Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Chemistry
• Health & Wellness
• Product Stewardship
• Eco-efficiency (waste, water, energy)
• Responsible Sourcing
• Employee Health & Safety
• Supply Chain Resiliency
• Employee Engagement, Training & Development

Environmental Achievements

• Reduced hazardous waste by 9.6%
• Reduced water use by 12.2%
• Reduced energy use by 4.4%
• Reduced carbon emissions by 6.4%

Social Achievements

• Doubled SEDEX participation
• Introduced FlavorFit™, a portfolio of innovative health and wellness solutions
• Initiated green chemistry training
• Increased the number of green teams
• Introduced Natural Ethics™ Vanilla

Governance Achievements

• Formally adopted green chemistry principles into R&D
• Set long-term goals for 2020
• Improved CDP investor questionnaire scores (B rating in performance and 86 in disclosure)

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on raw material availability and pricing
• Water scarcity
• Competition for natural resources
• Growing consumer and customer requests for ingredient information
• Vulnerability of natural ingredients to economic, social, or environmental risks
• Supplier compliance with social and environmental expectations

Mitigation Strategies

• Energy efficiency and reduction programs
• Increased use of renewable energy
• Diversifying sourcing strategy
• Maintaining strategic stock levels
• Developing flavors and fragrances using biotechnology
• Best practices in water management
• Green building principles
• Communicating expectations through Vendor Code of Conduct
• On-site audits of suppliers
• Expanded use of SEDEX
• Developing initiatives to protect fragile economies and environments
• Working with supplier communities to create value for each stakeholder

Supply Chain Management

Supplier Audits: 80 to 100 suppliers annually

Responsible Procurement

• Vendor Code of Conduct
• SEDEX
• ISO 9000 certification

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts on agricultural production and natural resources

Transition Risks

• Regulatory efforts related to climate change increasing the cost of raw materials and energy

Opportunities

• Innovation, efficiency improvements, and development of new products driven by climate change response

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001 (approximately 40% of plants), SEDEX

Third-party Assurance: ISOS Group

Sustainable Products & Innovation

• FlavorFit™
• Natural Ethics™ Vanilla

Awards & Recognition

• Corporate Register 2013 Reporting Awards (Finalist)
• New York Book Awards (Winner)
• PRNews, CSR Awards (Honorable Mention)

Environmental Metrics

ESG Focus Areas

• Product and employee safety
• Consumer health and wellness
• Green chemistry
• Responsible sourcing
• Employee engagement
• Waste, water and GHG emissions management

Environmental Achievements

• Reduced greenhouse gas emissions (specific numbers not readily available in the provided text, further analysis of the linked report is needed)
• Reduced water consumption (specific numbers not readily available in the provided text, further analysis of the linked report is needed)
• Reduced hazardous waste (specific numbers not readily available in the provided text, further analysis of the linked report is needed)
• Improved GHG emissions tracking to include mobile sources, fugitive losses, and process emissions

Social Achievements

• Launched "For the Health of It" employee wellness program in North America
• Launched "Ask Nelson" wellness campaign in South Africa
• Provided outplacement counseling services to involuntarily separated employees in the U.S.

Governance Achievements

• No specific quantified achievements are mentioned in the provided text. Further analysis of the linked report is needed.

Climate Goals & Targets

Environmental Challenges

• Lack of water use data from ten leased offices
• Lack of hazardous waste data from offices and some creative centers
• Challenges in tracking Scope 3 indirect greenhouse gas emissions

Mitigation Strategies

• Working on expanding the scope of water use reporting
• Working on expanding the scope of hazardous waste reporting
• Working toward expanding understanding of Scope 3 indirect GHG emissions

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct addressing human rights, minimum legal age, and prohibition of involuntary labor

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Third-party Assurance: ISOS Group

Awards & Recognition

• Winner of the Organic Monitor Sustainable Beauty Award for Sustainable Ingredients for Rose Water Essential™
• Finalist in PR News CSR Awards in Product Design/Redesign — Rose Water Essential™ and Video Initiatives — Moving Forward

Environmental Metrics

ESG Focus Areas

• Responsible Sourcing
• Manufacturing Excellence
• Product Innovation
• Employee Engagement

Environmental Achievements

• Surpassed 2020 water reduction goal of 25% and increased the goal to 50%
• Completed installation of the largest solar array in the flavors & fragrances industry
• Reduced energy use per metric ton of production by 20% in Grasse, France since 2010
• Reduced water use per metric ton of production by 19% in Grasse, France since 2010
• Reduced water use per metric ton of production by 71% in Jacksonville, Florida since 2010
• Reduced energy use per metric ton of production by 4% in Jacksonville, Florida since 2010
• Achieved a 9.4 percent reduction in water use from 2013 to 2014
• Achieved a 4 percent reduction in total hazardous waste at Haverhill, U.K. in 2014 compared to 2013
• Recognized by CDP for leadership in climate disclosure and included in the Climate Disclosure Leadership Index (CDLI)

Social Achievements

• Supported the construction of a primary school in Madagascar through the purchase of Natural Ethics™ vanilla
• Achieved For Life social responsibility certification for Turkish rose
• Expanded community outreach partnerships
• Partnered with Clean the World to donate 3,700 hygiene kits
• Formalized Eco-efficiency Recognition Program for manufacturing facilities
• Established Green Teams at all manufacturing sites
• Achieved EcoVadis CSR Gold Rating

Governance Achievements

• Increased the number of supplier audits by nearly 50 percent
• Enhanced vendor risk management program with vendor risk scorecards
• Completed RSPO Supply Chain Certification audits at key facilities
• IFF achieved a Gold CSR rating from EcoVadis

Climate Goals & Targets

Environmental Challenges

• Global climate change, water scarcity, increasing world populations and health and wellness needs
• Increased energy use due to growth in Greater Asia and energy-intensive product mix
• Increase of hazardous waste of 6.2 percent due to changes in production at a few select facilities

Mitigation Strategies

• Redefined water reduction commitment to 50% by 2020
• Purchase of certified renewable energy to offset increased GHG emissions
• Focus on finding ways to manufacture more efficiently and produce less waste
• Sharing best practices among Green Teams to drive reductions in hazardous waste
• Implementing changes and maintaining reductions over time

Supply Chain Management

Supplier Audits: Increased by nearly 50% in 2014

Responsible Procurement

• Vendor Management Program
• Vendor Code of Conduct
• Sedex
• Natural Ethics program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core Guidelines

Certifications: ISO 14001, RSPO Supply Chain Certification, For Life social responsibility certification

Third-party Assurance: ISOS Group

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Rose Essential™, Natural Ethics™ vanilla
• Biodegradable fragrance molecules

Awards & Recognition

• Honorable Mentions in PR CSR Awards
• Short-listed in Corporate Register 2015 Reporting Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Scarcity
• Responsible Sourcing
• Health and Wellness
• Human Rights
• Labor Practices
• Governance
• Community Engagement

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 7% in 2015
• Reduced energy intensity by 3.7% in 2015
• Reduced water use by 5.4% in 2015
• Achieved CDP Climate “A” List rating with a perfect score of 100 in disclosure and an “A” in performance
• Achieved EcoVadis Gold CSR Rating
• Expanded ISO 14001 certification to several major manufacturing facilities
• Opened a 4 megawatt photovoltaic solar array at Hazlet, New Jersey facility
• Initiated construction of the industry’s first on-site wind turbine at Tilburg, Netherlands facility

Social Achievements

• Increased global retention rate of permanent employees from 90.9% in 2014 to 91.5% in 2015
• Achieved For Life certifications for ylang-ylang, patchouli and basil from Madagascar and vetiver from Haiti
• Implemented community projects in Haiti (well installation, library renovation)
• Launched eco-efficiency awards program to recognize sustainable practices at facilities
• Reduced accident rates

Governance Achievements

• Refreshed Code of Business Conduct and Ethics in 2015
• Conducted global compliance training on various topics
• Maintained several certifications at many facilities (ISO 9001, HACCP, GMP, etc.)
• Implemented Lean and Six Sigma principles to enhance efficiency

Climate Goals & Targets

Environmental Challenges

• Year-over-year increase in hazardous waste generation (7.2%) due to acquired sites and product mix shifts
• Varying regional regulations and protocols for classifying hazardous waste
• Managing the incorporation of acquired sites into sustainability inventory
• Addressing compliance issues pertaining to odor emissions from plants in China

Mitigation Strategies

• Focusing on the relationship between product mix and hazardous waste generation
• Gathering historical data to identify sites with higher waste intensities
• Developing goals to reduce non-hazardous waste and increase recycling rates
• Investing approximately $6.5 million in odor-abatement equipment at Chinese facilities

Supply Chain Management

Supplier Audits: More than 50% of 2015 spend was with vendors registered on Sedex.

Responsible Procurement

• Vendor Code of Conduct
• Sustainable Palm Oil Policy
• Participation in AIM-PROGRESS and TfS
• Sedex and EcoVadis platforms for supplier assessment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core Guidelines, GHG Protocol, AA1000AS

Certifications: ISO 14001, ISO 9001, For Life, RSPO

Third-party Assurance: ISOS Group

Sustainable Products & Innovation

• Natural Ethics vanilla beans
• For Life certified ingredients
• Greener synthesis techniques for fragrance ingredients

Awards & Recognition

• CDP Climate “A” List
• EcoVadis Gold CSR Rating
• IFF Most Sustainable Site award (Hazlet, NJ and Haverhill, UK)