Climate Change Data

Sensient Technologies Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:212,061 tCO2e/year
Scope 1 Emissions:156,567 tCO2e/year
Scope 2 Emissions:55,494 tCO2e/year
Renewable Energy Share:Approximately 1%
Total Energy Consumption:Approximately 3,058,000 GJ
Water Consumption:3,488,278 m3/year
Waste Generated:46,656 tons/year (non-hazardous); 553 tons/year (hazardous)
Carbon Intensity:Reduced carbon intensity of scope 1 and scope 2 greenhouse gas emissions (over revenue) from 0.158 to 0.146

ESG Focus Areas

  • Decarbonization
  • Water Stewardship
  • Waste Reduction
  • Sustainable Supply Chain
  • Sustainable Product Design

Environmental Achievements

  • Reduced carbon intensity of scope 1 and scope 2 greenhouse gas emissions (over revenue) from 0.158 to 0.146
  • Reduced total water withdrawal globally from 3.83 million m3 to 3.49 million m3
  • Increased average landfill diversion to 72.9%
  • Three of 32 manufacturing facilities have solar panels; seven more are in the process of implementation; six more procure energy from a grid that is 85% or more renewable.

Social Achievements

  • Continued inclusive hiring practices; no violations of freedom of association or collective bargaining.
  • Zero confirmed violations of the Sensient Code of Conduct resulted in termination.
  • Donated over $690,000 to children’s health care, education, and other worthy causes through the Sensient Foundation.
  • Over 230 Sensient employees participated in various tree planting and natural preservation events worldwide, resulting in the planting of more than 400 trees.

Governance Achievements

  • Board of Directors oversees Company’s Human Capital Management program, including measures to support employees’ right to exercise freedom of association and collective bargaining.
  • Updated and implemented robust policies and compliance programs to address various areas of legal and regulatory risks.
  • Implemented a sustainability-related performance metric into compensation incentive structure for certain key business leadership.

Climate Goals & Targets

Long-term Goals:
  • Utilize point-of-emission carbon capture technology (when commercially available).
  • Reduce carbon intensity of scope 1 and scope 2 greenhouse gas emissions by 30% by 2030 (Baseline 2020)
  • Reduce overall water withdrawal by 30% by 2030 (Baseline 2020)
  • Reduce water withdrawal intensity by 30% in areas categorized as having high or extremely high water stress levels by 2030 (Baseline 2020)
  • Increase average landfill diversion to 75% by 2030
Medium-term Goals:
  • Electrify fuel-powered equipment where technologically and financially feasible.
  • Increase share of electrical power consumed from renewable sources when available and cost-effective.
  • Collect auditable sustainability data and perform assessments on the suppliers that represent between 75-90% of our total spend by 2030.
Short-term Goals:
  • Reduce scope 1 emissions through equipment and production efficiency improvements; aim for at least 30% reduction by 2030.
  • Develop a formal internal emissions accounting policy and begin the assessment of scope 3 emissions.

Environmental Challenges

  • Challenges in reducing greenhouse gas emissions due to reliance on gas-powered dryers and dependence on developments outside of Sensient's control (e.g., electric dryers, renewable power grid, carbon capture technology).
  • Increased compliance and reporting costs due to new regulations (e.g., EU’s Corporate Sustainability Reporting Directive, California’s climate bills, SEC regulations).
  • Water stress in certain regions impacting water withdrawal.
  • Supply chain disruptions and risks related to raw material sourcing (e.g., palm oil, mica).
Mitigation Strategies
  • Improving efficiency of gas-powered dryers, rationalizing production processes, redesigning products, working with FDA to certify liquid products.
  • Investing in energy-efficient and electrified production equipment as technology becomes available and cost-effective.
  • Sourcing power from sustainable sources where financially and physically feasible.
  • Implementing water stewardship practices, conducting water consumption audits, increasing water reuse and recycling.
  • Implementing a Supplier Code of Conduct, conducting supplier audits, engaging with suppliers on sustainability initiatives, developing sustainable and environmentally friendly natural color options that do not require palm oil-based products, and participating in the Responsible Mica Initiative.

Supply Chain Management

Supplier Audits: More than half of our sites, representing approximately 91% of our annual production volume, have been subject to human rights reviews following the SMETA principles.

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability Questionnaire
  • Vendor screening and prioritization
  • Raw material risk assessment
  • Traceability program
  • Seed-to-Shelf program
  • CertaSure certification program

Climate-Related Risks & Opportunities

Physical Risks
  • Acute physical risks (e.g., disruptions or delays in production or supply chain due to extreme weather events)
  • Chronic physical risks (e.g., sustained higher temperatures, changing precipitation patterns impacting raw material sources)
Transition Risks
  • Market disruptions and changes in consumer behavior
  • Changes in current and emerging regulations
  • Transition to lower emission technology (higher costs, decreased production capacity)
Opportunities
  • Resource efficiency improvements
  • Procuring renewable energy from the grid
  • Installing on-site renewables
  • Developing low-carbon products and services
  • Reputational benefits and market opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Rainforest Alliance Certified (two sites)

Sustainable Products & Innovation

  • COVABSORB® NATURE GP
  • VEGETABLE CHARCOAL PN94™
  • ALOE SURFACE TREATMENT
  • OUR NATPURE® PRODUCT LINE
  • Bloomgenix® Biostimulants
  • Avalanche® and Avalanche® Xtra portfolios
  • SensiOpt White™ range
  • Sensifeel™ range
  • TrueBoost™ flavoring
  • SensaSalt® solutions
  • All-Purpose Sweet Solutions (APSS)

Awards & Recognition

  • Sensient Cosmetic Technologies rated “Gold” by EcoVadis in 2023.