risk

Mitigation Strategies

• Committed to excellence in climate action with ambitious GHG emission reduction targets
• Implemented water stewardship programs to monitor and manage water risks
• Developed alternative sourcing strategies
• Implemented a comprehensive program to mitigate climate change risks and turn them into opportunities
• Engaged supply chain in efforts to reduce GHG emissions
• Developed new technologies and processes to minimize environmental impact of raw materials sourcing
• Launched palm position statement emphasizing commitment to non-deforestation

Supply Chain Management

Supplier Audits: 344 key raw material suppliers registered with Sedex (59% of spend)

Responsible Procurement

• Responsible Sourcing Programme
• Sourcing at Origin
• Communities at Source

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Raw material availability issues

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Green chemistry and biocatalysis
• Side-stream valuation

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Ernst & Young Associates LLP

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

See report for explanation of how initiatives contribute to SDGs

Sustainable Products & Innovation

• Koffee’Up™ sustainable beauty oil

Awards & Recognition

• EcoVadis Platinum medal
• CDP double A rating

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions scope 1 + 2 by 31% since 2015
• Reduced GHG emissions scope 3 by 4% since 2015
• Reached 84% renewable electricity

Social Achievements

• Reduced recordable injury rate by 22% since 2018
• Launched Sourcing4Good program

Governance Achievements

• Achieved AAA rating by MSCI ESG Ratings for the fifth consecutive year
• Included in FTSE4Good Index Series for the sixth consecutive year
• Pursuing B Corp certification

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events and the COVID-19 pandemic
• Challenges in achieving 100% plastic circularity by 2030 due to complex product functionality and limited availability of food-grade recycled plastics.

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented a comprehensive program to mitigate climate change risks and turn them into opportunities
• Developed a strategy for sustainable plastics focusing on circularity, renewable materials, and system improvements.

Supply Chain Management

Supplier Audits: 82% of production sites registered on Sedex (2021)

Responsible Procurement

• Responsible Sourcing Policy
• Sourcing4Good program
• Supplier audits (SMETA, FSA, UEBT)
• Due Diligence Questionnaire (DDQ)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Raw material scarcity
• Changed weather patterns

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Side-stream valuation
• Biotechnology innovations

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations, UN Global Compact, Sustainable Development Goals

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• PlanetCaps™
• Ambrofix®
• NeoPeach Orpur®
• KoffeeUp™
• Omegablue®
• Phytogaia™
• Thalassogaia™
• Natzap™

Awards & Recognition

• World Sustainability Team Award from Sustainability Leaders
• CDP double A rating for climate and water for three consecutive years
• EcoVadis Gold medal

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 90% renewable electricity
• Reduced GHG emissions scope 1+2 by 35% since 2015
• Reduced water withdrawal rate on water-stressed sites by 13% since 2020
• 46% of manufacturing sites reached zero operational waste to landfill

Social Achievements

• 27% women in senior management
• >215,000 people benefitted through community initiatives
• Reduced recordable case rate by 36% since 2018
• 88% of employees completed Principles of Conduct training

Governance Achievements

• 100% non-executive and independent Board members
• 2% average base salary difference between men and women
• 20% non-financial targets in Performance Share Plan compensation

Climate Goals & Targets

Environmental Challenges

• Higher costs and supply chain disruptions
• Raw material, energy, packaging, and logistics cost increases
• Labor shortages and demand uncertainty
• Climate change impacts on raw material supply chains
• Water scarcity
• Increased waste for incineration and landfill

Mitigation Strategies

• 2025 strategy 'Committed to Growth, with Purpose'
• Sustainable energy and water management
• Circularity principles
• Responsible care management
• Compliance programme and code of conduct
• Projects to improve sustainability in supply chains
• Supplier selection and evaluation
• Inclusive health and safety programmes
• Naturally hedged business (portfolio, geography, customers)
• Systematic cost management
• Programme of continuous improvement
• Automation and leveraging technology
• Strong governance and risk management
• Business continuity plan for sourcing
• Structured risk mitigation strategy
• Regenerative farming practices
• Water efficiency projects
• Regular assessments of potential risks and back-up plans
• Additional water supply systems
• Mitigating water risk and improving water quality management
• Applying circular principles in product design, sourcing, manufacturing and packaging
• Upcycling to reuse materials
• Reducing plastic usage and increasing recycling
• Increasing share of renewable materials in packaging

Supply Chain Management

Responsible Procurement

• Sourcing4Good programme
• Responsible Sourcing Policy
• Supplier assessments
• Collaboration to improve performance
• NDPE principles
• RSPO certification
• Regenerative agriculture practices
• Traceability to mill level

Climate-Related Risks & Opportunities

Physical Risks

• Changing temperature
• Drought
• Raw material supply chain volatility

Transition Risks

• Emerging regulations
• Carbon pricing mechanisms
• Climate-related regulations

Opportunities

• Development of energy-efficient products
• Upcycling
• Renewable energy sources
• Biotechnologies

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations, UN Global Compact, Sustainable Development Goals

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

The report details how initiatives contribute to these goals.

Sustainable Products & Innovation

• BioNootkatone
• PlanetCaps™
• Patchoul’Up™
• Spherulite™ HA Ultimate
• AmbreXolide™

Awards & Recognition

• CDP double A rating for climate and water (four consecutive years)
• EcoVadis Gold medal
• Inclusion in SXI Swiss Sustainability 25 Index
• AAA rating by MSCI ESG Ratings
• Top 2% ranking in FTSE4Good Index Series

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Human Rights
• Anti-bribery

Environmental Achievements

• Reduced scope 1+2 GHG emissions by 43% since 2015 baseline.
• Achieved 94% renewable electricity supply in 2023.
• Reduced Scope 3 footprint by 8% compared to baseline.

Social Achievements

• Reduced Total Recordable Case Rate (TRCR) by 47% since 2018 baseline.
• 82% of sites with access to mental and physical health initiatives.
• 74% inclusion score in 2023 employee engagement survey.

Governance Achievements

• Achieved gold rating in 2023 EcoVadis CSR Assessment (top 4%).
• 100% of raw material and IM&S suppliers received Responsible Sourcing policy.
• All 78 active production sites and 4 joint ventures part of the Sedex programme.

Climate Goals & Targets

Environmental Challenges

• Emerging climate-related regulations.
• Changing temperatures affecting raw material supply chains.
• Drought and declining water quality impacting operations.
• Risk of failing to source sustainably.
• Human rights risks in supply chain.
• Risk of child labor in supply chain.
• Insufficient diversity, equity, and inclusion.
• Environmental, health & safety risks.
• Product recall risks.
• Unethical behavior/reputation risks.

Mitigation Strategies

• Reducing dependence on fossil fuels, investing in renewable energy and energy efficiency projects.
• Developing business continuity plans for sourcing, integrating raw materials sourcing into category management.
• Implementing water efficiency projects, regular risk assessments, and backup plans.
• Implementing sustainable sourcing programs, Responsible Sourcing policy, and Sourcing4Good program.
• Implementing a Group-wide human rights policy and program, human rights assessments.
• Following relevant ILO Conventions, aligning due diligence with OECD guidance and UNGPs.
• Implementing HR processes and programs to ensure DE&I, embedding diversity targets into strategy.
• Regular EHS risk assessments, new technologies for environmental protection.
• Systematically evaluating ingredients for safety, overseeing product formulations.
• Implementing a compliance program, regular risk assessments, internal and external whistle-blowing lines.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Sourcing policy
• Sourcing4Good program
• Supplier due diligence questionnaires (DDQ)
• Third-party audits (SMETA, etc.)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, drought

Transition Risks

• Climate-related regulations, carbon pricing

Opportunities

• Cost savings from emission reductions, energy efficiency, renewable energy.
• Delivering low-carbon footprint ingredients.

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: Null

Third-party Assurance: EY (limited assurance)

UN Sustainable Development Goals

• SDG 2, 3, 6, 12, 13, 15, 17

Initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

• BioNootkatone, RetiLife™

Awards & Recognition

• RE100 Leadership Award