A year in review Economic / Governance Environment Social Appendix Environmental performance indicators Emission calculation methodologies Purchased goods and services Capital goods Scope 3 model evolution Raw materials The figures are calculated through the ESCHER model on the The modelling of scope 3 carbon emissions is an iterative process For Natural and Synthetic raw materials, figures are estimated basis of financial values of hardware purchased during 2015. The based on science that is still evolving. We started our efforts in according to process-based modelling using individual modelling 2021 GHG emission figure was calculated by using the 2015 ratio this area in 2017 with our first full scope 3 inventory based on per substance and considering all physical inputs (energy, between spend and GHG emissions and extrapolating to the financial activity data using the so-called ESHER model. This is fertilisers, etc.). The model allows us to identify the carbon 2020 spend figure. an extended multi-regional input-output model based on Global footprint of each substance using its weight (kg) and the most Trade and Analysis Project (GTAP) data in addition to internal accurate emission factors. Emission factors are based on data Fuel-and-energy-related activities modelling for categories like business travel, packaging, waste from global generic Life Cycle Inventory databases (ecoinvent, (not included in scope 1 or 2) and transport. World Food LCA Database) and internal primary data. Specific The calculation considered the primary energy carriers for the emission factors are used for substances representing the production of heat, electricity and steam, and the technology Since then, the model has gone through several evolutionary highest volume purchased. Proxies have been extrapolated for standard in the countries of the respective sites. The data basis steps. We have begun modelling our raw material with a others. The model has been applied on purchased data from for the life-cycle inventory is the ecoinvent database 3.6 process-based approach that applies the best available proxy 2015, 2020 and 2021, which allows us to establish the current (method: IPCC 2013, 100 years). The scope 3 emissions were data from verified generic databases like ecoinvent or our performance and the 2015 baseline. The baseline is recalculated estimated directly through the analysis of the respective own LCA data. We have also added granularity and accuracy for the acquisition according to the GHG protocol standard using ecoinvent datasets by subtracting scope 1 and 2 emissions from through the inclusion of additional packaging categories and the amount of raw material purchased by the acquired entity. overall emissions. Scope 3 emissions for the delivery of electricity new classes of travel for business trips. We are continuing (infrastructure, grid losses and direct emissions) have also been with the evolution of our model by implementing more details Indirect material and services accounted for. on the concentration of our product, integrating allocation For other Indirect materials & services categories (excluding principles and taking dedicated proxies for the main processes existing categories), figures are calculated through the ESCHER Upstream transportation and distribution in our supply chain into account. model – an extended multi-regional input-output model based We monitor the environmental impact of transportation (air, on Global Trade and Analysis Project (GTAP) data – on the basis ship and road) by calculating the associated GHG emissions. These modifications all imply potentially important changes, of financial values of materials purchased during 2015 and the We do this through a model that tracks all transport either increases or decreases, in the data and the modelling of country of origin. The 2021 GHG emission figure was then movements through our SAP system (by mode of transport), our scope 3 emissions. This is a necessary part of the journey and calculated by using the 2015 ratio between spend and GHG from delivery to receipt locations of raw materials. To we will be sure to recalculate our baseline accordingly, as emissions and extrapolating to the 2021 spend figure. calculate the GHG footprint, we use emission factors per required by the GHG protocol. mode of transport according to the Cefic (European Chemical Packaging Industry Council) guideline. We actively advocate for more transparency and alignment in For packaging materials, the figure was calculated by this area, as was done decades ago for financial reporting, by extracting the number of units used for each type of packaging We have integrated recent acquisitions for which we did not participating in several relevant initiatives such as the WBCSD used at Givaudan from the Company’s ERP database. This have data in SAP by using production tonnage proxy to pathfinder of the TfS (Together for Sustainability) workstream number was multiplied by the carbon footprint figure for the extrapolate their impacts. on scope 3 emissions. type of packaging (as received from suppliers or in publicly available databases). The totals for each type of packaging were consolidated to give a total Givaudan figure. 83 Givaudan — 2021 GRI Sustainability Report