A year in review Economic / Governance Environment Social Appendix Innovation capabilities & management Upcycling us to align needs with solutions. Areas that we’re actively We look for all supplier collaborations to ultimately feed and A key differentiator that pushes us to rethink how we access, investigating include food texture and technologies and fuel our innovation activities in different ways, each develop and invent ingredients for our portfolio and creative solutions that contribute to renewability and biodegradability, contributing to our efforts of creating together a responsible palette is upcycling. This involves transforming co-products, two clear focus areas in helping us meet our nature ambitions. and sustainable future. waste materials, useless or unwanted products into new ingredients for products that are of improved quality and One example of successful co-creation is our partnership with Leading the industry’s digital innovation sustainable for the environment. Upcycled materials are supplier Chr. Hansen. It started out with our bringing them into An emerging ecosystem of digital and AI tools is transforming obtained from the re-use of natural or synthetic materials that MISTA, which features a product development facility in San our industry. Pioneering tools open new doors to creative are normally disposed of or downgraded. These materials are Francisco and member-based online innovation platform. development can dramatically cut the time to market for new then transformed into ingredients used by Givaudan in, for Established by Givaudan, we set up MISTA to help start-ups and products. The Company’s 2025 strategy includes leading the example, our creative palette or in our ingredient portfolio. well-known corporations collaboratively optimise ideas, way in digitalisation, ultimately allowing Givaudan teams in Upcycling is a cross-divisional, cross-functional programme products and people. Chr. Hansen joined to accelerate its all regions of the world to streamline the end-to-end creation that supports our Purpose and Nature goals. Sponsored by the activities in fermented plant-based products. This led to a cross- process from conception to rollout. With this, we aim to Executive Committee, the programme is a great example of company project team with Givaudan and other partners significantly shorten the product development cycle, increase how we strive to use our business as a force for good. getting together to develop state-of-the-art, clean label, dairy- the chances of successful launch, and at the same time like, stirred yoghurt concepts. Combining the deep technical provide consumers with personalised recommendations and A recent example is NeoPeach Orpur® - the result of innovative expertise from each organisation and giving partners a chance market products. collaboration between Givaudan’s flavourists and perfumers. to learn from each other allowed the team to meet the challenge Developed sustainably by our Naturals Innovation team by with market-ready, fully developed, innovative ingredients. To lead our industry’s digital transformation, a dedicated upcycling side streams from juice production, NeoPeach innovation team works with the business divisions and Orpur® is an exquisite and natural peach ingredient, the first In our strategic partnership with the biotech company functions, exploring opportunities to enable our strategy. The natural peach extract of its kind. This sustainable process Novozymes, we work on the research and development of work is organised around three pillars: inspiring the allows both divisions to benefit from the low carbon natural innovative sustainable solutions in the areas of food and cleaning. organisation by stimulating and encouraging new ideas; extract, using it as an ingredient in both fragrances and food. Novozymes brings innovation with extensive know-how in Executive Committee-level governance to prioritise topics; a enzymes and microorganisms with substantial investments in ‘digital factory’, which is an internal incubator for fast-paced Supplier enabled innovation technology and R&D. Being the world leader within biological experimentation of the most promising ideas. Another approach to innovation involves mobilising the solutions, Novozymes drives sustainable solutions. supply chain to foster innovation through co-creation. This Generally, we take every opportunity to harness the opportunities allows us to go beyond what we can do on our own. As part of our Supplier Enabled Innovation programme, we have available in our increasingly interconnected world. We continue a strategic initiative with a selected number of partners called to invest in our digital capabilities throughout the value chain, Innovation with suppliers has multiple facets, from creating ‘Connect to Win’. Its aim is to unlock value from our existing including AI and big data, robotic process automation and new ingredients, getting access to newness for co-creation supplier relationships and create a pipeline of technological traceability. Some of the strategic areas we are exploring include and advancing with best-in-class ingredients to deliver better innovations that differentiate us in the market. It is a structured, how AI and big data can transform our creations and reduce our product performance. Of our numerous suppliers, we engage open door approach that acknowledges the possibilities of environmental footprint. We also use technology to learn more some 300, from large to small and from global to local, in adding significant value to our existing procurement approaches about consumer behaviours and thus offer customer-relevant discussions about innovation. Selective matchmaking allows while creating value in Givaudan’s innovation agenda. innovations that promote collaboration and data exchange. 46 Givaudan — 2021 GRI Sustainability Report