A year in review Economic / Governance Environment Social Appendix Responsible sourcing & traceability level of supplier engagement, activities and efforts across our full portfolio of spend in Naturals, Synthetics and Indirect Prioritisation of Naturals Materials & Services (IM&S) APPLIED CRITERIA Materials begin their ‘sourced responsibly’ journey at the Active ADVANCED level. Here, the supplier is made aware of our responsible Risks sourcing practices and expectations. • Social Approx. 150 Naturals Raw • Environmental Prioritisation COMMITTED material families Further along, suppliers may enter the Engaged level, which implies involvement in our due diligence process and risk & Business relevance impact assessment. At the Committed level, suppliers are • Customer focus ENGAGED committed to our responsible sourcing practices. We work with • Iconic them to secure the essential materials and services we need. • Usage in formulation Finally, at the Advanced level, we implement collaborative and transformative activities with our suppliers and customers, Spend ACTIVE developing flagship projects together. • Top 80% The launch of the Sourcing4Good programme gave us the opportunity to review our key responsible sourcing targets All Naturals Raw Materials Families & ~2,500 Tier 1 suppliers and KPIs. We will pursue them based on focused efforts that (excl. Synthetics and IM&S) are targeted to the different levels of Sourcing4Good activity: it is a progressive approach based on prioritised action. The Sourcing4Good levels are assigned through an integrated With Naturals, prioritisation is indispensable. We source a large In 2021, we joined the Together for Sustainability (TfS) operating model that embeds responsible sourcing processes number of natural ingredients derived from hundreds of raw organisation to collaborate with other members to drive and within the day-to-day work of Procurement. Our ambition for materials, and the work is already well underway. We applied accelerate our integration of responsible sourcing to the 2021 was to begin the process of transitioning certain tasks and six criteria in the prioritisation process, consulting various categories of global synthetics and indirect Materials & responsibilities to allow the Naturals Procurement team to departments and using data from both an external database Services (IM&S) suppliers. Following a thorough onboarding better manage the trust and supplier compliance element of the and SAP. This resulted in a list of 158 natural materials process, we have set initial targets for audits and assessments Sourcing4Good programme. To this end, we have implemented warranting prioritised action: our aim is for them to reach, at a for some global synthetics and IM&S suppliers for 2022, and Standard Operating Procedures (SOPs), developed tools, and minimum, the Sourcing4Good Committed level in the coming will begin the implementation of the programme to cover built capability through various training sessions: to date, we years. Though all raw materials of a natural origin are in scope these categories in Q1 2022. have carried out 5 training modules spread over 8 sessions for for our 2030 target, the 158 raw materials families will receive 52 colleagues, representing 48% of the Naturals team. We will accelerated and deeper-level activity between now and 2025. continue this work next year and beyond to include the This is a significant increase from the 51 materials families that synthetics and IM&S procurement teams. formed the basis of our 2021 targets. 110 Givaudan — 2021 GRI Sustainability Report