A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability This year, we aimed to cover 53 of the 158 prioritised Naturals progress of this through our regular supplier review process Advanced Level materials families for further verification by the end of 2021. We and through specific assessment and audit activity. Where At the Advanced level, we select a small number of key supply approach this through factory- and farm-level third-party Givaudan sees that a supplier cannot, or will not, take the chains from our prioritised list for a deeper level of activity. Within audits in supply chains selected in collaboration with necessary actions to demonstrate compliance, over an agreed this context, we develop flagship and transformational projects Procurement. For now, we have reached 38% of this target. timeline, then Givaudan may take the necessary steps to seek through collaboration with external stakeholders. We currently Some audits had to be postponed, either because certain alternative supply of a particular material or service. have 24 projects ongoing in our Naturals supply chains. Our goal harvest periods had already passed before the launch of is to increase this number by starting new projects in collaboration Sourcing4Good in April 2021 or because of the continued with our customers and suppliers in the years to come. COVID-19 situation. Due to business needs, we also added two additional raw materials families to the list in 2021. This year should be seen as a transition year: a period of acclimatisation is needed for our teams and suppliers to implement this new Palm oil - Earthworm Foundation approach. Audits that could not be carried out have been postponed and integrated into the 2022 roadmap. Aceh, Indonesia’s northernmost cropland. Through the Earthworm farmers, improving their resilience, province, had lost 300,000 hectares Foundation landscape programme and at the same time protecting Givaudan reserves the right to periodically request and of its forest since 2001, with the in Aceh, Givaudan’s support the forest from destructive undertake social and environmental audits at any supplier’s primary drivers being the expansion contributes to developing agricultural practices. facilities, in any part of their extended supply chain, including at of palm oil plantations and other alternative livelihoods for palm oil Following a feasibility study in farm level. This may be through the use of an internal protocol June 2021, Earthworm identified or a third-party ethical audit. Suppliers are expected to pay nutmeg, corn, and chilies as when third-party audits are requested as this allows them to potential crops for intercropping in own the data and share reports with other customers without palm oil plantations. As an initial having to undergo further similar audits within the same or step in piloting the alternative similar timeframe. Givaudan expects to discuss the results of livelihood programme, the such audits with the supplier: areas for improvement will be participatory land-use planning clearly identified and a corrective action plan agreed. (PLUP) process was completed in Bawan village, Subulussalam district. Givaudan expects any supplier who has been audited to resolve Based on PLUP, the community any major or critical non-conformities within a timescale agreed to allocate 675 hectares for agreed with the supplier and to provide supporting livelihood and 650 hectares for documentation as requested. Any audits conducted, whether conservation. Corn will be the first through internal or third-party means, will normally need to be crop to be intercropped on repeated within a three-year timeline. Givaudan will work with 30 hectares of palm oil plantations their suppliers to ensure this process is maintained. We know starting in 2022. that some challenges can take time to overcome and this will be considered where applicable. We monitor and measure 112 Givaudan — 2021 GRI Sustainability Report