Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Security
• Diversity & Inclusion
• Sustainability

Environmental Achievements

• Awarded a place on CDP’s prestigious "A" List for Climate Change and Water Security
• Opened the industry’s largest solar array at its Union Beach, New Jersey property
• Prioritized opportunities to build in ways that reduce waste, leverage clean renewable energy and increase water stewardship in all future facility investments and projects

Social Achievements

• Delivered a significant increase in operating and free cash flow
• Reduced net debt to EBITDA leverage
• Awarded a 2019 Noteworthy Award from Diversity Inc Top 50 Companies for Diversity
• EDGE certification (US)
• Perfect score for the second year in a row on the Human Rights Campaign Foundation’s Corporate Equality Index
• Adopted the UN Women’s Empowerment Principles
• Signed onto the UN Global LGBTI Standards of Conduct for Business

Governance Achievements

• Increased quarterly dividend for the tenth consecutive year
• Named to Barron’s 100 Most Sustainable Companies list for second consecutive year
• Named to CR Magazine’s 100 Best Corporate Citizens
• Named to the Euronext Vigeo World 120 Index for Corporate Social Responsibility

Climate Goals & Targets

Environmental Challenges

• Integration challenges from Frutarom acquisition (disruption of core businesses, loss of business, difficulties in achieving cost savings, regulatory compliance challenges, retaining key personnel, etc.)
• Significant costs and charges related to Frutarom acquisition
• Increased financial leverage due to Frutarom acquisition debt
• Volatility in raw material, energy, and transportation prices
• Supply chain disruptions
• Data breaches and IT system disruptions
• Compliance with data protection laws
• Compliance with regulatory requirements and industry standards
• Adapting to changing consumer preferences and demands for health and wellness
• Meeting customer and regulatory focus on sustainability issues
• Risks associated with operations in emerging markets
• Currency fluctuations
• Political and economic risks in international operations
• Economic uncertainty affecting demand for products
• Environmental protection law compliance
• Inventory and working capital management
• Violations of anti-bribery laws
• Impairment of long-lived assets
• Protection of intellectual property rights
• Litigation uncertainties
• Pension and postretirement plan funding obligations
• Tax rate changes and new tax legislation
• Impact of Brexit
• Phase-out of LIBOR
• Uncertainties and restrictions during the pending N&B transaction
• Costs and debt associated with the N&B transaction
• Integration challenges with the N&B business

Mitigation Strategies

• Cost synergies through global footprint optimization
• Revenue synergies by leveraging customer relationships
• Restructuring programs
• Productivity initiatives
• Strategic stock levels for critical raw materials
• Security processes and initiatives
• Insurance coverage
• Strategies to minimize product/process non-compliance
• Anticipating and reacting to consumer trends
• Sustainability strategy
• Expanding manufacturing presence and sales organization in emerging markets
• Foreign currency hedging activities
• Risk management procedures
• Internal investigations and remedial actions
• Annual goodwill impairment tests
• Transfer pricing policies
• Internal control over financial reporting
• Debt repayment to maintain investment grade rating
• Factoring agreements

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods
• Wildfires
• Droughts
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: CDP

Certifications: EDGE

Sustainable Products & Innovation

• Michelle Pfeiffer’s Henry Rose fragrances made with EWG® verified and Cradle to Cradle™ certified ingredients

Awards & Recognition

• 2019 "Industry Mover" award from SAM
• 2019 Noteworthy Award from Diversity Inc Top 50 Companies for Diversity
• Best Place to Work for LGBTQ Equality award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Security
• Diversity, Equity, and Inclusion
• Responsible Sourcing
• Sustainable Innovation
• Governance

Environmental Achievements

• Named to CDP’s A Lists for Water Security and Climate Change
• Awarded the 2020 EcoVadis platinum sustainability rating (top 1%)

Social Achievements

• Achieved Economic Dividend for Gender Equality (EDGE) Move level certification globally
• Modified production facilities to manufacture hand sanitizer for first responders
• Developed 'Hope 2020' scent to promote positivity
• Partnered with Harvard Medical School and Massachusetts General Hospital to create a smell test for asymptomatic COVID-19 carriers
• Donated food and sanitization items to communities in India

Governance Achievements

• Named for the first time to the Dow Jones Sustainability Indices (DJSI) for both the 2020 World and North America

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, financial condition, and supply chain
• Integration challenges of the N&B Business
• Substantial indebtedness
• High transaction costs associated with the N&B acquisition
• Restrictions on corporate actions following the N&B Transaction
• Difficulty replacing services previously provided by DuPont
• Potential for unfavorable contract renegotiations
• Maintaining relationships with customers and third parties
• Realizing anticipated synergies from the Frutarom acquisition
• Marketing to an expanded and diverse customer base
• Managing acquisitions, collaborations, and partnerships
• Intense competition
• Attracting and retaining talent
• Dependence on a limited number of large customers
• Developing and introducing new products
• Supply chain disruptions
• Raw material, energy, and transportation price volatility
• Data breaches and IT system disruptions
• Risks associated with emerging markets
• Currency fluctuations
• International economic, political, and legal factors
• Economic uncertainty
• Increased focus on sustainability
• Inventory and working capital management
• Impairment of long-lived assets
• Pension and postretirement plan funding obligations
• LIBOR phase-out
• Brexit
• Regulatory compliance
• Environmental protection law compliance
• Anti-bribery and anti-corruption law compliance
• Product defects and quality issues
• Intellectual property protection
• Litigation
• Tax changes
• Tax liability from the N&B Transaction
• Data protection law compliance

Mitigation Strategies

• Maintaining manufacturing operations while complying with government restrictions
• Developing return-to-workplace protocols
• Working with customers to meet shipment needs
• Developing detailed integration plans for the N&B Business
• Implementing cost-saving measures
• Maintaining investment-grade rating
• Maintaining relationships with customers and suppliers
• Implementing procurement synergies
• Adapting product development, manufacturing, distribution, marketing, and sales strategies
• Investing in customer relationships
• Investing in research and development
• Maintaining strategic stock levels for critical items
• Implementing security measures to protect data
• Employing foreign currency hedging activities
• Monitoring regulatory developments
• Assessing risks in the supply chain
• Monitoring internal and external performance
• Testing raw materials and finished goods
• Implementing internal controls to protect intellectual property
• Implementing transfer pricing policies
• Conducting internal investigations and compliance reviews
• Implementing anti-corruption policies

Supply Chain Management

Responsible Procurement

• Strengthening responsible sourcing program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, wildfires, droughts, water scarcity

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: CDP, EcoVadis, Dow Jones Sustainability Indices (DJSI)

Certifications: EDGE Move, EcoVadis Platinum

Awards & Recognition

• Barron’s 100 Most Sustainable Companies (3 consecutive years)
• FTSE4Good Index
• Euronext Vigeo World 120 Index

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainable solutions

Environmental Achievements

• Met and surpassed intensity-based environmental targets set in 2010, reducing greenhouse gas emissions, water withdrawal, and hazardous waste generation well beyond targets.
• Announced the ESG 2030 ‘Do More Good Plan’ with ambitious targets aligned with IFF’s purpose.

Social Achievements

• First company to earn EDGE Move level certification globally for gender equality.
• Recognized by Human Rights Campaign as a Best Place to Work for LGBTQ Equality and among Best Places to Work for Disability Inclusion.
• Achieved a triple A list company rating from CDP for corporate transparency and action on climate change, water stewardship, and deforestation.

Governance Achievements

• Plans to launch ESG metrics tied to executive compensation and expand ESG oversight at the Board of Directors level.
• Increased transparency in disclosures and key performance indicators.

Climate Goals & Targets

Environmental Challenges

• Global supply chain challenges pressured profitability margin.
• Integration of the N&B Business presented significant challenges.
• Increased customer, consumer, shareholder, and regulatory focus on sustainability.

Mitigation Strategies

• Streamlined portfolio to focus on core competencies (divestiture of non-core fruit preparation and microbial control businesses).
• Developed an ESG roadmap (2030 ‘Do More Good Plan’) to address urgent issues.
• Upgrading Frutarom’s sustainability practices and integrating N&B Business’ practices.

Supply Chain Management

Responsible Procurement

• Responsible sourcing practices promoting regenerative ecosystems and achieving zero deforestation for strategic raw material supply chains.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, floods, wildfires, droughts, water scarcity

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: CDP

Certifications: EDGE Move level certification

Awards & Recognition

• Dow Jones Sustainability Indices
• FTSE4Good Index Series
• Euronext Vigeo World 120 Index
• CDP A list
• Human Rights Campaign Best Place to Work for LGBTQ Equality
• Best Places to Work for Disability Inclusion