Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced Scope 1+2 emissions through significant reductions in electricity consumption and the new cogeneration of heat and power plant in Holzminden, Germany.
• Avoided approx. 25,000 tons CO2 through doubled production capacity for synthetic menthol in the USA.
• Increased renewable energy share to 24.1% in 2019 from 18.5% in 2018.

Social Achievements

• Not disclosed

Governance Achievements

• Board-level oversight of climate-related issues; CEO has direct responsibility.
• Incentives for management based on efficiency and emission reduction targets.

Climate Goals & Targets

Environmental Challenges

• Increased prices for agricultural raw materials due to water scarcity and extreme weather events.
• Damage to facilities in the US from extreme weather events.
• Water scarcity in production facilities in Egypt and India.

Mitigation Strategies

• Long-term agreements with suppliers, diversification of sourcing strategies, and maintaining dedicated stock levels.
• Redundant production capacities worldwide and insurance to cover costs for repairs after natural disasters.
• Identifying and contracting alternative water supplies from regions not under water stress.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CDP Supply Chain Program participation
• EcoVadis program participation
• Seminars for suppliers on climate change

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• Regulatory changes (EU ETS)
• Market shifts towards sustainable products

Opportunities

• Increased demand for sustainable products
• Increased demand for certain products due to hotter summers
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol

Certifications: ISO 9001, ISO 14001, OHAS 18001, ISO 26000, ISO 50001, SA 8000, Global Food Safety Initiative (GFSI)

Third-party Assurance: Third-party moderate assurance

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through emission reductions, renewable energy sourcing, and sustainable product development.

Sustainable Products & Innovation

• Synthetic menthol
• SymTrap® technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability (Footprint, Innovation, Sourcing, Care)
• Biodiversity
• Green Chemistry
• Human Rights
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions (details not quantified in provided excerpt)
• Improved water consumption (details not quantified in provided excerpt)
• Increased use of renewable raw materials (details not quantified in provided excerpt)
• Development of sustainable products (e.g., Pearadise®, Flowerpool®, Diviniris, Natural Neofresh®)
• Development of Hydrolite® 7 green (received BSB Innovation Award and Runner-up 2021 GSK Environmental Supplier Award)

Social Achievements

• Low employee turnover rate in Germany (2.3% in 2021)
• Global employee turnover rate of 6.4% in 2021
• Launched new career development and succession planning process
• Introduced a new, globally available Learning Management System (LMS) and a digital learning platform
• Gender-specific analysis of wages at largest German site, finding insignificant pay gap (1.2%)

Governance Achievements

• Established Integrity Hotline for anonymous reporting of violations
• Achieved A-list rating from CDP in climate change, water security, and forests
• Compliance with GRI Standards in sustainability reporting
• External audit of sustainability information in accordance with the AA1000 Assurance Standard
• Inclusion in the DAX® index in September 2021

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the coronavirus pandemic and lockdowns
• Rising raw material prices (e.g., gum turpentine, chemical raw materials)
• Fluctuations in harvest yields and quality of natural raw materials due to weather effects
• Withdrawal of Chinese producers from the raw materials market for perfume ingredients
• Rising logistics costs and less reliable supply chains

Mitigation Strategies

• Backward integration for key raw materials (e.g., vanilla, onions)
• Production sites in different regions of the world
• Strategy of establishing and maintaining long-term collaborations with suppliers
• Strategy for partial or complete replacement of crucial raw materials
• Contingency plans for extreme weather events

Supply Chain Management

Responsible Procurement

• Close ties with suppliers; uniform standards to guarantee quality of base materials
• Long-term delivery contracts for important raw materials
• Backward integration for key raw materials
• Sustainable and eco-friendly cultivation methods; respect for and fair treatment of growers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, SA 8000, Global Food Safety Initiative (GFSI)

Third-party Assurance: AA1000 Assurance Standard

Sustainable Products & Innovation

• Pearadise®
• Flowerpool®
• Diviniris
• Natural Neofresh®
• Hydrolite® 7 green
• SymDStress™ 100
• Phytoconcentrole® Hemp CBD

Awards & Recognition

• European BSB Innovation Award (SymDStress™ 100, Phytoconcentrole® Hemp CBD, Hydrolite® 7 green)
• Runner-up 2021 GSK Environmental Supplier Award (Hydrolite® 7 green)
• FPI Fair Pay Innovation Lab recognition for fair pay

Environmental Metrics

ESG Focus Areas

• Footprint
• Innovation
• Sourcing
• Care

Environmental Achievements

• Not disclosed

Social Achievements

• Revised human capital strategy focusing on organization, people, sustainability, and corporate growth; launched a global Learning Management System (LMS) and digital learning platform; expanded diversity initiatives.
• Companies in Rennes, Antrain, Elven, and Clichy scored an average of 87 out of 100 points on a gender equality index.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Volatile market environment with challenging political and economic conditions; high inflation leading to significant cost increases; production stoppage at Colonels Island, USA; difficult market environment and production stoppage impacting Aroma Molecules division; risks from hyperinflation in Venezuela, Argentina, and Turkey; potential for customers requesting sustained price reductions; dynamic conflict situation in the Red Sea region; risks from consolidation at the supplier level; shortage of qualified employees and increasing competition for talents; unforeseen obligations following acquisitions; global challenges in the area of the environment (climate change, water shortages, soil erosion, loss of biodiversity); implementation of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG).

Mitigation Strategies

• Systematic implementation of price increases; backward integration; long-term collaborations to enhance supply security; country-specific expertise in Global Substance Registration Team; continuous improvement in Global Regulatory unit; additional global initiatives and recruiting measures; global employee development programs; systematic process for identifying acquisition targets; thorough due diligence; continuous monitoring of implementation of acquisition targets; systematically analyzing and measuring relevant environmental risks; developing substitute solutions for crucial raw materials; reformulation of recipes; identifying alternative suppliers and sourcing countries; establishment of the Responsible Sourcing Steering Committee (RSSC) and the position of Human Rights Officer.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Close ties with suppliers; uniform standards to guarantee quality of base materials; long-term collaborations to enhance supply security; backward integration; Symrise Responsible Sourcing Policy and Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions such as heat waves, hurricanes and droughts

Transition Risks

• Changes in country-specific environmental regulations

Opportunities

• Development of energy-efficient products; current discussion and announcement by the German government concerning the introduction of an industrial electricity price.

Reporting Standards

Frameworks Used: GRI Standards (In accordance – Comprehensive)

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 26000, ISO 50001, SA 8000

Third-party Assurance: AA1000 Assurance Standard

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• diana food™ brand bioactives; SymProt’in™ Oat; SymHair® Thermo; Crinipan PMC green; Natural Neofresh®; Symcap BG® biodegradable capsules; Symcap BP capsule; Fuji cooling agent; yarrow-based Supervisome® EPH

Awards & Recognition

• European BSB Innovation Award; Pure Beauty Award UK; BSB Award; Pure Beauty Global Award; PCHi Fountain Award