Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Sustainability
• Responsible Sourcing
• Stakeholder Engagement
• Health and Nutrition
• Community Engagement

Environmental Achievements

• Improved performance on all tracked environmental indicators compared with the FY09 baseline
• Reduced total energy use by 11.5% against FY13 and by 7.4% against the five-year rolling baseline (FY09 vs. FY14)
• Reduced Scope 1 & 2 CO2 emissions by 13.3% and 4.7% against FY13 and FY09 baselines, respectively
• Reduced VOC emissions by 40% since FY09
• Reduced process water usage by 23.7% compared to the FY09 five-year rolling baseline

Social Achievements

• Achieved a 37% improvement in safety performance rate, reaching a 79% improvement over the past five years
• Improved performance on all tracked environmental indicators compared with the FY09 baseline
• Honored with the 2013 British-Swiss Chamber of Commerce Corporate Social Responsibility Award
• Engaged with experts at the Wharton School and IMD on sustainability case studies
• Joined the World Business Council for Sustainable Development (WBCSD) and signed the WASH initiative
• Established a joint venture with an Indian floral extracts enterprise for sustainable sourcing
• Attained membership to the Union for Ethical BioTrade (UEBT)
• Created the first Marine Stewardship Council (MSC)-certified flavor
• Celebrated eight years of responsible sourcing in Uganda
• Achieved 84% certification of manufacturing plants for OHSAS 18001 and ISO 14001

Governance Achievements

• Developed a materiality analysis in conjunction with Forum for the Future
• Established a Global Trade Compliance project to improve understanding and ensure compliance with trade regulations
• Launched a more rigorous incident investigation process for all QHSE incidents

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to natural resource scarcity and price volatility
• Meeting ambitious sustainability targets
• Managing Scope 3 emissions
• Ensuring ethical sourcing of natural ingredients
• Addressing water stress in certain regions

Mitigation Strategies

• Implementing renewable energy projects
• Investing in energy efficiency measures
• Developing biodegradable ingredients
• Collaborating with suppliers on sustainability initiatives
• Implementing water conservation projects
• Engaging with stakeholders to understand and address material issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SEDEX membership
• EcoVadis platform
• Supplier scorecards
• Sustainable sourcing of natural ingredients
• Sustainable palm oil sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: SGS

Sustainable Products & Innovation

• Clearwood™
• Other biodegradable ingredients
• MSC-certified seafood flavors

Awards & Recognition

• 2013 British-Swiss Chamber of Commerce Corporate Social Responsibility Award
• Robert W. Campbell Award for Business Excellence
• Jean-Marc Bruel Award for Health, Safety and Environmental Excellence

Environmental Metrics

ESG Focus Areas

• Ethics and Excellence
• Environment and Resources
• Innovation, Science and Society
• Partnerships
• People and Communities

Environmental Achievements

• Reduced absolute carbon dioxide (CO2) emissions by 12.3% (162,223 to 142,351 tonnes per annum) from FY10 to FY15.
• Reduced total water use rate by 13.3% compared to the five-year rolling baseline from FY10 to FY15.
• Reduced VOCs 21.4% since FY10, and 8.3% compared to FY14.
• Achieved 100% certification at all 25 manufacturing sites for both ISO 14001 (environmental management) and OHSAS 18001 (occupational health and safety) standards.

Social Achievements

• Improved industry-leading safety performance by 65% between FY10 and FY15.
• Impacted the lives of more than one million children through improved nutrition and hygiene between FY10 and FY15.
• 2,000 employees participated in Community Day and supported 115 local charities in FY15.

Governance Achievements

• 100% of manufacturing sites certified for ISO 14001 and OHSAS 18001.
• Renewed commitment to Code of Ethics and Business Conduct, publishing new Global Anti-Corruption Policy and Corporate Gift Policy.
• Created an Ethics Committee and a Risk Committee to oversee ethics program and mitigate risks.

Climate Goals & Targets

Environmental Challenges

• Continued market commoditization in Ingredients.
• Difficulty in achieving year-on-year energy reductions and Scope 1 and 2 CO2 emissions savings.
• High negative impacts of raw material sourcing in environmental and social impact valuation study.

Mitigation Strategies

• Focused on innovation, commercial excellence, and operational efficiency in Ingredients.
• Increased efficiency and fuel use changes, installed more meters to identify potential savings, and explored new technologies to achieve energy reduction goals.
• Implemented an air freight reduction program, pallet eco-efficiency project, and onsite nitrogen generation to reduce energy in raw material manufacture and transport.

Supply Chain Management

Supplier Audits: 270+ suppliers registered with Sedex; environmental scorecards for suppliers representing approximately 40% of raw material spend.

Responsible Procurement

• Firmenich Social Accountability Standards; Supplier Social Accountability Program; requiring all suppliers to formally commit to standards; responsible sourcing platform in naturals.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clearwood™ (sustainable ingredient from white biotechnology platform); Muscone Laevo (readily biodegradable musk); TasteGEM® portfolio (sugar reduction solutions); SaltPrint® portfolio (salt reduction solutions).

Awards & Recognition

• CDP Supplier Climate Performance Leadership Index 2015; CDP Best Improver in Switzerland; various awards from New Jersey for Port Newark facility; customer awards for product and service quality.

Environmental Metrics

ESG Focus Areas

• Ethics and Excellence
• Environment and Resources
• Innovation, Science and Society
• Partnerships
• People and Communities

Environmental Achievements

• Reduced Scope 1 and Scope 2 CO2 emissions by 4.9% compared to FY15
• Reached zero waste-to-landfill at 40% of manufacturing sites
• Sourced 61% of electricity from renewable sources or offsets
• Achieved a perfect 100A score in the CDP Supplier Climate A List

Social Achievements

• Improved safety performance by 41% (TRC rate of 0.25)
• Assessed 50% of the company against Gender Equal Pay Principles
• Extended apprenticeship program to five countries
• Involved in 15 responsible sourcing projects

Governance Achievements

• Trained 99% of employees on the Code of Ethics and Business Conduct
• Became the first Fragrance and Flavor House to use CDP Supply Chain Climate Change and Water Reporting
• Received the DuPont Safety & Sustainability Award for Operational Excellence

Climate Goals & Targets

Environmental Challenges

• Reducing water consumption in Shanghai, China due to increasing manufacturing capabilities
• Reducing waste generation rate by 15%
• Ensuring 100% of manufacturing sites achieve zero waste-to-landfill
• Eliminating R22 refrigerant by 2020
• Achieving 100% renewable electricity for Level 1 sites

Mitigation Strategies

• Installing additional water metering systems and developing a comprehensive water footprint model in Shanghai
• Investing in various projects to improve environmental performance (CHF 6.91 million)
• Implementing initiatives to reduce R22 use, including using less damaging refrigerants
• Investing in renewable energy and efficiency projects (e.g., renewable briquette boiler in India)

Supply Chain Management

Supplier Audits: 86 audits in FY16

Responsible Procurement

• Supplier Code of Business Conduct and Social Accountability Standards
• Naturals Together campaign
• RSPO-certified palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CLEARWOOD®, AMBROX® SUPER, JOSENOL™, alcohol-free fragranced microemulsions

Awards & Recognition

• DuPont Safety & Sustainability Award 2015
• Ethical Corporation’s Sustainability Head of the Year
• SEPAWA Innovation Award
• Livelihoods Carbon Fund named “Best Corporate Offsetting Program”

Environmental Metrics

ESG Focus Areas

• Governance
• Growth
• Green

Environmental Achievements

• Reduced absolute Scope 1 and 2 CO2 emissions by 12.1% vs. FY15 baseline
• 78% of electricity from renewable sources or offsets
• 41% reduction in waste to landfill vs. FY15 baseline
• 5.6% reduction in water use in stressed areas vs. FY15 baseline

Social Achievements

• Launched TastePRINT™ natural sweetener solution, reducing sugar in customer products by over 150,000 tonnes
• Commitment to becoming a 100% certified gender equality employer by end of 2018
• Improved safety performance by 51% vs. FY13 baseline
• Launched Human Rights Policy Statement

Governance Achievements

• Continued to promote a culture of ethics and legal compliance
• Updated Code of Ethics and Business Conduct
• Launched Firmenich Hotline for confidential reporting of concerns

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions in key fragrance ingredients
• General cost inflation
• Water scarcity in some regions
• Managing Scope 3 emissions

Mitigation Strategies

• Engaged with key suppliers and customers to ensure continued supply
• Prioritized actions at ten sites with highest water risk
• Engaged suppliers through CDP to disclose environmental impact
• Set science-based target for reducing Scope 3 emissions

Supply Chain Management

Supplier Audits: 163 audits across Latin America, North America, Europe and Asia

Responsible Procurement

• Firmenich Social Accountability Standard
• Supplier Social Accountability Program
• Naturals Together™ program
• Deep Roots program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 12 (Responsible Consumption and Production)
• SDG 17 (Partnerships for the Goals)

Firmenich's initiatives contribute to these goals through responsible sourcing, water conservation, waste reduction, and partnerships with NGOs and other organizations.

Sustainable Products & Innovation

• Hivernal® Neo
• Bio-based version of Z11

Awards & Recognition

• 2017 DuPont Sustainability Award
• CDP’s Supplier Climate A List (4 consecutive years)
• CDP’s Water Security Leadership A position
• EcoVadis Gold rating (82/100)

Environmental Metrics

ESG Focus Areas

• People
• Nature
• Climate Change

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions by 44.9% vs. FY15 baseline
• Achieved 100% renewable electricity in all operations worldwide
• Reduced water use in water-stressed areas by 15.4% vs. FY15 baseline
• Reached zero manufacturing waste-to-landfill

Social Achievements

• Launched Firmenich Sustainability Academy, training 71% of the workforce on SDGs
• Improved safety performance by 57% vs. FY15 baseline, achieving a 0.18 Total Recordable Case (TRC) rate
• Achieved gender parity on the executive team
• Launched SmartProteins™ solutions for meat analogs

Governance Achievements

• Refreshed code of ethics
• Relaunched human rights policy and a new responsible sourcing approach
• Received Platinum rating from EcoVadis

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business model, supply chain, and people
• Supply chain disruptions
• Meeting ambitious science-based targets

Mitigation Strategies

• Implemented extensive health and safety precautions
• Donated hand sanitizer to communities
• Implemented a dual approach to maintain communication with customers and understand consumer needs during the pandemic
• Focused on increased efficiency, renewables, and fuel-use changes to meet climate targets

Supply Chain Management

Supplier Audits: 100% of Supplier Audit Plan executed in FY20

Responsible Procurement

• Code of Conduct
• Responsible Sourcing Policy
• EcoVadis platform for supplier reporting
• CDP supply chain program for environmental data

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 45001 (over 80% of manufacturing sites), EDGE certification (renewal started in 2020)

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

Initiatives contribute to these goals through renewable energy use, waste reduction, emissions reductions, biodiversity protection, and sustainable sourcing.

Sustainable Products & Innovation

• Dreamwood™
• Sorbettolide®
• SmartProteins™

Awards & Recognition

• IMD-Pictet Sustainability in Family Business Award
• CDP Triple A score
• EcoVadis Platinum rating
• RoSPA Gold Award
• RoSPA Dilmun International Environmental Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• People
• Business Ethics
• Corporate Governance

Environmental Achievements

• Reached carbon neutrality in two manufacturing sites (Singapore and South Africa) in FY20.
• Achieved 100% renewable electricity globally in 2020.
• Reduced Scope 1 and Scope 2 emissions by 37.1% vs. 2017.
• Reduced Scope 3 emissions from purchased goods and services by 2.6% vs. 2017.
• 96.3% ultimately or partially biodegradable ingredients in fragrance portfolio.
• 97.9% landfill-free.

Social Achievements

• Achieved no gender pay gap.
• 79% of employees feel they belong at Firmenich.
• 0.23 Total Recordable Case (TRC) rate.
• Zero human rights non-compliance in operations.
• 47% of Senior Leaders are diverse.
• Launched a digital tool for visually impaired panelists in China.

Governance Achievements

• Received a triple “A” rating from CDP in Climate, Water and Forests for the third year in a row.
• Rated in the top 1% of companies rated worldwide by Sustainalytics.
• Completed the SDG Action Manager assessment.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Challenges in measuring biodiversity impacts.
• Need for improved tracking of community engagement efforts.

Mitigation Strategies

• Implemented extensive health measures across sites to keep people safe during the pandemic.
• Joined global coalitions to accelerate business-driven solutions towards biodiversity recovery.
• Developed a new corporate policy on community relations with clear guidelines for engagement.

Supply Chain Management

Supplier Audits: 154 audits/year

Responsible Procurement

• Code of Conduct
• Responsible Sourcing Policy
• Supplier Expectations Manual
• EcoVadis and Sedex assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable ingredients.

Reporting Standards

Frameworks Used: GRI Standards (Core options), SASB Materiality Map, UN Global Compact, OECD Guidelines for Multinational Enterprises, Science Based Targets initiative

Certifications: ISO 14001, ISO 45001, EDGE Move

Third-party Assurance: SGS Société Générale de Surveillance SA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Firgood™ collection
• SmartProteins® solutions
• Dreamwood™ ingredient

Awards & Recognition

• CDP triple A rating
• Sustainalytics top 1% rating
• Financial Times Climate Leaders Europe list
• EDGE Move certification